Hydrogen News from North America (December 2024)

United States: hydrogen faces competition from renewable energies

Green hydrogen producers in the USA are facing increasing competition for access to renewable energies, while new federal tax rules are making their development even more complex. In the United States, the production of green hydrogen, based on the electrolysis of water fuelled by renewable energies, is developing within an increasingly demanding framework.
Under the Inflation Reduction Act, the federal government provides tax credits (45V) to encourage the production of low-carbon hydrogen. However, the conditions imposed to obtain these credits represent a major obstacle for players in the sector. These include the obligation to combine hydrogen production with renewable energy consumption on an hourly basis, a local sourcing requirement, and the use of new energy installations.
These constraints are designed to ensure that the hydrogen produced is truly green, but they introduce additional complexity into project implementation. Hydrogen producers, especially those connected to power grids, now have to compete with energy-consuming businesses such as data centers, which do not have to comply with these same rules. This puts them at a competitive disadvantage when it comes to accessing renewable energies.

Competition for access to renewable energies

Competition for access to renewable energies is intensifying in several states, including California, Oregon and Washington. These regions, which actively encourage the production of low-carbon hydrogen, evaluate the carbon footprint of each project. To obtain tax incentives, producers must prove that their electricity comes from renewable sources. This requirement creates a real battle for access to these resources, particularly in the face of energy-intensive sectors such as technology giants and data centers, which absorb massive amounts of electricity. Data centers in particular, whose numbers continue to grow with the expansion of artificial intelligence and cloud computing technologies, require huge amounts of energy.
This competition for available electricity weighs heavily on green hydrogen projects, especially those dependent on electricity grids. The development of hydrogen projects has to contend with rising costs and increasingly long interconnection times. This situation makes so-called “off-grid” hydrogen projects even more attractive, where producers develop their own energy facilities, thus avoiding direct competition with other users of renewable electricity. Another major obstacle for green hydrogen projects is the traceability of the electricity used. The new rules imposed by the Inflation Reduction Act require renewable electricity consumption to be tracked in real time, on an hourly basis. This means that producers have to prove that the energy they use is green at the very moment they produce hydrogen. This hourly traceability represents a technological challenge, as few systems are currently able to certify the origin of energy with such precision. Only the PJM-GATS platform in the USA offers hourly tracking of renewable energy certificates, making access to tax credits even more complex for producers.
For grid-connected projects, this requirement adds a further level of difficulty.
Indeed, it is often impossible to guarantee that electricity drawn from the grid comes exclusively from renewable sources, especially in regions where the supply of green energy is already saturated by demand.

Challenges and prospects

Faced with these challenges, some market players are adopting alternative solutions.
Matt McMonagle, CEO of NovoHydrogen, explains that his company favors a model where it develops its own renewable energy sources, connected directly to its electrolyzers.
This approach guarantees the traceability of the electricity used, and frees the company from the constraints of competing for renewable energies via public grids. However, for other NovoHydrogen projects, a connection to the grid remains necessary, not least because of the large quantities of energy required for hydrogen production. In other cases, companies such as H2B2 Electrolysis Technologies are developing strategies aimed at vertically integrating their activities. This gives them greater control over their renewable energy supplies, while optimizing production costs. However, the hourly tracking of renewable electricity remains a major challenge, especially for projects located in regions where tracking infrastructures are not yet in place. The pressure on US energy grids is only increasing. According to projections, business needs for renewable energy are expected to require up to 19 GW of additional capacity by 2035.
This massive demand, fuelled by the electrification of transport and the rise of new technologies, further complicates access to energy for hydrogen projects. For hydrogen producers, the rise of these competitors represents a considerable challenge. The capacity of grids to supply clean energy in sufficient quantities is becoming increasingly limited, requiring innovative supply strategies to secure long-term energy resources.

Link: https://energynews.pro/en/united-states-hydrogen-faces-competition-from-renewable-energies/

Unlocking the potential of green hydrogen: A key to America’s clean energy future

The US government’s launch of the Regional Clean Hydrogen Hubs program, with a staggering $7 billion investment, marks a critical moment for the green hydrogen industry.

Green hydrogen can be used for both industrial and energy use cases, including in combination with energy storage. Energy Vault is deploying a project combining battery storage and green hydrogen in California while several projects in Germany, including from LEAG and BASF, are doing the same.

The ACES Delta project in Utah meanwhile is looking to store up to 300GWh of green hydrogen in two huge salt caverns, backed by Chevron and Mitsubishi Power Americas. It is one of the most advanced projects using green hydrogen as seasonal storage, which goes beyond the long-duration energy storage (LDES) offerings there are today.

However, while the financial backing is clear, significant questions remain for the industry: how can we produce clean hydrogen at the volumes needed to fuel this rapidly growing ecosystem, and how can we achieve price parity with gray or blue hydrogen? Furthermore, which are the industries that stand to benefit the most from green hydrogen?

To tackle these pivotal questions, the Green Hydrogen Summit is returning to the East Coast after a hugely successful West Coast event in Seattle.

Taking place in Philadelphia on 19-20 November 2024, the summit has been meticulously crafted to showcase all the opportunities that green hydrogen offers for the region and beyond. As the premier event for the industry in the US, the summit aims to inspire and educate attendees on how to capitalise on the financial and environmental opportunities the technology presents while also providing the critical connections necessary to drive these projects forward.

Why Philadelphia?

Philadelphia serves as the ideal location for this summit, as it is a burgeoning hub for hydrogen innovation. The city’s strategic position within the Mid-Atlantic region makes it a prime location for the evolving hydrogen economy. Partnering with the Mid-Atlantic Hydrogen Hub (MACH2), the summit will provide a major boost to the momentum of hydrogen development in this region.

Built around the successful Mid-Atlantic Hydrogen Hub, the summit will offer deep insights into the latest market developments and dive into topics such as:

The role of regional hydrogen hubs revolutionising the industry
The $750 million investment to advance electrolysis technologies and reduce costs
Latest techniques for reducing costs and enhancing production efficiency

MACH2: Leading the hydrogen revolution

MACH2 is a pivotal player in the hydrogen sector, encompassing Delaware, New Jersey, and Pennsylvania. As one of seven national hubs in discussions for a potential $750 million award from the US Department of Energy, MACH2 is set to catalyse the hydrogen economy by integrating large-scale clean hydrogen production with off-takers, reducing costs, and advancing infrastructure. Their plans include generating both green and pink hydrogen, repurposing existing pipelines, creating over 20,000 clean energy jobs, and supporting the Biden Administration’s Justice40 Initiative, which aims to ensure equitable benefits from the clean energy transition.

By partnering with MACH2, the Green Hydrogen Summit East Coast is committed to expanding green hydrogen projects across the East Coast and beyond, positioning the region as a critical player in the national hydrogen landscape.

A unique audience driving change

The Green Hydrogen Summit East Coast is designed to attract a diverse and influential audience. Attendees will include energy suppliers, project developers, debt providers, investors, utilities, and gas transmission system operators (TSOs), as well as key government officials. In addition, the summit will bring together potential end-users of green hydrogen, from industries such as steel, aviation, maritime, and fertilisers—sectors that are crucial to decarbonising the global economy.

Beyond hydrogen: a holistic approach to decarbonisation

While green hydrogen is the summit’s focal point, the event will explore the role of hydrogen derivatives and Power-to-X (P2X) applications in the broader decarbonisation journey. These include biofuels, e-fuels, and green ammonia—all of which are poised to play a vital role in achieving carbon neutrality in various sectors.

Given the success of our last summit in Seattle, this comeback in Philadelphia promises to be even more impactful, providing attendees with actionable insights into the hydrogen economy. Don’t miss out on the definitive event for capturing both the financial gains and environmental benefits of green hydrogen. Join us in Philadelphia and be part of the future of clean energy.

The Green Hydrogen East Coast Summit will bring together the brightest minds behind the industry in Philadelphia on 19-20 November, 2024.

In partnership with the Mid-Atlantic Hydrogen Hub, our summit will be a hotspot for all members of the value chain including energy producers, policymakers, utilities, investors, solution providers, and offtakers. Don’t miss this summit, book your ticket today.

Link: https://www.energy-storage.news/unlocking-the-potential-of-green-hydrogen-a-key-to-americas-clean-energy-future/

H2B2 and 2G Energy Receive 2024 CHP Project of the Year Award for SoHyCal’s Renewable Hydrogen Impact

ALEXANDRIA, Va.– H2B2 USA LLC, a leading vertically integrated hydrogen solutions company, and 2G Energy, Inc., a global CHP solution provider, are elated to announce that their collaborative SoHyCal project has been distinguished with the highly coveted 2024 CHP Project of the Year Award by the Combined Heat and Power Alliance. The award ceremony will take place on Wednesday, September 25^th at the National Summit on CHP held at the Westin in Alexandria, Virginia.

