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The pressure is rising

The pressure is rising

In recent years, many compressor manufacturers have intensified their engagement in the hydrogen sector. Several medium-sized companies entered into new partnerships, and there have been several corporate takeovers. And individually dealing with compressors is no longer a separate ordeal for many, but is now offered in package with other services that are also needed for the development of a hydrogen infrastructure. But what distinguishes the different manufacturers and various products from each other? H2-international asked manufacturers about technologies, trends and special features, and has gathered the results here – with no claim of completeness.

Without compressors, hydrogen technology could not go anywhere. In order for H2 gas to be stored and transported, it is necessary to press as many of these little molecules as possible into gas cylinders, cavities or car tanks, to produce the highest possible energy density. This is more difficult with hydrogen than with other gases, since the tiny molecules can escape through the smallest crevice. At the same time, sealing materials can be potential sources of contamination of the hydrogen.

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Compressors differ in both their compression and drive technology. The driver could be, for example, compressed air, hydraulics or an electric motor. Which compression method is right depends, among other things, on the required throughput, the pressure level and the purity needed.

An essential aspect is the initial pressure, so the inlet pressure, for the compressor. If the hydrogen is taken, for example, from a gas container in which the pressure is low or only atmospheric, much more compression work is required than, for example, when already pre-compressed up to 100 bar from an upstream electrolyzer. Since the energy required to compress gases is very high, it may be more economic to apply 30 bar to the feed water at the input side of the electrolyzer than to compress the hydrogen downstream.

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Market overview

H2-international has asked manufacturers of compressors for hydrogen fueling stations about their products, innovations and trends. We did not create a tabular market overview, like that for the electrolyzers in the February 2022 issue of H2-international, as the technical specifications given for different compressors are already too different in nature and there are no uniform standardized conditions for measuring inlet and discharge pressure. But the main features are summarized in this article. If the manufacturer has given us specifications about their product, this information is featured in a profile and sorted under the appropriate parameters. Included were H2 compressors for fueling stations at which the output pressures generally amounted to 350 or 700 bar.

Reciprocating compressors

Piston compressors are the classics known from engine technology They are robust and can deliver high pressures and medium to high throughputs (starting from about 4 tonnes per day). Gasoline and diesel engines of common vehicles are lubricated with oil. Even with oil scraping rings, there is always a thin film of oil remaining on the walls of the combustion chambers, which is desirable to reduce friction. In piston compressors of hydrogen vehicles, this is not desirable, as this oil contaminates the medium to be compressed. A downstream fuel cell in which this gas is destined for use would be contaminated and fail after a short time. For this reason, oil-lubricated piston compressors can only be used in hydrogen systems in combination with subsequent purification of the gas.

Such cleaning can be done with scrubbers based on activated carbon. One of the providers of this technology is Bauer Kompressoren GmbH. The Bavarians started 15 years ago with a, by today’s standards, small H2 project in Spain. The production rate was 35 m3 per hour with up to 350 bar. In addition to activated carbon, the Munich-based company used a molecular sieve, which allowed it to provide hydrogen in 3.7 to 5.0 purity grade (≥99.97% to ≥99.999%). Bauer has been active in the high-pressure sector for 77 years, for example with diving cylinders.

With its H450 compressor, Borsig GmbH manufactures piston compressors for truck fueling stations. A special feature, according to the manufacturer, is the gas seal in the last compression stage. In addition, this compressor can be operated safely even under tough environmental conditions, it was said.

ManufacturerBorsig GmbH
Name of compressorH450
Compressor typeReciprocating (without fueling station)
Pressure classes350 bar
H2 capacity275 kg/h
Input power (el)375 kW
Dimensions (L x W x H)3.4 x 1.3 x 0.8 m
Energy requirement1.3 kWh/kgH2 (40 bar input pressure, 450 bar output pressure)

Sauer Compressors as well is positioned in the medium power range and offers oil-lubricated piston compressors with downstream treatment. The family-run compressor manufacturer headquartered in Kiel, Germany touts robustness as the foremost advantage of this technology. The piston compressors can handle variation of the load as well as fluctuating temperatures. This makes these compressors interesting for use in microgrids and other applications that require a high degree of self-dependence. In addition, according to information by the manufacturer, they are easy to repair. One unique thing about Sauer is that the customers are trained so that they can maintain and repair the compressors themselves – and may do so without voiding the warranty.

To Sauer also belongs the St. Gallen, Switzerland-based company Haug Sauer Kompressoren AG, which manufactures smaller, oil-free compressors. The dry-running units from Haug can deliver up to 1,000 m3 per hour. The model HAUG.Mercure 22E presented at H2Expo, for example, compresses 7 to 13 m3H2/h from up to 24 bar to a maximum of 350 bar.

Dry-running compressors use, for example, PTFE piston rings as an alternative to oil lubrication in the cylinder. The rings are offered by, among others, ElringKlinger and are quite low-wear, but leave traces of abraded material in the compressed medium, which must then be removed with particle filters. Some of these compressors use an oil pan at the bottom of the crankcase for lubrication. However, in these cases, this area is separated from the compression space by a three-stage sealing system so that no impurities emerge there. Oil-free piston compressors can typically be used for pressures from 150 to 450 bar; some at higher pressures as well.

