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Water’s no obstacle to green hydrogen

Water’s no obstacle to green hydrogen

With an expansion of the electrolysis capacity to 10 GW, water demand in German would barely rise. In consideration of climate change, however, the German association for gas and water standards (Deutscher Verein des Gas- und Wasserfaches, DVGW) advises implementation of an integrated system of water management.

This declaration by DVGW expert Dr. Florencia Saravia is straightforward and logical: “No green hydrogen without water.” The Deutscher Verein des Gas- und Wasserfaches e.V. has investigated what amount of water will be required for the production of green hydrogen by electrolysis. The result is clear: The drinking water supply in Germany will not be affected by this. Even with an electrolysis capacity of 40 GW, total water demand in Germany would only increase by less than one percent.

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The water demand has more than halved since 1991, to 20 billion m3 (5,300 billion US gal). The main user is the energy industry, with 44 percent of the withdrawal. It mainly requires cooling water. This, however, is not consumed but, for the most part, fed back into the water system to be recycled. Increasing is the demand of agriculture. For irrigation alone in 2019, nearly 450 million m3 of raw water was used. In comparison to this, the amount of water calculated by the DVGW required for the targeted electrolysis capacity of 10 GW by 2030, namely 9 million  m3 freshwater, is highly manageable in relation.

Production of ultrapure water

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For the production of green hydrogen, ultrapure water is required. Via various process steps – pre-treatment, make-up/desalination, polishing/post-treatment – the raw water must be brought to the appropriate purity. The aim is to achieve a water quality of type I or II, explained Saravia. Depending on the manufacturer and the type of electrolyzer, there may be different specifications and requirements of the ultrapure water.

As a rule of thumb: 10 kg ultrapure water yields one kilogram hydrogen. In addition to that, cooling water is required for the operation of the electrolyzer. To be considered is also the nature of the raw water. If seawater is used, the yield will be 40 to 50 percent; with other sources like groundwater, it can reach 75 to 80 percent. Left behind is the separated concentrated brine.

Which water sources will be tapped depends primarily on the location. If hydrogen is produced inland, purified wastewater can be considered in addition to surface and groundwater. Water already processed for drinking should not be used, according to the DVGW. Near the sea, desalinated seawater is also an option.

For offshore wind farms, two main options are available. If electrolysis takes place directly at sea, desalinated seawater is likely to be the material of choice. If, on the other hand, the electricity is first transported onto land and the hydrogen is produced there, the mentioned onshore options are instead available. According to a study by the foundation Stiftung Offshore-Windenergie that looks at the current plans, a third of the electrolysis capacities are to be installed offshore and the rest onshore.

Climate change factor

Despite the very small water requirement for electrolysis in context, climate change and its effects are becoming an increasingly important factor in the supplying of water. Here, the DVGW advises a supply strategy adapted for each location. Particular attention should be paid to regions that have been more severely affected by drought in recent years, like Brandenburg, Sachsen-Anhalt or Niedersachsen. Besides the use of seawater, Saravia advises in particular the use of effluent from wastewater treatment plants.

Here, policymakers should also get involved. Because the tapping of new water resources would also require new permitting laws, claims the DVGW. Clarified must also be how to handle the water discharged from electrolysis plants. For this, according to Saravia, several projects are currently underway.

Author: Michael Nallinger
Source: DVGW

More hydrogen infrastructure for commercial vehicles

More hydrogen infrastructure for commercial vehicles

Bit by bit, Germany is beginning to expand its refueling network for hydrogen-powered commercial vehicles. The country’s existing 93 hydrogen stations, managed by H2 Mobility, are primarily designed for fuel cell automobiles and lack the capacity needed to fill up multiple trucks and buses. However Jan. 11, 2023, saw the opening of one of Europe’s highest capacity hydrogen refueling stops in Berlin, signaling the start of infrastructure build-out for hydrogen trucks.

At the new Tempelhofer Weg hydrogen station in Berlin, 850 kilograms of hydrogen can be dispensed on a daily basis – a great deal more than at previous forecourts. The main takers will initially be BSR refuse vehicles (currently 6 and increasing to 24) but also 200 Toyota Mirai from H2 move Berlin which will be ferrying Uber passengers across the German capital until summer 2023 (see H2-international, February 2023) as well as Hylane hydrogen trucks.

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This fuel stop, which received EUR 1.3 million in funding from the German transportation ministry, represents the start of Germany’s planned nationwide expansion of further medium and large hydrogen refueling stations. Nikolas Iwan, managing director of H2 Mobility Deutschland, announced: “By the end of 2023 it will be possible for hydrogen trucks to refuel in all regions of Germany. Our aim is to add as many as 120 further sites across Germany over the next four years.”

“Hydrogen-powered vehicles will come into use only when hydrogen refueling stations are widely available. […] We have to decarbonize, become CO2 free, while still remaining mobile.”

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German transportation minister Volker Wissing

“We are now seeing the speed we could have done with years ago.”