The SoHyCal project, managed by H2B2, represents a significant step forward in the quest for sustainable energy solutions in California. By producing renewable hydrogen through electrolysis powered entirely by renewable energy, SoHyCal is paving the way for a cleaner, more sustainable future. A key partner in this project is 2G Energy, whose state-of-the-art biogas engine plays a critical role in powering the hydrogen production process.

Pedro Pajares, CEO of H2B2, emphasized the importance of collaboration in achieving the project’s success: “Receiving this award is an incredible honor and a testament to the hard work and dedication of our teams. The SoHyCal project is more than just a technological achievement—it is a symbol of the progress we are making towards a sustainable future. We are proud to lead this effort and to have such a committed partner in 2G Energy.”

2G Energy’s cutting-edge biogas technology not only provides the necessary energy for the electrolysis process but also ensures that the entire operation remains carbon-neutral, a vital component in California’s broader climate goals. “Our partnership with H2B2 has allowed us to showcase the potential of biogas in large-scale renewable energy projects,” said 2G Energy, Inc.’s Managing Director Darren Jamison. “We are honored to receive this award and are committed to continuing our work in advancing renewable hydrogen solutions.”

This award recognizes the SoHyCal project as a pioneering effort in hydrogen production, showcasing the successful integration of H2B2 and 2G Energy’s innovative technologies, which not only meet current clean hydrogen demands but also set a foundation for future expansions to support California’s climate goals and inspire similar global initiatives.

About H2B2 USA LLC

H2B2 USA LLC is a pioneering California-based company, at the forefront of renewable energy innovation with their groundbreaking renewable hydrogen production and integrated solutions to its customers across the whole hydrogen value chain and covering all business scales. H2B2’s customer-centric, one-stop-shop offering enables seamless and effective support through the entire lifecycle of a hydrogen production facility (including the identification of the opportunity, R&D, design, permitting, construction, and operation services for the exploitation of the hydrogen facility), and complete solutions for transportation, storage, and sale of renewable hydrogen. For more information, visit www.h2b2.es.

About 2G Energy, Inc.

2G Energy Inc., with its North American headquarters in St. Augustine, Florida, is a globally recognized German manufacturer of reciprocating engine generator sets for use in combined heat and power applications and decentralized energy. With over 8,500 CHP power plants delivered and installed in over 30 countries, 2G is a global leader in energy efficiency and power generation, extracted and generated from biogas, natural gas, and 100% hydrogen. 2G Energy Inc. offers their customers leading efficiencies, long product lifetimes, the highest availability, and affordable service costs. The efficiency of 2G Energy Inc.’s processes and structures, as well as the sustainable management of their workforce and know-how, ensure the growing success of their company. For more information, visit https://www.2g-energy.com/.

SOURCE: 2G Energy

Link: https://fuelcellsworks.com/2024/09/24/clean-energy/h2b2-and-2g-energy-receive-2024-chp-project-of-the-year-award-for-sohycal-s-renewable-hydrogen-impact

GE Vernova selected by the US Department of Energy to develop AI Assistant for permitting and trainings for hydrogen deployment

Award supports three-year, $1 million project to develop an AI Assistant trained for safe hydrogen (H2) handling and permitting and trainings focused on the safety for hydrogen development
GE Vernova will lead a diverse project team named “H2Net”, including Clemson University, and Roper Mountain Science Center
These US federal investments in hydrogen can contribute to a more sustainable future with less carbon emissions, while boosting economic opportunities across the country

GREENVILLE, USA (September 26, 2024) — GE Vernova Inc. (NYSE: GEV) announced today that GE Vernova was selected for award negotiations by the U.S. Department Energy’s (DOE) Hydrogen and Fuel Cell Technologies Office (HFTO) to lead a project aiming to enable permitting and safety for hydrogen deployment. The project has the objective to identify the primary challenges to siting, permitting, and installation across the value chain from hydrogen production through end-use. GE Vernova will lead a diverse project team named “H2Net”, including Clemson University, and Roper Mountain Science Center based in Greenville, SC, USA. GE Vernova will enter award negotiations valued in $1 million in US federal funding with the DOE to finalize the terms and the scope of the project.

As part of this program, H2Net is expected to develop an AI Assistant that is trained specifically on the relevant, critical documents for safe H2 handling and permitting. The AI Assistant, called HySAGE, Hydrogen Smart Assistant for Governance Execution, will be validated against requirements and lessons learned at GE Vernova’s Gas Turbine Manufacturing and Technology Center in Greenville, SC. HySAGE will aim to enable state-of-the-art modeling capability and flexibility for incorporating all necessary codes and standards and environmental scenarios to increase the versatility and accuracy of the tool.

U.S. Secretary of Energy Jennifer M. Granholm, said:

These investments in clean hydrogen showcase the Administration’s commitment to making clean energy a win-win for all Americans—by contributing to a sustainable zero-carbon future, while boosting economic opportunities across the country,

“These projects will work hand in hand with historic investments in the Hydrogen Hubs and electrolysis technologies to accelerate progress towards a clean hydrogen economy that will deliver good-paying, high-quality jobs and accelerate a renaissance of American manufacturing.”

Dr. Sunita Satyapal, director of the U.S. Department of Energy’s (DOE’s) Hydrogen and Fuel Cell Technologies Office and coordinator of the DOE Hydrogen Program, noted:

The success of our regional clean hydrogen hubs—and the national clean hydrogen strategy—hinges in large part on advances in technology that will grow clean hydrogen’s economic potential,

“At the same time, we need to ensure that siting and permitting are done in the safest, most efficient way possible as hydrogen infrastructure expands across domestic markets. By identifying ways to address siting and permitting challenges, these projects will complement other large-scale investments in clean hydrogen by the Biden-Harris administration and will play a vital role in contributing to our nation’s clean energy future.”

Jeremee Wetherby, Carbon Solutions Leader at GE Vernova, said:

We are proud to be a part of the DOE’s commitments to reduce CO₂ emissions and accelerate the progress towards a more sustainable economy with less carbon emissions,

“Our project proposes to reap the benefits from artificial intelligence and explore new and innovative ways to handle hydrogen deployment safely, while investing in trainings for the community and our workforce. We are grateful for the collaboration with Clemson University and Roper Mountain Science Center, which will bring their expertise respectively in the development of AI applications and in K-12 science curriculum and exhibit development.”

Xiaoyong (Brian) Yuan, Assistant Professor, Holcombe Department of Electrical and Computer Engineering at Clemson University, said :

We are excited to collaborate with GE Vernova on this DOE project,

“Leveraging our expertise in AI and large language models, we will work together to develop innovative solutions that overcome technical and operational barriers to the safe deployment of hydrogen technologies.”

Michael Weeks, Director of Roper Mountain Science Center, said :

Roper Mountain is thrilled to share the innovative advancements in hydrogen energy with the next generation of our workforce through hands-on exhibits, curriculum, and instruction,

“This investment will help us to build and to educate a more sustainable future.”

READ the latest news shaping the hydrogen market at Hydrogen Central

Link: https://hydrogen-central.com/ge-vernova-selected-by-the-us-department-of-energy-to-develop-ai-assistant-for-permitting-and-trainings-for-hydrogen-deployment/

America fires up largest hydrogen generator in history: 3 tons per day in this state

North America has cemented itself firmly in the green hydrogen game with the first operational plant in the United States. H2B2 Electrolysis Technologies owns the solar-powered hydrogen generator and has named the plant SoHyCal, alluding to its location in California’s Central Valley. The facility, which secured $3,96 million in funding, is expected to produce three tons of hydrogen each day, which will go a long way in the drive to eradicate carbon emissions and adopt clean energy.

SoHyCal unveiled as a pioneer of conservational hydrogen

The process of proton exchange membrane (PEM) electrolysis technology is used to produce conservational hydrogen from biogas with a capacity of three tons a day, which is the equivalent of a 100-vehicle fleet traveling around 3,000 miles each, which is about the same distance as driving across the entire United States—every day! Spanish company Ingeteam, which specializes in energy conservation and management, is competently in charge of the cutting-edge PEM system.

Pedro Pajares, CEO of H2B2 USA, promoted the project as an example to others:

“In the quest for a greener energy transition, SoHyCal represents a cornerstone in California’s commitment to developing and promoting clean and sustainable hydrogen fuel technologies. The project is poised to significantly contribute to the surging demand for hydrogen, particularly for transportation applications, the reduction of emissions, and the decarbonization in mobility.”

Renewable hydrogen produced by renewable energy

Conservational hydrogen supplier H2B2’s 100% renewably powered plant SoHyCal is ready to revolutionize the energy market and impact the transport sector, especially in North America. Not only does it produce hydrogen as a clean energy product, but the plant is also powered by photovoltaic energy generated in an integrated solar power system. This means that the entire operation is sustainable, from the energy used to the power produced.

