Europe’s ambitious green hydrogen initiatives faced a setback as Everfuel reported a “quality issue” in equipment provided by Norwegian electrolyser manufacturer Nel, further delaying the commissioning of the 20MW HySynergy 1 project in Fredericia, Denmark.
Originally slated for mid-2022 completion, this project is a crucial component of Europe’s strategy to adopt green hydrogen technology at scale.
The heart of the issue lies in the high-pressure fittings of the deoxidizer, a component responsible for removing oxygen and moisture from the hydrogen flow in the electrolyser’s auxiliary system. Despite the main electrolyser facility being ready for start-up, this hiccup in the deoxidizer has become a stumbling block in achieving PED (pressure equipment directive) certification.
Everfuel issued a statement, stating, “Approval of the deoxidiser is the last remaining milestone before achieving PED certification. Following a failed test late on 29 February, the unit will require an on-site rebuild, which impacts the timeline for completion of the HySynergy 1 facility. Start-up is now expected in the middle of the second quarter of 2024.”
This delay in HySynergy 1 adds to the challenges faced by Nel, which is currently grappling with a lawsuit filed in California by Japanese industrial gas giant Iwatani. The lawsuit accuses Nel of conspiring to hide defects in faulty hydrogen refueling station equipment. Nel, however, vehemently denies these allegations.
HySynergy 1, located at Crossbridge Energy’s oil refinery, holds strategic significance as one of four 20MW green hydrogen projects in Europe. The other projects include Ovako’s green steel initiative in Sweden, Iberdrola’s Puertollano plant in Spain, and a P2X facility in western Finland. Delays in such flagship projects raise concerns about the broader green hydrogen sector’s ability to meet ambitious timelines and goals.
Everfuel signed a contract with Nel for the 20MW electrolyser back in December 2020, initially anticipating full operation by mid-2022. Construction commenced in August 2021, with hydrogen production starting in December 2022. However, the project faced its first delay in June 2023 due to a review recommending enhanced safety measures, adding €2 million to the project’s cost.
In November 2023, ownership of HySynergy 1 was transferred to a new joint venture between Everfuel and French hydrogen investor Hy24. Despite these challenges, the project’s successful completion remains crucial for Europe’s green hydrogen ambitions, emphasizing the need for robust quality control and project management in the burgeoning sector.