Kurt-Christoph von Knobelsdorff, NOW managing director

“Green hydrogen will soon be cheaper than fossil-based hydrogen.”

Nikolas Iwan, H2 Mobility managing director

“Our rental customers have been driving hydrogen trucks in Germany since the end of last year. The build-out of refueling infrastructure gives our customers increasing flexibility when planning their routes and ensures a reliable supply of hydrogen through regional redundancy. That’s important because we especially need more vehicles with sustainable power systems in heavy-duty transportation in order to meet climate protection targets.”

Sara Schiffer, Hylane managing director

In October 2022, a new refueling station for trucks, buses and cars at the APEX Group in Laage near Rostock entered service. The station offers green hydrogen that is produced electrolytically on site. The daily capacity of around 450 kilograms allows two heavy-duty vehicles and three automobiles to be filled back to back. The volume of investment into the facility runs to approximately EUR 3 million.

A much bigger refueling station is planned for Neumünster. Grant approval was given, again in October, to Hypion for the building of a hydrogen filling station here that is capable of supplying up to 2,000 kilograms of hydrogen a day, for example to the trucks of project partner Edeka. EUR 4.9 million will be provided for its construction from the German transportation ministry’s “climate and transformation fund.” The total investment will be tens of millions of euros.

Further to the north of Germany, two fuel stations are set to be erected on the A1 expressway near Lübeck and on the A7 near Schleswig as part of the European GREATER4H funding project. Both locations belong to the STRING region which extends over the German border to Denmark, Sweden and Norway. The GREATER4H initiative was got off the ground by the German state of Schleswig-Holstein and is being seen through by three private partners – GP Joule, Everfuel and Hynion. Commissioning of the two stations, which will have a capacity of at least 1 metric ton of hydrogen per day, is planned for either the end of 2024 or the beginning of 2025.

Building work on the mobility hub of fuel station operator MaierKorduletsch on the premises of the Paul Group began in September 2022. From mid-2023, the Shell station in Passau will be able to supply vehicles of all propulsion types – including the consecutive refueling of up to 10 hydrogen trucks – and will have a daily hydrogen capacity of 2,000 kilograms.

Global plans for new hydrogen stations

At an international level, too, plans are afoot to increase hydrogen infrastructure. Phillips 66 and H2 Energy Europe founded a joint venture in 2022 that aims to build up to 250 hydrogen stations in Germany, Austria and Switzerland under the Jet brand by 2026. Added to that, in February 2023, TotalEnergies and Air Liquide announced their intention to install over 100 stations for heavy-duty vehicles in Europe and establish its own joint venture for that purpose.

What’s more, an increasing number of compressor manufacturers are concentrating on fuel station construction (see H2-international, February 2023). At the close of 2022, for instance, Maximator Hydrogen announced its goal of installing 24 hydrogen stations as part of the REH2 project in Sweden. The first refueling station for trucks is slated for delivery in fall 2023 and is set to use green hydrogen exclusively, principally produced from wind and local hydropower. Further stations, particularly at the sites of Sweden’s largest chain of rest areas – Rasta – are due to follow each month from 2024 until the end of 2025.

In South Korea, the JeonjuPyeonghwa hydrogen filling station went operational early this year, the first of 35 hydrogen stations that Kohygen is planning to build in the country in the run-up to 2025. The station has a dispensing capacity of 300 kilograms of hydrogen an hour, enabling up to 100 buses or trucks to be refueled daily. Globally there were a total of 814 hydrogen fuel stations in operation at the end of 2022.

More electric commercial vehicles

Transportation minister Volker Wissing reckons that, in 2030, three quarters of newly approved commercial vehicles with a gross weight greater than 12 metric tons will be zero emission, their energy being supplied by either a battery or a fuel cell. According the German government’s targets, a third of the miles covered by heavy goods transport is expected to be done so electrically by 2030.

Author: Sven Geitmann

PCK Schwedt heading toward “green refinery”

PCK Schwedt heading toward “green refinery”

For months now, local media outlets have been trying to outdo each other with ever-bolder claims about hydrogen’s potential role in saving the PCK refinery in Schwedt, Germany. Regional public broadcaster rbb24 has gone so far as to show an evening TV documentary on the subject. The program repeatedly emphasized that the production and processing of large quantities of green hydrogen is due to go ahead at the refinery as part of cooperation with the company Enertrag. However, when questioned by H2-international, Enertrag press spokesman Michael Rassinger made it clear in early March 2023 that there is no joint project at present and that both parties are still in talks. On April 5, the news followed that Siemens Energy has reportedly been tasked with devising an engineering design concept for the production of green hydrogen at the PCK refinery.

Prior to this revelation there had been grand plans but little substance. Last fall, Enertrag’s founder Jörg Müller banded together with local politicians to campaign for electrolyzer plants of up to 300 megawatts. His visions were gratefully seized upon by both the media and politics.