Benefits for the State of California and beyond

California is firmly behind the carbon-free revolution, and its goals are reflected in the support extended to the development of the SoHyCal hydrogen fuel plant. Under its main goal, the Californian administration also wants to see hydrogen refueling stations installed across the San Joaquin Valley and San Francisco Bay areas. There are numerous types of vehicles capable of operating on hydrogen, including cars, trucks, and buses, that will soon depend on the supply network and justify the installation of the infrastructure.

Among other benefits, this will encourage more transport customers to transition from gasoline and diesel to responsibly sourced hydrogen, ultimately leading to decreased emissions and improved air quality.

Global standards for ecological hydrogen production

SoHyCal goes beyond being an achievement for North America, it also has global relevance. The Hydrogen Valley Platform (H2V), which is a global forum for sharing information about significant hydrogen projects, identified SoHyCal as a role model for hydrogen generation projects on other continents.

Hydrogen is becoming an increasingly attractive option for numerous industries as technology and performance advance, such as power generation, transportation, and industrial manufacturing. The market for hydrogen is expected to be worth $10 trillion by 2030, which puts H2B2 in a position to take a lead in the emerging market. China is another contender, with hydrogen production and export increasingly accounting for a portion of the Asian country’s GDP.

Benefits of hydrogen as a renewable fuel

There are several advantages of hydrogen in fuel applications:

Zero emissions: The only byproduct that hydrogen fuel produces is water vapor.
Energy efficiency: This means more “value” derived from the volume of full, resulting in longer ranges.
Industrial applications: Hydrogen is ideal for high-power applications like manufacturing, aviation, and shipping, where batteries are not capable of delivering sustained periods of high-power output.
Fast refueling: Hydrogen tanks are faster to refuel than charging batteries in electric vehicles, taking about the same amount of time as gasoline or diesel vehicles. This makes it an attractive choice for long-distance transportation and public transport.

The time of hydrogen is rising, and the United States is rising with it as the world looks to clean fossil fuel alternatives.

Link: https://www.eldiario24.com/en/sohycal-hydrogen-california-generator/3428/

2024 Climate Tech Companies to Watch: Electric Hydrogen and its push to mass-produce a carbon-free fuel

Electric Hydrogen is building 100-megawatt electrolyzers that could produce climate-friendly hydrogen at a lower cost.

Large swaths of the global economy are nearly impossible to electrify but could run on low-emissions hydrogen, helping the world transition away from fossil fuels. Electric Hydrogen is working toward more efficient, affordable production of green hydrogen.

Electric Hydrogen is striving to develop production methods that make it easier and more affordable to generate huge amounts of green hydrogen.
Hydrogen has emerged as a promising alternative to fossil fuels for the transportation sector and as a feedstock in the production of steel, fertilizer, methanol, and other products.

But hydrogen production to date has been pretty dirty. The vast majority of hydrogen is produced from natural gas, emitting significant levels of planet-warming greenhouse gasses. It can also be generated by an electrolyzer, a device that uses electricity to split water molecules into hydrogen and oxygen. But most electrolyzers are small and expensive, and they consume lots of energy and water. Moreover, they typically rely on electrical grids that aren’t powered by predominantly clean energy.

Electric Hydrogen wants to address these issues by developing electrolyzers that have about 10 times the capacity of today’s standard devices while also being more affordable and efficient.

The company is already operating a pair of electrolyzer plants in California, including a one-megawatt facility in San Carlos and a 10-megawatt project in San Jose. In April, Electric Hydrogen opened an electrolyzer factory in Devens, Massachusetts, which will crank out its first line of 100-megawatt electrolyzers. The company also raised $380 million in funding in 2023 from backers including BP, United Airlines, and Microsoft, making it the first electrolyzer company to be valued at over $1 billion.

Link: https://www.technologyreview.com/2024/10/01/1104296/2024-climate-tech-companies-electric-hydrogen-carbon-free-fuel/

The Last Word: Hydrogen Is The Future

Hydrogen plays a significant role towards decarbonization efforts as companies transition to sustainable energy systems.

Hydrogen is rapidly establishing itself as a new emerging market in the U.S. and a key commodity in the global marketplace due to the increasing emphasis on decarbonization and expansion of clean energy initiatives involving the reduction of greenhouse gases. At a geopolitical level, many countries are actively working to replace their reliance on liquefied natural gas (LNG) with hydrogen as part of a broader strategy to transition to cleaner renewable energy sources.

Germany has ramped up hydrogen generation projects after viewing hydrogen as a key solution for energy security, especially after facing disruptions in LNG supplies due to the Russo-Ukrainian war and the U.S. pause on LNG exports stemming from the examination of domestic needs and shifting energy policies. Australia is also working to position itself as a significant player in the global hydrogen market, with ambitious plans to become a major exporter of green hydrogen, announcing numerous projects across the globe, where federal funding initiatives are driving the progress.

Some significant announcements contributing to the development of the hydrogen economy that have been made domestically within the past year have included Plastics Omnium’s hydrogen storage plant and Nel’s electrolyzer plant in Michigan, as well as Topsoe’s electrolyzer plant in Virginia. Additionally, Woodside Energy revealed plans for hydrogen generation in Oklahoma, Fortescue announced a hydrogen operation in Arizona, and DG Fuels recently announced a project in Nebraska, which also integrates hydrogen into sustainable aviation fuel.

Hydrogen has already played an existing role as an essential component across multiple industries that are driving increased interest and investment into clean energy technologies. These sectors include chemical production, refining, steel and cement manufacturing, electronics, glassmaking, food processing, aerospace, metal processing, and even pharmaceuticals. While these industries contribute to the early adoption of hydrogen as a feedstock in industrial applications, they also pave the way for its eventual use in passenger vehicles once the supporting infrastructure for fuel cell electric vehicles (FCEVs) is fully developed.

There are many ways to generate hydrogen, but the most common production methods are Steam Methane Reformation (SMR) and Electrolysis. SMR produces blue hydrogen using natural gas as a feedstock and involves Carbon Capture Utilization and Storage (CCUS) while electrolysis produces green hydrogen from demineralized water and power from a renewable source such as wind, solar, hydropower, or biomass. The difference between the two is their carbon intensity score. Green hydrogen is the most environmentally friendly option with the lowest carbon intensity score and is commonly referred to as the “clean hydrogen,” while blue hydrogen provides a lower-carbon alternative to conventional hydrogen but still has a higher carbon intensity compared to green.

There are also two different forms of hydrogen that consist of gaseous or liquified. Gaseous hydrogen is used primarily in fuel cells, industrial processes, and power generation where it can be delivered and stored relatively easily in this form. Liquified hydrogen is employed in applications requiring high-density storage and transport, such as long-distance shipping, locomotives, space exploration, and large-scale energy storage. Its compact form makes it ideal for these purposes where space and volume efficiency are critical.

Building U.S. Hydrogen Hubs

The U.S. Department of Energy has established seven hydrogen hubs nationwide to allocate funding for hydrogen initiatives, with California’s ARCHES hub laying the foundation for public transportation, heavy duty trucking, and port operations. Activity in the hydrogen sector is also extending across various other states, predominantly those with newly introduced tax incentives that support clean energy projects. As hydrogen generation projects advance into the site selection stage, many states and local communities are focusing on strategies to attract and support these developments, with some relying heavily on hub directors for guidance, while others are trying to understand where to begin.

(Source: U.S. Department of Energy)

Hydrogen projects often begin by establishing a partnership between a hydrogen production operation and a user of hydrogen, commonly referred to as the “offtaker.” Therefore, it is instrumental for states and communities to work directly with their manufacturing alliances in creating a platform for education and awareness of the many uses of hydrogen for industry, particularly the high heat industrial users. The biggest problem we face in the rapidly growing hydrogen economy is that many developers can produce hydrogen at a reasonable cost to take to market but have difficulty matching their supply to the actual demand. The states that are driving hydrogen projects to specific sites must understand the site conditions and opportunities for the type of hydrogen being generated and be able to identify offtakers located within the proximity of these sites as they play matchmaker during the recruitment stage of these projects.

Data center developers are also exploring the use of hydrogen in microgrids for many key reasons related to overall energy reliability, sustainability, and operational efficiency. With AI supercomputers on the rise that utilize three times the physical footprint of the infrastructure needed for managing the daily volume of Google searches, the development of localized microgrids surrounding data center campuses becomes even more vital to the success of these operations. Hydrogen plays a versatile role in microgrid projects, which also seek to achieve grid independence, as it offers benefits that range from power generation to energy storage while mitigating the issue of curtailment from other renewable energy systems.

