Tanker pilot project shows hydrogen plan is feasible, Japan consortium reports
Kawasaki Heavy Industries Ltd. (KHI) and other Japan-based firms said Tuesday that a pilot project to transport to Japan hydrogen produced from brown coal in Australia, using the world’s first liquefied hydrogen tanker, had been proven technically feasible.
While hydrogen is widely touted as a fuel of the future with zero carbon emissions, it requires intensive energy input with renewables to produce “green hydrogen.” Critics say emissions from hydrogen derived from brown coal are twice that of natural gas.
The 500 million Australian dollar (¥42 billion) project, led by KHI and backed by the governments of Japan and Australia in an effort to cut carbon emissions, was originally due to ship its first cargo a year ago, but was delayed by the COVID-19 pandemic.
Electric Power Development Co. (J-Power), which is in charge of producing the project’s hydrogen, said it has tested using biomass with coal to help offset carbon dioxide emissions, while it aims to implement carbon capture utilization and storage (CCUS) in the future to make hydrogen that is completely free of carbon dioxide.
The KHI-built Suiso Frontier tanker eventually left Australia this year on Jan. 25 and arrived in Kobe a month later, the consortium said, adding that it had unloaded its cargo of hydrogen by the end of February.
“The demonstration covered from production and transport to loading and storage and proved that the technological foundations have been laid for the future use of hydrogen as an energy source in the same way as liquefied natural gas (LNG),” Motohiko Nishimura, KHI’s executive officer, told reporters.
KHI aims to replicate its success as a major producer of LNG tankers with hydrogen, which is seen as critical by Japan to decarbonize industries that rely on coal, gas and oil and to achieving net-zero emissions by 2050. Australia aims to become a major exporter of the fuel.
“Equipment and facilities that can be operated safely are also a game-changing technology for the clean-energy business,” KHI’s Nishimura said.
In addition to KHI and J-Power, the consortium includes Shell’s Japanese unit, Iwatani Corp., Marubeni Corp., Eneos Holdings Inc. and Kawasaki Kisen Kaisha Ltd.
The partners did not disclose a cost structure for the project, saying it was aimed at proving feasibility and safety. KHI said it aims to build a much larger hydrogen vessel in the mid-2020s, and to commercialize the business in the early 2030s.
- KOBE, Japan, Jan 26, 2022 (Reuters) – Japan’s Kawasaki Heavy Industries is aiming to replicate its success as a major liquefied natural gas (LNG) tanker producer with hydrogen, a key element that may help decarbonize industries and aid the global energy transition.
- A $500 million pilot project, led by Kawasaki and backed by the Japanese and Australian governments, plans to ship its first cargo of liquefied hydrogen from Australia to Japan this spring, which the firm hopes will mark the dawn of a new clean energy era.
- “We want to prove the possibilities of shipping mass volumes of hydrogen to be used in Japan and elsewhere in Asia, just like LNG,” Motohiko Nishimura, Kawasaki’s vice executive officer, told Reuters last Friday.
- Kawasaki has the wind at its back, as hydrogen has become the green fuel of choice among many governments and businesses who are betting big that the universe’s most abundant element can help fight climate change.
- Japan’s government unveiled an ambitious goal in December 2021 to boost its annual hydrogen demand to 3 million tonnes by 2030, from about 2 million tonnes now, and 20 million tonnes by 2050.
- Kawasaki aims to build 80 hydrogen carriers to import 9 million tonnes of the fuel a year by 2050, after building 2 commercial-scale ships to import 225,000 tonnes by 2030. It’s targeting overall hydrogen-related sales of 120 billion yen ($1.16 billion) in 2030 and 300 billion yen in 2040.
- “We are considering beefing up our goals to reflect the government’s new targets,” Nishimura said.
- This spring, Kawasaki will transport 75 tonnes of hydrogen, extracted from brown coal and liquefied in Australia’s Victoria state, enough to fill the tanks of 15,000 fuel cell vehicles.
- By freezing hydrogen gas to minus 253 Celsius — lower than LNG’s minus 162 C — the cargo can be compressed to one-800th of its gaseous volume.
- For Kawasaki, which started developing a hydrogen supply chain that includes hydrogen liquefaction systems and storage tanks more than a decade ago, the biggest obstacle remains cost.
- It aims to slash hydrogen supply costs to 29.7 yen ($0.3) per normal cubic meter by 2030, from 100 yen now, and to 18 yen by 2050.
- “We need demand from the power sector to bring down cost by scaling up,” Nishimura said, adding it is in talks with multiple companies and cities to find buyers and land to build a bigger receiving terminal for the commercial project.
- Japan pioneered the wholesale use of LNG over 50 years ago as Tokyo Electric and Tokyo Gas opted to import the fuel to cut air pollution and meet soaring power demand amid the nation’s rapid economic expansion.
