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National hydrogen strategy 2.0

National hydrogen strategy 2.0

German government steps up the pace

Coordination was hard enough when there were “only” four German ministries dealing with hydrogen – now there are six involved in updating the national hydrogen strategy, plus the chancellery. This participation of so many different departments is surely conclusive proof that hydrogen has become a key plank in the energy transition.

“Being a versatile energy carrier, hydrogen will assume a key role in achieving our ambitious energy and climate targets.” This statement shows the German government’s recognition of hydrogen’s immense importance in the future energy supply and in tackling the climate crisis. It’s for good reason that, three years after the national hydrogen strategy was adopted in June 2020, a redraft has now been approved with content and targets adjusted to match changed conditions.

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The update to the national hydrogen strategy, which was enacted by the federal cabinet in July 2023, has, in the government’s words, “created a coherent framework for action for the entire hydrogen value chain – from production to transport through deployment and reuse.” The strategy, also referred to as the NWS, is designed to ensure certainty in financial planning, which provides the foundation for future investment, so that the market for green hydrogen technologies can be successfully ramped up.

At the same time, the NWS recalls that the creation of a hydrogen economy is “a task for the whole of society” whose success “requires contribution from all stakeholders.”

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“Hydrogen technologies are not only an important instrument for climate change mitigation. They can enable the creation of new branches of industry with a large number of viable long-term jobs and extensive export opportunities. […] The NWS will thus also help German industry retain and further expand its strong position in hydrogen technologies.”

German government

Specific targets defined

The main 2030 targets outlined in the NWS focus on achieving an accelerated ramp-up of hydrogen and securing sufficient availability of hydrogen and its derivatives. Accordingly, the previous goal of 5 gigawatts of electrolyzer capacity has been raised to at least 10 gigawatts. Remaining demand will be covered by imports which will be the subject of a specially developed import strategy.

What’s more, effective hydrogen infrastructure is to be put place. According to the plans, a hydrogen starter network stretching across more than 1,800 kilometers (1,120 miles) will be got underway by 2027/2028 and supported by funding from Brussels. The network will be composed, in part, of repurposed natural gas pipes as well as newly constructed hydrogen lines. It will form a key part of the European Hydrogen Backbone which will involve hydrogen pipelines covering a total length of around 4,500 kilometers (2,800 miles).

In addition, various hydrogen applications are to be established in different industries – in the power and industrial sectors, in heavy-duty vehicles as well as in aviation and shipping. To allow this to happen, the intention is to create suitable framework conditions, specifically planning and approvals procedures, appropriate standards and certification systems. The stated aim is for Germany to become the leading supplier of hydrogen technologies by 2030.

“We have once again significantly upped the level of ambition.”

German economy minister Robert Habeck

“Hydrogen is the missing piece in the energy transition puzzle. It offers a huge opportunity to join up energy security, net-zero and competitiveness.”

German education and research minister Bettina Stark-Watzinger

“The global market for hydrogen must be fair and different than how the global fossil fuel industry once was.”

German development minister Svenja Schulze

 

The German government has now departed from its original approach of only financing green hydrogen through tax revenue, a move that has been particularly welcomed, unsurprisingly, by the gas lobby. Other colors of hydrogen are now also set to receive subsidies, albeit only to a limited degree and under certain conditions defined in the small print.

The update to the NWS states: “We also intend to fund the use of green and, insofar as it is needed in the ramp-up phase, low-carbon blue, turquoise and orange hydrogen on the deployment side to a limited extent while taking into account ambitious greenhouse gas limits, including emissions in the upstream chain and the ability to meet statutory net-zero targets.”

Bettina Stark-Watzinger, German education and research minister, called this a “pragmatic and technologically unbiased” decision that allows initial use of “all climate-friendly types of hydrogen.” This, she explains, will help Germany on its way to becoming a hydrogen nation.

Her colleague, German development minister Svenja Schulze, went one step further by saying: “Wherever wind and solar power is produced for hydrogen, momentum will be given to the energy transition at ground level and the local population will be supplied with electricity. And wherever seawater is desalinated for hydrogen, the nearest town will be supplied with drinking water. From a development perspective it’s clear: Hydrogen from renewables is not only the best choice for the environment, it is a cost-effective domestic energy source that also leads to better development in the Global South. We will therefore help our partner countries have a fair share of involvement in the new international market for hydrogen.”