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In actual fact, Müller had withdrawn from the day-to-day running of Enertrag on July 1 last year, handing the baton to Gunar Hering. Nevertheless it would seem that Müller, who has since become chairman of the supervisory board, is still viewed, at least by the media, as an “energy transition visionary” with the capacity to speak on behalf of the company. Referring to hydrogen production at the PCK refinery, in October 2022 he talked of “compelling circumstances” requiring “extremely rapid action.” Yet around half a year later, the visions he had for his company had gone up in smoke.

Now Siemens Energy has arrived on the scene with its sights set on several electrolyzers with a total capacity of about 100 megawatts. Its purported goal is to initially replace the gray hydrogen that had been previously manufactured from natural gas with green hydrogen. Ralf Schairer, management spokesman for PCK Raffinerie GmbH, explained: “We are convinced that refineries with the present infrastructure will still be required in the future. We know that our products will change over the coming years in order to meet ambitious climate protection targets. […] This basic engineering in collaboration with Siemens Energy is an important step toward the future.”

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It is also understood that green hydrogen will play a decisive part and will be involved in all subsequent processes. With support from the German government and the state of Brandenburg, the necessary structures could be created that would allow a significant contribution to be made toward achieving tough national climate goals. Brandenburg’s economy minister Jörg Steinbach said: “The agreement between Siemens Energy and PCK is an important step in reshaping the direction of the refinery. Hydrogen has a major role to play when it comes to replacing fossil fuels with renewable sources. […] For PCK, the electrolyzer represents an important building block in the refinery’s necessary transformation to alternative energies.”

Problems at the PCK refinery

The refinery has been going through a difficult time. Since its construction in 1964 it has been reliant on Russia. Up until the end of 2022 it was still exclusively refining Russian crude oil. The company’s ownership structure remains particularly precarious, with the Russian state-owned Rosneft originally holding over half the shares in the business. In September 2022, however, the German economy ministry appointed Germany’s Federal Network Agency as the custodian of Rosneft Deutschland GmbH and RN Refining & Marketing GmbH. Today, Rosneft Deutschland and Shell Deutschland each own a 37.5 percent stake in PCK. A total of 25 percent belongs to AET Raffineriebeteiligungs-Gesellschaft.

The company as well as the town of Schwedt and the wider region are finding it hard, both economically and mentally, to shake off the past. Thus PCK itself has had some part to play in creating the appearance that locally based Enertrag and the Schwedt refinery are working together on hydrogen. In late fall 2022, PCK disclosed that an electrolyzer plant with an overall capacity of 32 megawatts was being planned in partnership with Enertrag. Yet the announced plans did not gain any further traction and were never restated.

Schwedt’s mayor, Annekathrin Hoppe, who is at great pains to preserve jobs at the town’s primary taxpayer, is equally hopeful that something will come of the bandied hydrogen aspirations. Schwedt is working on founding a structural development company that would certainly benefit from greater funds and additional opportunities if its portfolio contained a hydrogen facility.

Grand visions

Enertrag, headquartered in Uckermark, is without doubt one of the leading players in wind power generation and is a pioneer in green hydrogen technology. At the end of February 2023, the company announced its intention to produce green hydrogen from 2024 in order to meet the energy needs of the Osterweddingen industrial park. This is set to entail the use of a 10-megawatt electrolyzer in Magdeburg which would be based on proton exchange membrane or PEM technology. The plant was ordered back in December of last year from Elogen, an enterprise belonging to the GTT Group.

In the first stage of production, the plant is expected to make 2 metric tons of hydrogen a day. This type of electrolyzer could potentially increase its output to up to 5 metric tons a day. Enertrag has even more ambitious plans for Namibia where the company is to build a hydrogen production facility costing almost USD 10 billion that will turn out 300,000 metric tons of green hydrogen annually (see H2-international, October 2021).

These projects provide a clear indication of the scale and potential of hydrogen production that is currently under discussion at Enertrag.

In mid-March 2023, Enertrag gave H2-international the following comment: “We are currently working on a feasibility study that we expect to publish at the end of April.”

Authors: Aleksandra Fedorska, Sven Geitmann

Source: PCK

Solar fuel at the touch of a button

Solar fuel at the touch of a button

Researchers from Ulm, Germany, have managed to develop a system that enables hydrogen to be produced from light energy, no matter the season or time of day. This photochemical entity could in future be used to provide hydrogen on demand to multiple applications – from sustainable heat generation to the refueling of hydrogen trucks and buses. Because the light can be stored, it allows hydrogen to be manufactured whenever it’s needed, and even in the dark.

The new approach devised by the scientists in Baden-Württemberg is based on a unique molecule that can absorb sunlight, store energy and produce hydrogen. “In our molecule, light irradiation leads to charge separation and electron storage,” explains Professor Carsten Streb from the Institute of Inorganic Chemistry at Ulm University (see H2-international, April 2018). An easily storable fuel in liquid form is the result of the splitting reaction. The demand-responsive production of gaseous hydrogen is achieved through the addition of a proton source, says Streb.

