FuelCell Energy Inc (FCEL)

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Repost from ADN board.

Turning to Hydrogen is Not Easy, Says Bloomberg – What's Happening in Greece
18 May 2024
https://www.energia.gr/article/218778/h-strofh-pros-to-ydrogono-den-einai-eykolh-ypothesh-leei-to-bloomberg-ti-ginetai-sthn-ellada

Experts agree that hydrogen should be in the green transition toolbox if the planet is to reach the goal of net-zero emissions in sectors such as steel, aviation and shipping. However, the few early projects focused on using hydrogen to produce energy in Europe show that switching to hydrogen will not be as easy – at least not as its proponents present it

This is what Bloomgerg Green argues in its analysis, citing as an example the case of the Leipzig power plant inaugurated in October.

At the same time, in Greece, large groups are launching hydrogen development projects, which will become a reality after 2027.

Bloomberg Green makes special mention of the Leipzig plant, which it writes "is the first, tiny part of a dream energy system designed by policymakers across Europe who rely on green fuel to meet some of the world's most aggressive climate goals."

This dream is based on converting newly built polluting infrastructure to burn hydrogen, a fuel that will be many times more expensive than natural gas and that no one has figured out how to move safely and cheaply in bulk.

Germany plans to build more than 20 power plants much larger than the one in Leipzig, which it advertises as the continent's first "hydrogen-ready" facility. They will be supplied by state-of-the-art LNG terminals equipped to handle specialized clean fuels, such as ammonia, and a network of dedicated pipes stretching for about 9,600 kilometers.

By following this model, governments and companies that struggle to meet deadlines for climate goals but are concerned about energy security can still build billions of dollars' worth of natural gas infrastructure as long as it's "hydrogen-ready."

Gas-dependent economies including Germany, the Netherlands, Spain, Italy and Britain are among the biggest proponents for using hydrogen, and some have plans to use it to generate electricity.

But, Bloomberg points out, there is no official definition of what makes a "hydrogen-ready" facility ultimately open the door to greenwashing.

For power plants, hydrogen combustion has not even been tested at scale.

"There has not yet been any measurable progress in building gas-fired, hydrogen-ready power plants," said Eric Heymann, an economist at Deutsche Bank Research.

The issue of transport

Next, the problem of hydrogen transport has not been solved. The Leipzig plant is not connected to the grid (and has yet to install its own electrolyzers), which means that the highly flammable fuel will have to be transported by truck until the second part of the government's grand plan is carried out. It is building a €1 billion liquefied natural gas terminal in Brunsbuettel, a city along the North Sea that will initially import LNG but will be designed to handle clean fuels in the future.

Hydrogen can only be liquefied at -253C (-423F), far beyond the capabilities of current LNG ships. So Germany plans to import hydrogen in the form of liquid ammonia, a combination of hydrogen and nitrogen that can more easily be converted into liquid. But ammonia is toxic, and handling requires better ventilation systems. Many components at the terminal, including control valves and fire and gas sensors, as well as embedded devices — most of which have not been tested with ammonia — will also need upgrades, according to Fraunhofer ISI, an energy think tank.

The difference with renewables

Industries can be built from scratch with enough support. The renewable energy industry that faced skepticism 20 years ago is now booming.

The difference is renewables harness wind and solar energy to generate clean electricity. Both sources already exist and are in use and are available to the public.

Green hydrogen, on the other hand, will require building more solar and wind farms when, in many cases, it would be simpler to simply use that clean energy directly. By the time hydrogen is manufactured, stored and burned to produce electricity again, there is a 70% loss of energy compared to the original, and the cost has tripled.

Green hydrogen will likely only be useful towards the end of the energy transition, when primary electricity demand is comfortably met by renewables, said Pierre Huns, the governor of Belgium's central bank. "We're not going to have green hydrogen in large quantities and cheap prices before that, because of course we have to generate more electricity to power it," he said.

This is, perhaps, why most green hydrogen projects have so far been left on paper or on the websites of major gas companies such as Equinor ASA, Shell Plc and Sinopec.

A gap is emerging between the scale of political ambition and the money companies spend on building the projects. Just 4% of proposed global projects were financially finalized in 2023, according to the International Energy Agency, while others have already failed.