- “We need government support to create a system to encourage use of a cleaner fuel and to clarify who would bear the cost,” Nishimura said.
JR East tests hydrogen-hybrid train as it targets emissions reduction
East Japan Railway Co. (JR East) revealed a hydrogen-powered test train in 2022, equipped with an advanced fuel cell and battery system.
The first such test train in Japan has been named HYBARI, which stands for Hydrogen-Hybrid Advanced Rail Vehicle for Innovation. JR East will conduct test runs for the two-car train on the Nanbu Line and a few others from late March, aiming to start commercial use in 2030.
High-pressure hydrogen from a storage tank on the train is pumped into a fuel cell system developed by Toyota Motor Corp. which generates electricity via chemical reactions from the oxygen in the air. The electricity is then sent to the batteries that can be tapped by the trains engines to drive locomotion.
The development cost for the test train, which can travel up to about 140 kilometers per charge of hydrogen, totaled some ¥4 billion. JR East group has a target of reducing its carbon dioxide emissions effectively to zero in fiscal 2050 and is hopeful an overhaul of its train fleet with HYBARI technology can help them achieve that goal.
“We are considering replacing existing diesel trains with fuel cell hybrid trains,” said Shoichi Oizumi, head of JR East’s research and development center. In the test runs JR East hopes to study operational costs and other factors in order to decide which lines the hybrid trains will possibly be introduced, Oizumi said.
The $75 billion plan to make India a hydrogen hub
Billionaire Mukesh Ambani’s ambitious effort to pivot his conglomerate Reliance Industries Ltd. toward green energy could transform India into a clean-hydrogen juggernaut.
Ambani, Asia’s richest man, announced plans earlier in 2022 to invest $75 billion (¥8.6 trillion) in renewables infrastructure including generation plants, solar panels and electrolyzers. There is growing speculation that the strategy entails transforming all of that clean power into hydrogen, one of the largest endorsements in the next-generation fuel.
Analysts say Reliance is likely to opt for hydrogen in a bid to avoid India’s wholesale electricity market, which is dominated by financially stressed utilities and plagued by delayed payments.
“Reliance is preparing itself to capture the entire value chain of the green hydrogen economy,” said Gagan Sidhu, director at the Center for Energy Finance at New Delhi-based think tank CEEW. “They clearly have seen the writing on the wall.”
Green hydrogen — made from water and clean electricity — is seen as crucial for the world’s emissions reduction goals, helping consumers and key industries such as steel transition to lower-carbon fuels. Prime Minister Narendra Modi last year announced a plan to make India, the world’s third-biggest emitter of greenhouse gases and a major energy importer, into a global hub for production and export of the fuel.
While Reliance hasn’t broken out how much will be devoted to hydrogen, the $75 billion investment in clean energy is by far the biggest in the country. Other companies such as Adani Enterprises Ltd. and state-run energy firms NTPC Ltd. and Indian Oil Corp. also have set plans for green hydrogen.
The number of countries with a hydrogen strategy doubled last year to 26, and expected plans from the U.S., Brazil, India and China could reshape the global market, according to BloombergNEF. But the sector is still experimental and far from commercially viable. India is relying on the country’s billionaires, including Ambani and his rival Gautam Adani, to lead the way.
A key challenge will be to produce it at affordable costs. Green hydrogen produced by renewables is far from competitive compared to other fuels, costing nearly double the price using coal, India’s main source of electricity generation.
Japanese firms seeing opportunities with Germany’s hydrogen power promotion
FRANKFURT – The new German government’s climate change policy is raising hopes for new business opportunities among Japanese firms working to develop hydrogen-related technologies in the country.
The ruling coalition led by the center-left Social Democrats (SPD) has hammered out the policy of making new natural gas-fired power plants convertible to hydrogen-fired plants, which don’t emit carbon dioxide.
At the same time, major German power supplier RWE AG and Japan’s Kawasaki Heavy Industries Ltd. announced an experimental hydrogen power generation project using Kawasaki Heavy’s gas turbine capable of producing some 30 megawatts.
As the turbine can operate purely with hydrogen, natural gas and with any combination of both, it will provide power generation data on hydrogen, natural gas and the mixed fuel for comparison in the project, to be launched in the northwestern state of Lower Saxony as early as 2024, the companies said.
Electricity to produce hydrogen for the project would be generated by wind mills so there will be no carbon dioxide emissions, they added.
“We expect that hydrogen will draw increased attention also in the United States and the Middle East, helping our business expand,” a Kawasaki Heavy official said.
Meanwhile, Mitsubishi Heavy Industries Ltd. has also been searching for hydrogen business opportunities in the European countries.
The firm is taking part in a joint research project in the northern city of Hamburg with a local public utility and European companies to produce hydrogen using wind and solar power, aiming to start production around 2025 to supply the eco-friendly fuel to various industries.
