EdTech Insight – Digital twins: Capturing value from renewable hydrogen megaprojects

by | May 1, 2024 | McKinsey, News & Insights

Executive Summary and Main Points

The advancement of large-scale renewable hydrogen production plants is paramount in the pursuit of global decarbonization. Currently, the hydrogen demand is prompted predominantly by the fertilizer and refining industries, relying mainly on grey and blue hydrogen. However, to support net-zero ambitions, significant investment is required, and scaling up to “gigascale” green hydrogen projects could necessitate an estimated $700 billion. Digital twin technology is emerging as a critical tool to minimize investment risks, save costs, and expedite the timelines of such projects. This article dives into the challenges of renewable hydrogen production and how digital twins could be a game-changer in optimizing plant economics and investor confidence.

Potential Impact in the Education Sector

The renewable hydrogen production technology, particularly the application of digital twins, holds potential transformative impacts for Further Education, Higher Education, and Micro-credentials. Institutions could embed such innovative technologies within their curricula, spurring new interdisciplinary studies combining engineering, environmental sciences, and digital transformation. Strategic partnerships with industry innovators could provide hands-on learning experiences, internships, and research opportunities. Micro-credentials could evolve focused on digital twin technology expertise, ensuring graduates are workforce-ready for emerging renewable energy sectors.

Potential Applicability in the Education Sector

Innovative AI applications like digital twins present new opportunities for global education systems to adapt and evolve. Educational institutions can employ digital twins to simulate and optimize campus operations, reduce carbon footprint, and manage energy use efficiently, thereby not only saving costs but also demonstrating commitment to sustainability. Moreover, these tools can be used for research purposes, offering students and faculty a cutting-edge platform to engage with complex systems modeling and analysis relevant to their study fields.

Criticism and Potential Shortfalls

While the promise of digital twins in boosting renewable hydrogen production is evident, there are potential shortfalls to consider. A comparative international case study might reveal differences in technology adoption rates and challenges due to varying regulatory and infrastructural landscapes. Ethical and cultural implications could arise concerning data privacy, security, and the potential displacement of traditional jobs. It is crucial to analyze the real-world functionality of these systems critically and assess their true efficacy and unintended consequences in different contexts.

Actionable Recommendations

For international education leaders looking to implement or explore these technologies, some actionable strategies include developing specialized programs and partnerships with key industry players. Incorporating simulation and modeling tools like digital twins into curricula and research can prepare students to meet the needs of the energy sector. Additionally, investing in campus infrastructure projects that utilize these digital tools can serve as living labs, inspiring innovation and practical learning. Lastly, creating a global collaborative network on research for digital twin technology in renewable energy could enhance knowledge sharing and accelerate advancements.

Source article: https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/digital-twins-capturing-value-from-renewable-hydrogen-megaprojects