Hydrogen becomes the next media star after solar and wind. In its latest claim to fame, there are two derivations from the German technology conglomerate Siemens joining forces advancing green hydrogen technology by building wind-to-hydrogen systems to help decarbonize the global economy. Green hydrogen is proposed as a solution to many climate change problems: 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 because its production comes from the hydrolysis of water by electricity produced by renewable systems, which means it has a much smaller carbon footprint than hydrogen gas or coal.
Siemens Gamesa and Siemens Energy have therefore joined a growing group of proponents of green hydrogen, 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 offshore hydrogen wind system involving a turbine with an integrated electrolysis system, the companies said in a press release this week. They aim for a large-scale demonstration of their pilot in 2025 or 2026.
“Our wind turbines play a huge role in decarbonising the global energy system and the wind potential for hydrogen means we can do the same for industries that are difficult to reduce. I am very proud that our people are part of the formation of a greener future, “said Siemens Gamesa CEO Andreas Nauen in a statement. Related: Saudi Arabia launches new bullfight in the Middle East
“With these developments, the potential of regions with abundant offshore wind will become accessible to the hydrogen economy. It is an excellent example of allowing us to store and transport wind energy, thus reducing the carbon footprint of the economy, ”said Siemens Energy head 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 over the years and perhaps decades to come. However, some predict significant cost reductions for the technology.
Wood Mackenzie analysts, for example, last year wrote in one report who expected green hydrogen production costs to fall to 64% by 2040 and in some places even earlier.
“On average, the costs of producing organic hydrogen will be equal to fossil fuel-based hydrogen by 2040. In some countries, like Germany, which arrives in 2030. Given the scale we’ve seen so far, it’s 2020 is likely to be the decade of hydrogen, ”wrote Ben Gallagher, a senior research analyst, who added:“ Rising fossil fuel prices will increase green competitiveness, further strengthening the case of ‘this technology in the coming years’
However, this cost reduction will require a fairly solid effort: right now, green hydrogen production costs three to six times more than hydrogen derived from gas. On the other hand, the prices of gas-derived hydrogen may increase as gas demand increases, which is a bit wrong on the pitch. This, however, suggests that green hydrogen would depend on gas prices for its competitiveness rather than technological advances that would make the process cheaper.
It is clear that the energy transition will come at a cost. The question is, to what extent will this cost be and what part of the world will be able to bear it. Solutions like Siemens Gamesa and Siemens Energy are working in a similar way to how to cheapen the process and bring green hydrogen closer to the main reality. However, it is worth noting that these solutions would be region-specific and not universal. For now, major green hydrogen remains more of a promise than a reality.
By Irina Slav for Oilprice.com
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