The coalition government plans to have renewables reach 80% of the country’s electricity demand by 2030, a target more ambitious than the 65% proposed by the preceding Angela Merkel administration.
It also plans to abolish coal-fired power plants by 2030, eight years earlier than previously planned.
Japan’s Sojitz to provide green hydrogen made in Australia to Palau
TOKYO, Jan 12 , 2022(Reuters) – Japanese trading house Sojitz Corp said on Wednesday it would conduct a demonstration project to produce green hydrogen in Australia and transport the fuel to Palau for use in small fuel cells as backup power sources and hydrogen fuel vessels.
Sojitz, along with Australian power generator CS Energy Ltd and Japan’s Nippon Engineering Consultants Co Ltd, plans to produce hydrogen from solar power in Queensland, Australia, and transport the fuel to the Pacific Island country, with financial backing from Japan’s environment ministry.
Sojitz will manage the project and support the installation of equipment, while CS Energy will supply green hydrogen and Nippon Engineering will study hydrogen applications, demand and the economic feasibility of marine transport for green hydrogen.
The projects will start soon and run through March 2024, a Sojitz spokesperson said, adding other details such as a type of hydrogen carrier and maritime route will be decided later.
The hydrogen production site was selected as the ideal location for producing renewable energy due to its vast land area and high level of solar radiation, making it possible to export green hydrogen at a low cost, Sojitz said.
Palau is highly dependent on fossil fuels for energy, but it has committed to achieving a target of 45% renewable energy generation by 2025 in an effort to cut carbon dioxide emissions.
The project is aimed at converting gasoline-fuelled vessels to hydrogen-fuelled vessels and implementing stationary fuel cells as backup power sources to replace diesel fuel.
“We want to apply the outcome to other Pacific Island countries in the future,” the spokesperson said.
Hydrogen, long used as rocket fuel, is mostly extracted from natural gas or coal. It is mainly utilised in oil refining and to produce ammonia for fertilisers, but future demand is expected to come from broader segments including transport, building and power generation.
China-UK study ‘shines new light’ in solar-hydrogen power quest
A team of scientists in China and Britain have made what they say is a breakthrough in the quest to use sunlight to produce hydrogen, which can be used as a power source or in industry.
In a paper published in the peer-reviewed journal Nature Communications last week, the scientists said they had used a new type of photocatalyst to improve the efficiency of the solar-to-hydrogen process.
- (Ref: Yumin Zhang, Jianhong Zhao, Hui Wang, Bin Xiao, Wen Zhang, Xinbo Zhao, Tianping Lv, Madasamy Thangamuthu, Jin Zhang, Yan Guo, Jiani Ma, Lina Lin, Junwang Tang, Rong Huang & Qingju Liu, Single-atom Cu anchored catalysts for photocatalytic renewable H2 production with a quantum efficiency of 56%, Nature Communications volume 13, Article number: 58 (2022)
“The study is a breakthrough on converting solar energy to hydrogen,” said Zhang Yumin, lead author of the study and a researcher with Yunnan University.
China starts up world’s largest green hydrogen plant
Chinese chemical producer Baofeng has started production from the world’s largest green hydrogen plant in the Chinese region of Ningxia raising global installed electrolyzer capacity by 50%. The news highlights how China is beating the world on climate technologies.
The 150 MW alkaline electrolyzer – powered by a 200 MW solar array – reportedly came online in late December 2021. It is five times larger than the previous record holder, another 30MW plant that Baofeng started up in April 2021.
According to Xiaoting Wang, hydrogen specialist at analyst group BloombergNEF, the 150MW Baofeng project was fully operational on 22 December last year.
Baofeng claims its project can produce 27,000 tons of hydrogen per year.
Still, it will not be the biggest green hydrogen plant for long as Chinese national oil company Sinopec broke ground on a 260 MW development last December. It will be the world’s largest when it comes online in mid-2023. It will be powered by an equal amount of solar and wind power. A 300MW solar plant will be built on site with the electrolyzer.
As Quartz highlighted in a recent article, China is winning the race to electrolysis and beating the world on yet another climate technology. “As with other climate technologies like solar panels, wind turbines, and batteries, on electrolyzers China is already eating the rest of the world’s lunch,” noted Quartz.
Shell starts up hydrogen electrolyser in China with 20 MW production capacity
Shell has started operations at the power-to-hydrogen electrolyser in Zhangjiakou, a joint venture between Shell (China) Limited and Zhangjiakou City Transport Construction Investment Holding Group Co. Ltd.
One of the world’s largest hydrogen electrolysers¹ has today started production of green hydrogen in Zhangjiakou, Hebei Province, China. The electrolyser will provide about half of the total green hydrogen supply for fuel cell vehicles at the Zhangjiakou competition zone during the Winter Olympic Games, set to begin on February 4, 2022.