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The prospects for the new approach are very promising. Streb’s team has tested the performance of the system using a variety of analytical methods. Findings show that the molecular entity possesses excellent chemical and photochemical stability. The modular structure of the system allows for chemical changes and enables the overall system to be optimized. Hence the model could also serve as a blueprint for decentralized energy storage.

Mimicking photosynthesis in nature

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Development of the photochemical system took place as part of a joint project. Researchers from Ulm and Jena universities modeled their ideas on natural photosynthesis and devised new materials for converting energy. One example is artificial chloroplasts for hydrogen production. The scientists have carried out a number of investigations, including important structural analyses that describe the reaction of the catalyst to light. This involved using an expensive piece of equipment for high-resolution mass spectrometry which was purchased with European Union funds under Thüringen’s regional innovation strategy.

Earlier systems designed to convert sunlight into chemical energy were relatively unstable. By embedding the light-driven catalyst molecules in soft matter, the consortium, which comprises chemists, physicists and materials scientists, has succeeded in stabilizing and controlling this process. The main aim of the now extended area of special research is to pave the way for the efficient decentralized production of green hydrogen.

Next: relinquishing rare materials

Rare materials like ruthenium, platinum or rhodium are still being used in catalysts. The goal is now to replace these costly, and sometimes environmentally questionable, components with more readily available alternatives. Organic dyes, for example, such as those being investigated in Jena, could be the solution to the problem. It is hoped that their instability will soon be resolved.

The plan is also to optimize the material link in the solar energy converters. “The aim is a light-driven process with linked oxidation and reduction. Added to that is the further development of physicochemical analysis methods,” explains Professor Benjamin Dietzek-Ivanšić from the University of Jena. He is the new spokesperson for the project now that it has entered its second funding phase. Meanwhile his colleague Carsten Streb has switched to the University of Mainz where he is continuing his work in this area.

The long-term goal remains the production of artificial chloroplasts. These are the parts of a plant cell that are responsible for photosynthesis. In future the consortium will also cooperate with the Center for Solar Energy and Hydrogen Research (ZSW) in Ulm.

More efficient than electrolysis

The demand for hydrogen is already high and is set to grow. At present, around 80 million metric tons of hydrogen are manufactured globally by means of steam reforming. The technique utilizes fossil fuels and therefore releases large quantities of carbon dioxide. In the near future, the emissions from hydrogen production will need to be eradicated or at least reduced through the use of low-emission methods.

Processes developed thus far for making green hydrogen often involve connecting up several components such as photovoltaic cells, batteries and electrolyzers. The disadvantage is that energy losses accumulate with every step, which is why hydrogen production is not very efficient. Despite the fact that the green electricity needed for electrolysis can be generated by wind, around 40 percent of the energy is lost during electrolytic processes. “The current targets for electrolytic production of hydrogen within the EU by 2050 will require 2,800 terawatt-hours. That is equivalent to the power from 250,000 to 460,000 new wind turbines,” calculates Professor Marko Huttula, who heads up a project examining the subject at the University of Oulu.

The advantage of solar hydrogen over electrolytic hydrogen is that it only needs the energy from the sun.

Finland: 7 percent efficiency in the lab

Photocatalytic processes have been the focus of study and research around the world for decades. The perpetual challenge is how to develop an efficient and long-lasting catalyst. This is because the catalysts usually degrade too quickly, or they require rare and expensive metals. In Finland, too, a new catalyst is being developed at the University of Oulu. In this instance it is composed of molybdenite – a relatively cheap, naturally occurring mineral. The compound structure consists of layered molybdenum disulfide together with nickel and silver nanoparticles which, according to the researchers, makes the catalyst relatively low in cost.

In the lab at the University of Oulu, in any case, the new catalyst was able to supply hydrogen for 86 consecutive days without decaying. During the trial, the catalyst reached an efficiency of 7 percent, which is above the threshold for useful efficiency of at least 5 percent. Alongside the production of hydrogen, the process also purifies the ordinary water used for hydrogen manufacture.

However, there is still a long way to go. “Many more years of research are needed before the production of solar hydrogen is possible on a larger scale,” admits Huttula. “The technology remains at a critical stage of development.”

Author: Niels Hendrik Petersen


Source: Eberhardt/Ulm University, Source: Heiko Grandel, Source: Eberhardt/Ulm University

Profitability of hydrogen projects

Profitability of hydrogen projects

In efforts to meet climate targets, the green energy carrier hydrogen is increasingly coming to the fore in the context of sector coupling. The basis for green hydrogen production is electricity from renewable energy plants. An electrolyzer is employed to produce hydrogen using green power and water. The process results in byproducts such as waste heat and oxygen which can also be utilized in various application areas and their sale can reduce the production costs of hydrogen. The option exists to convert hydrogen gas into synthetic natural gas and then into liquefied natural gas. This value chain is sometimes termed the power-to-gas or PtG value chain and allows for the distributed use of electricity in various sectors.

