H2-Industries, located in the United States, has launched two waste-to-hydrogen projects in Egypt and Oman, respectively, and is in active conversations with other Middle Eastern nations, including India, for similar projects, according to the company’s chief executive.
“We’re looking at waste-to-hydrogen plants as the most important business for the next three to five years,” said Michael Stusch, Executive Chairman and CEO of H2-Industries. “We’re also looking at storage for renewables (photovoltaic and wind) to make them baseload capable with our Liquified Organic Hydrogen Carrier (LOHC) storage technology.”
He noted that the company’s trash-to-hydrogen technology converts rubbish, plastic waste, and sludge into green hydrogen for half the cost of solar or wind-powered electrolysis.
“Because the carbon is collected for use or sale, the entire manufacturing process will be emission-free. Renewable energy is used to heat the process, and all transportation would be done in hydrogen-fueled vehicles “he stated.
According to him, H2-Industries’ technology requires a minimum of 1,000 tonnes of garbage every hour to be cost-effective.
“Waste separation is less costly than the output below that point. Let’s imagine the expenses rise linearly from one million tonnes each year…. So, if it’s 4 million tonnes or 8 million tonnes, the expenses are linear, but if it’s less than that, the costs aren’t… because there are overheads.”
Processing sludge, on the other hand, is less cost-effective because “Because sludge contains few hydrocarbons, there isn’t much hydrogen to remove…
In a mixed computation, however, it makes no difference.”
H2-Industries would be the EPC contractor for its waste-to-hydrogen projects, which would include carbon capture in the process plant and storage in the solar facility.
Competitive manufacturing
According to Stusch, the company’s initiatives in Egypt and Oman may create green hydrogen for $2-$3 per kilogram (kg) by 2026 and for less than $1 per kg by 2030, because both projects use the same components and have the same manufacturing costs.
According to projections given by the International Energy Agency (IEA) in its 2021 Global Hydrogen Review 2021, hydrogen generated from renewable power will cost $3-$8 per kilogram.
He explained the advantages of LOHC by stating that one cubic meter of LOHC could hold 57 kilograms of hydrogen, making it space-efficient. Furthermore, hydrogen may be stored in LOHC for years, whereas batteries are only cost-effective for a limited time, typically 1 to 3 hours.
LOHC may be delivered using existing infrastructure since it acts like oil at normal pressure and temperature.
Stusch elaborated: “There’s no need to freeze LOHC to -253 degrees Celsius or compress it to 700 bar pressure like liquid hydrogen. It would be carried by ships from Egypt’s East Port-Said, while we may use existing oil tankers in Oman because we are close to a port.”
“The CO2 that is not consumed may be sold, notably to synthetic fuel companies. There is currently a big CO2 scarcity for synthetic fuels, which is highly cost-effective.”
He also revealed that the firm is negotiating offtake agreements for the hydrogen and carbon produced by its operations.
“Many off-takers, particularly in Germany and Europe, have expressed an urgent need for large volumes of green hydrogen. Green hydrogen is in high demand in the steel, glass, and cement sectors, as well as e-diesel in the shipping industry and SAF [Sustainable Aviation Fuels] in the aviation business.”
The feasibility study for the Egypt project, according to Stusch, is complete.
“We’re already far into the planning process. The facility will be operational at full capacity of 300,000 tonnes of hydrogen per year by the end of 2024, the next stage in 2025, and the last stage by the end of 2025….beginning of 2026.”
He stated that the project will generate electricity in part through a 400-meter-long and 100-meter-wide rooftop solar plant and in part through waste heat generated during the storage process.
According to Stusch, the Oman project will be completed in 2025, and unlike its Egyptian cousin, it will not have a synfuel manufacturing component.
“It has not yet been addressed, but it is a possibility. It’s also unclear if we’ll be the EPC contractor for the PV facility because other businesses have expressed interest. Because Oman intended it, they are two different projects that have been combined.”
He stressed that “it is not yet apparent” what the amount of synfuel production in Egypt would be or if all of the hydrogen produced would be redirected for synfuel.
He stated that finance talks for the two projects are already underway. “We’re talking to financial investors and large development banks all across the world, and this will be finalized in the next months.”
He emphasized that local work possibilities will be available in both projects, particularly in the garbage collection and plant building and accompanying infrastructure.
“We also intend to collaborate with colleges to teach students about hydrogen from trash and hydrogen storage technology,” he said.
