Austria’s first and leading hydrogen research center HyCentA began life in 2005. Now promoted to become part of the COMET funding program (Competence Centers for Excellent Technologies), it is continuing its research on the campus of Graz University of Technology as a K1 center of excellence.
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The Hydrogen Research Center Austria located at Graz University of Technology, better known as HyCentA, is Austria’s top research center for hydrogen technologies. Since it was founded in 2005, HyCentA has specialized in developing novel technological solutions for electrolysis, hydrogen storage and fuel cells, delivering innovations in cooperation with partners and supporting technologies as they progress from initial idea to market maturity.
Alexander Trattner, scientific director of HyCentA, explains: “We want to push the sustainable hydrogen society much further because we’re convinced that green hydrogen has to be part of the solution for a net-zero energy system. Approval as a COMET K1 center allows us to carry out extensive research into hydrogen technologies that are especially relevant for the future: electrolyzers, storage systems and fuel cells. We’re also able to concentrate more on a holistic view of hydrogen within the areas of electricity, heat supply, transport and industry. The COMET K1 program enables long-term research to take place at HyCentA, underpinned by decades of experience in research and development as well as hundreds of successfully completed projects.”
COMET network
COMET’s mission is to build bridges between science and industry for a sustainable future. As Austria’s flagship science and industry program, it is intended to support pioneering research. The network funds the setup of technological centers of excellence referred to as COMET centers.
The work conducted by the 80-member team at HyCentA is divided into four areas. The goal is to lower the cost of technologies, reduce degradation and raise the efficiency of electrochemical cells. In addition, the intention is to identify the ideal combination of key technologies and optimization potential by coupling the energy, industry and mobility sectors. Ultimately, it is hoped that this will enable a higher degree of self-sufficiency in renewables, increase the resilience of the energy system and safeguard international competitiveness through in-country value creation. A total of around 40 leading national and international businesses and academic partners are contributing to the research alongside HyCentA as part of the COMET program’s work on hydrogen technologies.
Area 1: Electrolysis and Power-to-X
Area 1 covers all technologies that support the sustainable and emission-free production of hydrogen and chemicals for storing hydrogen. The main technologies for electrolytic hydrogen production are the more developed techniques of alkaline and proton exchange membrane electrolysis (AEL and PEMEL) as well as applications with mid-levels of technology readiness (anion exchange membrane and solid oxide electrolysis: AEMEL and SOEL) and promising methods with a low degree of readiness (proton-conducting ceramic electrolysis: PCCEL). Other research focuses on approaches for splitting water by means of solar energy (photoelectrolysis) and the electrochemical manufacturing of chemicals such as hydrogen peroxide and ammonia.
The aim is to further develop the technologies, starting with the materials and progressing through the cell and stack and continuing all the way to system level. Although the general goals of increasing longevity and efficiency and lowering cost apply to all technologies, the specific research approaches vary. When it comes to raising efficiency, it is the design and operational strategies that need to be optimized. For extending the life of electrolyzers, on the other hand, the focus is on accelerated aging tests. Meanwhile, for improvements in production processes, the research sets its sights on increasing the automation of manufacturing and assembly processes.
Area 2: Green Energy and Industry
Area 2 concentrates on key technologies that are essential for hydrogen applications in the energy and industry sectors. Under consideration are stationary and mobile storage technologies based on compressed gas storage as well as metal hydride and liquid storage. Synergies from bringing together stationary and on-board applications are exploited by developing an intelligent combination of distribution and logistics systems with stationary forms of infrastructure. Investigations are carried out into areas including electrochemical compression and purification in addition to power conversion using stationary fuel cells. Alongside the efficiency of the technologies examined, the reliability and safety of systems are also a key research priority.
Area 3: Green Mobility
The focus of Area 3 is on fuel cell and hydrogen storage systems, particularly for mobility applications. These comprise PEM and AEM cells, stacks and systems as well as optimized forms of existing and alternative storage systems. The research work aims to generate a deeper understanding of the mechanisms of fuel cells and storage systems so the problems of performance, degradation, cost and industrialization can be better appreciated and solved using suitable countermeasures.
