Page 10 - EurOil Week 28 2021

EurOil ENERGY TRANSITION EurOil

German hydrogen council calls

for clarity on blue hydrogen

GERMANY GERMANY’S hydrogen council has called for The post-2030 tipping point
the government that is formed after elections In the near term, both hydrogen supply and
Berlin sees hydrogen as in September to put forward a clear position demand in Germany are expected to be limited.
playing an integral part regarding the role that blue hydrogen can play in But a new study commissioned by the council
in reducing emissions decarbonising the country’s economy. concludes that the situation will change radically
in energy-intensive Berlin sees hydrogen as playing an integral in the 2030s. The meta-study by Fraunhofer esti-
industries. part in reducing emissions in energy-inten- mates that hydrogen demand could reach 300
sive industries, transport and other sectors. TWh by 2040.
The current government’s hydrogen strategy “Without the widespread use of hydrogen, we
unveiled in June last year heavily prioritises will not be able to achieve climate targets,” coun-
the development of so-called green hydro- cil head Katherina Reiche said back in June. “The
gen, separated from water with electrolysers demand in industry, transport and the heating
that run on renewable energy. But this has left sector is much higher than politicians have
little room for blue hydrogen, derived from expected so far.”
natural gas via steam methane reforming, with The council’s action plan envisages hydrogen
CO2 emissions from the process captured and demand in the steel and chemicals industries
stored. reaching 1.7mn tonnes per year by the end of the
Despite the lack of attention that blue hydro- decade. The initial focus will be on decarbonis-
gen has received, the state-appointed hydrogen ing German steel, with 10mn tpy of steel manu-
council “supports blue hydrogen as a bridging facturing expected to switch to direct reduction
technology,” Veronica Grimm, a government by 2030. Achieving this will require 0.6mn tpy
economic advisor and a member of the council, of hydrogen supply but would result in a 17mn
has said. tpy reduction in CO2 emissions, according to
Blue hydrogen can help meet nearer-term the council.
demand for low-carbon hydrogen, delivering Swapping coal for gas at steelworks would
results on emissions sooner while green hydro- already reduce emissions by two thirds, the
gen emerges, she said, adding that it would ena- council states.
ble a transition from existing gas-based trading A further 0.8mn tpy of hydrogen supply is
partnerships. In an action plan, the council said projected to be required by 2030 to power fuel
it wanted to see the next government clarify cell vehicles. But the council saw no significant
whether state aid will be available for blue hydro- role for hydrogen in power generation at the end
gen projects. of the decade, and there is also a lot of uncer-
What position the future government tainty about its part in the heating sector.
adopts on blue hydrogen will have significant Germany’s government has already short-
implications for how much of the fuel Ger- listed some 62 projects with a combined elec-
many will have to import in the future, the trolyser capacity of 2 GW for producing green
council notes. The country’s strategy calls for hydrogen as Important Projects of Common
5 GW of hydrogen-producing electrolyser European Interest (IPCEI). Its strategy has
capacity to be established by 2030, and double meanwhile set aside some €9bn ($10.7bn) from
this amount by 2040. But it acknowledges that a coronavirus (COVID-19) recovery fund for
Germany will need to import additional vol- green hydrogen projects, including €2bn for
umes to cover its needs. projects abroad.
By 2040, the council notes, there must be A total of 3.2 GW of electrolyser projects have
enough renewable or green hydrogen availa- been proposed so far in Germany, but many of
ble for Germany to fulfil its climate goals, the these are still at a very early stage of develop-
council notes. Berlin’s target is to reach net-zero ment. Royal Dutch Shell launched Europe’s big-
emissions by 2045. Its action plan also includes gest PEM electrolyser in the country earlier this
an addendum stating that not all the council month, with a capacity of only 10 MW, although
support giving a prominent role to non-renew- this could be upscaled to 100 MW in the future.
able types of hydrogen. The council meanwhile Germany is also discussing future hydrogen
sees hydrogen production using pyrolysis tech- supplies with foreign partners including Algeria,
nology as only possible after 2030. Unlike steam Australia, Canada, Morocco and Russia. While
reforming, pyrolysis produces solid carbon as a sun-drenched Algeria and Morocco are looking
by-product, which has industrial applications. to emerge as green hydrogen exporters, Russia is
But the process has only been used on a limited expected to sell Germany blue hydrogen, lever-
scale so far. aging its abundant gas resources.™

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