The following illustration shows the PtG value chain, from the use of electricity to produce hydrogen via the process of electrolysis, its conversion into synthetic natural gas or SNG and liquefied natural gas or LNG, followed by storage and transportation through to the use of green energy carriers by end users.

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This PtG value chain (see fig. 1) can be viewed from two perspectives: On the one hand, the starting position is a defined quantity of generated green power that is available for electrolysis. On the other hand, there are the end users that specify how much hydrogen is needed.

In 2022, the H2-FEE research project was initiated, with the support of Niedersachsen’s business development bank N-Bank, to look at the overall scenario, from the end user through production. The project’s focus is on flexible energy carriers for the energy transition and Open WebGIS for the digital analysis of PtG potential in distributed energy sites, taking the German state of Niedersachsen as an example. The aim of H2-FEE is to develop a transparent platform to enable the identification of favorable and sustainable locations for hydrogen production based on renewable energy plants (both onshore wind power and photovoltaics), particularly in regions with high bioenergy density.

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The project sheds light on specific PtG use cases for rural areas. These use cases include, for example, the increase in the level of self-sufficiency for office buildings, industrial enterprises or farms using seasonal hydrogen storage or the optimization of wind farms through the utilization of curtailed electricity in order to store available electrical power in the form of green energy carriers.

Here, profitability forms the basis for the development of these use cases. In connection with this, the authors carried out an analysis of studies on the electricity production cost for hydrogen, i.e., the levelized cost of hydrogen or LCOH, and future cost trends.

Imprecise LCOH forecasting

As part of this process, 12 studies on the LCOH of green hydrogen, published between 2010 and 2021, were analyzed. The forecast LCOHs vary considerably between studies due to the differences in calculation methods.

Some studies, for instance the “Hydrogen Rainbow” publication produced by the Institute for Climate Protection, Energy and Mobility IKEM, provide an overview of all hydrogen production processes and merely give an average price for each production method. [1] Other studies focus on only one particular element in the power-to-gas value chain, such as transportation or electrolysis, using one specific example. [2] [3] The publication “System comparison of storable energy carriers from renewable energies,” for instance, includes in its calculations all influencing factors, e.g., water costs and various electrolyzer technologies. [4]

The studies under consideration detailed the LCOH for the years 2014, 2015, 2020, 2021, 2030 and 2050. The studies only indicated average prices for the years 2014, 2020, 2021 and 2030 without further specifying the electrolyzer technology or other underlying conditions. Since for the years 2015 and 2050 most values (2015: 36, 2050: 47) are presented with comparable conditions, these are analyzed and compared in more detail as an illustration in the following sections.

Comparison of electrolysis types

The studies look at various electrolysis processes: electrolysis using proton exchange membrane or PEM, alkaline electrolysis or AEL, and high-temperature electrolysis or HTEL. These electrolysis processes are each at a different stage of development.

AEL is the oldest of the processes under investigation and has been in use for several decades. Indeed, of the processes studied, AEL is the most developed and has the lowest cost. [5] [6]

PEM electrolysis has existed for 25 years. One advantage of PEM electrolysis is its wider partial-load range. This technology copes well with the fluctuating feed-in of renewables to the electrolyzer. [5]

HTEL is still at the laboratory testing phase, which explains the cost of €24.41/kg in 2015. Furthermore, its early stage of development means that a cost prediction is associated with a high level of uncertainty. A price of around €6.60/kg is assumed for HTEL’s LCOH in 2050. [6] Because of the difficulty in forecasting development and the lack of data, the HTEL principle is not examined further in the following sections.

Description2015 value2050 value
Water procurement costs€2.0/m3€3.4/m3
Electrolyzer full-load hours8,000 h per year8,000 h per year
Electricity production costs3.84 – 16.91 € cent/kWh0.69 – 15.71 € cent/kWh
Electrolyzer lifetime20 – 30 years30 years
Producer country for renewablesGermany, Iceland, Sweden, Saudi Arabia, MoroccoEurope and North Africa, Germany, Iceland, Sweden, Saudi Arabia, Morocco
Electrolyzer efficiency67%69% – 84%

In the various studies, different starting parameters are used as a basis in years 2015 and 2050. It becomes clear that there are a number of deviations in the starting parameters in the progression from 2015 to 2050. For example, water procurement costs rise from €2.0/m3 in 2015 to €3.4/m3 in 2050. The full-load hours of the electrolyzer are set at 8,000 hours for both comparison years. The electricity production costs fall from 3.84 € cent/kWh to 16.91 € cent/kWh in 2015 to between 0.69 € cent/kWh and 15.71 € cent/kWh in 2050.