Existing structures remain

To allow all this to happen, recourse is being made to existing institutions. For example, a “hydrogen guidance center” has already been set up that enables inquirers to receive advice on funding by phone or email. The committee of state secretaries for hydrogen acts as a decision-making body for the NWS and takes corrective action where necessary. It meets on a case-by-case basis as and when needed, which in the past was only rarely. The central body is the National Hydrogen Council, an independent, cross-party advisory committee with 26 high-ranking experts from industry, academia and civil society. The council is supported by the Coordination Office for Hydrogen.

Chair of the National Hydrogen Council, Katherina Reiche, explained: “It is an important milestone that the German government is ambitiously extending its national hydrogen strategy. […] Only hydrogen allows us to maintain value chains and ensure that key industries remain in Germany. […] Companies only invest if they have long-term planning certainty. We must therefore already look beyond 2030. According to council forecasts, the need for hydrogen and hydrogen derivatives will, by 2045, have risen to between 964 and 1,364 terawatt-hours. The Inflation Reduction Act in the USA and similar regulations around the world will accelerate the development of comprehensive value chains on an industrial scale. In view of rapid progress made in other countries, the German government should move away from exclusively focusing on flagship projects. What is more important is to create effective incentives to quickly scale the hydrogen economy and the development of new business models.”

On the subject of the – at times – fierce debate about the use of hydrogen in the heating sector, the council said that it endorses municipal heating plans as a crucial planning tool for encouraging the heating sector to shift away from fossil fuels. In its view, a successful transformation of the heating sector would require all technology options: heat pumps, heating networks, renewable heat and hydrogen. Thus all technologies should be granted equal footing as compliance options in Germany’s building energy law and be considered when undertaking infrastructure expansion.

The council added that rigorous training is needed for the specialist workforce required, both at university level and within the area of vocational training and continuing education.

Criticism and ideas for improvement

While the German government proudly unveiled the NWS update, the opposition, as expected, deems the 34-page document to be a flop. The CDU’s vice chairman, Andreas Jung, explained to German newspaper Tagesspiegel: “Hydrogen is so important for the economy and net-zero that it now needs a double-whammy.” Here Jung apes the “double-whammy” expression used by Chancellor Scholz when announcing his EUR 200 billion relief package to help with the cost of living. Jung’s criticism that the government was acting “halfheartedly” and would operate on the basis of “centrally controlled allocation” falls flat, however, since the targets set are highly ambitious and the NWS is ultimately only putting a framework in place – and does not include technical guidelines.

For example, it is understood that a “hydrogen acceleration law” will get off the ground this year to enable the installation of “further terminals only for hydrogen or its derivatives” as previously with LNG terminals. A “national port strategy” is expected to pinpoint the relevant hubs for the future hydrogen economy.

Jorgo Chatzimarkakis, CEO of Hydrogen Europe, therefore believes Germany is on the right course to be able to achieve “the broad use of green hydrogen in industry and the heating sector within nine years.” However, he thinks specific improvement measures are necessary, for instance better integration of H2 Global into the EU’s hydrogen bank in order to leverage European Union tendering processes as well as off-take agreements for temporarily nationalized companies, such as Uniper, that can contribute toward security of supply.

Additionally, Chatzimarkakis sees the need to shorten the IPCEI approval times at EU level and in Germany. He also suggests launching an “EU tax credit club” for hydrogen – as a semi-response to the Inflation Reduction Act in the USA, which cannot be introduced in the EU in a similar form due to tax regulations.

Contributions to the NWS 2.0 were made by the following German government departments: the economy ministry, the transportation ministry, the education and research ministry, the environment ministry, the development ministry as well as the foreign office and the chancellery.

Author: Sven Geitmann

The hydrogen megatrend

The hydrogen megatrend

Dear readers

In recent years, hydrogen has managed to move out of its niche and onto the political main stage. Not just in Germany and Europe but across the world, the energy sector is bracing itself for change as we move from the fossil fuel age to a renewable era.