In 2022, together with Bosch Rexroth, Maximator Hydrogen GmbH presented the new compressing unit MAX Compression 2.0 (see H2-international August 2022). This has up to five times the throughput of its predecessor, within the same construction volume. The energy requirement was also minimized by the providers, according to the press release. The highlight is that although compression still takes place in two stages, the hydrogen no longer needs to be stored between these stages. In the 75-kW class, the throughput should increase by 20 percent at the same driving power, which should decrease costs accordingly. The power classes additionally range from 75 to 250 kW. This allows the capacity of a hydrogen fueling station to be increased if necessary without major reconstruction.

A special feature is the automatic changing out of the seals (automatic seal exchange, ASX). The bar loader used for this purpose can hold up to 20 interchangeable seals. Per seal, it takes about 15 seconds for the exchange, so seal replacement for the whole system should be complete within three minutes.

In November 2022, the company from Nordhausen reported reception of a major order from Sweden. From autumn 2023 to the end of 2025, Maximator is to provide compressors for the in total 24 hydrogen fueling stations that are to arise in the course of the project REH2. These are to supply primarily heavy trucks, and 23 of the 24 are planned to be installed at highway rest stations. REH2 wants to supply exclusively green hydrogen that is produced primarily with local energy sources such as wind and water. Majority owner of the project is the investment company Qarlbo AB.

The FSS High Capacity Station from the company Resato is a modular system. The number of compressors and dispensers can be varied to suit demand. Thus, a high production capacity is possible by joining the standardized components, which are available in the modular sizes for 1,000 or for 2,000  kgH2/day. The hydrogen can be supplied by tube trailers or multiple element gas containers (MEGCs) coming directly from an electrolyzer or from the pipeline. The available hydrogen quantity, according to Resato, sets the limit for the capacity of the fueling station.

According to Resato, the fueling stations are user-friendly, reliable and have a favorable marginal cost. In addition, the supplier has a Europe-wide network for after-sales support.

ManufacturerResato
Name of compressorFSS – High Capacity Station
Compressor typeElectrohydraulic piston compressor and fueling station system
Pressure classes350 bar, 700 bar
H2 capacity>1,000 kg/day, >2,000 kg/day
Input power (el)185 kW
Base area10 m x 12 m (without hydrogen provision)

Diaphragm compressors

Membrane compressors are suited for higher pressures up to 1,000 bar. They too essentially use a piston to compress gas. However, this does not act directly on the gas, but on an oil, which in turn moves a membrane. The gas to be compressed is enclosed by this membrane (diaphragm). This way, neither hydrogen gets out nor contaminants get in. Membrane compressors are therefore free of contamination and have no loss from leakage. They are suitable for frequent or continuous operation. However, they are technically limited to H2 throughputs on the order of 1 to 2 tonnes per day. This makes them less of interest for hydrogen truck fueling stations, for example.

Andreas Hofer Hochdrucktechnik GmbH, which belongs to Neuman & Esser (NEA Group), according to its own statement, can guarantee pressures of 5,000 bar with diaphragm compressors and up to 3,000 bar for dry-running, hydraulically driven piston compressors.

The MD10-L membrane compressor from Burckhardt Compression is available as a standardized mobile container-installed solution or as a bare unit. It can also be supplied with noise reduction and a closed cooling water system, if needed. The size is adapted to a 2.5-MW electrolysis unit. The membrane compressor ensures high hydrogen purity and gas tightness. For higher throughputs, Burckhardt Compression recommends its own 3CS oil-free piston compressor. According to the company, it supplied its first hydrogen compressor as early as 1972. The manufacturer has a service network that reaches around the world and offers a comprehensive after-sales service.

ManufacturerBurckhardt Compression
Name of compressorMD10-L
Compressor typeDiaphragm compressor
Pressure classes350 bar
H2 capacity45 kg/h
Input power (el)81 kW (rated power at specifications given below)
Energy requirementApprox. 1.8 kWh/kgH2 (30 bar input pressure, 550 bar output pressure, 45 kg H2/hour)
Dimensions (L x W x H)6.1 m x 2.44 m x 2.59 m

Centrifugal and screw rotary compressors

For lower pressure levels, centrifugal (turbo) compressors and screw compressors are the go-tos. Their typical pressure range lies at about 1 to 20 bar, and the throughput at up to 50,000 m3H2 per hour. For hydrogen fueling stations, they can therefore only serve in the pre-compression stage, to build up the ingoing pressure required for the other compressor types. The operating principle of a screw compressor is two interthreading screw rotors rotating inwards of each other (see Fig. 1).

In this way, the volume to be acted on is increasingly reduced. Similarly to the case with piston compressors, a pulsation accordingly arises in dependence on the rotational speed of the screw, which could be 1,500 to 2,000 rpm for large units and up to 5,000 rpm for small units. In general, screw compressors have a higher leakage rate compared to other compressor types and thus higher efficiency losses. To reduce friction and improve tightness, oil is used similarly to the use for piston compressors.

