In the future, Germany plans to place a greater emphasis on renewable energy sources. Away from fossil raw resources, particularly those originating in Russia. Green hydrogen should play a significant role. So far, the climate crisis has failed to apply the required pressure to accelerate the energy transition, but the pace appears to be picking up today, despite the ongoing conflict in Ukraine.
Green hydrogen is CO2 neutral as long as it is produced using electricity from renewable energy sources (wind and solar). However, in Germany, there have only been a few isolated pilot initiatives thus far. Sustainable energy sources will be promoted more aggressively in the future. On April 6, 2022, Robert Habeck (Greens), Minister for Economic Affairs and Climate Protection revealed this with the so-called Easter package. Not only was Habeck’s visit to the United Arab Emirates geared at promoting green hydrogen, but it was also targeted at advocating a package of immediate energy measures. With the United Arab Emirates, energy cooperation was formed, consisting of four hydrogen partnerships and one research collaboration. The message: Hydrogen should become a critical component of a long-term energy source.
What impact does the Ukraine conflict have on a hydrogen transition?
In recent years, the hydrogen economy has grown increasingly crucial for the energy transition. The Russian invasion of Ukraine has highlighted the need for Germany to become self-sufficient in gas imports, which green hydrogen may assist with. In addition, the price of fossil fuels has risen dramatically, making renewable energy sources more appealing.
How quickly may green hydrogen be utilized, whether it’s produced or imported?
Almost the whole hydrogen production and distribution system in Germany must be created on a big scale. On the one hand, production facilities are few. Electrolyzers, which utilize electricity to break down water into oxygen and hydrogen, are required, among other things. A bigger number of renewable energy generators will be required to supply them. As a result, the growth of solar and wind power systems would have to be pushed even harder.
On the other hand, tankers and pipelines must be built as part of the transportation infrastructure. There’s also the hiring and training of specialized personnel. The hydrogen economy may expand in the medium to long term in the future years. In the short term, however, a rapid solution for the production of substantial amounts of green hydrogen in Germany is not in sight.
Imports of energy — a political minefield?
You might import hydrogen from another country instead of creating it yourself. In sunny and/or windy places like Central Africa, the Gulf region, or Western Australia, green hydrogen may be generated more inexpensively. The federal government has a similar perspective: it anticipates that the bulk of hydrogen needs will have to be imported.
However, with high import limits, Germany would once again be reliant on other nations’ crises and conflicts. As a result of political instability, energy imports might be jeopardized, particularly in Africa, but also in the Gulf States.
These problems, according to energy expert Robert Schlögl of the Max Planck Institute for Chemical Energy Conversion, are less significant for hydrogen than for gas and oil: “The variety of areas where hydrogen may be created is significantly larger than the diversity of places where fossil fuels can be found, for example.” That is why I believe there will be and must be a significant worldwide market for hydrogen-based renewable energy. Then it makes no difference how large our import share is.”
However, a network of transport channels, including tankers and trucks, as well as pipelines, would be required for such hydrogen imports. A branching network might also help to lessen reliance on certain exporting nations.
In what sectors (short, medium, and long term) may green hydrogen be used?
Green hydrogen might be utilized in places where gray hydrogen, i.e. hydrogen derived from natural gas, is now employed, as well as in new locations. The vast majority of green hydrogen is anticipated to be used in manufacturing. Because this business consumes the most hydrogen at the moment: chemical industries, fertilizer makers, and the steel industry all demand massive amounts. They’ve been utilizing gray hydrogen for this so far. These industries may easily transition to the climate-neutral raw material if there is enough green hydrogen available.
As a climate-friendly fuel, green hydrogen might eventually make its way into the transportation industry. Trains and long-distance trucks may be on their way shortly. Hydrogen trucks, for example, are predicted to have a greater range than battery trucks.
Automobiles powered by hydrogen are already on the market. However, when compared to battery-powered e-cars, they are less efficient, especially when considering the complicated manufacture of hydrogen and its transportation.
Smaller planes and ships can also use green hydrogen. Larger airplanes and container freighters would have to utilize e-fuels manufactured from green hydrogen, such as diesel or kerosene. These so-called derivatives are more expensive to make than pure hydrogen, but because of their higher energy density, they are simpler to transport onboard an airplane or ship. In the case of e-fuels, it is being considered if they should be generated largely in countries where green hydrogen can be created inexpensively, such as Australia. After that, the e-fuels could be carried in regular tankers.
Green hydrogen appears to be less promising in other industries. The use of hydrogen as a natural gas alternative for boilers is divisive. In the long run, hydrogen as a heat storage medium is expected to be too rare and costly. Experts also bemoan the lack of energy efficiency. Other heating market initiatives, such as heat pumps that run only on electricity and greater building insulation, are more efficient. Hydrogen might potentially be utilized to temporarily store wind and solar energy in the electrical industry. However, there are competing technologies in this area, such as different types of batteries.
In general, all of these fields of application can only really take off if there is enough green hydrogen available.
What would it take to fund and govern a hydrogen transition?
So far, the most serious issue with a hydrogen transition has been the cost. Green hydrogen is around three times more expensive than gray hydrogen produced from natural gas. As a result, it would require financial assistance to propel the market forward. A renewable energy law for hydrogen is one possibility. Solar and wind energy already have this form of mandatory purchase with a price guarantee.
Contracts for the difference might be used as another source of finance, allowing consumers to be paid for the increased expenses of green hydrogen. This is the approach taken by the German government’s H2Global initiative, which, starting in 2020, will put the National Hydrogen Strategy’s ambitions into action. H2Global, on the other hand, has been underfunded thus far with 90 million euros each year. Even more, money would have to be raised at the European level, such as via the sale of CO2 certificates. In order to develop the future of green hydrogen, entire bundles of actions would have to be determined.
National Hydrogen Strategy
