INTERVIEW - Unlocking cost savings in hydrogen supply chain with AI

In today's rapidly evolving landscape of energy solutions, AI and digital technologies are increasingly recognised as key tools in optimising the efficiency and sustainability of various industries. In this interview, Andrea Ruotolo, Global Head, Customer Sustainability at US industrial automation and digital transformation company Rockwell Automation, sheds light on the potential of AI and digital solutions in the development of the hydrogen supply chain and explores how these technologies can streamline operations, cut costs and enhance safety.

Q: How can digital solutions and AI be applied within the hydrogen supply chain, and in what ways can AI contribute to overcoming the hurdles faced in the development of a hydrogen economy?

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Digital solutions and AI can be applied in numerous ways across the hydrogen supply chain from production, storage and transportation to distribution, and end-use. We can use them to optimise production. For example, AI algorithms can predict the most efficient times to produce hydrogen based on factors such as energy prices, demand, and supply, especially for electrolysis processes powered by renewables.

Another way is to enhance safety and monitoring. With IoT sensors combined with AI, we can monitor the health of equipment, predict failures in more effective ways, and optimise maintenance schedules, ensuring the reliability and safety of hydrogen storage and transportation. I think that is a very important point because it is about taking care of people and infrastructure, which is quite costly, and taking care of the communities where the systems are in place as well.

AI can also help improve distribution logistics by optimising routing for hydrogen transport. It can take into consideration factors like demand fluctuation and storage capacities, reducing overall energy use and cost. That is important because as we keep optimising processes in this case for distribution logistics, we are helping reduce emissions and reduce the use of resources.

Another way in which AI can help is through demand forecasting. With accurate forecasting, we can help adjust production levels, avoid wastage, and ensure that supply meets demand most effectively. I think these applications are quite critical for overcoming high production costs, storage and transportation challenges, and safety concerns, which are all real concerns that the market has right now.

Q: Could you elaborate on the impact of AI and digitalisation on cost optimisation within the hydrogen rollout process based on Rockwell Automation's experience?

On average, efficiency gains vary depending on the specific project's characteristics. However, typically, we observe efficiency improvements of around 15%. Regarding predictive maintenance, we can achieve a substantial reduction in equipment downtime, about 35%. It's important to note that these estimates are high-level and may vary based on individual circumstances. For instance, a 15% increase in energy efficiency translates differently depending on the project's scale and context. Therefore, it is essential to quantify these percentages into monetary figures for each project, allowing stakeholders to assess their potential benefits accurately.

Q: Can you provide examples of AI-driven technologies currently utilised in hydrogen production, storage, or distribution?

Examples of AI-driven technologies in hydrogen include electrolysers powered by AI. These electrolysers are controlled by AI algorithms, enabling more efficient use of renewable energy by adjusting hydrogen production rates based on the availability of solar or wind energy. This optimisation results in enhanced energy utilisation and cost reduction. Additionally, predictive maintenance plays a crucial role. By leveraging AI, it becomes possible to predict when equipment in the supply chain might fail or need maintenance, and therefore avoid costly downtimes and ensure continuous operations. Furthermore, AI can be utilised for leak detection, a critical aspect in enhancing safety and efficiency across hydrogen storage and transportation infrastructure.

Q: Looking ahead, what transformations or advancements do you anticipate as AI continues to integrate into the hydrogen economy, and how might these changes shape the industry's trajectory?

AI could enable better integration of hydrogen production and storage with smart grids. Therefore, it can allow hydrogen to access the energy storage medium to balance grid demand, which is quite important as we need that integration to reduce emissions as we operate the electrical grid more effectively.

Furthermore, AI has the potential to facilitate more localised and decentralised hydrogen production and supply chains, thereby reducing transportation costs and increasing hydrogen accessibility. This approach also contributes to building a resilient energy system by positioning production closer to points of use. Another significant aspect is Advanced Materials Discovery, where AI-driven research into new materials for hydrogen storage and fuel cells holds promise for cost reduction and efficiency improvement.

Moreover, AI can play a crucial role in navigating complex regulatory landscapes, particularly for companies operating globally. It ensures compliance and enhances safety protocols through continuous monitoring and adaptive learning algorithms. By understanding regulatory nuances and leveraging operational data patterns, AI enhances safety and ensures regulatory compliance across global projects.

I believe there is genuine interest in the market, but we are currently in a phase where educating people about the potential is crucial. People are interested, but without understanding what is achievable, they are not actively seeking it out. As a company, we are focusing on educating our customers about the possibilities of technology to enhance worker conditions while also cutting costs. The utilisation of hydrogen will gain traction once safety and costs reach optimal levels. However, we are not there yet, and it is essential for people to understand what is feasible.

I see it as a leadership role where corporations are planting the seeds for future benefits. Those who are planting the seeds now, I think that they are the ones who are going to reap the benefits later. It is about recognising the necessity of implementing this technology as part of our energy transition and future. We need to start moving in that direction!