One manufacturer of screw compressors is Aerzener Maschinenfabrik GmbH. A new innovation by the engineering company is the substitution of oil with water. The water film seals similarly well to oil, prevents contamination and, at the same time, leads to a thoroughly desired humidification of the H2 gas. This method, however, is still in the testing phase.

In addition to this, there are ionic compressors, such as those manufactured by Linde.

Manufacturers, business models and trends

Some of the companies listed here are primarily focused on the manufacture of compressors. Others, on the other hand, see their area of business as turnkey hydrogen fueling stations. Especially amongst the makers specializing in compressors are family-owned companies steeped in the technological tradition of the German-speaking area. A prime example and, by its own statement, the world market leader for reciprocating compressors is Burckhardt Compression AG from Winterthur, Switzerland, with now 2,700 employees.

According to the company, Burckhardt Compression works on membrane as well as piston compressors that can deliver pressures of over 900 bar and additionally are suitable for high throughput volumes. The company, which has been listed on the stock exchange since 2006, shows – not only in the H2 sector – a clear willingness to grow globally, as evidenced by recent acquisitions: Industrie- und Kompressorenservice GmbH from Bremen (2016); CSM Compressor Supplies & Machine Work Ltd from Canada (2017); Arkos Field Services from the USA (2019); The Japan Steel Works Ltd from the USA (2020); Shenyang Yuanda Compressor Manufacturing Co, Ltd from China (2021).

In the hydrogen sector, the company founded in 1844 is engaged not only in H2 station and trailer refueling solutions, but also power-to-gas projects and offshore H2 production. In spring 2022, Burckhardt Compression began construction of its very own H2 testing facility at its headquarters in Winterthur. There, the company intends to further develop sealing technologies for heavy hydrogen commercial vehicle fueling stations that would allow oil-free compression up to 900 bar (as booster). The goal is to get in business with Shell New Energies. Burckhardt Compression says it’s one of the finalists in the race for the energy giant’s fueling station business. The testing facility is to go into operation in early 2023, and the tests should be completed by the end of the year.

In 2022, Burckhardt Compression entered into a partnership with the H2 fueling station developer HRS (formerly TSM). This involves the delivery of several membrane compressors within the next two years for the fueling stations of HRS, the capacity of each of which is to be between one and two tonnes per day. The target group for these fueling stations is heavy transport (buses, trucks, port vehicles) and light commercial vehicles, like taxi fleets. With the partnership, the two companies want to equip other areas of hydrogen mobility already as well, such as ships, trains and planes.

The Neuman & Esser Group (NEA) as well is a heavyweight in the compressor sector. The family business from Übach-Palenberg, with its 1,200 employees, is making a name for itself through, among other things, the two managing partners, as Stefanie and Alexander Peters are both strongly engaged in lobby associations as well as on the political administration level. Stefanie Peters is active in the German hydrogen council (Nationaler Wasserstoffrat, NWR), among other things, while her brother is director of the compressor and vacuum division within the German association for mechanical engineers (Verband Deutscher Maschinen- und Anlagenbau, VDMA). In addition, at the beginning of December 2022, he was voted to become an executive director of the German hydrogen and fuel cell association (Deutscher Wasserstoff- und Brennstoffzellen-Verband, DWV).

PDC Machines from Pennsylvania is, by its own statement, the world’s leading manufacturer of diaphragm compressors for hydrogen. H2 applications are the second mainstay of the US company alongside classic industrial compressors. In addition to the compressors, the portfolio includes a complete mini refueling unit named SimpleFuel as well as turnkey hydrogen refueling stations.

In 2022, PDC Machines announced a cooperation with US supplier Gilbarco Veeder-Root. The company plans to establish an end-to-end infrastructure for refueling that in addition to the compressors from PDC machines and the dispensing stations, also encompasses the necessary software for operation. This is to occur via the wholly owned subsidiary ANGI Energy Systems, which is responsible for Gilbarco’s compressed gas business and has already been developing complete solutions for its customers for 30 years.

PDC Machines is currently benefiting, like many US companies, from the US Inflation Reduction Act. Among other things, this provides for a ten-year tax bonus for clean hydrogen and H2 storage systems. In addition, there are to be tax advantages for fuel cell vehicles and better tax credits for “clean fueling stations.”

Hiperbaric, headquartered in Burgos, Spain, has been active in H2 compression since 2021. The company started in 1999 with solutions for the food industry. In the hydrogen sector, Hiperbaric has devoted itself to compressor units preinstalled in portable packages for use at filling stations and research facilities or for gas storage. In addition to the high-pressure piston compressors themselves, the containerized solutions contain the controls, cooling, ventilation and the pneumatic and hydraulic systems. The compression takes place in two stages.

The compressor unit is available in options for up to 500 or up to 950 bar. The 500-bar unit has a throughput of up to 26 kg of hydrogen per hour, and the 950-bar unit up to 15 kg per hour. With a second compressor installed in the container, the rate can be doubled. The offer includes a complete service, with maintenance. The remote monitoring and diagnostics service should ensure that errors are detected before a failure in the system occurs.