The broad price range in terms of electricity production costs results from the different production locations and technologies involved in green electricity generation. While in northern Europe green electricity is primarily produced from wind power, the generation technology successively moves to photovoltaics or PV the further south that the producer country is located. For instance, the principal means of green power generation in the countries of Morocco and Saudi Arabia is photovoltaics. [7] The efficiency rises from 67 percent in 2015 to between 69 percent and 84 percent in 2050. The lifetime of the electrolyzers is extended from 20 – 30 years in 2015 to 30 years in 2050.

The median in 2015 for AEL is €5.59 kgH2 and is €5.28/kgH2 for PEM electrolysis. The mean values are €5.29/kgH2 for AEL and €5.28/kgH2.for PEM electrolysis. The spread of LCOH is larger for AEL than for PEM electrolysis as more data is available. The standard deviation from the mean is €1.70/kgH2 for AEL and €0.02/kgH2 for PEM electrolysis. Consequently, AEL has LCOHs that far exceed the level of PEM electrolysis as well as those that are well below it. Above all, the key factor here is the different electricity production cost in the various producer countries.

In 2015, the price spread for AEL ranges from €2.47/kgH2 to €8.59/kgH2. For PEM electrolysis it ranges only from €5.25/kgH2 to €5.30/kgH2.

Compared with 2015, a general decline in LCOH can be observed for 2050. The medians decrease to €4.18/kgH2 for AEL and to €4.65/kgH2 for PEM electrolysis. The means in 2050 are €4.14/kgH2 for AEL and €4.01/kgH2 for PEM electrolysis. Since there is more data available in 2050 compared with 2015 for the LCOH of PEM electrolyzers, the spread is likewise greater. A spread of values is also still in evidence for the LCOH of AEL. The deviations from the mean are €1.62/kgH2 for AEL and €0.94/kgH2 for PEM electrolyzers.

The forecast price range for LCOH for the year 2050 is between €1.26/kgH2 and €5.53/kgH2 for AEL, while the LCOH for PEM electrolysis is forecast to be between €2.87/kgH2 and €4.84/kgH2.

Comparison of LCOH in 2015 and 2050

Generally speaking, a decrease in LCOH is observable from 2015 to the forecast costs in 2050. One reason for this trend is the expansion in renewable energy which results in lower production costs for green electricity. [8] In addition, the progress and the scaling effect in electrolysis technology causes decreasing investment costs for electrolyzers. [9]

However, there are major differences in LCOH in the various years under consideration. This can be traced back to multiple causes.

The electricity production costs account for a significant proportion of the LCOH. Depending on the producer country, this brings about considerable differences. Nations such as Morocco and Saudi Arabia, thanks to their high levels of solar radiation, offer less expensive electricity from photovoltaic plants than in Germany. This pushes down the LCOH. In 2015, when the same AEL electrolysis process was considered in conjunction with the same PV energy source, the LCOH in Germany resulting from PV was €5.81/kg; in Morocco it was €4.28/kg. Although the general tendency is for hydrogen costs to decrease, this trend is also forecast for 2050, with an LCOH of €4.24/kg for PV from Germany and €3.43/kg for PV from Morocco. This does not take into account transportation to Germany. [4]

While the generation costs for renewables is falling, the costs for energy transportation are rising. The reason for this is the conversion/adaptation of the transmission grid to an environment based on renewables generation, involving greater demands on transmission grids and leading to higher transmission costs.

According to a 2020 study by the German Environment Agency, the costs for electricity, specifically three-phase current, are increasing from 2.4 € cent/kWh to 4.1 € cent/kWh. For production scenarios in which hydrogen is produced in Germany using imported power from renewables plants, the savings in the generation of electrical energy are offset by the cost increases in power transportation, meaning that the costs of electricity production remain virtually the same. [4]

Power-to-gas simulation

As becomes apparent from analyzing the LCOH in various studies, the LCOH is often founded upon a number of underlying conditions. This is why individual consideration is crucial for future PtG projects in order to make predictions about LCOH. A simulation can be a valuable tool in avoiding expensive investment errors. An example of a misinvestment would be choosing an electrolyzer with an excessive capacity rating that is then underutilized. The combination of low utilization and high investment drives up the LCOH.

The authors’ PtG simulation offers an ecological, financial and energy-based analysis of hydrogen production in combination with renewables plants (wind/PV/hydro/biomass). The PtG simulation analyzes, among other things, LCOH, quantities of hydrogen produced, byproducts (such as waste heat and oxygen), quantity of water required, rated capacity, and the utilization of the electrolyzer. Thus electrolyzer projects are able to be evaluated in financial and ecological terms.

Of two projects simulated by the authors from the year 2022, the LCOH was found to be €4.22/kg and €9.38/kg. These costs are underpinned by different electricity production costs: 3.8 € cent/kWh and 7.33 € cent/kWh.

A publication by the Institute of Energy Economics at the University of Cologne EWI specifies an average LCOH of green hydrogen for 2022 of €6.18/kg at an electricity production cost of 16.18 € cent/kWh. [10] This LCOH reflects the mean LCOH of €6.8/kg in the PtG simulations. Higher investment costs for the electrolyzer per kilowatt were assumed in the PtG simulations than the calculated average used by EWI.