Relevant results for the interface definition at the level of vehicle integration and refueling infrastructure are used to create the best possible basis for future developments. Key knowledge is used to improve production and manufacturing so that market readiness and viability can be rapidly achieved.
Area 4: Circularity and System Optimization
Area 4 develops seamless tool chains in order to examine and optimize resilient, cross-sector energy systems based on renewable primary energy and hydrogen. These simulation tools allow operational strategies for power-to-X plants to be devised and business cases created.
Innovative testing and measuring instruments for fuel cells and electrolysis as well as underlying measuring and diagnostic methods are developed for the purposes of gaining knowledge about degradation, state of health and predictive maintenance. Efficient and cost-effective measuring tools and systems are deployed for applications across the entire hydrogen value chain, and extensive knowledge is acquired about the suitability and compatibility of materials in conjunction with hydrogen applications.
Analyses and concept developments are translated broadly into systemic and economic market models and recycling options for the purposes of creating a circular economy. The future potential of recycling processes and technologies is also assessed and evaluated on a representative small scale. An environmental performance model is being developed for recycling scenarios which methodically compares and contrasts new and recycled materials.
Hydrogen, fuel cell & electrolyzer test center
Testing is an integral part of the HyCentA research portfolio. The center’s facilities are used to test and inspect performance, safety, degradation behavior and reliability in real hydrogen operations. This work is undertaken by numerous labs and testing areas which meet the unique and stringent demands of established testing and inspection routines as well as specialist customer requirements.
The various tests which can be conducted in these facilities include quality assessments, calibration services, performance and efficiency tests, safety tests, service life tests and examinations under real environmental conditions. Among the amenities at the 1,200-square-meter (12,900-square-foot) test center are two single-cell electrolysis test stations, two short-stack electrolysis test stations, a high-pressure test station up to 1,000 bar with climatic chamber, two multifunctional test stations, a fuel cell cathode subsystem test station, a fuel cell system test station up to 160 kilowatts with climatic chamber, a gas analysis lab, an analytical and electrochemical lab, an electrochemical compression test station, a 350-bar and 700-bar hydrogen refueling station, a test cell for hydrogen permeation and an autoclave for hydrogen material compatibility analysis of samples.
TU Graz and HyCentA
The HyCentA research center aims to benefit the community as a whole. Researchers work in close cooperation with Graz University of Technology, also known as TU Graz, particularly when it comes to industrial research into electrolysis, fuel cells and hydrogen infrastructure. HyCentA shareholders are TU Graz, which owns a 50 percent stake, Magna, OMV and the combustion and thermodynamics research organization FVT. The COMET center of excellence is financed by the Austrian government – specifically the climate action ministry and the economy ministry – and the states of Steiermark, Upper Austria, Tyrol and Vienna. The Austrian research promotion agency FFG has been in charge of program management for more than 20 years.
TU Graz is Austria’s most tradition-rich technical and scientific institution for research and education. The university has been successfully researching electrochemistry and hydrogen for more than 50 years. Today, the TU Graz campus is home to a 160-member team working in hydrogen research and across its unique lab and research facilities, making it one of Europe’s leading establishments. The university covers the entire value chain for the renewable hydrogen industry, from production via storage and distribution to deployment, and is a one-stop shop for hydrogen technology research –from the fundamentals through applied technologies and systems.
The decline in the share price of Ballard Power in the past months is ascribed to the impatience of the many investors who assess primarily the short-term potential of this market leader in the PEM FC area. What counts is the long-term outlook of the company.
Current quarterly figures give credit to the skeptics. Ballard itself is not fighting this, as they are working unperturbed on the long-term strategy: establish production capacities, cooperations and pilot projects. This will be accompanied by capital outflows as well as the “logical” losses that it will entail. Ballard has enough capital in the bank to be able to implement the plans without outside pressure: 864 million USD in the bank account speaks for itself.