“The electrolyser is the largest in our portfolio to date and is in line with Shell’s Powering Progress strategy, which includes plans to build on our leading position in hydrogen,” said Wael Sawan, Shell’s Integrated Gas, Renewable and Energy Solutions Director. “We see opportunities across the hydrogen supply chain in China, including its production, storage and shipping. We want to be the trusted partner for our customers from different sectors as we help them decarbonise in China.”
The project is part of a joint venture between Shell China and Zhangjiakou City Transport Construction Investment Holding Group Co. Ltd, formed in November 2020. The 20 megawatts (MW) power-to-hydrogen electrolyser and hydrogen refuelling stations in Zhangjiakou are phase 1 of the joint venture. The companies have plans to scale up to 60 MW in the next two years in phase 2.
Taking only 13 months to complete, this is Shell’s first commercial hydrogen development project in China. Utilising onshore wind power, the project will initially supply green hydrogen to fuel a fleet of more than 600 fuel cell vehicles at the Zhangjiakou competition zone during the Winter Olympic Games. After that, the hydrogen will be used for public and commercial transport in the Beijing-Tianjin-Hebei region, helping to decarbonise its mobility sector.
“The hydrogen industry is critical for Zhangjiakou’s transition to low-carbon energy and to achieve the city’s carbon peak and carbon neutrality targets. The recent approval of the Hebei Fuel Cell Vehicle Demonstration City Cluster, which is led by our city, will also accelerate the development of the hydrogen industry in our city,” said Bai Jing, Director, Zhangjiakou Municipal Development and Reform Commission. “This project will help secure hydrogen supply for the 2022 Beijing Winter Olympics and make it a green one while contribute to the development of hydrogen industry in the city and the Beijing-Tianjin-Hebei region.”
“We are glad to contribute to China’s progress towards its commitment for a carbon-neutral Olympic Games, and in the longer term for its 2030 and 2060 carbon targets,” said Jason Wong, Executive Chairman of Shell Companies in China. “With project phase 2 expansion plans and through partnerships with the local government and businesses, we will support the development of a low-carbon energy system and low-carbon transport system in Zhangjiakou and the wider Beijing-Tianjin-Hebei region.”
*Measured by production capacity, the world’s largest hydrogen electrolyser is 30MW operated by Baofeng Energy in China, while the second largest is a 20MW one operated by Air Liquide in Canada. Shell’s Zhangjiakou Integrated Green Hydrogen Hub project is one of only three commercial-scale electrolysers in China today, alongside the 30 MW one operated by Baofeng Energy and a 10MW electrolyser operated by HyPower in Hebei province.
Notes to editors
- Hydrogen is a clean and versatile energy carrier. Hydrogen fuel-cell electric vehicles take only a few minutes to refuel and produce no greenhouse gases from the exhaust. With the hydrogen produced using renewable energy such as wind, the fuel produces no emissions across its life cycle.
- Zhangjiakou City is 180 kilometers from Beijing and is strategically located at the junction of Beijing, Hebei, Shanxi and Inner Mongolia. Zhangjiakou City is rich in renewable energy resources such as wind and solar. In 2015, it was identified by the China State Council as the country’s first and only National Renewable Energy Demonstration Zone to explore pathways to accelerate energy transition and innovations in renewables sector. As the co-host city of the 2022 Winter Olympic Games, Zhangjiakou is tasked to provide low-carbon energy and low-carbon transport for this event, and hydrogen is critical for the city to deliver its plan.
- The electrolyser is located at Zhangjiakou Integrated Green Hydrogen Hub project in Hebei province, China and is built by the joint venture Zhangjiakou City Transport and Shell New Energy Co., Limited. The three shareholders of the joint venture are Zhangjiakou City Transport Construction Investment Holding Group Co. Ltd. (48.5% share), Shell (China) Limited (47.5% share) and Zhangjiakou Zhiqing Technology Partnership (Limited Partnership) (4% share).
- Globally Shell has seven announced decarbonized Hydrogen projects from renewable sources in its portfolio, including REFHYNE in Germany and in the Netherlands, NortH2, Port of Rotterdam Green Hydrogen Hub, Holland Hydrogen I, Hydrogen Innovation Hub at GZI Next Emmen, Groningen hydrogen fueling station and in China, Zhangjiakou Integrated Green Hydrogen Hub.
About Shell in China
All of Shell’s core businesses have grown considerably in China. Shell works with PetroChina and CNOOC to develop onshore and offshore oil and gas resources in China and overseas. This includes the Changbei onshore gas project, developed in collaboration with PetroChina. Shell is also a leading supplier of LNG in China.
