Can the Middle East open the door to affordable clean hydrogen?

Image: Ghadir Shaar

A report by the International Renewable Energy Agency (IRENA) has suggested affordable green hydrogen could already be obtainable, based on the record-breaking low prices for solar negotiated in the Middle East.

Solar electricity tariffs of $0.0157, $0.0135 and $0.0104 per kilowatt-hour agreed in Qatar, the United Arab Emirates and Saudi Arabia, respectively, in the last 18 months, would enable renewables-powered hydrogen to be produced for as little as $1.62 per kilogram, according to IRENA's Renewable Power Generation Costs in 2020 report.

The Abu Dhabi-based international body made its calculations – all of which are in U.S. dollars – based on the $0.0104 solar power tariff agreed in Saudi Arabia in April, with green hydrogen generation being modeled at the Dumat al Jandal site in the kingdom which boasts strong solar and wind power resources. With the site already hosting a wind farm, IRENA modeled a hydrogen plant which would also harness solar and be connected to the grid. The report suggested lack of a grid connection would raise the renewable hydrogen cost to $1.74/kg, which still compares favorably to the current $1.45-2.40/kg price of hydrogen production powered by natural gas and equipped with carbon capture and storage (CCS) tech.

Further extrapolating the costs, the study estimated a fall in hydrogen electrolyzer costs, from $750 per kilowatt of capacity to $350, would enable renewable hydrogen production for $1.16/kg. Raising electrolyzer efficiency to 72.5% and extending stack lifetime from 15 to 17.5 on top of that, IRENA said, could take green hydrogen below the prized $1/kg point.

With this year's renewables price report explaining how the three tariffs secured in the Middle East since January 2020 can be regarded as viable without any hidden caveats or subsidy, the authors of the study stated: “low-cost renewable hydrogen may already be in reach.”

The document fleshed out how up to 800 GW of coal-fired power generation capacity worldwide could already be replaced by newly-built renewable energy facilities as solar and wind prices have dipped under the cost of running legacy fossil fuel plants in many markets. That estimate included a $5/MWh cost of integrating renewables into the electric grid and IRENA said, with around 40% of that overpriced capacity – and 37% of actual generation – based in Bulgaria, Germany, India and the United States, decommissioning could save around $32 billion per year in energy costs. Making the switch would also eliminate three gigatons of carbon emissions – 20% of what IRENA estimates is needed to keep global heating to a maximum 1.5 degrees Celsius this century.

The data

The latest edition of the report is based on data from around 20,000 renewables generation facilities worldwide which account for 1.9 TW of generation capacity, and on clean energy auction prices and power purchase agreements which add up to 582 GW of capacity. All the figures in the study exclude any form of subsidy and the authors point out, adding CCS to the world's overpriced coal plants would merely drive up their costs further.

IRENA has estimated all of Bulgaria and Germany‘s coal plants will this year cost electricity bill payers more than new renewables facilities would, based on a European carbon emissions price of €50 per ton. Even without an emissions trading scheme in the U.S. and India, the picture is similar, with 77-91% of American coal plants and 87-91% of Indian facilities also overpriced.

That conclusion is based on an estimated levelized cost of energy (LCOE) for solar power in India this year of $0.033/kWh, down from $0.038 last year; and of $0.031 in the States this year, although the report's authors note the solar module price has picked up between 1% and 9% in the first quarter of this year, thanks to shortages of raw materials such as polysilicon.

With the global LCOE of solar having fallen 7% from 2019 to last year, from $0.061 to $0.057/kWh, India led the world for low-price PV last year, with an average LCOE of $0.038/kWh for utility scale generation, ahead of China, with $0.044, and Spain, with $0.046. The authors noted Turkey also rapidly reduced average solar tariffs, to $0.052 last year, and Australia posted an average $0.057.

That translated into average solar project development costs of $596 per kilowatt installed in India, the world's lowest figure and down 8% from Indian costs in 2019. Solar projects in Vietnam came in to $949/kW and were only $796/kW in Spain last year, the report added. At the other end of the scale, projects in Russia cost $1,889/kW and, in Japan, $1,832, with those two countries exceptional among the 19 markets studied as the cost differences between areas from Canada (at $1,275/kW) down to India, were more evenly distributed.