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At the same time, Ballard is working on the constant optimization of its technologies, be it the MEA for the fuel cell, the FC modules, or the stacks for various applications, to be among the top suppliers on the market. But how will the stock market react when the production sites in China, Europe, the USA and Canada (eventually also in India – see Cummins with Tata) are utilized to capacity and then promise, in addition to high sales growth, a good profit?
China could be the wild card
Ballard president Randy McEwen is traveling for several weeks through China to meet with representatives of public authorities, ministries, companies, customers and municipalities as well as other players important for Ballard. This is certainly about understanding why China’s H2 support program has yet to be approved. The probably still largest FC stack production facility in the country – operated as a JV by Weichai and Ballard – is still “unemployed.”
That a larger program will come is, for me, no question, as many companies and regions or cities in China have now seized the topic in a variety of ways on their own (e.g. capacities for different electrolyzer types, stacks, vendor parts, FC trucks, H2 pipelines, refueling stations). For these is expected a high growth potential, which ought to be made use of. Perhaps China will still surprise the world with an H2 program in 2023 that not only matches, but makes the equivalent programs in the USA, Europe, Japan and elsewhere look smaller?
What would happen if China also gave passenger car fuel cells a boost with a national quota? China already did this for the battery– in the largest automotive market in the world – with the EV mandate, and all auto companies producing in the country have had to adapt to it. Ultimately, China has provided the foundations for battery-electric mobility worldwide.
By the year 2030, 1 million vehicles refuelable with hydrogen are to be running in China. Perhaps this goal will be adjusted against the South Koreans, since South Korea wants to be able to fuel over 6 million vehicles with hydrogen by 2040. For Ballard, a positive turnaround could come about very quickly from this, which would then also help the share price soar.
150 million kilometers clocked
Ballard meanwhile reports 150 million kilometers driven (93.2 million miles) by commercial vehicles and buses equipped with its technology – and smoothly. Worldwide, 3,800 buses are driving with Ballard inside. The Canadian company is setting an industry and sector standard with this. They are very well positioned in terms of total cost of ownership, according to CEO Randy McEwen.
“At Ballard, we are designing our PEM fuel cell engines for heavy-duty mobility applications where zero emissions, reliability, and durability are key differentiators for end-user total cost of ownership. We continue to set the industry benchmark for PEM fuel cell performance in our target markets. The accumulated distance driven by FCEVs powered by our technology underlines Ballard’s customer focus and commitment to reliable service and high uptime. We achieve this industry milestone at a time when we are seeing growing customer interest in the adoption of hydrogen fuel cells in our key mobility verticals of bus, truck, rail, and marine, as well as off-highway and stationary power applications.”
Randy McEwen, Ballard chief
First quarter has little predictive power
Order volume ended up good: 137.7 million USD, a doubling from the same period the previous year. Turnover for the quarter reached 13.3 million USD, which was below analysts’ expectations. Good things can be expected from the second half of the year. McEwen sees a very busy second half of 2023 and an excellent year 2024.
In the bus sector came three new OEMs, so companies that build buses and are relying on the FC module and knowhow from Ballard. Van Hool and Solaris have long been satisfied customers. Over 500 FC buses are currently set to be ordered in Europe, a large share of which equipped with Ballard. Meanwhile, 1,500 transit buses are in the tendering process – in Europe. For me, however, this is just an indicator of a development that will really pick up speed in the coming years.
The same pertains to commercial vehicles, where gradually the major truck manufacturers are turning, in addition to battery-electric solutions, to hydrogen. About this, McEwen said, “To be clear, the truck market is in the very early phases of fuel cell market adoption.” Here, Ballard is supplying stacks to various OEMs such as Quantron, and further customers may follow. In the area of trains, things are also slowly getting underway, which the rising orders of Ballard partners Stadler and Siemens Mobility show. Their customers are increasingly opting for a mix of battery-electric and hydrogen-powered trains. Ballard is also well positioned here – often in competition with Cummins or Alstom.