Shell operates a retail network of near 1,900 gas stations in China through joint ventures and wholly owned enterprises, with more than 2,000 charging points for electric vehicles. Shell has five lubricant blending plants and one grease production plant in China. It also operates a world-class petrochemical plant in the Daya Bay area of Huizhou City, Guangdong Province, in a joint venture with CNOOC.
Shell Energy (China) Co., Ltd. is an important part of Shell’s global trading network, providing Chinese clients with a competitive and diversified LNG portfolio, CO2 emissions management and strategic solutions. Shell Ventures has a dedicated team in China to accelerate innovation in the energy and mobility sector by investing in disruptive technologies and business models outside the company.
Green Hydrogen Policy – another positive step towards India’s energy security
Government of India notified first phase of its Green Hydrogen Policy as a step forward towards National Hydrogen Mission. The mission aims to make India a green hydrogen hub and help to meet its climate targets. It targets production of five million metric tonnes per annum (MMTPA) of green hydrogen by 2030 and the related development of renewable energy capacity.
Hydrogen and ammonia are anticipated to be the future fuels, and production of these fuels using renewable energy is one of the major requirements towards sustainable energy security and reduction in fossil fuel import bills for the nation. Green hydrogen is generated by splitting water into hydrogen and oxygen in an electrolyser using renewable energy. The hydrogen produced can be combined with nitrogen to make ammonia, avoiding hydrocarbons in the production process. Green ammonia is used to store energy and in fertiliser manufacturing.
India’s Green Hydrogen Policy announcement comes promptly, as the country pledged to be carbon-neutral by 2070 at the COP-26 summit in Glasgow last year. The quest towards energy security gains more significance at a time when the ongoing Russia-Ukraine crisis has raised energy costs across the world, pinching India in particular, which imports 85% of its oil and 53% of natural gas requirements.
The policy offers a range of incentives to lure investors to bet on the development of green hydrogen and green ammonia:
- Green hydrogen / ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer, anywhere.
- Open access will be granted within 15 days of receipt of application.
- The green hydrogen / ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with distribution company and take it back when required.
- Distribution licensees can also procure and supply renewable energy to the manufacturers of green hydrogen / green ammonia in their states at concessional prices, which will only include the cost of procurement, wheeling charges and a small margin as determined by the State Commission.
- Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of green hydrogen and green ammonia for the projects commissioned before 30 June 2025.
- The manufacturers of green hydrogen / ammonia and the renewable energy plant shall be given connectivity to the grid on priority basis to avoid any procedural delays.
- The benefit of Renewable Purchase Obligation (RPO) will be granted incentive to the hydrogen / ammonia manufacturer and the distribution licensee for consumption of renewable power.
- To ensure ease of doing business, a single portal for carrying out all the activities, including statutory clearances in a time bound manner, will be set up by the Ministry of New and Renewable Energy (MNRE).
- Connectivity, at the generation end and the green hydrogen / green ammonia manufacturing end, to the ISTS for renewable energy capacity set up for the purpose of manufacturing green hydrogen / green ammonia shall be granted on priority.
- Manufacturers of green hydrogen / green ammonia shall be allowed to set up bunkers near ports for storage of green ammonia for export / use by shipping. The land for the storage for this purpose shall be provided by the respective Port Authorities at applicable charges.
India’s current hydrogen demand is around 6.7 million tonnes (MT) which is expected to approximately double by 2030. Oil refineries, fertiliser plants and steel units consume most of it as process fuel to produce finished products. Presently, it is grey hydrogen, which is produced from fossil fuels, such as natural gas or naphtha.
With the increased deployment of renewable power capacity, the price of renewable electricity has fallen sharply to make green hydrogen more feasible, but it is still expensive to compete with grey hydrogen. Incentives announced in the policy will help in lowering the cost of green hydrogen production, but it will remain the key challenge to make it as affordable as grey hydrogen which is four to six times cheaper currently.
The waiving of central open access charges will enable lower cost of production, however there are state level open access charges which can forfeit the intended incentives, therefore collaborative efforts are required to remove this disparity in charges and create beneficial impact of policy incentives.
Further to this first phase of policy announcement, the government plans to introduce Green Hydrogen Consumption Obligation in petroleum refining and fertiliser production on similar lines of renewable purchase obligation. It will mandate the use of green hydrogen and ammonia as a certain proportion of requirements in a phased manner. Initially, the refineries and fertiliser plants would be required to use 10% green hydrogen, which would be increased to 20%-25% in three to four years. The mandate will support the deployment of green hydrogen manufacturing until its cost comes down in parity with grey hydrogen.
The production cost can go down further if electrolysers are indigenously manufactured; India is targeting 15 gigawatts of electrolyser-making capacity and is considering production-linked incentives to boost local manufacturing.
Currently, alkaline water electrolysis technique is being used, which consumes more electricity to produce hydrogen, while use of polymer electrolyte membrane (PEM) electrolysis would bring down the electricity requirement resulting in further cost reduction for hydrogen production.