Auction results posted last year, for projects expected to be commissioned this year and next, prompted IRENA to estimate the global average solar power price will fall to $0.039/kWh this year before rising slightly to $0.04 next year, which would still be a 30% fall on this year's figure and 27% less than the LCOE to be expected from new-build coal plants. With the predictions based on 18.8 GW of renewables capacity expected this year and 26.7 GW due in 2022, the study estimated 74% of the clean energy facilities expected this year and next will be cheaper than new fossil fuel generation sites.

Cheaper

Renewables are already making real headway, of course, with IRENA calculating 45.5 GW of the solar added last year was among the 62% of the 162 GW of clean energy facilities which were installed more cheaply than new-build coal plants.

Digging into the solar statistics, the report said mainstream solar panel costs in December ranged from $0.19 to $0.40 per Watt, for an average price of $0.27, with thin-film products averaging $0.28/W.

Operations and maintenance costs came in at an average of $17.80/kW last year in OECD countries and $9 elsewhere, in a year which also saw non-panel, balance-of-system equipment costs account for 65% of total project expense.

For residential solar arrays, average system prices in the 19 markets studied by IRENA ranged from $658/kW in India to $4,236 in California, for LCOE figures from $0.055/kWh in India to $0.236 in the U.K. For commercial systems, India was again the cheapest place to invest last year, at an average $651/kW, but a business in California would have to find $2,974/kW. Those system costs translated into LCOE numbers ranging between $0.055 in India and $0.19 in Massachusetts.

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).

A rendering of the project to produce green hydrogen that Gransolar is planning for the Port of Almería.

Image: Gransolar

A company spokesperson told pv magazine that the plant will produce hydrogen from seawater and will be powered by a 30 MW solar plant and a 20 MWh storage system with an autonomy of 4 hours.

The facility will be based on double-reverse osmosis treatment with energy recovery followed by electrolysis of deionized water through proton exchange membrane (PEM). Furthermore, secondary electrolysis of concentrated brine will be implemented by cell membrane electrolysis.

The main electrolyzer at the facility will have an installed capacity of 20 MW and an estimated production of 1,000 tons per year. The produced fuel will be then stored in trucks for pressurized gas at 400 bar pressure.

Hydrogen will be used as fuel for public transport at the port and urban cleaning vehicles in the city of Almería. It will also be utilized to feed the port's unloading machinery, the national and international transport of goods, and part of the energy demand of local manufacturing industries.

The project has a required investment of €80.5 million euros and is scheduled to be built by the end of 2024. Gransolar confirms that it has the interest and commitment of the Almería City Council, as well as multiple companies from different professional sectors, without providing further details.

Almería will not be the only Andalusian port with plans to produce hydrogen. The Port of Malaga is also expected to host green hydrogen production through a project that also contemplates the use of artificial intelligence.

This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com)

The world already has a nascent hydrogen economy, according to IEEFA.

Image: Roy Luck/Flickr

The Institute for Energy Economics and Financial Analysis (IEEFA) estimates there are 50 green hydrogen projects under development worldwide. Those projects, have a planned annual production capacity of 4 million tons of hydrogen and a total renewable power capacity of 50 GW, according to the Ohio-based thinktank, with their combined capital cost estimated at $75 billion.

In its Asia, Australia and Europe Leading Emerging Green Hydrogen Economy, but Project Delays Likely study, IEEFA said the projects announced represent an embryonic global green hydrogen economy.

“Most of these 50 projects are at an early stage, with just 14 having started construction and 34 at a study or memorandum-of-understanding stage,” the report noted. “However, many of the 50 newly-announced green hydrogen projects could face delays due to uncertain financing, cumbersome joint venture structures and unfavorable seaborne-trade economics.”

The study stated the majority of the projects announced will begin commercial operation in the middle of the decade, with large scale facilities starting up in 2022-23 and 2025-26.