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While some regions are only slowly preparing themselves for the real energy transition, many countries in central Europe as well as nations like the United States and Japan are right in the thick of it. The introduction of the Inflation Reduction Act saw the US roll out a huge financial package. Such a step has yet to be taken in China. The People’s Republic has long been at the forefront of electric transportation but the political framework for instigating a hydrogen economy remains a work in progress (see p. 48).

Germany, on the other hand, was at the cutting edge when it coined the term “energy transition” many years ago, an expression that now, around the globe, epitomizes this transformation process. And by phasing out coal and nuclear power and cutting back on oil and gas, Germany finds itself in a good position, but we are no longer at the forefront when it comes to tackling the climate crisis.

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For a long while, Germany was ahead of the field when it came to the environment – leading on solar and wind technology as well as hydrogen and fuel cells. The hope is for a better result this time when establishing its own hydrogen and fuel cell industry than was the case for photovoltaics.

The German government recently adopted the update to its national hydrogen strategy, thus making clear its support for the course it set three years ago (see p. 14). What’s more, Germany is now getting a steering committee for hydrogen standardization so it can launch a standardization road map for hydrogen technologies (see p. 6).

With so much happening, it will come as no surprise that, in the German-speaking world especially, the word for “hydrogen” (Wasserstoff) has for many months been a popular term in online searches. Interest in hydrogen began to grow at the end of 2018 – well before the market started to ramp up, as research using Google Trends clearly shows (see p. 7). At that point, the number of inquiries using the Google search engine increased considerably, exceeding the 2004 level in early 2019.

Since then, the US corporation has recorded ever-higher numbers of searches for this particular keyword. In early and mid-2020 and early 2021, hydrogen inquiries overtook searches for the German equivalent of “photovoltaic” by a wide margin. Over the years, “hydrogen” almost always outperformed German inquiries for “fuel cell,” “electric mobility” and “digitization” (see cover graphic for German search results with keywords translated into English).

Globally the situation is a little different: Throughout the past two decades, a comparatively high number of Google users have looked up the word “hydrogen” in English – far more frequently than the English words “fuel cell,” “photovoltaic” or any spelling of “digitization.” Only “PV” enjoys a similar popularity to “hydrogen.”

Of course, this kind of trend analysis isn’t rigorously scientific, but it does give a representative indication of the interest level in hydrogen now, and how that compares with the past. Our analyst Sven Jösting, who has been monitoring the stock market performance of hydrogen and fuel cell companies for many years (see p. 47), has for a long time talked about a “megatrend.”

To all the critics who say it’s just another hydrogen hype, I can confidently reply: It is extremely likely that this time we’re looking at a proper hydrogen boom. And we’re right at the start of it.

For it’s only early days as we still don’t have a functioning hydrogen market. Except, that is, if we look at hydrogen as an industrial gas for conventional applications (welding, medicine, etc.). Preparations are underway, however, by H2Global to set up a trading platform that will enable hydrogen to be bought and sold in large quantities in a similar way to how the European Energy Exchange operates.

It’s also true that we don’t yet have a market for electrolyzers or fuel cells. Unless, of course, you count the hitherto low production volumes and capacities. This is essentially negligible in view of the quantities and capacities that we will potentially need. Hopefully we’ll be able to report on the latest sales and installation figures in the February 2024 edition of H2-international.

Even in the mobility sector, sales are still extremely modest, which is why no real acceleration of the market can be assumed before 2025. That said, this will only initially affect the commercial vehicle sector, i.e., hydrogen trucks and buses. In all probability, hydrogen automobiles will only be produced and sold in significant quantities at the end of the decade – if that does indeed happen at all. It will take even longer for rail vehicles, ships and airplanes.

The outlook, however, is clear: As the world shifts increasingly away from fossil resources, so renewable energy becomes ever more important. The upshot is that we need a lot more solar power plants and wind turbines. And hydrogen will be essential in bringing this vast quantity of green power to the different energy sectors.

Admittedly, it’s a pretty basic description of the energy transition. Though it does plainly show that hydrogen, far from being just a megatrend, is something that the energy sector simply can’t function without.