Therefore what are the explanations for differences in LCOH?

Cost reduction through PtG simulation

It became clear through various simulations that a combination of wind and PV farms achieves a higher degree of utilization of the electrolyzer. A difference was also established in the utilization of the electrolyzer depending on whether the wind farms are located in coastal or inland areas.

This observation was made possible by performing calculations for three different scenarios:

  • combined electricity procurement from wind and PV with a rated capacity of 12 megawatts (inland)
  • electricity procurement of a coastal wind farm with a rated capacity of 12 megawatts
  • electricity procurement of an inland wind farm with a rated capacity of 11.5 megawatts

This comparison was based on the same electricity production costs, water procurement costs and investment costs of the electrolyzer as well as the same service life in years of the electrolyzer. Only the plant types differ from one another, hence they also display different performance characteristics. In addition, each simulation was founded upon different wind years.

In all scenarios, a decline in utilization can be identified as the electrolyzer size increases. The smallest electrolyzer size examined was 250 kilowatts and gave utilization levels of between 91 percent and 93 percent for wind-only energy procurement and 95 percent for combined energy procurement from wind and PV. The largest electrolyzer size considered was 12 megawatts since this corresponded to the maximum capacity of the energy sources under investigation. In this case, the utilization levels were between 17 percent and 18 percent for wind-only energy procurement and 33 percent for combined energy procurement.

Furthermore, it becomes apparent that the utilization curve for the procurement of electricity from wind and PV sources is much higher than the utilization curves for wind power procurement alone. In the case of energy procurement from wind and PV, utilization is less pronounced and declines much more linearly than in the other two scenarios where a clear curve shape is discernible. This means that less energy is available to the same electrolyzer when electricity is sourced from wind alone and the utilization level recedes accordingly.

Using a combination of different renewable energy sources can balance out the natural fluctuations in the feed-in profiles of each particular energy source. The combination of different energy sources such as wind and PV thus ensures a higher level of electrolyzer utilization.

Figure 5 shows that the LCOH is far lower if wind and PV are used in combination than if wind power alone is fed in, since the utilization level is much higher, therefore enabling the electrolyzer in question to be used more to its full potential. The prices in this instance are approximately between €4.99/kg and €7.46/kg.

It is noticeable that the LCOH, for example for rated capacities of between around 2,200 kilowatts and 2,500 kilowatts, decreases slightly. The reason for this is the system consumption of the examined electrolyzers. System consumption indicates how many kilowatt-hours of electricity are needed to produce 1 standard cubic meter of hydrogen. If the next size up of electrolyzer then has a lower system consumption that means more hydrogen can be produced using the same amount of energy, and the LCOHs decrease despite a lower utilization level.

In this specific case, one electrolyzer with a capacity of 2,210 kilowatts has a system consumption of 5.3 kWh/Sm³ H2, while the next electrolyzer size up with a capacity of 2,500 kilowatts had a system consumption of 5 kWh/Sm³ H2. The reduced system consumption here has a greater effect on LCOH than the reduced utilization due to the additional 290 kilowatts in capacity. The correct selection of the electrolyzer therefore leads to a significant saving in terms of LCOH.

Although the scenarios under investigation are subject to similar conditions, there is significant variation in the LCOH that was calculated. For the same plant, the utilization and LCOH levels are indirectly proportional to each other. However, as soon as a comparison is made between various plants, a different price trend is observed. This underlines the need to investigate on a project-by-project basis.

Summary

Due to the variety of factors that influence LCOH, it is not possible to make a generalized statement about the trend in hydrogen prices. Prices from 2015 of €5.25/kg to €5.30/kg stand in contract to prices from the analyses from 2022 of €4.22/kg and €9.38/kg as well as the average LCOH calculated by EWI of €6.18/kg.

The analysis of LCOH studies revealed that there is a number of factors that affect LCOH. Important factors are:

  • Type of electrolyzer and efficiency (or system consumption)
  • Electricity production costs
  • Electrolyzer utilization
  • Electrolyzer investment costs
  • Producer country for renewables
  • Consideration of transportation costs

The combination of wind and PV leads to a higher level of electrolyzer utilization. Further influences on the LCOH are the different types of wind generation plant and their location.

Where the examined studies do agree is in the acceptance of trends such as the general reduction in LCOH in the run-up to 2050 due to falling electricity production costs and falling electrolyzer investment costs.

A detailed PtG simulation is able to demonstrate the potential for optimizing the implementation of a hydrogen project even at the early planning stage and makes it possible to avoid oversizing the electrolyzer, for instance, thus saving investment costs.

To summarize, LCOHs for specific projects are only predicable if all parameters are known. This is why it is not practical to draw general conclusions about the profitability of special PtG projects based on the forecast price trends of different studies.

