Primary and final energy demand per capita or per gross domestic product (GDP) is quite high, which reflects the large losses at each level of energy conversion and use. This section stresses the fact that energy use will have to become much more efficient before hydrogen as a final energy carrier becomes attractive, given its relatively high generation cost. The option of energy and material efficiency is often forgotten, owing to a traditionally supply-oriented energy policy and the fact that efficient solutions of material end-energy use have so far remained without powerful lobbying institutions. The world of energy and material efficiency – which represents the most profitable option for many decades in this century – has to be tackled before hydrogen stands a chance of becoming a major final energy carrier and finds its place within a sustainable energy system in industrialised countries.

Present energy losses – wasteful traditions and obstacles to the use of hydrogen

In 2003, almost 450 000 PJ of global primary energy demand delivered around 295 000 PJ of final energy to customers, resulting in an estimated 141 000 PJ of useful energy after conversion in end-use devices. Thus, around 300 000 PJ – or two-thirds – of primary energy are presently lost during energy conversion, e.g., in power plants, refineries, kilns, boilers, combustion engines and electrical motors, mostly as low- and medium-temperature heat. These losses also include the small share of losses from the transmission, transformation and distribution of grid-based energies (see Fig. 20.1).