While the hype surrounds Section 45V and 45Q of the Inflation Reduction Act, as these tax credits provide financial incentives directly related to the production and utilization of hydrogen and carbon capture, Section 48C also plays a significant role in promoting the use of hydrogen to industries involved. Supporting production and infrastructure development, the 48C tax credits can provide substantial amounts towards the purchase, construction, and installation of equipment used in hydrogen generation, storage, and distribution, while also contributing to the reduction of upfront capital costs for companies investing in these technologies.

While the results of the 2024 U.S. presidential election may ultimately determine the progression of green energy projects and where the capital investments in hydrogen will continue to deploy, one fact remains: Hydrogen is the future.

Link: https://businessfacilities.com/the-last-word-hydrogen-is-the-future/

United States: SoHyCal project wins award for hydrogen breakthrough

The SoHyCal project, focused on renewable hydrogen production in California, receives the Cogeneration Project of the Year 2024 award, hailing a new stage in the sector’s energy transition.

The SoHyCal project, developed by H2B2 USA and 2G Energy, has been awarded the Combined Heat and Power Alliance’s 2024 Cogeneration Project of the Year award.
This award reflects the growing interest in renewable hydrogen solutions, particularly in California, a region where clean energy needs are crucial to achieving decarbonization goals.
SoHyCal uses an electrolysis-based hydrogen production process fuelled exclusively by renewable energies. This hydrogen production technology is seen as an effective response to the problems associated with the energy transition. Cogeneration, for its part, plays a key role in energy optimization, making the most of available resources. The SoHyCal project is an example of how these technologies can be combined to provide a sustainable energy solution, without compromising on reliability or efficiency.

Hydrogen’s role in the energy transition

Renewable hydrogen is gaining in popularity in the energy sector, particularly for its potential to decarbonize the industrial and energy sectors. SoHyCal’s integration of electrolysis represents a major step forward. Electrolysis, which breaks down water into hydrogen and oxygen, when powered by renewable energy sources, enables the production of green hydrogen, essential for large-scale industrial applications. 2G Energy’s contribution lies in its expertise in cogeneration, which enables this type of project to be economically viable while reducing the overall carbon footprint. The biogas engine used in the SoHyCal project has the capacity to generate electricity and heat simultaneously, contributing to a more efficient use of resources.
This energy model is particularly relevant for California, a region where energy policies are geared towards rapidly reducing greenhouse gas emissions.

A model for future projects

The SoHyCal project is part of a wider strategy to demonstrate the feasibility of renewable hydrogen solutions on an industrial scale. As demand for hydrogen increases, particularly for use in the transport and heavy industry sectors, the technology developed by H2B2 and 2G Energy could serve as a benchmark for other similar initiatives. It should be noted that the hydrogen market is booming, both in the United States and internationally, with competing projects seeking to capitalize on this energy resource. Changing regulations in California, particularly those concerning climate targets, are playing a central role in structuring the hydrogen market.
State incentives for clean energy projects, such as SoHyCal, provide a favorable environment for the development of new infrastructures. This dynamic could also extend to other regions facing similar decarbonization challenges.

Outlook for investment and regulation

The growing support of the Californian authorities and the targets for reducing emissions offer a unique opportunity for investors in the energy sector. Projects such as SoHyCal demonstrate the importance of technological innovation in the evolution of traditional energy models.
Industry players are increasingly turning to partnerships to share risk and maximize the impact of new technologies. However, the sustainability of these projects will depend heavily on the evolution of public policies and available funding. Hydrogen regulation, and in particular its integration into national energy systems, remains a subject of debate in several jurisdictions.
The hydrogen market could see new legislative frameworks emerge, reinforcing wider adoption.
In California, these financial and regulatory incentives are facilitating the ramp-up of renewable hydrogen, which should encourage other regions to follow suit. The potential impact of the SoHyCal project on the renewable hydrogen market could ultimately serve as a model for similar developments, particularly in regions where environmental and energy constraints are high. Industry experts believe that this type of project could also play a key role in the decarbonization of European and Asian energy systems.

Link: https://energynews.pro/en/united-states-sohycal-project-wins-award-for-hydrogen-breakthroughs/

Hydrogen-powered data center planned for Texas

California-based data center developer ECL is incorporating hydrogen fuel cells and battery storage into its projects to enable a completely self-contained generating capacity, even to the point of being grid free.

The International Energy Agency reported that data centers are the fastest growing source of electricity demand in the U.S., with consumption expected to double by 2026. A report from the Electric Power Research Institute says artificial intelligence and cryptocurrency mining are principal drivers of this demand. Supplying electricity for data centers without increasing fossil fuel consumption will be a major factor in utility planning going forward.

A key aspect of meeting this challenge is to integrate electricity generating sources into the data center design to ensure low-carbon sources are used. California-based data center developer ECL is incorporating hydrogen fuel cells and battery storage into its projects to enable a completely self-contained generating capacity, even to the point of being grid free.

ECL announced it is building its hydrogen-powered TerraSite-TX1 data center near Houston, Texas. The company says the first phase of the project will require 50 MW of power and is expected to go online in the summer of 2025 at a cost of $450 million. Current plans are for the facility to have a capacity of 1 GW of on-site, off-grid power supplied by hydrogen fuel cells and battery storage at a cost of $8 billion. ECL says the financing for TerraSite-TX1 is coming from itself and its and financial partners.

ELC operates the facilities it builds with a “data-center-as-a-service” business model, wherein it provides the infrastructure for its clients’ computers and servers. Along with announcing its new TerraSite-TX1 the company said it has signed AI cloud operator Lambda, which serves as a host for research and applications developer clients.

Yuval Bachar, CEO of ECL, told pv magazine USA that he and his partners founded the company in 2021 specifically to tackle the energy demand aspects of expanding data center needs. According to Bachar, there are about 105 GW of data centers in the world that have been built over the last 50 years or so, about a third of them in the U.S.

“With the AI emergence we are being asked to build an additional 45 to 50 GW in the next three to five years, which is an exponential growth in any domain and a relatively challenging project by itself,” he said.

ECL plans to expand its TerraSite-TX1 facility in Texas to 1 GW capacity

Image: ECL

ECL’s data center design relies on hydrogen fuel stacks that can be implemented in 1 to 2 MW modules to support increasing data processing and infrastructure, including cooling and battery storage. The company opened its first facility, dubbed MVI, using this architecture in Mountain View, Calif., in June.

Electricity is generated by mixing hydrogen and oxygen, which also produces fresh water as a byproduct for cooling and other purposes. Hydrogen is either transported by truck in pressurized containers or extracted onsite from pipelines. The roughly 600-acre location for TerraSite-TX1 was selected because it is at the confluence of three pipelines used by the natural gas industry.

One of the challenges of hydrogen as a fuel is producing it in the first place. So called “green” hydrogen is produced from water by electrolysis using electricity from renewable sources. This is not always possible or economical. A more common method is to liberate hydrogen from natural gas using steam. However, according to an article published on MIT’s Climate Portal this process releases 830 million metric tons of CO2 each year to produce about 74 million metric tons of hydrogen. On top of this, the infrastructure for delivering hydrogen from sources to points of use are inadequate for industrial-scale power generation.

Bachar said his company plans to take advantage of solar power to overcome limitations in data center siting imposed by the limits of the hydrogen transportation infrastructure. In an arrangement he calls “behind the meter, over the fence” an ECL hydrogen-powered data center would be located next to a large photovoltaic plant, which in many cases are overproducing at certain times of day and are in curtailment or selling at low rates.

“We are planning to put data centers next to those sites and connect a direct feed from the fields, solar or wind,” he said. “So, we come to those sites and say, okay we’ll put the data center right next to you and we’ll take all the power that you can give us behind the meter. Don’t even touch the grid. We don’t care about the grid. We’ll take it directly from you.”

The electricity taken this way is used to generate hydrogen through electrolysis that is stored in gaseous form and also used to charge batteries. The data center remains powered by hydrogen with the renewable energy facility providing inexpensive electricity to maintain a supply of fuel.

The demand for energy from proliferating data centers is creating other partnerships with renewable energy developers. Last January, Tennessee-based Silicon Ranch signed an agreement with Colorado-based Tract to collaborate on green campuses to provide solar and battery storage onsite for power-hungry data centers.

Link: https://pv-magazine-usa.com/2024/09/25/hydrogen-powered-data-center-planned-for-texas/

Avina breaks ground on ‘green hydrogen’ facility in Southern California

Plant will supply hydrogen fuel through electrolysis for trucks serving port of Long Beach.

California supports hydrogen as an alternative to diesel fuel.

Image: Avina Clean Hydrogen

New Jersey-based Avina Clean Hydrogen recently broke ground on a new facility in Vernon, Calif., that is intended to produce so-called “green hydrogen” through electrolysis powered by renewable energy.

The process of electrolysis, which uses electricity to separate water into hydrogen and oxygen gas, is regarded as one of the cleanest methods, although it is also more expensive. The vast majority of the world’s hydrogen is generated from natural gas (steam reforming) or coal (gasification) in processes that generally result in significant amounts of carbon dioxide. Methane may also be released during steam reforming.

