Germany, a global leader in renewable energy adoption, is embarking on a quest to secure affordable sources of Power-to-X (PtX) products to meet its energy demands.
On behalf of the H2Global Foundation, the Fraunhofer Institute for Solar Energy Systems ISE conducted a comprehensive study covering 39 regions in 12 countries. The goal was to identify the most economically viable regions for the manufacture of PtX products by 2030, with a focus on green ammonia, methanol, kerosene, and gaseous hydrogen, to be transported to Germany.
Among the standout regions, Brazil, Colombia, and Australia emerged as prime candidates for supplying green ammonia, methanol, and kerosene to Germany. These countries boast low production costs for gaseous green hydrogen, ranging from 3.20 to 3.60 euros per kilogram, making them economically attractive options for PtX production. The abundance of solar and wind energy resources, coupled with efficient logistics for long-distance transport, positions them as frontrunners in the PtX race.
While long-distance transport by ship, in the form of liquid hydrogen or ammonia, adds an extra layer of complexity, the study reveals that, under favorable conditions, this mode of transportation can offer Germany provision costs of 171 euros per megawatt-hour in relation to energy content. This highlights the potential for sustainable energy imports even from regions quite distant from Germany.
The study also explores the option of importing gaseous hydrogen via pipelines to Germany, with on-site processing to downstream products. Regions in Southern Europe and North Africa shine in this scenario, provided that pipeline infrastructure development begins by 2030. Analysis shows that regions in Algeria, Tunisia, and Spain, connected via natural gas pipelines converted to hydrogen, can offer the lowest supply costs for gaseous hydrogen at 137 euros per megawatt-hour.
Key factors contributing to cost-efficient PtX generation include favorable combinations of wind and photovoltaic (PV) conditions, high system utilization, and comparatively low capital costs. The synergy between wind and solar resources often has a more pronounced effect on hydrogen production costs than when regions excel in either wind or solar power generation alone. Ultimately, the cost of renewable electricity production plays a pivotal role in determining the feasibility of PtX projects.
As the study concludes, the scaling and ramp-up of the entire PtX value chain will lead to significant cost reductions beyond 2030. This paints an optimistic picture of a future where sustainable energy sources become increasingly affordable and accessible.
This global exploration for PtX sources not only aligns with Germany’s commitment to green energy but also signifies its intention to remain at the forefront of renewable energy innovation. By strategically sourcing PtX fuels, Germany continues its journey towards a sustainable and carbon-neutral energy landscape.