A Positive Step Forward
The policy is an important first step to enable a hydrogen ecosystem. It has tried to address some of the key demands of the industry in terms of open access, grid banking and single window approval mechanism.
The policy aims to leverage the country’s landmass, increasing solar installations and decreasing renewable power generation costs to produce low-cost green hydrogen / ammonia for exports. Germany and Japan could be key markets for green hydrogen produced in India.
To support this transition from grey hydrogen to green hydrogen and to cater to growing hydrogen demand, India will have to invest continuously for innovation, R&D projects and demonstration projects to support commercialisation of upcoming technologies and accelerate cost reduction of green hydrogen production.
Technip joins Greenko on green hydrogen projects in India
March 15, 2022, by Sanja Pekic
French engineering company Technip Energies has partnered up with India’s renewable energy company Greenko to accelerate green hydrogen development in India.
Therefore, the parties signed a memorandum of understanding (MoU) to explore green hydrogen project development opportunities across industries. These specifically cover refining, petrochemicals, chemical, and power plant sectors in India to accelerate the energy transition in the country.
So, the MoU aims to facilitate active engagement between the teams of Technip Energies in India and Greenko. They are to collaborate on a build-own-operate (BOO) model for pilot and commercial scale green hydrogen and related projects.
Greenko will be the BOO operator and owner of the asset. On the other hand, Technip will support with engineering services, integration, and EP/EPC. The ultimate goal is to offer economically feasible technology solutions to clients in regards to green hydrogen.
Both companies bring complementary skills and added value to this partnership; Technip with its H2 expertise, EPC project management skills, and regional footprint, and Greenko with its assets in renewable energy.
India’s new interim H2 strategy ‘will push down cost of green hydrogen by up to 75% by 2030’
Government waiver of electricity transmission charges will roughly halve the price of renewable H2, as India aims to produce five million tonnes of the clean gas by the end of the decade.
India’s decision to waive electricity transmission fees for green hydrogen production will help reduce the cost of renewable H2 to about $1.50/kg by 2030 — as much as 75% lower than today’s prices, according to a senior Indian oil company executive.
India unveiled the first part of its national hydrogen strategy last week, which amounted to less than two pages of bullet points — the most significant of which was the waiver of inter-state transmission charges for 25 years for green hydrogen and ammonia projects commissioned before 30 June 2025.
This would reduce costs by as much as 50%, according to SSV Ramakumar, director for research and development at Indian Oil Corporation, the country’s largest oil refiner and biggest hydrogen consumer.
Now, more or less, we will get green electricity almost at the cost of production,” he said. “That is going to push down the green hydrogen production cost by up to 40-50%, subject to the cost of the electrolyser.”
The removal of inter-state transmission fees would help push the cost of green hydrogen from about $5-6/kg today to below $2/kg over the next five to six years, and to around $1.50/kg by the end of the decade, he said.
According to analyst S&P Global Platts, the current price of the world’s cheapest grey hydrogen — from unabated methane in the US Gulf region — is $1.15/kg.
Indian billionaire Mukesh Ambani, whose company Reliance Industries has major plans for both green and blue hydrogen, said that he believes renewable H2 could soon be produced in India for $1/kg.
“We really believe that in the next one decade, we have to make sure that all these technologies that I mentioned will bring the cost of green hydrogen at $1/kg and make sure that we transport and disburse it also at less than $1/kg thereafter,” he told the Asia Economic Dialogue conference in Pune, India.
The Indian government also announced a target of producing five million tonnes of green H2 annually by 2030 — the equivalent to about 7% of the 70 million tonnes of mainly grey hydrogen currently produced globally each year. For context, the EU plans to produce 10 million tonnes of renewable H2 by the end of the decade.
And in stark contrast to the EU’s plans to requires all green H2 production to come from new purpose-built renewables facilities — so as not to cannibalise power that would otherwise help to decarbonise the electricity grid — the Indian interim policy document does not limit where the clean electricity for green hydrogen can come from.
Green hydrogen/green ammonia can be manufactured by a developer by using renewable energy from a co-located renewable energy plant, or sourced from a remotely located renewable energy plants , whether set up by the same developer, or a third party or procured renewable energy from the power exchange,” it states.
The document also allows green hydrogen developers that produce their own renewable energy to “bank” any excess power with the distribution company for up to 30 days. In other words, if a wind farm produces more electricity than the electrolysers require, that excess power would be bought by the local power distributor, which would then have to “return” the same amount of electricity at a fixed price at a later time, such as when the wind is not blowing.
“The charges for banking [excess power] shall be as fixed by the State Commission which shall not be more than the cost differential between the average tariff of renewable energy bought by the distribution licensee during the previous year and the average market clearing price in the Day Ahead Market during the month in which the renewable energy has been banked,” the document states.