The report’s authors said the hydrogen strategies of China, Japan and South Korea appear to prioritize hydrogen generated using natural gas – designated grey hydrogen, or blue if facilities are intended to feature carbon capture technology – rather than ‘green’ hydrogen generated using renewable energy. IEEFA described the €430 billion ($507 billion) hydrogen strategy of the European Union as the the most ambitious and purposeful energy transition policy to date.

“The EU’s hydrogen capex [capital expenditure] commitment far outweighs the commitment from Korea and Japan, reflecting the EU’s ambition to remodel its energy system and vertically integrate the hydrogen value chain with wind and solar power, electrolysis, distribution and applications,” stated the report.

Annual green hydrogen demand could reach 8.7 million tonnes by 2030, according to the IEEFA study, prompting a big supply shortfall given the current capacity of the project pipeline.

The report lists all publicized projects, including five facilities announced in the last two months – an 85 MW Nikola Motor Company plant in the U.S.; a 4 GW facility in Saudi Arabia planned by Air Products, Acwa Power and Neom; a 20 MW electrolyser being developed by U.S. energy company NextEra; a 100 MW solar park, storage facility and hydrogen production site in Puertollano, central Spain, by Iberdrola; and a 30 MW electrolyzer project by German consortium WestKüste100.

“There remains ample room for more hydrogen projects to meet global demand and further policy support will be necessary to grow this nascent industry,” added the report’s authors.

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The "Choose Renewable Hydrogen" initiative, led by the employers Solar Power Europe and WindEurope and currently formed by Akuo Energy, BayWa re, EDP, Enel, Iberdrola, MHI Vestas, Solar Power Europe, Ørsted, Vestas and Wind Europe, remitted this Monday a letter to the vice-president of the European Commission, Frans Timmermans asking the European Commission to bet on the "most efficient, sustainable and profitable" ways to decarbonise the economy.

Among the correct decisions for the next integration of Europe's energy system, the importance of green hydrogen stands out, which will play "a key role as the most profitable and sustainable solution for total decarbonisation".

In that sense, direct electrification is pointed out to be the main means to decarbonize heating and road transport, but there are other difficult sectors to eliminate, such as heavy industry, long-distance road transport, aviation and transport. maritime, where direct electrification is insufficient. Here, renewable hydrogen will play a key role as the most cost-effective and sustainable solution for complete decarbonization.

Clean hydrogen has been one of the topics highlighted in the EU's ecological recovery plans, which will be announced this Wednesday: according to the draft published by the portal specialized in European affairs EurActiv, there will be 1.3 billion for R + D + i and another 10 billion co-financing in the next decade , to minimize the risk of large projects, as well as a “commitment” to reach 1 million tons of this gas.

For its part, Iberdrola announced in mid-March that it will build one of the largest green hydrogen plants in Europe in Puertollano , with an investment of 150 million euros.

This article originally appeared on pv-magazine.es and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine.es).

Photo: Tecnalia

Iberdrola will develop a large green hydrogen project from renewable energy sources in Puertollano, according to what the city council has made public, which, in turn, mentions an article published in the economic newspaper Expansión.

The project will involve an investment of up to 150 million euros in a plant that will be one of the largest in Europe of its kind, that is, production of hydrogen from photovoltaic energy, unlike other systems, which are based on fossil fuels pollutants. The group's goal is to achieve decarbonisation and cheaper hydrogen in the future, which is now basically used in industry, but is beginning to have other applications, such as electric vehicles.

According to Iberdrola estimates, published last week by Expansión, the Puertollano plant will consist of a 100 MW experimental photovoltaic plant that will incorporate bifacial panels and string inverters, as well as a 20 MWh lithium-ion battery storage system. and 5 MW. It will also have a green hydrogen production system through electrolysis: divided into stackable modules that allow the plant to be expanded, according to the identified hydrogen demand needs. In this regard, different technologies will be tested: alkaline, proton exchange membrane, and solid oxide.

It will also have a main hydrogen storage system in pressurized tanks and an experimental storage plant for other technologies such as LOHC (organic liquid carrier hydrogen), as well as a control system that allows the optimal balance between renewable production, use of the battery and the energy dedicated to the production of green hydrogen.

