Everfuel declared its intention to construct a hydrogen hub in Holstebro, Denmark, to assist regional energy transformation and expedite the scale-up of green hydrogen as an emission-free fuel for industry and transportation.
With the intention of generating a safe, dependable, and efficient local source of renewable energy, the hub will be created in two phases in close collaboration with industrial and mobility partners.
“The hub-concept represents a novel approach to scaling green hydrogen. It offers a strong value proposition for industry, the transport sector and municipalities, which is evident in the partner set up we can announce today,” says Jacob Krogsgaard, CEO at Everfuel.
Everfuel, the local government, and the other hub partners will explore the possibility for using green hydrogen in industrial processes and transportation in order to make Holstebro a greener city. By completing all three phases, the hub will enable a substantial decrease in the municipality’s CO2 emissions by supplying carbon-free hydrogen to a substantial portion of the municipality’s activities. Today, Holstebro is the second largest municipality in Denmark for onshore wind and solar electricity.
“Independent energy supply has become more important than ever. Holstebro has a substantial PtX potential, and the hub project shows the flexibility of green hydrogen and how a PtX facility can contribute across the local community. Holstebro is truly a front-runner for green cities of the future and a great example for others to follow. By connecting several partners to make a hydrogen hub, we assist the municipality in its energy transition, we showcase just how many industries can benefit from a PtX facility to ensure an independent and green supply of fuel, and last but not least, we create a good business case,” Krogsgaard continues.
In phase one, the hub-partners will explore production of e-methane and the use of hydrogen in industrial gas burners to produce e-methane at local biogas facilities and start testing using hydrogen in the current natural gas pipelines. Phase one is expected to be commissioned in 2023.
In phase two, Everfuel intends to build a 100 MW electrolyser, a hydrogen terminal, a distribution centre and a hydrogen refuelling station for both heavy-duty and passenger vehicles. The location has already been secured for the electrolysis facility and the development is planned to commence in 2025. The green hydrogen produced in the second phase will phase out fossil fuels by replacing natural gas in selected industrial processes. Excess heating from the hydrogen production facility is planned to be distributed to the local district heating operator, MEC (Maabjerg Energy Center), owned by Vestforsyning and Struer Energi.
“This is a win-win situation. The excess heat provides additional green energy for the district heating and the PtX process becomes more efficient. We are also looking into other synergies, for instance by adding hydrogen to a biogas facility which could potentially increase production. This may be one of the solutions for Europe to become independent of Russian gas. The partnership across industries in this project is crucial to succeed in the green transition at a both a local and national level. That is something we would very much like to contribute to,” says Pernille Bloch, Chairman at MEC.
Leading the environmental shift
“This is a pivotal project and a strategically important contribution to the energy transition which shows just how far we can get when local businesses, utility companies and municipalities collaborate. As a municipality, we work to establish the best conditions for the transition through local infrastructure and by expanding the capacity of the current renewable energy resources. To keep attracting both businesses and citizens to our municipality, we have to be green, and we are a front-runner in that regard,” says H.C. Østerby, the mayor of Holstebro Municipality.
The dairy firm Arla is a significant industrial partner and purchaser of green hydrogen. The company will attempt to replace natural gas in its processes with hydrogen in order to considerably reduce its CO2 emissions.
“Carbon-free hydrogen will be a key enabler to support the green transition and we look forward to collaborating with Everfuel on the possibilities for using it as a renewable energy source on our production sites. We have a clear sustainability ambition to reduce emissions with 63% by 2030 and the insights we gain in our partnership with Everfuel will help us to identify new sustainable solutions,” says David Boulanger, Executive Vice President & CSCO at Arla Foods.
The realization of the second phase is contingent upon, among other things, the installation of renewable energy assets near the PtX facility and a steady power supply to ensure access to renewable energy for hydrogen generation.