【Industry View】The Development of Green Hydrogen

According to a recent report*, green hydrogen as an energy carrier will provide a way to transport renewable electricity over long distances, connecting low-cost production sites (areas with abundant wind or solar power) to demand centers for imported green hydrogen.

Hydrogen, especially zero-emission green hydrogen, is an important energy source for achieving a carbon-neutral economy. The production of green hydrogen requires the conversion of renewable energy sources into hydrogen through electrolytic water technology, of which platinum-based proton exchange membrane (PEM) electrolyzers are a key technology.

Between now and 2050, green hydrogen production could grow nearly fivefold to 614 million tons per year to meet the world's need to transition to net-zero-emission clean energy. This demand forecast will drive global capacity for green hydrogen electrolyzers from 300 MW of installed capacity today to approximately 5,000 GW in 2050. However, this growth potential is based on the fact that green hydrogen can be traded globally as a bulk commodity.

Today, hydrogen storage and transportation is mainly based on compressed hydrogen, which needs to be stored as a liquid at very high pressures (350-700 Pa) or very low temperatures (-253°C) due to its low density, requiring specialized handling.

Another option is to first convert hydrogen into a bulk commodity with higher bulk density and more cost effective transportation, such as ammonia. Ammonia can be stored as a liquid at room temperature at a pressure of only 10 bar, or at atmospheric pressure of -33°C. Global ammonia production exceeds 125 million tons per year and is processed into fertilizers for agriculture or chemical processing and others, among others.

The use of ammonia as a carrier for transporting hydrogen makes it possible to take advantage of existing, well-developed supply chain infrastructures and trading mechanisms.

The multinational energy company Rheinland Group (RWE) sees green ammonia produced from non-fossil fuels as the most technologically mature and competitive hydrogen derivative.

There are many indications that a global market for green hydrogen or green hydrogen derivatives is emerging, with more than 80 announcements of projects or collaborations related to global trade in hydrogen or ammonia between 2020 and 2021. According to these announcements, the most active potential importers are Germany, Japan and the Netherlands, while the most active potential exporters are Australia. Europe's focus on increasing the long-term sustainable security of energy supply provides additional impetus for the region to boost future hydrogen capacity and supply.

There are signs that a global market for green hydrogen or green hydrogen derivatives is emerging. Photo credit: RWE

At the UK's Port of Immingham, the UK's Union Port is working with gas and chemical supplier Air Products to import green ammonia from various origins around the world for green hydrogen production, which will stimulate demand and drive the development of local and national green hydrogen markets.

German energy company Uniper and Vesta Terminals are evaluating plans to refurbish and expand their existing storage facility in Vlissingen, Netherlands, to create the first green ammonia hub in Northwest Europe. The site is ideally located for the supply of green ammonia from ships. In a second phase, it will be connected to the Dutch hydrogen pipeline network network.

Uniper is planning to build several entry points for green energy into Europe. In the German port of Wilhelmshaven, the company also plans to build a green ammonia import terminal, which will be equipped with an ammonia cracker for reconverting ammonia into green hydrogen and nitrogen. The terminal will be connected to a hydrogen network capable of supplying about 295,000 metric tons of hydrogen by 2030, equivalent to 10 percent of the expected demand for the whole of Germany.