Dariusz Pachniewski is a recognized authority in hydrogen technologies and has been working in the energy sector for over 30 years. He has been involved in various projects related to the development of hydrogen technology in Poland, including the first project that closed the hydrogen value chain by connecting two electrolyzers to a biomass unit and two mobile hydrogen dispensing stations.
He is the spokesperson for Hydrogen Poland and the hydrogen ambassador of the Academy of Young Mechanics. He has been awarded the title of Ambassador of Hydrogen in Poland by the EU organization Hyfinder and is currently the Ambassador in Poland of an innovative solution called Hydrogen Bar System.
Pachniewski is actively involved in congresses related to the hydrogen industry as a speaker and panellist and gives lectures at recognized Polish universities on hydrogen technologies. Additionally, he is the head of a group that designs multi-scale warehouses for Energy Battery and Hydrogen in Poland and has authored or co-authored over 30 energy projects in Poland.
Can you tell us a bit about the current state of the energy storage and hydrogen industries in Poland?
The hydrogen industry and the energy storage industry are inseparable because hydrogen is viewed as the fuel and energy storage of the future, carrying the energy required to power the entire modern economy as well as a raw material for additional processes and technological advancements required by the economy to complete the Fit for 55 package or, more briefly, to make our world cleaner than it is now. This is a top priority for me, but it’s also important for the EU and our entire nation. Batteries that store energy are closely linked to the development of this economy since they aid in the efficient use of electricity.
What kind of government support has been available for these industries in Poland and how has it impacted their growth and development?
The Polish state supports the development of energy storage (battery) by providing assistance in the form of connecting them to the power market. These activities make it possible for a given entity that will perform these activities to count on the state’s support for several years, so such a business is “bankable”. Retail and structural investors entering this market segment need to know that the “power market time” will not last forever. This support offer is limited in time. You need to design such a warehouse, lease the area, obtain permission to plug it in and finally pass certifications and win the auction and finally build it. You can think about it later for further business activities, e.g. sale or further use of it according to its business plan, which is included in the long-term state aid.
What are some of the most promising investment opportunities in energy storage and hydrogen in Poland right now?
Promising possibilities are the use of Polish law, which gives the opportunity to support business, energy storage operating in the capacity market within a few years. As I said before, you should act now to “Get into this market game”. There is a race to see which company will build the largest energy storage or the most storage facilities. The time constraints are about a year and a half.
How do these investment opportunities compare to those in other countries?
In other countries, the power market does not function the same and energy storage facilities, in addition to their normal role, perform system functions, e.g. they are used to very precisely regulate the frequency of grid operation. That is why this business is so good and predictable – the “Polish capacity market system” and the construction of small storage facilities up to 10-megawatt hours as well as larger ones.
What kind of returns can investors expect from investing in energy storage and hydrogen in Poland?
Return on investment in energy storage, certification and winning the auction guarantee return on investment, because the state actively secures this business after the storage is put into operation. In addition, you can be a participant in solutions consisting of the sale of energy in a situation where one day it is more expensive and the next cheaper and operate on the so-called “differences in day and night prices” – this guarantees an additional profit. Hydrogen storage and its return in time are about 4 years.
The larger the warehouse, the shorter the payback time. In addition, hydrogen storage can be used for external sales. Renewable hydrogen prices are high and industry, transport and other sectors of the economy need it the most, e.g. in place of grey hydrogen.
What are some of the biggest risks associated with investing in these industries in Poland?
I do not see any risk in the energy storage industry, whether in the form of batteries or in the form of hydrogen. Work on the hydrogen legislation is underway and the process is well advanced.
How do you see these industries evolving in the next 5-10 years in Poland?
Everyone knows that this is the future of the economy based on zero-emission energy carriers. Evolution, in my opinion, will turn into a revolution, because all players on the market will want to have such solutions, and first come first served.
What role do you see energy storage and hydrogen playing in Poland’s transition to a low-carbon economy?
“Battery and hydrogen” energy storage will guarantee a stable operation of the energy system – properly compensated and guaranteeing the use of hydrogen as multi-scale energy storage. Hydrogen in such a warehouse will be used to achieve Poland’s energy neutrality. The regulations that come into force additionally support these activities.
What kind of regulatory framework exists for the energy storage and hydrogen industries in Poland and how does it impact investment opportunities?