Compressor trends

The question of how to offer more and larger compression and refueling station solutions for hydrogen as easily as possible is on the minds of all manufacturers. Borsig names standardization and scaling as the keys to reducing costs. Resato sees itself well prepared for capacity expansions with the modular approach. The company wants to think less in terms of individual projects in the future and instead turn hydrogen fueling stations into a “business tool.” Instead of a single fueling station optimized for low investment and operating costs, customers should receive a complete product with business model included. The decisive optimization variables here are reliability and the question of what it costs to put one kilogram of hydrogen into the tank of a vehicle.

Authors: Eva Augsten, Sven Geitmann

Image: Bolts Schrauben-DSC_0277-Ausschnitt

Unregulated hydrogen production boosts demand for fossil energy

Unregulated hydrogen production boosts demand for fossil energy

Unrestricted hydrogen production that is not aligned with the supply of renewable energy significantly increases electricity generation by fossil fuel power plants, thus raising the levels of carbon dioxide emissions. Not only is that disastrous for the climate, it’s also something we absolutely cannot afford given the current gas shortage.

Electrolyzers make an important contribution to the energy transition when their operating hours correlate with the times at which a large amount of electricity is available from renewable sources. This is why they should, first and foremost, serve as flexible options in the energy system.

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If, on the other hand, electrolyzers run virtually uninterrupted, then they necessarily fall back on the prevailing German power mix which still comprises high proportions of fossil-based energy sources. If there is insufficient green electricity available, then a conventional power plant has to be fired up for the purposes of hydrogen production in order to cover the additional demand arising from the electrolyzers.

Due to the ongoing lack of renewables and the way conventional market mechanisms operate, the facilities that are mostly used to cover such peak loads are fossil-fueled and environmentally damaging power plants – particularly quick-starting gas power plants. Consequently, the unrestricted operation of electrolyzers provokes a rise in the consumption of expensive, scarce natural gas. This situation will be further exacerbated if – as planned by the German government and many industry players – large numbers of high-performance and inflexible electrolyzers enter service at an ever faster rate but the expansion in renewables fails to keep pace. That is certainly unwise and definitely not at all good for the climate.

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Instead, electrolyzers should primarily serve as flexible options in the electricity system at this present stage of the energy transition. Of course, with highly flexible operation comes challenges: Electrolyzers need to be controlled intelligently according to the availability of wind and solar power. Peripheral equipment, too, must ensure this flexibility. And the off-take of hydrogen needs to work smoothly in the face of fluctuating hydrogen production.

Yet these challenges are solvable, as representatives from the eco-energy space in particular are able to demonstrate. The solutions, however, require further research, development and, undeniably in some areas, also creativity. In other words, it would indeed be feasible. Nevertheless, as it stands there are practically no effective incentives, thanks to the current laxity of criteria for hydrogen production.

As long as the rules governing electrolyzer operation fail to make maximum climate protection their guiding principle, the operators are in no way required to meet the challenges outlined – the upshot being that we will struggle to find the necessary solutions to ensure an efficient and renewable energy system.

The European Commission therefore needs to create a framework which, from the get-go, has the synchronization of hydrogen production and renewables provision at its center. Transitional rules can be helpful at the beginning. However, they should in no way cement the status quo. By contrast, they should put in place the requirements right now that will ensure that the electrolyzer projects being rolled out in the next few years use high and increasing proportions of green power.

For the reasons mentioned above, we need binding and ambitious green power criteria to enable a fast ramp-up of environmentally responsible hydrogen production. This should incentivize the flexible operation of electrolyzers by limiting their full-load hours. This limit could be specified, for example, in line with the renewables share in a particular member state. Furthermore, electrolyzer-based hydrogen production should be harmonized with the supply of renewable energy by means of hourly synchronization.

Further and highly ambitious expansion of renewable energy sources is the central foundation and prerequisite for establishing a sustainable hydrogen economy. Therefore all European member states should likewise be driving forward this renewables expansion. Because of the difficulties of procuring electricity from new plants in the short term, though, unsubsidized electricity supplies should be used for hydrogen production in the interim. This ensures a certain level of financial support for renewable generating facilities thanks to the electrolyzers acting as off-takers for the green power produced, while at the same time older plants could be used to produce hydrogen.

The geographical relationship between electrolyzers and solar/wind plants is highly relevant since the operation of electrolyzers must not lead to an increase in grid congestion. Introducing these rules at a European level is difficult due to major differences in infrastructure, control areas and electricity market design across member states. This is where individual EU states should themselves take action and, where necessary, use the opportunity to further restrict the geographical relationship. In Germany, electrolyzers could, for instance, be considered as part of congestion management within redispatching, with the choice of electrolyzer location taking into account the congestion event.

By implementing these criteria and taking a flexible approach to electrolyzer deployment, it is possible to produce hydrogen that is both low in emissions and low in cost.