First Mode has raised its order for FC modules for heavy mining trucks from 30 to 35, and it’ll be likely 400 units in total for its partner Anglo American. For Canadian Pacific Rail (CP), locomotives have already been equipped with FC modules. Larger orders will probably come, and can be expected in the second half of the year.
In Norway, meanwhile, the ship MF Hydra was put into operation. Liquid hydrogen is turned into energy with the help of Ballard’s 200-kW module. The ferry for 300 people can travel for up to 21 days with it.
Everything out of pocket
The capital invest in the amount of 37.5 million USD in the first quarter mainly went into increased spending on R&D and product development – with over 860 million USD in the bank, not an issue. Interesting is an analyst’s question of why Ballard wants to allow new authorized capital to be given (so the possibility of issuing further shares), since it has sufficient liquidity at its disposal. This here is only about an extension of an expiring program or entitlement to issue further shares, so the tenor. They will also not make this a custom, was the answer.
I would interpret it differently: Ballard could quickly issue further shares if a takeover (acquisition) of a strategically interesting company presents itself, and quickly generate own capital through these shares or their equivalent, without having to dig into the high cash cushion. Everything has two sides.
Summary
Ballard may seem boring and is a big disappointment in terms of share price. The company has a very good standing, however, and is establishing and expanding its international presence, and is positioning itself so that it can in the future make and sell large numbers of stacks and modules for a variety of FC markets and thus earn money. As a partner of various OEMs, Ballard can Provide FC expertise and knowhow to a number of companies. These OEMs do not need to research and develop in this direction themselves: They buy turnkey products from Ballard and enter in competition with companies such as Toyota and leading truck manufacturers.
The China card would open up all possibilities should the country agree to a comprehensive H2 program, as Ballard would then be a big winner. Besides China, Ballard should also put its focus into India, which has a strong interest in hydrogen (see report on p. 58). Ballard equipped the first H2 train to run there. Thinking about the JV of Cummins and Tata Motors, Ballard could enter a similar venture with Ashok Leyland or Reliance. But that is only my personal view. Whoever sees Ballard in the medium or long term should use the severely depressed share prices for new and further buys.
Disclaimer
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
A look at the share prices of hydrogen and fuel cell companies, which have come under severe pressure, suggests that something is not right with the new megatrend hydrogen. What forces are at work here? Short sellers may have an influence, but ultimately it is the markets, the stock exchange and investors that determine the values. Also clear is: The real H2 ramp-up will gain speed in years, not months, and develop sustainably.
At this time, there are concrete projects worldwide to read of that today already correspond to a volume of 320 billion USD and will possibly reach 1 trillion USD per year. The snag is that so far only five to ten percent of these announced projects are in the approval or funding phase or, even, implementation.
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Long-term upward trend is foreseeable
At the moment, companies are primarily concerned with positioning, establishing and scaling production, investing massively in research and development, and optimizing. Illustrative are the results and forecasts presented at important congresses such as at the recent World Hydrogen Summit in Rotterdam, at the newspaper-hosted summit Handelsblatt Wasserstoff-Gipfel in Salzgitter, or at Hannover Messe, which as an indicator for H2 and FC technologies, gives a perfect description of the situation.
Then, there are all the country-specific congresses, like the American Hydrogen Summit, which is representative of similar events around the globe. In parallel, numerous specialized events from the DVGW (German association for gas and water standards), Zukunft Gas and Mission Hydrogen for specific individual topics are taking place, which bodes optimism. Things are becoming optimized, researched, developed, and massive, truly gigantic new world markets are emerging to deal in energy security and likewise the issues of climate, the environment, and energy availability for all markets and uses concerned.