In certain sectors, green hydrogen – expressly made using renewable energy – is valued because of mandates or customer requirements. Avina’s new facility is intended to serve the transportation sector, refueling hydrogen-powered trucks carrying cargo from the nearby port of Long Beach. The plant is expected to produce up to 4 metric tons of compressed hydrogen per day without releasing CO2 or other pollution.

On-site refueling points will be able to serve up to 100 heavy trucks and buses running on fuel cells per day. Hydrogen costs increase significantly if it has to be transported to other sites.

Avina is specifically aiming to supply the transportation sector with its Southern California facility, which it says will be one of the largest in the world when completed in the summer of 2025. California has identified hydrogen fuel as a means of achieving zero-carbon transportation goals, which include replacing diesel fuel with hydrogen in trucking. The company says its facility is expected to eliminate approximately 130,000 metric tons of CO2 emissions annually, significantly improving air quality in the local communities.

“Our facility’s strategic location in Southern California allows us to serve critical transportation corridors and urban markets, helping meet the growing demand for clean hydrogen across the region,” said Vishal Shah, founder, and CEO of Avina Clean Hydrogen.

The company reportedly has a number of other hydrogen production projects underway in the U.S.

Representatives of the city of Vernon said its Department of Public Works helped streamline the permitting process for the facility. The Vernon Public Utility also ensured interconnection for facility and the provisioning of renewable hydrogen needed for “green” status.

“We believe that Avina will be at the forefront of bringing this clean technology into mass production to meet regional needs throughout California,” said Vernon Mayor Judith Merlo.

Hydrogen is emerging as a promising alternative fuel source, whether as an alternative to diesel or gasoline in internal combustion engines or as a source of electricity from hydrogen fuel cells.

Edmonton, Alberta-based Aurora Hydrogen is applying microwave technology to produce hydrogen from natural gas with solid carbon as a byproduct, producing no emissions. The company is also focusing on long-range trucking as a potential market.

California-based ECL is developing data centers powered by hydrogen fuel cells to supply electricity demands from artificial intelligence and cloud computing. The company has one facility up and running in Mountain View and has announced plans for a 1 GW data center near Houston, Texas.

Link: https://pv-magazine-usa.com/2024/11/05/avina-breaks-green-on-green-hydrogen-facility-in-southern-california/

EnerVenue to supply nickel-hydrogen batteries to RWE for pilot testing

RWE plans to cycle EnerVenue’s nickel-hydrogen energy storage technology at its testing facility in Milwaukee, Wisconsin. RWE says it wants to boost its own storage capacity to 6 GW by 2030.

Renewables giant RWE is set to deploy energy storage technology by metal-hydrogen battery manufacturer EnerVenue at a pilot project it is conducting at its testing facility in Milwaukee, in the US state of Wisconsin.

EnerVenue specializes in manufacturing high-efficiency metal-hydrogen batteries, and it released its latest generation nickel-hydrogen battery in September 2023. This is the product that will be tested by RWE, which will cycle the energy storage vessels (ESVs) at its testing facility to evaluate their performance characteristics as part of its pilot project.

ESVs offer long lifespans and can be efficiently and flexibly deployed thanks to their configurable product architecture. The most recent generation of the batteries can exceed a 30,000-cycle life and can cycle up to three times per day without rest.

Depending on the cycle rate, the ESV has an efficiency ranging from 80% to 90%, and its energy density per square foot is equal to, or better than lithium-ion batteries, according to EnerVenue.

Link: https://pv-magazine-usa.com/2024/12/05/enervenue-to-supply-nickel-hydrogen-batteries-to-rwe-for-pilot-testing/

Nickel-Based Catalysts Drive Efficient Hydrogen Production in Alkaline Membrane Electrolyzers

Researchers at the Technical University of Berlin, HZB, IMTEK (University of Freiburg), and Siemens Energy have developed a highly efficient alkaline membrane electrolyzer with performance comparable to widely used PEM electrolyzers. This achievement is significant as it replaces costly and rare iridium with affordable nickel compounds as the anode catalyst. The findings were published in Nature Catalysis.

Using operando data, the team at BESSY II provided a detailed analysis of the catalytic activities, while collaborators from the USA and Singapore contributed a consistent molecular description. Prototype cells, developed in Freiburg using a novel coating technique, were then tested for functionality.

Hydrogen is expected to play a crucial role in the future energy system, serving as a fuel, energy storage medium, and essential raw material for the chemical industry. When produced through water electrolysis powered by solar or wind energy, hydrogen generation can be nearly climate-neutral.

Currently, efforts to scale up green hydrogen production primarily rely on conventional liquid alkaline electrolysis and proton-conducting membrane electrolysis (PEM). Alkaline exchange membrane (AEM) electrolyzers, however, offer a promising alternative by combining the advantages of both methods without requiring scarce metals like iridium.

AEM Electrolyzers without Iridium

Research teams from TU Berlin, HZB, the Department of Microsystems Engineering at the University of Freiburg, and Siemens Energy have demonstrated the first AEM electrolyzer capable of producing hydrogen nearly as efficiently as a PEM electrolyzer. They developed a technique to coat nickel double hydroxide complexes with iron, cobalt, or manganese directly onto an alkaline ion exchange membrane, offering a low-cost alternative to iridium.

Insight into Molecular Processes During Electrolysis at BESSY II

Researchers conducted operando measurements at the Berlin X-ray source BESSY II, specifically at the LiXEdrom end station, while the cell was actively electrolyzing. A theory team from the USA and Singapore assisted in interpreting the experimental data.

This enabled us to elucidate the relevant catalytic-chemical processes at the catalyst-coated membrane, in particular, the phase transition from a catalytically inactive alpha phase to a highly active gamma phase and the role of the various O ligands and Ni4+ centers in the catalysis. It is this gamma phase that makes our catalyst competitive with the current state-of-the-art iridium catalysts. Our work shows important similarities to iridium in the catalytic mechanism, but also some surprising molecular differences.

Peter Strasser, Professor, Technical University Berlin

This study has significantly enhanced the understanding of the catalytic mechanisms in the novel nickel-based electrode materials. Additionally, the newly developed coating technique for the membrane electrode offers promising scalability. The first fully operational lab cell has already been tested at IMTEK. This work demonstrates that an AEM water electrolyzer can achieve high efficiency, laying the foundation for further industrial evaluation.

Journal Reference:

‌Klingenhof, M., et al. (2024) High-performance anion-exchange membrane water electrolyzers using NiX (X = Fe,Co,Mn) catalyst-coated membranes with redox-active Ni–O ligands. Nature Catalysis. doi.org/10.1038/s41929-024-01238-w.

Link: https://www.azom.com/news.aspx?newsID=63842

H2B2 and 2G Energy Receive 2024 CHP Project of the Year Award for SoHyCal’s Renewable Hydrogen Impact

ALEXANDRIA, Va., Sept. 23, 2024 /PRNewswire/ — H2B2 USA LLC, a leading vertically integrated hydrogen solutions company, and 2G Energy, Inc., a global CHP solution provider, are elated to announce that their collaborative SoHyCal project has been distinguished with the highly coveted 2024 CHP Project of the Year Award by the Combined Heat and Power Alliance. The award ceremony will take place on Wednesday, September 25^th at the National Summit on CHP held at the Westin in Alexandria, Virginia.

About H2B2 USA LLC:

About 2G Energy, Inc.:

Link: https://www.prnewswire.com/news-releases/h2b2-and-2g-energy-receive-2024-chp-project-of-the-year-award-for-sohycals-renewable-hydrogen-impact-302255959.html

Tech with a Conscience: Ontario Tech showcases national leadership in hydrogen energy innovation

The two-day Hydrogen Business Council Conference highlighted university’s clean-energy technology partnerships and research

October 28, 2024

Sam Oosterhoff, Associate Minister of Energy-Intensive Industries, Ontario Ministry of Energy and Electrification, gave a keynote address at the Hydrogen Business Council of Canada conference held at Ontario Tech University.

As Canada continues to support international efforts to reach net-zero carbon emissions, Ontario Tech University has established itself as a research leader in clean, reliable and sustainable energy. The country’s energy and environmental future is a strategic priority for the university, as it focuses on developing new options for low-cost renewable energy sources like hydrogen.

On October 17 and 18, Ontario Tech hosted the Hydrogen Business Council of Canada (HBC) annual conference, whose theme was the Canadian Hydrogen Economy in Action. More than 200 industry leaders and researchers discussed the growing potential of hydrogen-energy technologies, Ontario Tech’s strategic contributions as a hub for clean energy innovation, and Canada’s path toward net-zero emissions.