Author: Carolin Dähling, Green Planet Energy eG, Hamburg,Carolin.Daehling@green-planet-energy.de

H2 industry hopes for legal certainty soon

H2 industry hopes for legal certainty soon

Without legal certainty, businesses cannot invest. But why haven’t European legislators succeeded yet in creating clarity for the hydrogen industry? And what is already known about the future sustainability criteria for green hydrogen?

Producing renewable hydrogen-based fuels is only worthwhile if they can be counted towards fulfilment of the minimum quota in the meaning of the EU’s Renewable Energy Directive (RED II). Currently, a binding minimum quota for the percentage of renewable energies in the total energy consumption only applies to the transport sector. However, mandatory quotas for the industrial sector are foreseeable. Once creditability is given, green H2 producers will be able to earn more money than with conventional gray hydrogen.

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What is the state of affairs?

Whether a produced RFNBO (renewable fuel of non-biological origin) molecule is creditable depends on whether the sustainability criteria were met during its production. The EU Commission was tasked in the 2018 Renewable Energy Directive with setting sustainability criteria for RFNBOs by December 31, 2021 in two so-called delegated acts. The first of these is to stipulate the electricity obtainment criteria (Art. 27 (3)) and thus the criterion of renewability. The second defines the method for calculating greenhouse gas intensity (Art. 28 (5)) and thus the criterion of greenhouse gas saving.

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The challenge for the EU Commission is immense. If the criteria are too strict, production costs could be so high that market ramp-up would be severely limited or only feasible with the help of high financial support. If the criteria are too soft, hydrogen as a climate protection technology would be rendered meaningless. If for example water electrolysis is run with the average electricity from the German grid instead of purely renewable electricity, however, this would produce higher overall greenhouse gas (GHG) emissions than the production of fossil (gray) hydrogen.

The delegated acts have caused real excitement in the course of their preparation. From the beginning, the industrial sector as well as EU member states and civil society organizations have paid them much attention. In addition to stakeholder workshops and consultations with officials, they were the subject of numerous open letters, expert opinions and discussions.

After the Commission had nevertheless, or precisely because of this, kept quiet for a long time, starting 2021 the first details on the shape of the legal acts were announced. Following initial reactions and particularly after the public consultation on the first official drafts in the summer of 2022, the Commission moved towards the industry’s concerns on a number of points, but has not however backed away from its basic interpretation of the criteria already laid down in the Directive. The current state of the criteria is as follows:

When is electricity obtainment deemed additional?

According to the Renewable Energy Directive, the “additionality” of the electricity used in the production of the fuel needs to be established (obtained from additional renewable energy generation capacity added to energy grid of EU member state). Furthermore, the production of the renewable electricity must be temporally and spatially correlated with its application. This means the electricity needs to be generated in the vicinity of the water electrolysis system and near to the time of the hydrogen production.

According to the current drafts of the European Commission, the delegated act on renewable electricity obtainment stipulates that the electricity for water electrolysis must be obtained through direct supply contracts (power purchase agreements, PPAs) in order to be counted. The renewable energy installations for the power outputs agreed in such a contract must have been put into operation no earlier than 36 months prior to the electrolyzer. They must also not have received any government funding, unless the installation was renovated (“repowered”) with investments comprising at least 30% of the investments for a new facility or unless it was a research or development project.

Furthermore, in a transitional phase up to January 1, 2027, softer criteria shall apply. In this time period, the electrical energy installations can have been subsidized. In Germany, for example, this would mean that post-EEG plants would be allowed to be used for PPAs. Plants in operation before January 1, 2027, according to the provisions of the transitional regulation, can continue to be used for up to ten years until the end of 2036 at the latest.

In addition, there is a provision for the use of so-called surplus power. Grid electricity used for the electrolysis that would have otherwise been curtailed can be credited as fully renewable. Still unclear is how the required proof of approval by the respective responsible transmission system operators can be brought forward.

Another exception is RFNBOs that are produced in (geographic) bidding zones with a previous year’s share of renewable energy (percentage of total sources for grid generation) of over 90% on average. In these bidding zones, the RFNBOs produced from grid power are considered entirely renewable and the electricity does not need to be purchased through PPAs.

These criteria are intended to ensure the additionality of electricity production. The basis for this was the desire of lawmakers to not divert the existing portions of renewable energy to meet the massive electricity demand of the hydrogen economy, but rather to create additional incentives for the expansion of renewable energies.

How will the temporal correlation be verified?

The temporal correlation of electricity generation and hydrogen production is considered to be fulfilled when electricity production and consumption lie within the same 60-minute interval. There is also a transitional rule for this criterion. Up until March 31, 2028, correlation within an interval of one quarter of a year is acceptable. To give producers more flexibility, electricity storage systems can be interposed, for which the same criteria shall apply. Furthermore, the non-transitional criterion automatically takes over once the electricity price at the market falls under 20 euros per MWh or under 0.36* emissions trading price (EU ETS).

When is there geographical correlation?

Geographical correlation is considered to be met if the electrolyzer and the electricity generating station are located in the same bidding zone. Alternatively, electricity may be sourced from adjacent offshore bidding zones. If no transmission constraints are present, the electricity can also be obtained at the same price from connected bidding zones. On this point, the EU member states are given room for maneuver, as they are allowed to enact further (stricter) criteria at national level to avoid grid congestion.