There is also criticism, however, with respect to the EU and Germany in particular, as many things are proceeding too hesitantly and the reasonableness of some regulations ought to be examined. Dr. Sopna Sury, executive at RWE Generation, stated at the Handelsblatt hydrogen summit: We’re simply acting and not waiting on politics. This attitude is illustrated at RWE Hydrogen with many individual projects such as an ammonia terminal in Brunsbüttel, but also in various applications of German electrolysis technology, like that of Sunfire, in Lingen.
All this shows: Countries and companies that approach the hydrogen market with many colors and in order to build businesses belong to the success of the ramp-up. Regarding investment in the H2 and FC stocks analyzed here, all of this sets the perfect runway for the companies concerned. Because their valuation and prospects are expressed in the prices of their shares and the performance of these at the stock market.
Current quotes will be quotes of opportunity
While all the companies and their shares discussed here have different valuation criteria, based off of the different business models, technologies and markets, what they all have in common is that they will play a role in and benefit from the new megatrend hydrogen. We are only at the beginning, though, and with every beginning also comes uncertainty. Here especially, as regeneratively produced hydrogen is a new world market.
You read correctly: Money is needed if you want to make use of the very strongly depressed prices for new or further buys. The basic conviction is that this megatrend talked of has only just begun, if trend research is taken as a basis. A megatrend needs 20 years until the breakout, the inflection point. Go back to the period from 2001 to 2003, when hydrogen and fuel cells started to increasingly come into the public eye. A Ballard Power share was priced at over 130 USD.
Take a seat on the H2 train: We have – metaphorically speaking – just left the station and the H2 train is now picking up speed. The pace is increasing, but the cruising speed has still not been reached. Remember the period from 2018 to 2020, when the share prices rose by several hundred percent but then went downhill for two years? Now, though, my opinion, the new trend will transition to a sustainable upward trend that will tend to lead, with fluctuations that are normal, to substantially higher prices for the shares here discussed. Do you already have your ticket for the H2 train?
Disclaimer
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Written by Author Sven Jösting, June 9th, 2023 graph-7-23.jpg, Source: www.wallstreet-online.de
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.”
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.
At the moment a fierce debate is raging over whether the current operators of natural gas networks should also be the ones to manage the hydrogen grids of the future. European Union-wide regulations on unbundling require the separation of network operator activities. According to Germany’s Federal Network Agency, “transparency and the non-discriminatory configuration of grid operations are fundamental prerequisites to promote competition in upstream and downstream areas of the value chain and to create trust among market participants,” which is why unbundling is said to be essential. So far this provision has only affected the electricity and natural gas networks. But now that there are plans for a pan-European hydrogen grid, a question mark hangs over which rules will apply to it.
The European Commission wants to standardize the rules at a European level and hence is revising the EU directive and regulation concerning the internal gas market. The previous draft states that in future distribution system operators would have to sell off their hydrogen grids, leaving them, at most, with a minimum stake and limited voting rights. This divestment would be obligatory if the energy supply company were already operating a gas or power network. As such, this would result in nearly all transmission system operators in Germany being forced to disincorporate their hydrogen operations. Since the proposals would not provide an incentive to convert existing gas networks to hydrogen, this creates a conflict with current policy targets and the aims of Germany’s national hydrogen strategy.
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The reason why the EU still favors this route is because it assumes different framework conditions than the ones that prevail, for instance, at a national level, e.g., in Germany. Thus the EU makes no distinction in its draft legislation between transmission system operators and distribution system operators. The particularities of German law are therefore not taken into consideration. In addition, the EU doesn’t focus on the widespread conversion of existing natural gas grid infrastructure, but instead places the emphasis on the production of climate-neutral gases that are expected to be injected into the current natural gas network. The operation of hydrogen-only grids is viewed more as an add-on to the existing methane grid, while Germany sees hydrogen-only grids as the default option.