Energy storage legislation is and is still developing in the right direction. As I said earlier, these activities are the basis for making decisions about investors entering our market. Legislation for hydrogen storage and distribution subsystem is under negotiation, but the basic concepts are already defined, e.g. that hydrogen is an alternative fuel for transport with the accepted quality standard – it is very important, for example, for producers of fuel cells.
What kind of partnerships or collaborations has been established in Poland between companies working in the energy storage and hydrogen sectors?
In Poland, for example, Hydrogen Valleys, Shared Energy Clusters, associations and industry associations have been established. These activities are accelerating in building a hydrogen economy
Can you discuss some of the innovative technologies and projects in the energy storage and hydrogen industries in Poland?
I am pleased to be the spokesperson of the association Hydrogen Poland – “The Voice of Polish Hydrogen”. The founders of this Association are people who are precursors of building an economy based on hydrogen. I am proud to be the Hydrogen Ombudsman in Poland. I am also a signatory to the hydrogen sector agreement organized by the Ministry of Climate and Environment, I also participated in the work of task forces for the hydrogen economy at the Ministry of Climate and Environment. I was a member of four working groups, including a group dealing with the promotion of knowledge and future staff for educational activities for the hydrogen economy. My educational activity was appreciated and I was awarded the title of Hydrogen Ambassador of the Academy of Young Mechanics, which is the education of future staff of young people who will work for the hydrogen economy as young technicians and later engineers.
How have energy storage and hydrogen technologies developed in Poland over the past decade and what are the implications for investors?
Certainly, a novelty is the combination of battery energy storage with hydrogen storage in gaseous or liquid form, this is the so-called hybrid storage with their connection to a RES source. The development of so-called backyard energy storage and the law created for such investments favours this technology. Energy storage facilities are developing very dynamically in this decade, previously “Only water energy” was considered an energy storage facility – pumped storage power plants. Now these storage facilities and hydrogen as an energy carrier are the future of storage. That is why investors watch the legislation of these warehouses so much and give their capital for this purpose, treating such business as a safe “Safe capital investment”.
What is the potential market size for energy storage and hydrogen technologies in Poland and globally?
It is estimated that the Polish market can easily accommodate at least five gigawatts of energy storage. The problem is the so-called connection powers, i.e. places where you can plug into the power grid. This problem will decrease over time as the modernization of the electrical system operating in Poland is underway. The world market is one order of magnitude higher for warehouses. This is the future of energy (the ability to store it in the right place and time and collect it at any time).
How do you see Poland’s energy storage and hydrogen industries contributing to European Union energy policy goals?
The Polish storage system is developing dynamically and is compliant with EU directives in this area.
What are some of the challenges facing the energy storage and hydrogen industries in Poland and how can they be addressed?
The main challenges are the power grid, capital, and legislation keeping pace with new technological solutions. This can be met, for example, by increasing capital expenditures for these solutions – new investors are needed.
What kind of skills and expertise are needed to succeed in the energy storage and hydrogen industries in Poland?
First of all, you need to have knowledge and experience in this field. This branch of the economy is developing dynamically, but there is a lack of people and capital. Human competence is limited in this respect. I try to pass on my knowledge and experience, e.g. by giving lectures on hydrogen and renewable energy technologies at recognized universities in Poland, e.g. AGH University of Science and Technology in Krakow. I also take part as a speaker and host of meetings and conferences organized by recognized associations and organizations related to building a hydrogen economy.
How important are international collaboration and investment for the growth of Poland’s energy storage and hydrogen industries?
International cooperation is the basis of this branch of the economy – because the influx of large capital from abroad and the right people to manage it in Poland is synonymous with the investor’s business success. I, with my team and experience in these fields, guarantee success.
How do energy storage and hydrogen technologies fit into Poland’s broader energy mix and energy policy?
Hybrid energy storage technologies are included in the Polish energy mix as an additional stabilization and guarantee of trouble-free generation, processing, storage and release of energy on demand (power system).
What kind of support do you think is needed from the government or other organizations to accelerate the growth of Poland’s energy storage and hydrogen industries?
Support already exists, there are dedicated financial instruments and institutions that have allocated huge amounts of money for these activities. Not always, but always, it is desirable to have more financial options and support also from abroad to act faster and more efficiently – so faster investor activities mean business development and investor’s financial security.
What message would you like to send to potential investors interested in energy storage and hydrogen opportunities in Poland?
I would like to convey that the market for this type of activity is huge in Poland. All this is facilitated by the adopted EU packages and Polish law, the geopolitical situation and a group of enthusiasts of these technologies, which I am one of, using my thirty years of experience in the energy industry.
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