For the German federal government, this could be an option to avoid additional grid bottlenecks, which due to the good potential for renewable energies in northern Germany, could increasingly arise in consumption centers in southern Germany. For RFNBO producers, however, the member states’ interpretational leeway means additional uncertainty, as it could take more time for national regulations to be set and utilizable.

How is greenhouse gas intensity calculated?

RFNBOs are “low-carbon fuels” if they meet the minimum requirement of 70% greenhouse gas reduction compared to conventional fuels. In order to determine the greenhouse gas intensity, a binding, EU-wide uniform method of calculation is needed. The calculation methodology includes the value-adding steps of production, processing, transport, combustion and CO2 capture. It also sets the fossil reference value, compared to which the emissions (in CO2 equivalents) must be at least 70% lower, for hydrogen-based fuels. This reference value was set as 94 gCO2eq/MJ.

If RFNBOs are produced with renewable grid electricity (renewable according to criteria in Art. 27 (3)), the GHG intensity can be input as 0 gCO2eq/MJ. If grid electricity is used for water electrolysis in a way that is not compliant with the electricity obtainment criteria, then the GHG intensity is the CO2 intensity of the overall national power grid.

The more contentious aspects of the Commission’s proposals for this delegated act, however, are the CO2 sources that may be used for the synthesis of more complex RFNBOs, such as e-kerosene. Acceptable, according to the latest drafts, are biogenic sources such as CO2 from biogas plants, carbon capture from air (direct air capture, DAC), carbon capture from combustion of RFNBOs and recycled carbon fuels, and natural CO2 sources that would otherwise not be used.

CO2 capture from industrial sources such as cement works or power plants would be relatively cheap and is available. Capture from industrial sources, with the exclusion of electricity production plants, is therefore to be acceptable until December 31, 2040. To producers of RFNBOs, this has not been thought out far enough. However, the widely supported proposal to divide industrial sources into long-term avoidable and non-avoidable sources of CO2 (e.g. cement plants) was not taken up by the Commission.

What is to be expected next?

The proposals have varying appraisal among industrial stakeholders. While some can live with the proposed compromises or even call for stricter criteria, others find them unacceptable. Agreed by all is the need for the process to go faster: There must now be clarity as quickly as possible. This means that, firstly, the Commission should present the final versions as soon as possible and, secondly, that the member states should transpose the requirements into national law without delay after they appear. In Germany, this means the swift enactment of the 37th BImSchV, the 37th ordinance on the implementation of the German emissions reduction law (Bundes-Immissionsschutzgesetz).

In order to exert pressure on the Commission, the European Parliament has also intervened in the meantime. In a vote on the revision of the Renewable Energy Directive in mid-September 2022, the Parliament approved a motion tabled by Markus Pieper (European People’s Party) by 314 votes to 310. Accordingly, the Parliament is in favor of not defining the criteria for electricity obtainment in the form of delegated acts but rather in the main text of the Directive, in Article 27 (3). Furthermore, the principle of additionality is to be stricken. Unclear at this time is whether the Parliament will adhere to this position during the negotiations on the revision of the Renewable Energy Directive.

When clear criteria will be defined is still unclear. It would be possible for the Commission to present the final versions not long from now. The publication would be the starting signal for the two-month period during which member states can object to the draft by qualified majority vote. This period could optionally be extended by another two months. In this scenario, the criteria could be transposed into national law starting the second quarter of 2023 at the earliest.

Should trilogue negotiations between the EU Council, Parliament and Commission ensue in response to the Parliament’s proposals, the delegated acts of RED II would be in effect until the revision of RED II goes into EU law or until its national implementation (expectable starting 2025).

Another aspect could be clarified during the trilogues: So far, the criteria only apply to hydrogen-based fuels in the transport sector. However, it is possible that in the future they could also apply to other sectors, in particular the industrial sector.

As complex and controversial as the criteria may be, without them RFNBOs will not achieve their climate protection potential. Until an agreement is reached, the oft-invoked development of a hydrogen economy is at a standstill.

Author: Korinna Jörling, NOW GmbH, Berlin, Korinna.joerling@now-gmbh.de

 

Grid-serving electrolysis

Grid-serving electrolysis

When is green hydrogen actually green? Defining this is crucial for ramp-up of the H2 economy in Europe. And that is why it is good that the respective delegated act is finally to be published and provide an EU definition for the first time. This is good – despite its deficiencies, from my point of view.

Three criteria for the definition of green hydrogen are particularly important:

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  1. Origin: The electricity used to generate green H2 must come from renewable energy plants or installations.
  2. Simultaneity: The generation and the consumption of green electricity should demonstrably occur within one quarter of an hour.
  3. Regionality: The production of green H2 should not lead to more grid bottlenecks. Accordingly, the generation of the electricity and its consumption in the electrolysis must be upstream of the next grid node, or generation and consumption must take place before the next grid bottleneck.

