(Oslo/Norway) – Plans to produce green hydrogen are increasing worldwide. According to Rystadt Energy AS, the pipeline of utility-scale projects, i.e. with a capacity of more than one megawatt (MW), is now more than 60 gigawatts (GW). However, the consulting firm believes that only less than half of it will be operational by 2035 because project developers first have to reduce production costs. “Government support is needed to move projects forward faster, especially for developments powered by electricity from expensive offshore wind turbines,” says Gero Farruggio, head of renewable energy at Rystad Energy.
“Green hydrogen will be an important driver after the Covid-19 pandemic”
The European Union published its hydrogen strategy in the summer, which calls for an electrolyzer capacity of 2030 GW by 40 and the development of an import supply chain outside Europe with an additional 40 GW. Individual EU members have already published their own strategies with volumes of several billion euros, with Spain, Germany and France planning 4 GW, 5 GW and 6,5 GW of generation capacity by 2030. The current pipeline of announced electrolyzer concepts amounts to 27 GW within the EU.
In Asia, the hydrogen roadmaps are driven by first creating appropriate demand. Japan and Korea looked at importing hydrogen and developing international supply chains, particularly in transportation. Rystad Energy expects hydrogen to play a role in China's upcoming five-year energy plan. The country's current hydrogen production comes from fossil fuels, state-owned and state-backed companies such as SPIC, Beijing Jingneng and CNOOC, which have already started environmentally friendly hydrogen production projects. The first gigawatt-scale project is expected to come online next year, says the consulting firm. The 5 GW Beijing Jingneng facility in Inner Mongolia will be powered by both a solar farm and an onshore wind farm, enabling the production of 400.000 to 500.000 tons of hydrogen per year.
The Australian government has set high ambitions for hydrogen exports, with grants available at both state and federal levels. The government-funded Clean Energy Finance Corporation (CEFC) has pledged 300 million Australian dollars (180 million euros). A further 70 million Australian dollars from the Australian Renewable Energy Agency (ARENA) will be allocated next year for hydrogen electrolyser projects over ten megawatts. ARENA has already shortlisted seven applications and construction could begin within the next twelve months. Australia also has four large electrolysis projects in the pipeline: Asian Renewable Energy Hub in Western Australia with an initial capacity of 15 GW (26 GW in the final expansion, we reported), the Murchinson Renewable Hydrogen Project (five gigawatts, Western Australia), Gladstone Hub (Queensland) and Pacific Solar Hydrogen (Queensland). Australia has also signed an agreement with South Korea and Japan to establish an international hydrogen supply chain.
The US does not yet have a clear national hydrogen strategy, but allocated $2020 million (64 million euros) to research and development of hydrogen technologies in 54, the report said.
Saudi Arabia is consolidating its ambitions with a green hydrogen project in Neom - a metropolis with high-tech innovations in the north-west of the country that the government has envisioned and will be completely powered by renewable energies. A joint venture led by Air Products and ACWA Power is investing five billion dollars in the project.
Europe is at the forefront with megawatt projects
According to Rystad Energy, most electrolyzers currently in operation are undergoing a pilot or R&D phase with low capacities. Europe is “clearly at the forefront” in terms of utility-scale projects larger than one megawatt, with the majority of projects in operation located in Germany. In contrast, the Beijing Jingneng construction project will likely be the first gigawatt-scale electrolyzer.
The majority of global hydrogen projects are powered by solar energy and onshore wind power, analysts said. Five planned large-scale projects would receive their electricity from offshore wind farms. The 10 GW “Nord H2” project, initiated by a Shell-led conglomerate in the Netherlands, is one of the largest hydrogen electrolyzers, together with the 600 MW “West Coast 100” project in Germany (developed by Örsted and EDF). , which covered their energy needs with offshore wind energy. Ørsted has planned another gigawatt project in Denmark if it is awarded the contract to develop an offshore wind farm near Bornholm.
Rystad Energy estimates offshore wind's investment needs to be more than double that of onshore wind and four times that of onshore solar, making it less attractive for locations with reasonable onshore resources. “Europe has little choice but to explore offshore wind energy to pursue large-scale hydrogen developments. “Like the broader offshore wind sector, hydrogen electrolyzer projects are likely to continue to rely on government support to be economically viable for the remainder of the decade,” the study said.
Photos
The majority of global hydrogen projects are powered by solar energy and onshore wind power / © European Bank for Reconstruction and Development
Class schedule
Project pipeline of green hydrogen projects / © Rystad Energy
