Hydeal Project to deliver 100% green hydrogen across Europe
Clean hydrogen can play a key role in the world’s transition to a sustainable energy future. It can help reduce carbon emissions from industry and heavy transport. Hydrogen fuel is one of the most promising zero emission fuels for energy storage, transport and heating. Hydrogen has become a game-changer in its low-carbon form but it is too expensive to be widely deployed.
Hydrogen has three different forms, the one produced from natural gas is grey hydrogen, it generates significant carbon emissions. A cleaner version is “blue” hydrogen, made from natural gas through the process of steam methane reforming (SMR). Green hydrogen is produced from water using renewable power. It is the cleanest one of all as it doesn’t produce any carbon emission.
With the growing popularity of green hydrogen in Europe, HyDeal Ambition Project is launched by a consortium of 30 European energy companies and financial institutions to produce and deliver 100% green hydrogen across Europe at €1.5/kg before 2030.
The Project includes solar power firms, hydrogen specialists and electrolysis firms. It plans to build 93 GW of solar power plants and 67GW of electrolysis capacity in Spain, France and Germany by 2030, with the aim of producing 3.6 million tonnes of green hydrogen a year at a targeted price of €1.5/kg ($AU2.3/kg).
A series of projects and partnerships are currently being launched involving several of the 30 participants of HyDeal Ambition, with a first initiative expected within a year in Spain, based on a portfolio of solar sites with a capacity of close to 10 GW.
Solar developers: DH2/Dhamma Energy (Spain), Falck Renewables (Italy), Qair (France)
Electrolysis OEMs, engineering and EPC providers: McPhy Energy (France), VINCI Construction (France)
Gas TSOs: Enagás (Spain), OGE (Germany), SNAM (Italy), GRTgaz (France), Teréga (France)
Energy and industrial groups: Gazel Energie, subsidiary of EPH (France), Naturgy (Spain), HDF Energie (France)
Infrastructure funds: Cube, Marguerite, Meridiam
Consultants and advisors: European Investment Bank, Corporate Value Associates (CVA), Clifford Chance, Cranmore Partners, Finergreen, Envision Digital, Energy Web
Production of green hydrogen is expected to begin on the Iberian Peninsula in the southwest corner of Europe in 2022. There will be a phased approach to deliveries. Spain and the Southwest of France will be the first to receive supplies of the resulting green hydrogen, followed by East of France and then Germany.
“HyDeal Ambition brings together visionary CEOs and entrepreneurs, who share the determination to accelerate the energy transition,” said Thierry Lepercq, spokesperson for HyDeal.
“HyDeal Ambition constitutes a complete industrial ecosystem spanning the whole green hydrogen value chain (upstream, midstream, downstream, finance), and results from 2 years of research, analysis, modelling, feasibility studies and contract design.”
Though many green hydrogen projects were announced by Europe and Australia, Hydeal Ambition is the largest and ambitious one so far.
Some of the announced green hydrogen projects are:
- Gigastack Project which will use electricity generated from Ørsted’s Hornsea Two 1.4GW offshore wind farm to produce renewable hydrogen. The British Government committed £7.5 million to fund the next phase of Gigastack in Feb 2020.
- A 759MW Hollandse Kust Noord offshore wind project which will include a floating solar park, short-term battery storage, and a green hydrogen electrolyser for additional storage. It was built by British-Dutch oil major Shell and Dutch utility Eneco in July 2020.
- The German Federal Ministry of Economic Affairs and Energy in August 2020 backed the Westkuste100 pilot project which will build a 30MW electrolyser to produce green hydrogen from electricity generated by an offshore wind farm.
- Danish wind energy manufacturing giant Vestas joined hands with Japanese corporate heavyweight Mitsubishi, MHI Vestas and announced in November 2020 that it would take full ownership of its offshore wind venture, with the intention of delivering green hydrogen,
- Green Hydrogen Catapult launched by Australian renewable energy developer CWP Renewables and a group of seven of the world’s biggest green hydrogen project developers and partners, has the target of deploying 25GW worth of hydrogen production capacity through 2026.
- Arrowsmith Hydrogen Project developer, Infinite Blue Energy, got permission from global energy consultancy Xodus Group to carry out phase one work for the project.
- Danish Government gave the green light to plans to build two massive “energy islands” that will see the development of gigawatts-worth of offshore wind power, generating electricity for Denmark and surrounding nations, as well as the production of green hydrogen.
Industrial innovation goes beyond the simple production of truly green or climate-friendly energy. Had it been possible to deliver it to customers at the price of fossil fuels the dream of making a transition to carbon-neutral economy would see daylight. Hydeal Ambition Project is working towards this end.