Only when all of these are fulfilled is the electrolysis grid-serving, because only then does it unburden our power grid. The delegated act would therefore have to be structured in a way that promotes the grid-serving nature of electrolysis and thus maximally accelerates the expansion of renewables throughout Europe. Because that is the foundation for the establishment of a green H2 economy as well as for the decarbonization of all sectors – and for meeting our climate targets.

Unfortunately, the delegated act does not match these criteria in all instances. Until April 2028, the temporal correlation is required within a time interval of one quarter of a year, rather than the quarter-hour interval already stipulated for electric grid feed-in/withdrawal accounting in Germany today. Starting in 2028, the correlation within one hour will be required.

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The delegated act also does not try to guarantee the expansion of renewables via a compulsory grid-servitude but rather a so-called additionality, according to which almost exclusively electricity from new plants could be used as a basis for green hydrogen. For electrolysis stations that go into operation by the end of 2026, green electricity obtained from any eligible electricity generating installation that qualifies as renewable under the EEG laws (German renewables expansion) could have been included in some way, but the formulated exceptions only refer to the obtainment of electricity from the grid. Furthermore, in the case of a direct supplying of power, the electricity generating stations had to have gone into operation no earlier than 36 months before the electrolyzer. Yet for this, a spatially near direct supplying – including from old installations – would be much more grid-beneficial.

On the subject of spatial nearness: According to the latest draft of the delegated act, this criterion is already fulfilled when the electrolyzer and power generating structure lie in the same bidding zone. So I could produce electricity in Nordfriesland (extreme North of Germany) and run the electrolysis in Garmisch-Partenkirchen (extreme South). This is certainly not grid-serving.

Why is it nevertheless good that the delegated act will soon be in effect? Because only when legal certainty prevails will investments be made in the domestic green hydrogen economy.

The delegated act builds the foundation for targeted support of the use of green hydrogen via the generation of GHG (greenhouse gas) certificates. For this, the necessary adjustment of the crediting rules for e-fuels in the 37th BImSchV (ordinance on implementation of German emissions reduction law) has still to take place in 2022. Because only when the right incentives are created will significant quantities of green hydrogen be produced here in Germany and Europe.

Haste is needed: As part of the US Inflation Reduction Act, many billions are being invested in establishing the green hydrogen economy there. The consequence: US companies are currently buying up electrolyzers and the components needed for them. European electrolyzer manufacturers are considering moving production there, and US companies are increasingly acquiring interest in manufacturers from the EU in order to secure capacities for themselves.

For ramp-up of the hydrogen economy in Germany and Europe, equally strong incentives are urgently needed. Otherwise, after the solar and wind power plant industries exit, Europe is facing the collapse of the next crucial pillar of the energy transition.

Author: Ove Petersen, GP Joule, Reußenköge, Germany, info@gp-joule.de

Faster expansion of renewable energies

Faster expansion of renewable energies

Hydrogen is not an end in itself, but an important building block for the transition to climate-friendlier infrastructures. An absolute prerequisite for this is the additional expansion of renewable energies. The recent decision by the EU Parliament has left this hanging in the balance.

For the climate-friendly transformation, green hydrogen is an essential factor. It enables some industrial applications and parts of the transport sector to be defossilized or decarbonized. But: To be able to produce green hydrogen, an additional and faster expansion of renewable energies is urgently required. However, a corresponding proposal submitted by the EU Commission in May 2022 was rejected by the EU Parliament. Whether the additional renewable energies so urgently needed for hydrogen production will be available is therefore a question for the time being.

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If no additional renewable energy resources are created, to draw on already existing ones would require taking away from the electric power sector. This would, on the one hand, reduce the overall energy efficiency, since the conversion of electricity into hydrogen is accompanied with efficiency losses. On the other hand, the quantities of electricity used for hydrogen production in the power sector would have to be partially replaced through fossil energies, which is counterproductive to CO2 reduction and therefore to meeting the legally set climate targets for Germany.

In the current situation and against the background of the fossil energy crisis resulting from the Russian war of aggression on Ukraine, it is imperative to not promote fossil structures that are not urgently required for security of energy supply.

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The hydrogen economy must additionally be viewed against the backdrop of the energy policy triad of prosperity, energy security and climate protection. This triad must be approached intelligently. The hydrogen economy certainly offers potential in this, since it is sometimes the only decarbonization and defossilization option for important applications in the industrial and transport sectors. For example, it offers immense opportunities as a storage and flexibility option for the power sector and as a substitute for the CO2-intensive blast furnace process in the steel industry. Furthermore, a variety of jobs and export opportunities for clean technologies can be created.

For assurance of planning and investment security, producers of hydrogen and its derivatives have been placed on a fixed roadmap (Hydrogen Roadmap Europe), by which stakeholders can avoid bad investments as well. A flexible use of electrolyzers can ensure that hydrogen is produced with low emissions and at low cost. Legacy clauses – with exemption periods for plants built in the early term as well as sensible entry paths into the regulations for additional renewable energies – could combine a quick ramp-up of the hydrogen economy with possibilities for long-term planning.