Ideal location

"The choice of Puertollano as an enclave to launch the project is not accidental", they explain from the town hall. “It is a strategic place from which Iberdrola will not only be able to produce hydrogen, but will also be able to commercialize it for industrial use to adjacent companies for their production processes. The project will be located on the land that Iberdrola has had in Puertollano for years, and where it had already begun to build the photovoltaic. In Puertollano there is also the National Hydrogen Center. To distinguish itself from other hydrogens, Iberdrola will promote the creation of a green label for those produced with electricity before the authorities ”, they add.

Together with the project, Iberdrola will promote the creation of a 'green' label for the hydrogen produced that ensures that its carbon footprint is zero, thus helping hydrogen users to reduce their CO2 emissions.

The power company claims that decarbonising global hydrogen through its production with renewable electric energy would mean an increase in electricity demand of more than 10%, which would allow for the flood of renewable energy projects that the Government plans to incorporate with the new energy plan. .

Other pioneering projects

This project joins those that have been announced in recent weeks: the green hydrogen production plant in Lloseta, a pioneer in Spain, will start operating from 2021 thanks to the Power to Green Hydrogen Mallorca project, and will allow a generation of up to 10 MW of production.

The Fundación Hidrogen Aragón coordinates a project to promote decarbonisation in Europe: The HIGGS project, which is now being launched in Huesca, will study for 36 months the possibilities of injecting hydrogen into current natural gas networks as a way to reduce emissions of CO2 in sectors difficult to electrify.

Enagás and Ampere will be the first to produce hydrogen with solar energy in Spain: both companies have signed an agreement for the joint development of several R&D projects for hydrogen production with solar and batteries.

Tecnalia, Engie and the University of Eindhoven (TUe) create in Bizkaia H2SITE, a startup to produce green hydrogen on site.

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This article originally appeared on pv-magazine-spain.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-spain.com).

H2SITE will provide low cost, high purity small and medium scale distributed hydrogen.

Photo: Tecnalia

Ten years ago, the Tecnalia research and development center and the EIndhoven University of Technology (TUe) began collaborating on European projects around metal deposition technologies, and in 2018 they won the second EARTO Innovation award. A year later, they created a limited company, H2SITE, which French power company Engie has just joined through its corporate venture capital fund, Engie New Ventures.

The new company will be located in Bizkaia and will develop a technology for small and medium-scale distributed hydrogen generation, of high purity and low cost, using advanced membrane reactors. “For the creation of this new company, the strategy developed by Tecnalia in the field of gas separation membranes has been key. This technological excellence is combined with the strategic collaboration established together with the University of Eindhoven, for the development of advanced membrane reactors ”, the company states in a statement.

The project will represent the first investment by Engie New Ventures, one of the largest global funds in the utilities sector, in start-ups in Spain.

The new company has received from the beginning the support of the Provincial Council of Bizkaia, and will have an initial staff of 3 people for the first year of activity. H2SITE will provide low cost, high purity small and medium scale distributed hydrogen for both stationary applications and isolated areas requiring energy and mobility. "H2SITE will facilitate the deployment of 100% green electric mobility, opening up the possibility for on-board systems, within the vehicles themselves, to generate hydrogen," says the company, adding that "as a hydrogen technology platform, H2SITE will be capable of producing hydrogen from various compounds, such as biomethane, ammonia, bioethanol, etc. "

H2SITE will exploit a technology developed by Tecnalia and TUe, based on the intensification of processes, through advanced membrane reactors, maximizing the efficiency of the hydrogen production process and minimizing the necessary resources.

As for its industrial customers, H2SITE will offer a reduction of up to 40% of its current costs associated with the consumption of hydrogen, while reducing environmental impacts and avoiding regulatory and safety problems associated with the storage of hydrogen as it is an spot on demand.

“The main business objective of the startup is to become a state and European benchmark in the generation of green hydrogen and therefore, a relevant lever in the necessary energy transition. To do this, the challenge is to become the main supplier of hydrogen generated in situ for industrial use in stationary applications in prioritized industrial sectors, which are chemical, food, metallurgical, glass and electronics, which together represent a great part of the regional and national GDP ”, the statement ends.