Ehler welcomes new legislation
On Feb. 9, 2023, the European Parliament’s Committee on Industry, Research and Energy voted on legislative proposals for its gas market and hydrogen package. CDU Brandenburg politician and MEP Christian Ehler, who is also industry and energy policy spokesman for the EPP Group in the European Parliament, explains further:
“In order to meet EU climate targets and decarbonize our manufacturing industry, our energy system has to be completely restructured. The gas market and hydrogen package is a crucial piece in the jigsaw for the overall “Fit for 55” legislation and the EU instrument for decarbonization in the gas sector. For industry especially, this will only happen with hydrogen and its associated infrastructure.
It is now extremely important to stimulate the hydrogen market by speeding up the arrangements for hydrogen production, making it less bureaucratic and urgently developing a plan to create a European Hydrogen Backbone (EHB). The European Hydrogen Backbone offers the opportunity to revitalize the European industrial economy while at the same time ensuring the resiliency of the energy system, fostering greater energy self-sufficiency and maintaining security of supply throughout the whole of Europe.
Thanks to today’s ballots, our committee has now laid the key foundations. A great many items in the two dossiers voted upon contain a clear improvement with respect to the commission’s proposal. That applies particularly to the unbundling rules in the directive. All unbundling models that we are familiar with from today’s gas and electricity market are to be made available for an unlimited time. This will create incentives for the repurposing of existing pipelines as hydrogen pipelines since the network operators will benefit from their investment in hydrogen infrastructure.
According to the commission’s proposal, they would have to sell their hydrogen infrastructure in 2030, which would inevitably prevent them from investing in hydrogen infrastructure, and would have negative consequences for the development of a hydrogen backbone.
Hydrogen offers huge opportunities for Brandenburg; it is an attractive location for an electrolyzer industry. The energy transition can only succeed by involving gaseous energy carriers. Regrettably, many of the pathways set out in the proposals of the EU Commission are being held back by individual rules. This is because the proposals make the false assumption that industry’s gas demand can be managed by concentrating on the transmission system without recourse to brown coal.
In actuality, most commercial customers in Germany purchase gas via these distribution systems. The EU Commission’s approach therefore needed a correction. Gas distribution systems must not be excluded from conveying hydrogen in the future. The whole of Brandenburg should put itself forward as a model region for energy. Here, hydrogen will serve as a medium for storage and transportation – in addition to its use as a fuel. The aim is to connect the industrial and production sites for green hydrogen in the Mark Brandenburg area to the future European hydrogen grid.
Today we have set out how renewable and low-carbon gases can be more easily injected into the existing gas grid and how it should be possible to establish a dedicated hydrogen infrastructure and its own hydrogen market. The hydrogen grid of the future will evolve from the gas grid of today. The framework conditions agreed today will help to ensure the hydrogen grid is set up at the required speed and with the required expertise.”
Poland is taking an unusual tack when it comes to its developing hydrogen economy. Unlike in Germany, it’s decided not to focus on the production and storage of green hydrogen. This is because Poland is already producing large quantities of conventional hydrogen, most of which arises as an industrial waste product. The Eastern European nation sees the creation of stable, functioning management and sales structures as more strategically important. Once things have been scaled up to the necessary level and green hydrogen comes online, these types of structures could have a major role to play in a European hydrogen market.
It would seem Poland has different ideas than Germany on matters concerning the application of hydrogen. Ideological paradigms and political idealism are largely absent. Instead, the emphasis is placed much more firmly on feasibility and profitability.
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This contrast in approach was underlined at this year’s conference on the future of hydrogen deployment on the Polish railroad by the representative of Poland’s leading rail freight company PKP Cargo who took an objective and sober view of the situation. The speaker presented an applied feasibility study which investigated all forms of use, from passenger transportation, long and short routes, and freight transport through infrastructure for freight stations and terminals, and compared the pros and cons of fuel cells with those of electric propulsion. The study revealed that fuel cells are only beneficial if rail tracks have not been electrified and large diesel-powered shunting engines are run on the line. Non-electrified sections of track are less common in Poland than in Germany, thus limiting the opportunities for the use of hydrogen trains in the country.