Big bet

And the truth is that even those who support and promote the use of hydrogen do not hide that it is possible that the world will never produce the green fuel at a low enough price to replace the gas. However, they still support the construction of "hydrogen-ready" gas infrastructure in the hope that the market will catch up.

It's a big bet. If they are wrong, the world risks being locked into decades of fossil fuel pollution and blowing up previous emissions reduction targets. Doing so would result in catastrophic climate impacts, Bloomberg analysts warn.

Germany, for example, plans to allocate up to 20 billion euros to make the transition of utilities to hydrogen economically viable, as the country will urgently need a reserve for periods when sun and wind are not available. If these subsidies don't go through, "there is a risk that power plants will simply keep running on gas," said Claudia Günther, head of research for Germany at the Aurora Energy Research think tank.

Despite having already scrapped three hydrogen projects, German utility Uniper SE is preparing to build a new fleet of "hydrogen-ready" gas plants.

Robert Habeck, Germany's economy and climate action minister, says his country has already scaled back its hydrogen plans.

Greece "sees" hydrogen after 2027

From 2027 onwards hydrogen will... The major energy players are setting a green course, but without much haste, as it is necessary to ensure the sustainability of their investments in the context of the green transition.

Helleniq Energy

Helleniq Energy is in the works to develop an electrolysis unit at the Group's refineries in Thessaloniki, aiming at the production of "green" hydrogen for the subsequent production of ammonia or methanol, with their main purpose being used as fuel on ships.

The group plans to create a photovoltaic park with a capacity of 200-300 MW in close proximity to the company's facilities, in order to provide "green" energy to the electrolysis plant estimated at a capacity of up to 100 MW.

TITAN

TITAN's H2CEM project will be subsidized with €60 million. It aims to produce green hydrogen through electrolysis using RES plants that will be installed in three of the company's plants.

The project foresees the installation and operation of green hydrogen production units through electrolysis for TITAN's cement plants in Greece (Kamari, Viotia, Drepano, Achaia and Efkarpia, Thessaloniki). The units, which will be powered by renewable electricity sources, will have a total capacity of at least 3.5 MW.

Motor Oil

Motor Oil's "Blue Med" program aims to create a low-emission energy hub in the Eastern Mediterranean that includes the production of green hydrogen through a 30 megawatt plant, CO2 capture, their transport and distribution, and ultimately their use in industry and transport.

"Blue Med" is being implemented as part of the IRIS project, set for completion in 2028, which will integrate several innovative industrial processes on a scale never before implemented in an independent refinery. IRIS will receive €127 million in funding. euros from the European Commission.

Theellenic Hydrogen

The "green" hydrogen unit of "Hellenic Hydrogen" (joint venture between PPC and Motor Oil) is expected to be put into operation in 2027 in Western Macedonia, in an area of the steam power station in Amyndeon.

The investment will bring a benefit of EUR 100 million to the local economy. annually (through the improvement of the import-export balance, the reduction of carbon dioxide emissions and taxation and taking into account multipliers) creating the conditions for the creation of 40-50 direct and about 500 indirect jobs in the region.

Advent

Advevt's promising investment (the company with a presence on the Nasdaq has specialized in high-performance fuel cell technology) concerning a green hydrogen production plant in Kozani is progressing slowly. The Green HiPo project includes the development, design and manufacture of HT-PEM fuel cells and state-of-the-art electrolyzers for the production of electricity and green hydrogen, respectively.

The company, which will initially be subsidized with €24 million. Although it received an official invitation from the Greek Ministry of Finance in February to submit the necessary supporting documents, it has not shown much zeal to run the procedures.

DESFA

DESFA, within the borders, has in the works the project, with a budget of €1 billion. and a timetable for completion by 2030, "Dedicated H2 Backbone" for the construction of a new 540 km pipeline. exclusively for the transport of clean hydrogen. The pipeline is expected to start from the southern part of Greece and reach the interconnection point of the NNGS with Bulgaria, where it will be connected to the exclusive hydrogen pipeline of Bulgartransgaz, providing the possibility for hydrogen imports and exports to and from Bulgaria.

The new pipeline lays the foundations of the new energy era, in light of the green transition, allowing the construction of a national hydrogen transport system, as it can be connected to the pipeline to Western Macedonia and the interconnector between Greece and North Macedonia.

At the same time, DESFA is preparing technical feasibility studies regarding the mega project of the "green" hydrogen pipeline between Greece and Bulgaria.