If the EU Parliament decides to relax the rules on hydrogen production, though, this could drive up electricity prices and thus the production costs of hydrogen even further. Because: The electricity withdrawn as a result would then have to be replenished through expensive natural gas-fired power plants, which in turn would increase the cost of renewably produced hydrogen.

In addition to criteria for electricity obtainment, other sustainability criteria must also be set – and globally. We now have the opportunity to shape and establish a global hydrogen economy that contributes locally and internationally to the achievement of climate targets and sustainable development goals (SDGs), creates value in all partner countries and strengthens international relations. For this, it is crucial that the EU cooperates with all relevant actors in the partner countries to unite the respective interests in the best possible way.

We need climate protection in order to secure our economy in the long term. In short: On a Rhine without water, we will not be able to transport goods efficiently. We must not forget one thing: Climate protection today is always cheaper than climate protection tomorrow. Therefore, we should now implement serious climate protection measures as quickly as possible. We need a rapid ramp-up of the hydrogen economy in order to achieve the climate targets. To this end, we should in particular accelerate and incorporate more in the expansion of renewable energies.

Author: Ulrike Hinz, WWF Deutschland, Berlin, ulrike.hinz@wwf.de

Germany-speed for hydrogen – not only for LNG terminals

Germany-speed for hydrogen – not only for LNG terminals

It’s now become apparent to most market observers that the energy supply in Germany and Europe is going to fundamentally change. Instead of fossil fuels it’ll be up to renewable energy sources to keep the economy and society moving.

Given what we know today, hydrogen will be paramount to this transformation process since there’s no way of linking up the various parts of the energy ecosystem without recourse to hydrogen gas.

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The underlying conditions that make this possible have already been put in place: Both the German government and the European Parliament have made clear their support for a hydrogen economy. For months now, other national hydrogen strategies have been popping up around the world – surely evidence that the hydrogen industry will be on a global scale. The announcement of the Inflation Reduction Act by the Biden administration in the US made it abundantly clear, if it wasn’t already, that hydrogen is the fuel of the future.

Despite current developments speaking for themselves, many industry players are still hesitant when it comes to making concrete investment commitments. And at the numerous trade fairs and congresses in the fall, the overwhelming majority of attendees were heard grumbling about the government, complaining that it hadn’t created suitable safety nets.

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High-ranking company execs are calling for more regulation on this and that. Sometimes the criticism is directed at the approvals procedures, other times it’s EU legislation or local stipulations. The reasons given as to why a decision can’t be made right now are many and varied, but most of them are used as excuses for doing nothing.

Yet all those who are just talking while sitting on their hands, need to ask themselves what they are really waiting for. For state guarantees that ensure the maximizing of profits whatever happens? For binding assurances that safeguard the company’s survival for the next 20 years?

At the H2Expo in Hamburg, for example, one manufacturer of stationary hydrogen engines said: “We can bring out 1 gigawatt, but there isn’t the demand.” Elsewhere a representative from the gas industry boasted: “Hydrogen could flow through our pipes if it were there.”

Needless to say, we still don’t have sufficiently affordable green hydrogen yet, which explains why hydrogen engines, for want of a viable business model, are still not in demand and pipelines continue to carry only fossil gas.

And yes, the electricity market does need overhauling to create more planning certainty. And the shortage in chips and skilled personnel does need addressing. But this reputedly unclear legal situation and the lack of renewables capacity mustn’t be used as justification for failing to act right now.

If some people really want to wait for others to solve the challenges we are facing, then they are welcome to do so. Whoever holds off until all issues have been settled between natural gas and hydrogen network operators and the chips are pouring in again, will have months, if not years, to twiddle their thumbs. However, the cake may well have been polished off by then.

Of course, much work still has to be done at a policy and regulatory level – and quickly. The impact that policy can have is now plain to see. Emissions limits or other environmental rules have been introduced in every imaginable branch of industry, be it for the automotive sector, for cement producers or for wind farm operators – and successfully so. The latter are required to reduce their own energy consumption annually by 5 percent (see p. 44).

There are times when the government is able to act relatively quickly if it wants or needs to – something we can see at the moment with LNG terminals on the German coast. But what’s the point of having ostensibly hydrogen-ready terminals if they don’t get any green hydrogen because those with the cash and the know-how don’t get their act together, don’t get involved in renewables expansion or building up production capacities for electrolyzers, fuel cells or hydrogen engines?

You’ll often hear people citing a “new German swiftness,” but this is usually when asking others to move at a faster pace rather than to gauge their own actions. It’s fascinating to listen to large companies and corporate groups in particular gladly pointing the finger of blame at politicians and demanding they set up “appropriate framework conditions” without themselves putting in the prep work.

So here’s a heads-up: Anyone who genuinely believes that, in times like these, they can palm off all risk to the German government or the taxpayer, is in very real danger of becoming a bystander. Those who avoid taking responsibility today for their own company and/or employees, could soon bitterly regret their lack of action.

And that would be a crying shame because – after 50 years of delays and disputes – we can’t afford to waste any more time in bringing about social and environmental change and meeting our climate goals so that ultimately the planet can remain a habitable place.