Hydrogen becomes the next average star after solar and wind. In its latest claim to fame, there are two derivatives of the German technology conglomerate Siemens joining forces to advance green hydrogen technology by building wind-hydrogen systems to help decarbonize the global economy. Green hydrogen is promoted as a solution to many problems related to climate change: the element can be an energy carrier, can be used to store energy and can be used in fuel cells to power vehicles. Green hydrogen is a particularly attractive option, as its production comes from the hydrolysis of water using electricity produced by renewable systems, which means that it has a much smaller carbon footprint than hydrogen from gas or coal.
Siemens Gamesa and Siemens Energy have therefore joined a growing group of supporters of green hydrogen, many of whom consider it the ultimate solution to the problem of global pollution.
The two plan to invest $ 120 million over five years to develop a fully integrated offshore wind system, which involves a turbine with an electrolysis system built into it, the companies said in a press release this week. They aim for a large-scale demonstration of their pilot by 2025 or 2026.
“Our wind turbines play a huge role in decarbonising the global energy system, and the wind potential in terms of hydrogen means that we can do this for industries that are difficult to reduce. It makes me very proud that our people are part of shaping a greener future, ”said Andreas Nauen, CEO of Siemens Gamesa, Andreas Nauen. About: Saudi Arabia begins new Middle East oil bullfight
“With these developments, the potential of regions with abundant offshore wind will become accessible to the hydrogen economy. It is a prime example that allows us to store and transport wind energy, thus reducing the carbon footprint of the economy, “said Siemens Energy chief Christian Bruch.
But despite all its promises, green hydrogen production is not a hassle-free technology. It is a very expensive technology that has led some experts to warn that it is unlikely to be economically viable for years and maybe decades to come. And yet, some predict major declines in technology costs.
Wood Mackenzie analysts, for example, wrote last year in a report that green hydrogen production costs were expected to fall by up to 64% by 2040 and in some places even faster.
“On average, the costs of producing green hydrogen will be equal to hydrogen from fossil fuels by 2040. In some countries, such as Germany, which will reach 2030. Given the scale we have seen now the 2020s are likely to be the decade of hydrogen, “wrote the author of the report, lead research analyst Ben Gallagher, adding:” Rising fossil fuel prices will increase environmental competitiveness, further consolidating the case for this technology in the coming years. ”
And yet, this cost reduction will require a fairly solid effort: at the moment, green hydrogen production costs three to six times more than hydrogen derived from gas. On the other hand, gas-derived hydrogen prices may increase as gas demand increases, somewhat equivalent to the conditions of competition. However, this suggests that green hydrogen would depend on gas prices for competitiveness, rather than technological advances that would make the process itself cheaper.
It is clear that the energy transition will have a cost. The question is, how much will this cost be and how much will the world be able to afford. Solutions such as Siemens Gamesa and Siemens Energy are working on a sound similar to making the process cheaper and bringing green hydrogen closer to normal reality. However, it is worth considering that these solutions would be region-specific rather than universal. For now, the main green hydrogen remains more of a promise than a reality.
By Irina Slav for Oilprice.com
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