 

Best wishes

Sven Geitmann

Editor of H2-international

Point Twelve wins startup pitch

Point Twelve wins startup pitch

H2UB brings together fledgling businesses and investors

Startups are a byword for innovation – and for newcomers who use disruptive techniques to bring new products or services to the world. What they all have in common is the need for cash to launch their companies and build up their businesses. But where to source the money in the first place? In this case, investors are not just useful but an essential means of turning ideas into reality. Various agencies and events are on hand to help startups and investors find one another. One such organization is H2UB, which staged the Hydroverse Convention on June 20, 2023, in the German city of Essen.

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The location was quite literally colossal: the Colosseum Theater in the Westviertel area of Essen – once an industrial hall used by the company Friedrich Krupp. In attendance was Nordrhein-Westfalen’s economy minister Mona Neubaur along with over 350 investors, developers and decision-makers from the European hydrogen industry.

At the center of the event was a total of 20 startups, twelve of which took part in a pitching competition which entailed briefly presenting their ideas and answering questions posed by a panel of judges. A broad range of companies was represented, from a one-man band to a European bus manufacturer.

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Emerging victorious from the male-dominated contest was the only woman who took part: Flore de Durfort (see image). The CEO and co-founder of Point Twelve, she presented her concept with confidence and style, describing how she, along with her business partners, can help companies get their hydrogen products certified quickly and easily in a largely automated process. De Durfort explained to H2-international: “The IoT and SaaS platform offered by Point Twelve makes it possible for manufacturers of energy-intensive products to easily and continuously certify and monetize their production as green. By automating old, manual, opaque and unscalable certification and verification processes, we generate a process time saving of up to 90 percent and create trust in green products.”

She added: “The initial difficulty lies in the certification of sustainable gases and fuels, particularly those produced from green, renewable power and hydrogen. We made a conscious decision to start with hydrogen certification – a key element in industrial decarbonization and where problems around certification and readiness to outsource are at their greatest.”

The Hydroverse Convention was organized by H2UB, an Essen-based company with eight members of staff that is dedicated to fostering links between corporations, universities, research institutes and investors. The company receives support from the economy ministry of Nordrhein-Westfalen as well as from its four shareholders: OGE, RAG-Stiftung, TÜV Süd and the German Aerospace Center.

Author: Sven Geitmann

Green H2 for music festivals

Green H2 for music festivals

Increasingly more festivals are committing to sustainability. Not only in Wacken, which this year – once again – made headlines due to the mud fights there, has not only green electricity but also hydrogen been employed. Also in Lingen at this year’s Lautfeuer festival on July 7 and 8 were the stage, lighting and other equipment almost entirely powered with green electricity from hydrogen-run generators.

Since 1981, an “Abifestival” has taken place every year in Lingen that attracts up to 20,000 guests under the motto of “Umsonst & Draußen” (free and outdoors). In collaboration with the H2 Region Emsland and with support from the City of Lingen as well as the respective regional district, an energy concept was developed already last year in which a fuel cell is used instead of conventional diesel generators. “For this novel approach, Lautfeuer received the German event industry’s innovation prize,” notified Ines Fischer, chairwoman of Abifestival seit 1981 e.V. This year, a second fuel cell was added, so nearly everything was able to be powered this way.

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GP Joule has been supporting Wacken Open Air as early as 2018 and supplies the metal festival in Northern Germany with electricity from green hydrogen. The self-produced H2 gas is converted to electricity in two H₂Genset modules from SFC Energy. The electricity obtained from renewable energy will then be used from the opening on Monday, July 31 until the end of the festival. Additionally, GP Joule is deploying one of its eFarm hydrogen buses as a shuttle for the guests.

CEO Ove Petersen stated, “Green and black – that goes together in the North. Wacken Open Air and GP Joule are proving it.” Peter Podesser, CEO of SFC Energy, supplemented, “Fuel cells based on green hydrogen are a perfect solution for secure, mobile energy supply for open air events.”

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HyCentA becomes COMET K1 center

HyCentA becomes COMET K1 center

Austria focuses on pioneering hydrogen research

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.”

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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.

www.hycenta.at

Author: Alexander Trattner, HyCentA Research GmbH, Graz, Austria, trattner@hycenta.at