Reference(s)

[1] P. Horng, M. Kalis, et al., IKEM, December 2020. www.ikem.de/wp-content/uploads/2021/01/IKEM_Kurzstudie_Wasserstoff_Farbenlehre.pdf

[2] P. Wienert, P. Stöver, et al., Production and transportation costs for green hydrogen from an offshore wind farm to an industrial end-user onshore, www.umlaut.com/uploads/documents/210812_Whitepaper_umlautKongstein_Hydrogen-ProductionTransportation.pdf

[3] DLR; LBST; et al., Studie über die Planung einer Demonstrationsanlage zur Wasserstoff-Kraftstoffgewinnung durch Elektrolyse mit Zwischenspeicherung in Salzkavernen unter Druck, Stuttgart, 2014

[4] A. Liebich, T. Fröhlich, et al., System comparison of storable energy carriers from renewable energies, German Environment Agency, https://www.umweltbundesamt.de/sites/default/files/medien/5750/publikationen/2021-03-03_texte_40-2021_syseet_eng.pdf

[5] B. Pitschak, J. Mergel, et al., “Elektrolyse-Verfahren,” in Wasserstoff und Brennstoffzelle, Berlin, Heidelberg, Springer Vieweg, 2017, pp. 207–227

[6] A. Liebich, T. Fröhlich, et al., German Environment Agency, https://www.umweltbundesamt.de/sites/default/files/medien/5750/publikationen/2021-03-03_texte_40-2021_syseet_eng.pdf

[7] Agora Energiewende and AFRY Management Consulting, No-regret hydrogen: charting early steps for H₂ infrastructure in Europe, https://static.agora-energiewende.de/fileadmin/Projekte/2021/2021_02_EU_H2Grid/A-EW_203_No-regret-hydrogen_WEB.pdf

[8] W. E. Council, Working Paper Hydrogen Demand and Cost Dynamics, World Energy Council, 2021

[9] Reiner Lemoine Institute, Netzdienliche Wasserstofferzeugung – Studie zum Nutzen kleiner, dezentraler Elektrolyseure, 2022

[10] Institute of Energy Economics at the University of Cologne EWI, E.ON, www.eon.com/de/wasserstoff/h2-bilanz/kosten.html

Authors:
Nele Uhlenwinkel, nele.uhlenwinkel@energiesynergie.de

Prof. Dr. Carsten Fichter, carsten.fichter@energiesynergie.de

Steve Stengel, steve.stengel@energiesynergie.de

All from EnergieSynergie GmbH, Bremerhaven, Germany

H2 transport network in Brandenburg 1.2 billion euros

H2 transport network in Brandenburg 1.2 billion euros

A strong transport network is a prerequisite for a future H2 economy. “Only so can the hydrogen quantities be transported that our industry requires,” also knows Prof. Jörg Steinbach, the economy minister for the German state of Brandenburg. He presented a feasibility study in February 2023 containing concrete routing networks to be established for various time periods. “The identified possibilities for drawing on existing natural gas infrastructure and bundling lines (to also transport hydrogen) indicate that we can save about 55 percent of the investment costs needed to build a completely new pipe network,” according to Steinbach.

As part of the study conducted on behalf of the ministry, an analysis was provided that can be used to forecast future H2 consumption and generation potential up to the year 2045. Based on the needs identified this way, cost-efficient routing options were derived. The goal was to develop a high-level H2 transport network that connects regional producers, storage facilities and end consumers – and later integrable into a countrywide H2 infrastructure.

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“It has a total length of about 1,100 km (684 mi),” summarized Florian Temmler, project manager at Infracon Infrastruktur Service. Of this, about 600 km will consist of converted natural gas pipelines and about 500 km, of new lines. “By this, an economical construction of the network in Brandenburg is guaranteed.”

“It has a total length of about 1,100 km (684 mi),” summarized Florian Temmler, project manager at Infracon Infrastruktur Service. Of this, about 600 km will consist of converted natural gas pipelines and about 500 km, of new lines. “By this, an economical construction of the network in Brandenburg is guaranteed.”

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The study also shows for the first time the scope of the required investment: 1.221 billion euros. It was prepared by a consortium made up of Fraunhofer IEG (energy and geothermal research), Fraunhofer ISI (systems research), the Reiner Lemoine Institut (RLI) and INFRACON Infrastruktur Service.

The online hydrogen marketplace for the region launched in 2022 (Wasserstoffmarktplatz Berlin-Brandenburg), according to Steinbach, is already enabling a picture of how great the demand is: Nearly 300 businesses and institutions with over 300 projects are already registered there. That’s because Brandenburg is, on the one hand, a significant area for energy imports and exports. On the other hand, it has considerable potential for green electricity and hydrogen generation as well as their utilization.

“In the long term, regional hydrogen production could rise to over 20 TWh, with especially high potential from former coal mining stations,” says Thorsten Spillmann from Fraunhofer IEG. Eventually, it could even become 40 TWh, with more than two-thirds coming from industry.

Author: Niels Hendrik Petersen