(London) – The British Ineos Group wants to drastically reduce the costs of hydrogen through mass production. The chemical giant has founded a new business unit for this purpose. Through its subsidiary Inovyn, the group is Europe's largest operator of electrolysers and currently produces 300.000 tonnes of hydrogen per year, mainly as a by-product in its chemical factories.
According to its own assessment, Ineos's “experience in storing and handling hydrogen combined with in-depth know-how in electrolysis technology” puts it in a “unique position” to decisively advance the path to a hydrogen-based, carbon-free future.
Hydrogen division based in London
The new division is headquartered in the UK. The aim is to build production capacity at all Ineos locations – both in Europe and at business partner locations in order to “accelerate decarbonization through hydrogen”. The group is already involved in several projects that aim to boost demand for hydrogen and replace existing carbon-based energy sources, raw materials and fuels. Ineos also wants to work closely with European governments to ensure the necessary infrastructure is put in place to emphasize the role of hydrogen in the new green economy.
“Hydrogen is an important part of a climate-neutral economy that has been discussed for decades,” says Wouter Bleukx, who is moving from Inovyn’s chlorine and alkaline business to the Hydrogen business unit as the new head. “A hydrogen-powered economy is finally within reach” as countries such as the UK, Germany and France, as well as others, begin to advance the technology.
Experience is a competitive advantage
According to US analyst firm Wood Mackenzie Power & Renewables (Wood Mac), the company's electrolyzers for chlorine production have an output of around 200 megawatts. The experience with large electrolysers - which the group also produces itself - could give Ineos and Inovyn a major competitive advantage.
Bleukx emphasized to WoodMac that he clearly favors renewable energy for hydrogen production. “At the moment we are not ruling anything out, we first have to see in which direction the technology develops.” Bleukx was optimistic that he would be at the forefront of cost reduction with production on an industrial scale and the company’s previous experience.
Production is expected to increase to 400.000 tons
Ineos is currently developing two chemical factories in the port of Antwerp under the name “Project One”. Cost: three billion euros. With the completion of the plant, hydrogen production capacity will increase to 400.000 tons per year, Bleukx told WoodMac. However, the majority is produced from the gasification of fossil fuels, not from green electricity.
However, the project suffered a setback in mid-November. Accordingly, the approval granted in October for preparatory work such as the deforestation of two properties in the port of Antwerp for the construction of the chemical factory was revoked. We will look at the decision very carefully and then submit the building application. Construction is scheduled to begin in the first quarter of 2021.
Green hydrogen is about four times more expensive to produce than hydrogen produced from fossil fuels. However, Wood Mackenzie expects the cost of green hydrogen to halve by 2030. It is important to stimulate demand. In the first few years this was “difficult to predict”.
Hydrogen for your own company
But not only the chemical industry, but also oil companies have a need. In June 2020, for example, BP sold its petrochemicals business for five billion dollars - to Ineos. Its founder and CEO Jim Ratcliffe said at the time that there was “great scope for expansion and integration into our existing business”. It only seems logical to set up your own large-scale hydrogen production – and recommend yourself as the best customer.
Inovyn was founded in 2015 and employs more than 4.300 people in ten European countries. The product portfolio consists, among other things, of vinyls and chlorine derivatives. The annual production volume is more than 40 million tons.
deep link
https://www.inovyn.com/news/ineos-launches-a-new-clean-hydrogen-business/
https://www.greentechmedia.com/articles/read/chemicals-giant-ineos-targets-worlds-cheapest-green-hydrogen?utm_medium=email&utm_source=Daily&utm_campaign=GTMDaily
Photos
From January 2021, Engie will supply Ineos with renewable energy from the Norther offshore wind farm in the North Sea. / © Ineos