Another bullet point says that green hydrogen or ammonia producers will be allowed to “set up bunkers near ports” to store the fuel for export or to power vessels on site.
The interim strategy also says the government “proposes to set up manufacturing zones” for the production of green hydrogen and/or ammonia, although it offers no further details on that.
Martin Tengler, lead hydrogen analyst at BloombergNEF, said the document “misses some key points we expected to see”.
These include subsidy support mechanisms, mandates for existing industrial hydrogen users such as oil refineries and fertiliser plants, annual green hydrogen auctions, incentive schemes for electrolyser manufacturers, and infrastructure plans for the transport and storage of hydrogen.
A government spokesman said that the full green hydrogen policy was under consultation and would be released “soon”.
South Korea: Doosan announces plans for hydrogen fuel cells plant
A subsidiary of the Group will be in charge of the installation’s construction scheduled to be completed by 2024.
Doosan Fuel Cell, a subsidiary of the Doosan Group focused on clean energy, has announced plans to build a plant for hydrogen fuel cells manufacturing. The construction involved a four-party agreement and an investment of roughly 121.2 million dollars between the company and various government entities. The site is scheduled to be completed by 2024.
To achieve this project, the company has signed a cooperation agreement with the city of Gunsan, the Saemangeum Development and Investment Agency, as well as the Korea Rural Community Corporation. The 79,200 square-meter-wide plant will be set in the Saemangeum area, located in the North Jeolla province, according to an article published by local news site Aju Business Daily.
Thanks to smaller-sized power generation systems, hydrogen fuel cells have been implemented by South Korea as a source of energy for microgrids. This type of networks contain small and isolated power grids, commonly used in urban environments.
The country started using hydrogen fuel cell power plants to fuel microgrids in 2018, according to the media outlet. In addition, vehicles can be fueled by small-sized cells and several hydrogen stations have been built in the country during the last few years. South Korea’s army announced back in October 2021 inaugurated its first charging station opened for use by civilians and plans to open approximately 50 additional sites in the near future.
The news broke months after major milestones for Doosan Fuel Cell. In September of 2021, the company reached an agreement with China to export hydrogen fuel cells to one of its cities. In addition, it also partnered with Hyundai October 2021 to test fuel cell distribution for powering microgrids. With these breakthroughs in the fuel of the future, it’s only a matter of time before it expands across the region and other continents as an affordable energy source.
Green Hydrogen Is En Route to Australia – Experts Explain What This Means
It Matters To You, leading provider of car removal Melbourne wide, reveals what the arrival of green hydrogen in Australia means for Australians.
MELBOURNE, Australia, Feb. 18, 2022 /PRNewswire/ — Hydrogen has been in talks for a long time as the way forward to a greener future not only for Australia but for the world, according to It Matters To You, provider of cash for cars Melbourne wide. It has been confirmed that Australia is well placed to begin producing green hydrogen in the near future. The auto recycling experts explain what green hydrogen is and why this is important to Australia’s economy.
Producing and using hydrogen power is not a new concept for Australia, reports It Matters To You. For years it has been used in the oil industry – however, it was sourced from gas, which is a non-renewable, unsustainable source of energy. Green hydrogen, on the other hand, is sourced from water; an electrolyser is used to split the water into hydrogen and oxygen, creating a sustainable energy source.
In the past, coal has been one of Australia’s primary exports – however, the coal industry is in a rapid decline as governments and citizens call for more sustainable options. With this export quickly shrinking, Australia will have a large economic gap to fill; switching from coal mining to green hydrogen production could, in the future, fill this gap.
It Matters To You explains that Tasmania and Queensland have been identified as prime locations for green hydrogen production as they are rich in cheap renewables. Although Australia does not currently have the facilities to produce green hydrogen cheaply enough to compete against non-renewable fossil fuels, experts in the field are confident that it won’t be long until green hydrogen follows in the footsteps of solar and wind power: although initially expensive, they eventually fell below coal in price and are now a practical option for renewable energy.
It Matters To You remains hopeful that Australia will soon become a leader in green hydrogen production, creating a more sustainable future for Australians and the rest of the world.
Green hydrogen is coming – and these Australian regions are well placed to build our new export industry
Green hydrogen offers us a zero emissions way to transport energy
You might remember hearing a lot about green hydrogen last year, as global pressure mounted on Australia to take stronger action on climate change ahead of the COP26 Glasgow summit last November. Analysis for The Conversation by Dr Steven Percy, Swinburne University of Technology.
The government predicts green hydrogen exports and domestic use could be worth up to A$50 billion within 30 years, helping the world achieve deep decarbonisation.
But how close are we really to a green hydrogen industry? And which states are best placed to host it? My research shows that as of next year, and based on where the cheapest renewables are, the best places to produce green hydrogen are far north Queensland and Tasmania.
