Coal-rich regions have long been central to global energy supply chains due to their abundant fossil fuel resources. With the growing emphasis on decarbonization, these regions are exploring hydrogen production from coal gasification as a transitional strategy. Exporting this hydrogen to energy-importing nations presents both opportunities and challenges, particularly when using carriers such as ammonia or liquid organic hydrogen carriers (LOHCs). The feasibility of such exports depends on technical, economic, and geopolitical factors that shape supply chain dynamics.
Coal gasification with carbon capture, utilization, and storage (CCUS) can produce blue hydrogen, which, while not emissions-free, offers a lower-carbon alternative to conventional fossil fuels. The hydrogen must then be converted into a transportable form. Ammonia and LOHCs are leading candidates due to their higher energy density and established handling infrastructure compared to pure hydrogen. Ammonia, in particular, benefits from an existing global trade network, while LOHCs offer advantages in safety and reversible storage.
The supply chain for hydrogen exports from coal-rich regions involves multiple stages: production, conversion, transportation, and reconversion. Coal gasification plants must be integrated with CCUS facilities to minimize emissions, adding complexity and cost. The hydrogen is then converted into ammonia via the Haber-Bosch process or bound into LOHCs through hydrogenation. Both processes require additional energy inputs, reducing overall system efficiency.
Transportation logistics vary by carrier. Ammonia can leverage existing maritime infrastructure, including specialized tankers and port facilities, making it a practical choice for long-distance shipping. LOHCs, while less established in global trade, can use conventional oil tankers after minor modifications, reducing initial infrastructure costs. However, both carriers require energy-intensive reconversion at the destination, impacting the economic viability of the entire supply chain.
Economic feasibility hinges on production costs, transportation expenses, and end-market pricing. Coal-based hydrogen production is cost-competitive in regions with low coal prices, but CCUS adds significant expenditure. Ammonia synthesis and LOHC hydrogenation further increase costs. Transportation expenses depend on distance and carrier type, with ammonia generally cheaper for bulk shipping. Reconversion costs, particularly for LOHCs, can be prohibitive if not optimized.
Geopolitical considerations play a crucial role in determining the viability of hydrogen exports. Coal-rich nations, such as Australia, the United States, China, and South Africa, could position themselves as key hydrogen suppliers. However, their ability to export depends on international partnerships, trade agreements, and regulatory alignment. Energy-importing countries, particularly Japan, South Korea, and parts of Europe, have already expressed interest in hydrogen imports, creating potential demand.
Trade policies and certification schemes will influence market access. Countries with stringent decarbonization policies may impose carbon intensity requirements on imported hydrogen, favoring producers with robust CCUS systems. Certification mechanisms for low-carbon hydrogen are still under development, and coal-rich exporters must ensure compliance to remain competitive.
Energy security dynamics also come into play. Traditional fossil fuel exporters may leverage hydrogen to maintain their influence in global energy markets, while importers seek to diversify supply chains to reduce dependency on specific regions. Geopolitical tensions or trade disputes could disrupt hydrogen flows, mirroring challenges seen in oil and gas markets.
Infrastructure investments are critical for scaling hydrogen exports. Coal-rich regions must develop integrated production and conversion facilities, while importers need reconversion and distribution networks. Port upgrades, specialized storage, and transportation fleets require substantial capital, often necessitating public-private partnerships.
Environmental concerns remain a challenge. Even with CCUS, coal-based hydrogen production generates emissions, raising questions about its role in a net-zero future. Methane leakage from coal mining and carbon sequestration risks could undermine the climate benefits of blue hydrogen. Sustainable sourcing of LOHC feedstocks is another consideration, as some carriers rely on fossil-derived aromatic compounds.
Market competition will shape the long-term prospects of coal-derived hydrogen exports. Renewable hydrogen, produced via electrolysis using solar or wind power, is becoming increasingly cost-competitive. Regions with abundant renewables may outcompete coal-based suppliers unless the latter achieve significant cost reductions or policy support.
In summary, exporting hydrogen from coal-rich regions via ammonia or LOHCs is technically feasible but faces economic and geopolitical hurdles. Supply chain efficiency, infrastructure readiness, and international cooperation will determine its scalability. While coal-based hydrogen offers a transitional solution for energy security and emissions reduction, its long-term viability depends on advancements in CCUS, cost reductions in carrier technologies, and alignment with global decarbonization goals. The geopolitical landscape will further influence trade patterns, with coal-rich nations needing to navigate policy frameworks and market demands to establish themselves as reliable hydrogen suppliers.
The success of such exports will ultimately rely on balancing cost competitiveness, environmental performance, and strategic partnerships in an evolving energy market.