Delegates explore the university’s hydrogen technology research infrastructure

Ontario Tech’s Hydrogen Commercialization and Demonstration Centre (HCDC) was a conference highlight. The HCDC, a joint initiative of the ACE Core Research Facility’s Climatic Wind Tunnel and the Clean Energy Research Lab (CERL) at Ontario Tech, provides industry partners with comprehensive support for hydrogen prototype development, ranging from manufacturing to academic collaboration. HCDC played a crucial role in the recent development of Project Arrow, Canada’s first all-Canadian zero-emission concept vehicle, by providing vital resources for the integration of hydrogen fuel cell technology into the vehicle’s power system. Ontario Tech was the lead academic institution for Project Arrow. The HBC conference also highlighted the collaboration between Ontario Tech and Hydrocool, a Canadian CleanTech startup developing hydrogen-powered refrigeration systems. Hydrocool’s work, supported by the HCDC, exemplifies how Ontario Tech is actively driving the commercialization of hydrogen energy solutions. Conference attendees were able to tour ACE facilities and witness firsthand the hydrogen innovations being developed at the university.

Related link: Explore the energy-leadership activities being driven by Ontario Tech’s Brilliant Energy Institute

Ontario Tech’s commitment to creating the next generation of clean energy professionals

Ontario Tech researchers and students showcased their research on hydrogen technologies during the conference for Linda Drisdelle, HBC Chair, and Dr. Rami El-Emam, Director, Core Research Facilities and Strategic Initiatives in Ontario Tech’s Office of Vice-President, Research and Innovation. These activities gave students the chance to network with top industry professionals, opening doors for their future collaborations and career opportunities in the rapidly expanding hydrogen sector.

“Ontario Tech’s leadership through the Brilliant Energy Institute and the Automotive Centre of Excellence is preparing students with the skills needed for high-paying clean energy jobs. With Ontario projected to need 75 per cent more power by 2050, hydrogen is a key part of the solution, providing both the energy we need and the opportunities for the more than 100,000 jobs this sector is expected to generate in the next 25 years. Our government is committed to supporting this growth, cementing Ontario’s role as a global leader in hydrogen innovation and technology.”
-Sam Oosterhoff, Associate Minister of Energy-Intensive Industries, Ontario Ministry of Energy and Electrification

“At Ontario Tech, we cherish the wonderful partnership we have developed with the Hydrogen Business Council of Canada. Industry partnerships are foundational to the research and innovation enterprise at the university. The opportunity to have so many leaders from Canada’s hydrogen sector on our campus to see our unique facilities and interact with our students is invaluable.” -Dr. Les Jacobs, Vice-President, Research and Innovation, Ontario Tech University

“Partnering with Ontario Tech to co-host ‘Canadian Hydrogen Economy in Action’ provided a unique opportunity to bring industry, end-users and academia together to showcase hydrogen energy systems. Whether it was attending speaker presentations and panel discussions about the latest in hydrogen energy, or viewing some of the latest hydrogen-powered cars, bus and trucks, attendees received current, inspiring, and realistic information about the present and future of hydrogen energy in Canada. Ontario Tech’s enthusiastic staff and students made this conference one to remember.”-Brad Chittick, PEng, President and CEO, Hydrogen Business Council of Canada

Link: https://news.ontariotechu.ca/archives/2024/10/tech-with-a-conscience-ontario-tech-showcases-national-leadership-in-hydrogen-energy-innovation.php

Are Hydrogen Fuel Cells the Key to a Clean Energy Future?

Source: Article from Emily Newton, Revolutionized

11/20/24, 05:37 AM | EVs and Fuel Cells, Other Renewables | hydrogen

Alternative energy discussions tend to focus on battery-electric vehicles (EVs) and renewables like wind and solar. While these are crucial to a greener future, they’re not the only way to reduce emissions while meeting the world’s power needs. Hydrogen fuel cells get less attention and investment today, but they could provide a wealth of untapped potential.

Fuel cells convert hydrogen into electricity — a process producing no greenhouse gas (GHG) emissions. The technology has been around in some form since the late 19th century but has yet to break through into the mainstream. Recent demands and technological advances may change that.

Benefits of Hydrogen Fuel Cells

Hydrogen power has many applications, from drivetrains in EVs to energy storage media. Across all use cases, it has several key benefits deserving more attention.

Clean Electricity for EVs

EVs are some of the most well-known applications for fuel cells. While automakers have produced just three hydrogen models since 2015, it’s hard to ignore the potential of fuel cell drivetrains. Unlike battery EVs, hydrogen cars do not need to plug into the grid, assuaging concerns about electricity-related emissions.

All EVs produce no direct emissions, but most electricity today still relies on fossil fuels. Consequently, recharging an EV battery still involves some carbon, albeit less than direct tailpipe emissions from a gas vehicle. Hydrogen cars, by contrast, require no grid electricity to operate. Drivers would refill these cars with liquid hydrogen in a process similar to refueling an internal combustion engine. In addition to minimizing electricity-related fossil fuel consumption, this would alleviate the strain EV charging stations may place on the grid.

High Efficiency

Fuel cells also deliver higher efficiencies than battery drivetrains. Hydrogen is remarkably energy-dense, so a fuel cell-powered EV can go longer between fueling stops than a battery EV can between recharges. Fuel cell vehicles could even outperform gas engines in terms of range.

Such efficiency benefits heavy machinery, too, not just road vehicles. Battery-powered lift trucks experience 20 minutes of lost productivity every four to eight hours for recharging and battery changeovers. Hydrogen alternatives can go longer and take just three minutes to refuel once they run out.

Longer ranges and shorter disruptions make EVs additionally appealing to consumers and businesses. As a result, hydrogen could spur broader EV adoption, leading to a faster clean transportation transition. The more convenient electrified options become, the fewer advantages gas and diesel have over these eco-friendly alternatives.

Energy Density

Hydrogen’s energy density has applications outside of the transportation sector. It also makes the element an ideal storage medium as the need for backup power rises among utility providers.

As the grid switches to renewable sources of electricity, it will need additional energy storage, as wind and solar are intermittent. Batteries offer a straightforward solution but are expensive and require considerable space and an optimal storage environment to retain peak performance. Fuel cells, by contrast, can store a larger amount of energy in a smaller package and aren’t as prone to performance fluctuations in varying conditions.

Alternatively, fuel cells could act as an electricity source to complement intermittent renewables when their generation falls below demand. Some experts suggest hydrogen could cover up to 35% of the grid’s annual needs, enabling growth in renewables without fears over energy availability.

Flexibility

As these grid applications show, hydrogen fuel cells have the added advantage of versatility. The technology can serve many purposes in various areas with minimal surrounding infrastructure. Such flexibility makes it an ideal power source when conventional options are limited.

Construction sites are an excellent example. Building in undeveloped areas means teams cannot power electrical equipment through the grid. Historically, businesses have used fossil fuel generators to fill the gap, but hydrogen generators can fulfill the same role without any GHG emissions.

Hydrogen could also provide electricity on cargo ships at sea. One study found that doing so leads to a 37.4% drop in CO2 emissions without fuel prices rising dramatically over what marine diesel would cost. Data centers, remote research facilities and outdoor events could all benefit from similar solutions.

Challenges to Hydrogen Fuel Cell Adoption

Despite these advantaes, there’s a reason hydrogen has not gained the same kind of prominence as other alternative energy technologies. A few significant obstacles remain between fuel cells and widespread adoption.

Reliance on Grid Electricity

One of the largest issues with hydrogen power is that while fuel cells themselves produce no emissions, gathering hydrogen often does. Hydrogen does not appear on its own in nature, and splitting it from other elements requires electricity. Because 60% of U.S. electricity comes from fossil fuels, hydrogen fuel carries some embodied carbon.

Green hydrogen, which uses renewables to power this process, is the ideal solution. However, installing wind and solar infrastructure near hydrogen plants is time-consuming and expensive. Businesses may be unwilling to take on the costs until fuel cell investment rises and the fuel becomes additionally profitable.

Government incentives and a wider range of hydrogen-powered equipment for sale could help. Steps like this could lower relative costs or raise demand for clean fuel, making it easier to justify the complications of green hydrogen production.

Costs and Complexity

Like many alternative energy technologies, fuel cells are also expensive. Making hydrogen power widespread would require installing new gas storage and pumping infrastructure, too, adding further costs and disruption.

Financial issues have kept many manufacturers from creating fuel cell-powered alternatives to vehicles or heavy equipment. It’s worth noting, though, that all technologies grow cheaper with additional research and advancement. As technology improves, fuel cells will become more accessible, driving other companies to incorporate them into their product offerings.

Over time, hydrogen’s efficiency can make up for its high upfront costs. Businesses will need to adjust to recognize and act on this potential, but once that shift occurs, cost and complexity issues will diminish.

