Page 45 - European Energy Innovation magazine - spring 2023 edition

Spring 2023 European Energy Innovation
HYDROGEN 45

Energy, ThyssenKrupp, Linde, VNG gas – but with carbon capture and would not receive hydrogen
or Deutsche Bank for accelerating storage). Technology-wise there is molecules generated in the facility
the ramp up of green hydrogen. H2 no overlap between green and blue with which the contract is signed,
Global’s investment vehicle received hydrogen generation. Every euro but actual deliveries would optimise
the €900 million support from the invested in blue hydrogen is a euro hydrogen transportation.
German government. lost for leveraging the experience
curve effect of green hydrogen. No risk, no reward
Green hydrogen auctions: sell Many developing countries might
whatever you want? Transportation of hydrogen see in green hydrogen the new oil,
The auction approach must stick to Hydrogen will be transported from but there are also risks that need to
strict rules in order to be successful. overseas as liquified gas in large be addressed. To quickly bring costs
The main point to mention here is the special hydrogen tankers. This is down many hydrogen players think big.
nature of hydrogen and its derivatives. similar to what we know from LNG, So big that new hydrogen plants could
To justify spending taxpayer’s money, but not the same as LNG remains make up for a substantial part of the
it must be ensured that the auctions liquid at “only” -161.5°C while national GDP and create dependencies.
are catalysts for accelerating our hydrogen requires - 252.8°C. That
move towards a hydrogen economy. means that transportation costs for Like for mining, it is important to
Most experts agree that the colour hydrogen are much bigger than for select the right international partner
of hydrogen should be green – in the LNG. From a European perspective a companies and to come up with a
future also the economically most ton of hydrogen in Australia is worth suited framework regulation. Although
viable solution as costs of green significantly less than in Morocco. we talk about renewable energy-
hydrogen will keep on decreasing. This must also be reflected to based hydrogen as green, one aspect
some extent in hydrogen auctions is tricky and often overlooked: water.
It is important to really focus the – for example by considering prices By exporting hydrogen, a country is
efforts on green hydrogen and ensure delivered to Europe. also indirectly allowing the export of
that no taxpayers’ money is used to the water needed for the electrolysis
establish a transition technology such In an ideal well-functioning market process. In many countries, water
as blue hydrogen (based on natural for hydrogen similar to the electricity desalination must play a major role
markets, delivery distances could no in the future for green hydrogen
longer be a problem. The purchaser production. l

Recommended links
1. https://www.irena.org/Publications/2022/Sep/Breakthrough-Agenda-
Report-2022
2. https://www.iea.org/reports/global-hydrogen-review-2021

About the author

Dr Thomas Hillig is managing director of THEnergy, a boutique consultancy
specialised in innovations for the energy sector. The consulting focus is
mainly on microgrids, energy storage, hydrogen and decarbonization for
commercial & industrial clients.
Dr. Thomas Hillig is a digital ambassador of the European Sustainable Energy
Week, of which European Energy Innovation is a media partner. Registrations
open in April 2023.

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Neither the European Commission nor any person acting on behalf of the Commission is responsible
for the use that might be made of the information in the article. The opinions expressed are those
of the author(s) only and should not be considered as representative of the European Commission’s
official position.

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