However, the situation is different for the shunting engines that are urgently needed at many Polish stations as well as at the terminals and port facilities currently being constructed. Due to international competition, these facilities are also trying hard to improve their carbon footprint. A good example is PKP Cargo itself which will be by far the largest Polish freight transport provider as well as the biggest buyer of hydrogen locomotives built in Poland.
First hydrogen loco ready
The most significant Polish company explicitly involved in the building of trains and locomotives is PESA in Bydgoszcz. PESA began developing fuel cells for the railroad a number of years ago. The most promising hydrogen project was developed by PESA in partnership with Poland’s largest petroleum company PKN Orlen, which is also the country’s main producer of conventional hydrogen. The result of this cooperation was presented at Innotrans 2022 in Berlin, Germany, where PESA’s SM42-6Dn shunting engine was revealed alongside Orlen’s refueling concept.
“Our two companies have just concluded a strategic agreement with the intention of offering customers a joint product – the supply of rolling stock together with refueling services and hydrogen supplies. A potential operator of a siding or a loading station gets an all-in-one package: a vehicle, a refueling station and hydrogen,” said Krzysztof Zdziarski, president of PESA, speaking to members of the press.
Zdziarski also took the opportunity to mention that it’s not just Polish companies expressing an interest. Ports in southern Europe, too, are keen on Pesa and Orlen’s idea, he said. What’s more, the experience that the developers have gained through their work on the SM42-6Dn design stands them in good stead for the next step: the creation of a hydrogen passenger train. PESA aims to be in a position to build the first Polish passenger train based on fuel cell technology in 2025/2026.
Zdziarski’s remarks need to be treated with caution, however. While PESA is already laying the groundwork for an exciting hydrogen product, it is some way off from being market ready. Not only is the manufacturer unable to specify a price, the SM42-6Dn has not proven itself in the field.
Combining tradition and high tech
The PESA factory in Bydgoszcz could soon cede its position as the only Polish maker of fuel cell power systems for rolling stock. This year’s conference on the future of hydrogen deployment on the Polish railroad in Poznań witnessed the signing of a memorandum between Poznań University of Technology, the H. Cegielski – FPS factories, and the company Impact. All three partnering organizations have previous experience in hydrogen research and development. Impact is already shipping battery systems to railroad equipment suppliers such as Stadler and Siemens.
“We have accumulated more than 10 years’ international experience in providing solutions for battery and hydrogen vehicles. We regard hydrogen as the energy carrier of the future. The profitability of hydrogen as a fuel and energy storage medium depends on a certain magnitude being reached, in other words hydrogen needs to be produced from renewable sources by electrolyzers so that the economy can switch to hydrogen as much as possible. The changeover from natural gas to hydrogen is a process that will take 10 to 15 years unless EU measures can condense this timeframe. A joint project on the application of the hydrogen cell in rolling stock could considerably speed up the growth of this promising sector,” said Impact CEO Bartłomiej Kras.
H. Cegielski, a long-established company located in Poznań, and Impact have been working on the idea of a hydrogen train for over a year. The first step toward creating a new series of trains, which will be based on the new PLUS platform, has already been taken. Additional scientific knowledge and research capacity is now set to be gained through the partnership with Łukasiewicz – Poznań Institute of Technology, which is home to 700 scientists working across six research centers. One of the research groups, the Center of Rail Vehicles, is focused exclusively on R&D for railroad applications.
“The Łukasiewicz institute has been working on hydrogen energy solutions for many years. I believe that the intention we expressed in this document today will soon lead to a revolution in the rail market – a revolution that, particularly in relation to the climate crisis and the energy markets, is desperately needed,” said Arkadiusz Kawa, Director of the Łukasiewicz – Poznań Institute of Technology, at the opening of the conference.
Author: Aleksandra Fedorska
Images: 1 The SM42-6Dn hydrogen-powered shunting locomotive, Source: PESA 2: Schematic layout for the SM42-6Dn, Source: PESA
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The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