Hydrogen Power Is a Key Piece of the Sustainability Puzzle

In light of these pros and cons, hydrogen fuel cells alone are likely not a complete solution to the clean energy problem. However, they could be a critical part of the green power transition.

Hydrogen can complement renewables and battery EVs to address areas where other technologies are weaker and create a diverse alternative energy market. As these options grow, it will become easier for consumers and businesses alike to move away from fossil fuels.

Link: https://www.altenergymag.com/story/2024/11/are-hydrogen-fuel-cells-the-key-to-a-clean-energy-future/43759/

As N.L. firm pivots, scientists say Canada’s green hydrogen dreams are far-fetched

Race to establish Canada’s first commercial green hydrogen operation is playing out in Atlantic Canada

Chemical engineer Paul Martin says the notion that ‘rich Germans’ will pay for hydrogen energy made from Atlantic Canadian wind farms and shipped overseas as ammonia is ‘not reasonable.’ (The Associated Press)

A Newfoundland energy company’s embrace of data centres is raising doubts about eastern Canadian hopes of harnessing the region’s howling winds to supply Germany with power from green hydrogen.

Chemical engineer Paul Martin said the notion that “rich Germans” will pay for hydrogen energy made from Atlantic Canadian wind farms and shipped overseas as ammonia is “not reasonable.”

Martin, a Toronto-based consultant, is co-founder of the Hydrogen Science Coalition, a group of international academics and scientists “working to bring an evidence-based viewpoint” to global hydrogen energy discussions, according to its website.

“It’s not economic, and it’s extremely unlikely to happen,” Martin said in a recent interview. “It’s the age-old East Coast Canada dream of making something of value that you can sell to people outside the country for money.”

A race to establish Canada’s first commercial green hydrogen operation is playing out in Atlantic Canada, where several projects have been pitched in Nova Scotia and in Newfoundland and Labrador.

World Energy GH2, led by seafood mogul John Risley, is near the head of the pack. Its multi-billion-dollar Project Nujio’qonik includes plans for a hydrogen and ammonia plant in Stephenville, N.L., that would be powered by several sprawling onshore wind farms.

Risley was on hand when German Chancellor Olaf Scholz flew to Stephenville in 2022 to meet with Canadian officials, including Prime Minister Justin Trudeau. The governments signed an agreement to develop a green hydrogen “corridor” across the Atlantic, with a goal of first shipments arriving next year.

That timeline no longer seems possible. World Energy GH2 recently announced that it was taking longer than expected to set up a European market, and it was considering setting up a data centre to use its green energy in the meantime.

Martin doesn’t believe such a market will ever exist. Energy is lost at each step of the process to convert wind energy to hydrogen, and then to ammonia, and then back to hydrogen energy once it has arrived in Europe, he said. And each step of that process adds cost.

“When you look at it from the point of view of dollars per kilowatt hour, or dollars per megajoule of energy, sense doesn’t come into it,” he said.

Canada and Germany signed an agreement in Stephenville, N.L. in 2022 to develop a green hydrogen ‘corridor’ across the Atlantic, with a goal of first shipments arriving next year. (Adrian Wyld/The Canadian Press)

Martin added that he has concerns about public money funding large portions of these projects, pointing to the recently announced federal tax credit for clean hydrogen initiatives that covers up to 40 per cent of costs.

Nick Mercer, who grew up in Newfoundland and is an assistant professor of environmental studies at the University of Prince Edward Island, agrees. He said using Newfoundland and Labrador’s powerful winds for a green hydrogen industry seems like a panacea for an oil-dependent province of about 530,000 people.

But the dreams don’t account for the massive infrastructure and capital investments needed to make it work, he said.

“Right now, what we’re seeing is reality is catching up to the hype of green hydrogen in Newfoundland and Labrador,” he said.

Dale Beugin, executive vice-president of the Canadian Climate Institute, agrees there are serious cost and efficiency problems in the plan to sell green hydrogen produced in Atlantic Canada to Europe. The Ottawa-based think tank published a paper last year analyzing the economics of various Canadian clean-fuel projects, and it found few scenarios in which Atlantic Canadian-produced green ammonia could be sold overseas at a profit, he said.

Those profit-making scenarios were highly optimistic and required “everything to go right,” Buegin said in an interview.

Those doubts aren’t plaguing EverWind Fuels, a company planning wind-to-hydrogen operations in Newfoundland and Nova Scotia.

Spokesperson Rudee Gaudet said the company is “making progress” finalizing binding commercial agreements with European buyers.

As an example of market possibilities in Europe, Gaudet pointed to an agreement signed in June that will see North American company Air Products supply Europe’s TotalEnergies with about 64,000 tonnes of green hydrogen per year, beginning in 2030.

“Building a robust green energy supply chain takes time, given the need to align production, infrastructure, and regulatory frameworks across regions,” Gaudet said.

If the European market falls through, Beugin and Martin suggested there may be other uses for wind energy and green ammonia produced in Atlantic Canada, perhaps to replace the ammonia made with fossil fuels used in fertilizer. Martin wondered if green hydrogen could replace coal on Nova Scotia’s power grid.

The Newfoundland and Labrador government is reviewing at least three other proposals for wind-to-hydrogen projects. It is scheduled to make a decision about one, led by the Exploits Valley Renewable Energy Corporation, on Dec. 6.

World Energy GH2 is expected to make a final investment decision for its Project Nujio’qonik in the latter half of 2025. The company did not provide a comment for this story.

Link: https://www.cbc.ca/news/canada/newfoundland-labrador/nl-green-hydrogen-doubts-1.7390486

Hydrogen Wildcatters Are Betting Big on Kansas to Strike It Rich

By Michelle Ma and David R Baker

November 16, 2024 at 10:30AM EST

(Bloomberg)

(Bloomberg) — A new Gold Rush is taking shape on a quiet stretch of Kansas prairie. There, a clutch of startups backed by the likes of Bill Gates are searching below the surface for naturally occurring hydrogen, a fuel that can generate power without adding to climate change.

Finding it in vast quantities would revolutionize the energy transition. But the hunt is clean energy wildcatting, with a real possibility of failure — and the added risk of diverting limited climate venture capital at a time when the world needs proven emissions-cutting technologies.

Kansas sits atop a geological quirk: The Midcontinent Rift is a subterranean scar a billion years old created when North America started to split down the middle and then stopped. Iron-rich rocks within the rift can produce hydrogen when exposed to water, pressure and heat. And records left over from several old oil exploration wells in the area decades ago show the gas is — or at least was — present.

Other sites around the world also offer tantalizing hints of housing the lightest element in the universe, and the search is starting to attract money. One company, Koloma, has raised more than $300 million, including from Bill Gates’ Breakthrough Energy Ventures. Mining giant Fortescue Ltd. recently spent $22 million to buy a 40% stake in Australia-based HyTerra, one of the startups looking in Kansas. All told, approximately 50 geologic hydrogen companies are in operation, including explorers, equipment makers, and oil and gas conglomerates funding research, according to BNEF.

Naturally occurring hydrogen holds the potential for what Wood Mackenzie analyst Richard Hood calls a “Spindletop moment,” referring to the 1901 Texas oil gusher that helped create the modern world. If it exists in commercial quantities, pumping hydrogen from the ground would be cheaper than stripping it from water using electricity and cleaner than making it from natural gas, the most common method.

“No question, there’s risk,” said Bruce Nurse, co-founder of PureWave Hydrogen, which has leased sites in three Kansas counties for exploration. “But it’s an energy source we need to go after here in the US, because manufactured hydrogen is not going to cut it.”

Recently, scientists have begun earnestly attempting to answer how much hydrogen is under the Earth’s surface.

Geoffrey Ellis is at the forefront of that work. A research geologist for the United States Geological Survey (USGS), Ellis spent two decades researching petroleum geochemistry. About five years ago, Ellis pivoted to hydrogen when he heard about Mali.

Mali is the great origin story of the quest for geologic hydrogen, which industry refers to as “white” and sometimes “gold.” In the late 1980s, residents of a village drilling for water in the West African country stumbled upon a pocket of gas. Not knowing what it was, they plugged it back up. Decades later, workers heard of this discovery and drilled a new well to uncover what they had hoped was natural gas, only to find nearly pure hydrogen.

Ellis’s group has been modeling the subsurface globally, drawing on oil and gas industry tools and methods.

His estimate is wide-ranging: anywhere from billions of tons on the conservative end to trillions of tons. Tapping even a fraction of the estimated hydrogen would meet hundreds of years of demand, Ellis said.

He ascribes the several orders of magnitude of uncertainty to the nature of the model he and his team built, based on what is known about hydrogen and better-understood resources like petroleum. The question for him — and investors and companies — isn’t whether it exists, but how much of it is accessible and accumulated in large, pure quantities. The only way to know for sure is to start drilling.

“You have to operate in uncertainty,” said Koloma’s Chief Business Officer Paul Harraka.