As ever more renewable energy pours into our grid, this picture will change. By the end of the decade, the north Queensland coast could become the hydrogen powerhouse. By 2040, dirt-cheap solar should make inland areas across New South Wales, Queensland, Victoria and South Australia the lowest cost producers.
Renewable energy you can store and transport
Why is there so much buzz around green hydrogen? In short, because it offers us a zero emissions way to transport energy. Take cheap renewable energy and use it to split water into hydrogen and oxygen using an electrolyser. Store the hydrogen on trucks, ship it overseas, or send it by pipeline. Then use the hydrogen for transport, manufacturing or electricity production.
All the technology exists – it’s the cost holding the industry back at present. That’s where Australia and its wealth of cheap renewable energy comes in.
Making hydrogen is nothing new – it has a long history of use in fertiliser production and oil refining. But until now, the main source for hydrogen was gas, a fossil fuel.
In the last few years, however, there has been a sudden surge of interest and investment in green hydrogen, and new technology pathways have emerged to produce cheap green hydrogen. As global decarbonisation gathers steam, Japan, South Korea and parts of Europe are looking for clean alternatives to replace the role fossil fuels have played in their economies.
Australia is exceptionally well placed to deliver these alternatives, with world-beating renewable resources and ports set up for our existing fossil fuel exports, such as coal and LNG.
In 2019, we sold almost $64 billion of black coal, with most going to Japan, South Korea, India and China. As these countries decarbonise, the coal industry will shrink. Green hydrogen could be an excellent replacement.
How competitive is Australian hydrogen?
At present, Australia is a long way from producing green hydrogen cheap enough to compete with fossil fuels, given we seem to have no appetite for taxing carbon pollution.
Does that mean it’s a non-starter? Hardly. It was only a decade ago sceptics ridiculed solar and wind as too expensive. They’ve gone awfully quiet as renewable prices fell, and fell, and fell – as tracked by the International Renewable Energy Agency. Now renewables are cheaper than coal. Battery storage, too, has fallen drastically in price. The same forces are at work on the key technology we need – cheaper electrolysers.
By 2040, the CSIRO predicts an 83% fall in electrolyser costs, according to its Gencost 2021-22 report. By contrast, gas-derived hydrogen with carbon capture is predicted to reduce in cost only slightly. That means green hydrogen is likely to capture much of the market for hydrogen from 2030 onwards.
Which states could benefit?
My research with the Victorian Hydrogen Hub) shows as of next year, the lowest cost location for green hydrogen would be Far North Queensland ($4.1/kg) and Tasmania ($4.4/kg) due to high renewable resources.
But this picture will change. By 2030, northern Queensland’s coastal regions could be the Australian hydrogen powerhouse due to a combination of cheap solar and access to ports. Western Australia and the Northern Territory could also have similar advantages, though the modelling for these areas has not yet been done.
As solar energy and electrolyser costs continue to fall, new states could enter the green hydrogen economy. In CSIRO’s cost predictions, electricity from solar is predicted to become much cheaper than wind by 2040. This means sunny areas like central and northern Queensland ($1.7/kg) and inland NSW, Victoria and South Australia ($1.8/kg) could be the best locations for green hydrogen production.
In making these estimates, I do not consider supply chain and storage infrastructure required to deliver the hydrogen. Transport could account for between $0.05/kg to $0.75/kg depending on distance.
Comparing my modelling to price thresholds set out in the National Hydrogen Strategy indicates we can produce green hydrogen for trucking at a similar cost to diesel within four years. Fertiliser would take longer, becoming competitive by 2040.
Does our dry country have the water resources for green hydrogen?
If we achieved the $50 billion green hydrogen industry the government is aiming for, how much water would it consume? Surprisingly little. It would take only around 4% of the water we used for our crops and pastures in 2019-20 to generate an export industry that size – 225,000 megalitres.
Much more water than this will be freed up as coal-fired power stations exit the grid. In Queensland and NSW alone, these power stations consume around 158,000 megalitres a year according to a 2020 report prepared for the Australian Conservation Foundation. Coal mining in these two states takes an additional 224,000 megalitres.
As the cost of renewable energy falls and falls, we will also be able to desalinate seawater along our coasts to produce hydrogen. We estimate this would account for only about 1% of the cost of producing hydrogen, based on Australian Water Association desalination cost estimates.
How can we get there faster?
This decade, we must plan for our new hydrogen economy. Government and industry will need to develop and support new hydrogen infrastructure projects to produce, distribute, use and export hydrogen at scale.
We’re already seeing promising signs of progress, as major mining companies move strongly into green hydrogen.
Now we need governments across Australia to rapidly get optimal policy and regulations in place to allow the industry to develop and thrive.