Enagás and Ampere Energy recently announced the signing of an agreement for the joint development of several R&D projects for hydrogen production with solar and batteries.

This article originally appeared on pv-magazine.es, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine.es.

The project will be the first hydrogen injection experience in a real gas network in Spain with support for small-scale electrical storage, and will be carried out at the Enagás regasification plant in Cartagena.

Image: Enagás

Gas multinational Enagás and Ampere Energy, a Spain-based battery provider, have signed an agreement to begin joint production of hydrogen with solar power and energy stored in batteries.

The two companies will jointly work on several R&D projects to produce renewable hydrogen for self-consumption at the gas plant.

The project they are now planning will be the first hydrogen injection experience into a gas network in Spain, with small-scale storage as a back-up. It will be carried out at the regasification plant that Enagás operates in Cartagena, in the southern province of Murcia.

Ampere Energy has installed its Ampere Energy Square S 6.5 equipment at the Cartagena plant, which will have new storage and intelligent energy management solutions.

The installed equipment will allow Enagás to maximize the energy efficiency of the Cartagena gasification plant and reduce the environmental impact and its electricity bill up to 70%, according to the two companies.

The battery will store energy coming from both the photovoltaic system and the power grid, and will monitor this energy. Through machine learning algorithms and data analysis tools, the system will anticipate the consumption patterns of the plant, predict the available solar resource, and track prices in the electricity market, identifying the moments in which the cost is lower.

“This alliance opens the door to a long-term pact between Ampere Energy and Enagás to undertake joint R&D projects for energy storage and services,” both companies added.

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This article originally appeared on pv-magazine-usa.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-usa.com).

German coach company planning start-up Flixbus will test hydrogen fuel cell vehicles on long-distance routes.

Flixbus may soon be operating European-made hydrogen fuel cell coaches across the continent.
Image: Janusz Jakubowski/Flickr

From pv magazine Spain.

Germany’s FlixMobility, parent company of coach firm FlixBus, is working with electromobility business Freudenberg Sealing Technologies to test hydrogen fuel cell buses on long-distance journeys.

Flixbus said it has already begun talks with bus manufacturers about the introduction of hydrogen models.

“After being the first to successfully launch three fully electric buses, we now want to develop the first long-distance buses powered by fuel cells, along with Freudenberg technology, to mark another milestone in the history of mobility,” said André Schwämmlein, founder and CEO of FlixMobility.

The first e-buses in France and Germany were produced by Chinese manufacturers BYD and Yutong for FlixBus. The company claims fuel cell transport offers European bus makers a chance to participate in the future of sustainable mobility.

Flixmobility said fuel cell vehicles must have a range of at least 500km and refueling should take a maximum of 20 minutes. The performance characteristics of fuel cell buses, such as power and acceleration, must also align with current long-distance bus standards, said the travel company.

Pilot fleet

Claus Möhlenkamp, ​​CEO of Freudenberg Sealing Technologies said: “A hybrid system that properly combines the battery and fuel cells is especially practical for heavy vehicles that cover long distances since purely electric vehicles still do not have the ability to cover long distances. In the first phase of the FlixBus fuel cell project, a representative bus fleet will be equipped with the technology as a pilot test.”

FlixBus – which owns no buses or drivers – offers permitting, network planning, marketing, pricing, quality management and customer services to regional bus companies, which supply coaches and drivers and day to day management of routes. The company was created in Munich in 2011 by three entrepreneurs who wanted to offer sustainable, comfortable and affordable travel. At the same time, MeinFernbus started in Berlin, with its green buses circulating throughout Germany.

The bus market was opened up to competition in Germany in 2013 and the rival startups merged two years later with Flixbus becoming the leader in the German market. In 2015, FlixBus began its international expansion with long-distance networks in France, Italy, Austria, the Netherlands and Croatia and cross-border routes to Scandinavia, Spain, England and Eastern Europe.

By Pilar Sánchez Molina

Originally published on https://www.pv-magazine-india.com/2019/11/12/european-carrier-plans-hydrogen-buses-for-long-distance-routes/