Hydrogen becomes the next mediator after sun and wind. In his latest claim to fame are two spinoffs of the German technology conglomerate Siemens joining forces to advance green hydrogen technology by building wind-to-hydrogen systems to help the world economy carbon-free. Green hydrogen is considered to be a solution to many climate change problems: the element can be an energy carrier, it can be used to store energy and it can be used in fuel cells to power vehicles. Green hydrogen is a particularly attractive option because the production comes from water that hydrolyses using electricity produced by renewable systems, which means that it has a much lower carbon footprint than hydrogen obtained from gas or coal.
Siemens Gamesa and Siemens Energy have therefore joined a growing group of green hydrogen proponents, many of whom see it as the ultimate solution to the planet’s pollution problem.
The two plan to invest $ 120 million over five years to develop a fully integrated wind-to-hydrogen system abroad involving a turbine with an integrated electrolysis system, the companies said this week in ‘ a press release said. They aim to bring about a full-scale demonstration of their pilot by 2025 or 2026.
‘Our wind turbines play a major role in the carbon emissions of the global energy system, and the potential of wind to hydrogen means that we can do the same in difficult industries. It makes me very proud that our people are part of shaping a greener future, ‘said Siemens Gamesa CEO Andreas Nauen in the release. Related: Saudi Arabia launches new bulls in Middle East oil
“With these developments, the potential of regions with abundant offshore winds will become accessible to the hydrogen economy. “This is an excellent example of enabling us to store and transport wind energy, thus reducing the carbon footprint of the economy,” said Siemens Energy CEO Christian Bruch.
But for all its promise, the production of green hydrogen is not a hassle-free technology. It is a very expensive technology that warns experts that it is unlikely to be economically viable for years and perhaps decades to come. And yet some major cost reductions for the technology are forecast.
Wood Mackenzie analysts, for example, wrote in an article last year report that they expected the production cost of green hydrogen to fall by 64 percent by 2040 and in some places, even earlier.
‘On average, the production cost of green hydrogen by 2040 will be equal to hydrogen-based fossil fuels. In some countries, such as Germany, it will arrive by 2030. Given the scale we have seen so far, the 2020s are likely to be the decade of hydrogen, “wrote the report’s author, senior research analyst Ben Gallagher, adding:” Rising fossil fuel prices will boost green competitiveness, which will further strengthen the case for this technology in the coming years. ”
And yet this cost reduction will require a solid effort: at present, the production of green hydrogen costs between three and six times more than hydrogen obtained from gas. On the other hand, the prices of gas-derived hydrogen may increase as the demand for gas increases, which slightly compares the playing field. However, this suggests that green hydrogen is dependent on gas prices for its competitiveness rather than on technological advances that would make the process itself cheaper.
It is clear that the energy transition is precious. The question is how high these costs will be and how much of the world will be able to afford them. Solutions like Siemens Gamesa and Siemens Energy are working on sounds like the way to make the process cheaper and bring green hydrogen closer to the general reality. However, it is worth bearing in mind that these solutions are region-specific rather than universal. For now, the mainstream green hydrogen remains more of a promise than a reality.
By Irina Slave for Oilprice.com
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