To maximize their chances of success, prospectors are leaning on paper records in dusty archives and oil and gas documents that have mentioned accidental hydrogen discoveries. But they’re also using tech like sophisticated machine learning to identify what are known as “fairy circles” in satellite images. These circular depressions on the Earth’s surface sometimes emit hydrogen and could point to subsurface reservoirs.

Viacheslav Zgonnik is the co-founder and former chief executive officer of Denver-based Natural Hydrogen Energy, which went prospecting in 2023 near Geneva, Nebraska. Drilling more than 11,000 feet into the ground, they found hydrogen, though Zgonnik declined to say how much. But he left the company this year to create a startup to provide software to companies looking for hydrogen deposits.

“When there is a gold rush, you sell picks and shovels,” Zgonnik said.

Most of the exploration happening today is in the US and Australia, not just because there’s evidence hydrogen could exist underground but because of the two countries’ supportive regulatory environments. In the US, landowners have the rights to exploration permits rather than the state, a stark contrast to other countries where government-controlled licenses can result in long delays.

As a result of all these factors, many wildcatters are concentrated in Kansas and other states along the Midcontinent Rift. “It’s expensive, and you can’t just go digging random holes in the ground,” said Mark Gudiksen, a managing partner at venture firm Piva Capital, which invested in Koloma. “So you have to be thoughtful about using all of the tricks of the trade.”

Even if prospectors hit hydrogen, its commercial prospects are highly uncertain. The reason green hydrogen produced by renewable energy hasn’t taken off yet is because of its high cost. The Department of Energy has set a goal for hydrogen producers and prospectors to get costs down to $1 per kilogram. That would unlock a wave of demand critical to growing the hydrogen industry, which is currently lacking.

The world currently uses about 94 million metric tons of hydrogen per year, according to BloombergNEF. The research firm forecasts that for the global economy to reach net-zero emissions by mid-century, hydrogen use will rise slowly, hitting 118 million metric tons in 2030, before entering a period of rapid growth. Worldwide use could reach 234 million metric tons in 2040 and 390 million metric tons in 2050, according to BNEF’s New Energy Outlook 2024.

“The market is really, really, really big if the unit economics work,” said Mark Daly, head of technology and innovation at BloombergNEF. But that’s a big “if.”

One critical cost factor: purity. The well in Mali is nearly 100% pure hydrogen. But hydrogen is often co-located with other gasses, including helium. Australian company Gold Hydrogen, for example, said it found hydrogen as well as high levels of helium in initial drill tests conducted in 2023 on South Australia’s Yorke Peninsula and is now working to drill its first new wells. While helium is a valuable product, separating the two gasses adds expense.

One of the biggest complications to bringing down costs is transport, which involves compressing the gas into a liquid and trucking it or moving it through underground pipelines. Both are expensive and in the case of pipelines, closer to fantasy than reality. At high pressure, hydrogen can react with steel pipes, causing them to become brittle and crack.

There’s also the potential for hydrogen leakage, an issue that scientists and startups haven’t yet properly confronted.

Hydrogen “is a very promiscuous gas. It diffuses all over the place,” said Douglas Wicks, a program director at the Energy Department’s Advanced Research Projects Agency-Energy (ARPA‑E) who’s in charge of two geologic hydrogen research programs.

Transporting hydrogen makes sense economically within a 100-kilometer radius, said Daly. He pointed out that raising enough money to build a pipeline requires evidence that the resource it’s transporting will exist for 20 to 40 years.

Many startups exploring in Kansas and Nebraska could overcome transportation issues by selling it locally. The states are two top agricultural producers, and companies see farmers as their biggest potential customers. Hydrogen discovered in the region could be converted to ammonia, which is widely used to make fertilizer.

“There’s absolutely a chance we may lose all our money.”

The myriad unknowns are not stopping wildcatters. They’re also not stopping venture capitalists and large corporate investors alike from placing big bets.

One of the industry’s biggest boosters is also one of the most influential climate tech investors in Breakthrough Energy Ventures.

“The discovery of geologic hydrogen could be one of the single most important events in our lifetimes, and perhaps the lifetimes of our children,” said the firm’s technical lead Eric Toone in a speech at the Breakthrough Energy Summit in London in June. “It offers the possibility of limitless zero-carbon reactive chemical energy.”

That’s part of the reason the firm participated in Koloma’s $245 million Series B round, making it one of the biggest startups on the hydrogen frontier. Still, investors acknowledge that the territory still comes with many unanswered questions, enough to give many others pause.

If Koloma succeeds, “that changes the cost structure of hydrogen,” said Gudiksen. But he also sounded a cautionary note: “There’s absolutely a chance we may lose all our money.”

Link: https://www.bnnbloomberg.ca/investing/commodities/2024/11/16/hydrogen-wildcatters-are-betting-big-on-kansas-to-strike-it-rich/

Newfoundland wind-to-hydrogen company eyes data centre as international market lags

ST. JOHN’S, N.L. — A company hoping to build a multi-billion-dollar wind-to-hydrogen project in western Newfoundland is eyeing other options as Canada’s plans to supply Europe with green energy have not yet materialized.

Sarah Smellie, The Canadian PressNov 19, 2024 1:52 PM

Hydrogen storage tanks are visible in Puertollano, central Spain, Tuesday, March 28, 2023. A company hoping to build a massive wind-to-hydrogen energy project in western Newfoundland is eyeing other options as Canada’s plan to supply Europe with green hydrogen energy have not yet come to pass. (AP Photo/Bernat Armangue)

Led by seafood mogul John Risley, World Energy GH2 is developing a concept for what it calls a “renewable energy campus,” which would use fuel produced from its operations, a company spokesperson confirmed in a recent email.

As first reported by news outlet allNewfoundlandLabrador.com, the campus would harness power from the planned wind turbines to power a data centre aimed at artificial intelligence companies.

“As the commercial-scale green ammonia market is taking longer to develop than expected, there are other opportunities for renewable energy that can combat climate change on a larger scale,” company spokesperson Laura Barron said in a recent email.

World Energy GH2 is angling to become Canada’s first commercial green hydrogen operation, but it has competition. Its Project Nujio’qonik includes plans for a plant in Stephenville, N.L., that would produce hydrogen and convert it to ammonia for shipping. Several onshore wind farms would power the plant.

It is one of at least four wind-to-hydrogen proposals registered with the Newfoundland and Labrador government for consideration, though it is the only one approved so far. The project has met with opposition from some western Newfoundland residents concerned about their region’s delicate ecosystem.

German officials flew to Stephenville in 2022 to sign a commitment with Canada to create an alliance that would see Canadian-produced green hydrogen shipped to German buyers by next year.

That goal may be too ambitious, said Amit Kumar, an engineering professor at the University of Alberta.

It’s still too expensive to produce green hydrogen in Canada and convert it to ammonia for shipment to Europe, where it would be converted back into hydrogen, Kumar explained in a recent interview. Each step in that process adds cost.

It will likely be at least another decade before the technology improves enough — and the proper infrastructure is built — to make green hydrogen produced in Canada cheap enough for German buyers, he said.

“We have not developed the infrastructure to export it, to convert it, to liquefy it — either we liquefy it or convert it to ammonia — and to export it to Germany,” Kumar said. “I think it’s going to happen, but it will take time.”

He agreed that a data centre powered by wind would likely make economic sense in the meantime.

In a recent email, the Newfoundland and Labrador government said it had not been formally advised of any data centre plans by World Energy GH2. Any such plans would need government approval, said a spokesperson for the Department of Industry, Energy and Technology.

Tom Rose, the mayor of Stephenville, said he, too, has not been informed of any data centre plans. However, he said he has met with companies interested in data centre opportunities in the region, given that World Energy GH2’s plans to develop renewable energy there.

“The economic footprint of where (artificial intelligence) is going, and its impact on on the globe, it’s just growing and growing and growing,” Rose said in a recent interview. “And here we are with an opportunity to have that data being driven by the best, greenest energy hub region in North America.”

Stephenville is home to roughly 7,300 people and a local College of the North Atlantic campus. Rose said he has no concerns that World Energy GH2 may not be able to find enough skilled workers for a data centre.

“I think it’ll be no problem to attract expatriate Newfoundlanders, people who want to immigrate into Canada and work in Stephenville, from all parts of the world,” he said.

This report by The Canadian Press was first published Nov. 19, 2024.

Sarah Smellie, The Canadian Press

Link: https://www.stalbertgazette.com/newfoundland-labrador-news/newfoundland-wind-to-hydrogen-company-eyes-data-centre-as-international-market-lags-9831832

Green hydrogen stocks that may survive the trump chopping block

Chris Markoch – MarketBeat – Mon Dec 2, 7:00AM CST

In 2025 and beyond, you can add “the need for more electricity” to a list of certainties along with death and taxes. In addition to the voracious demand for electricity spawned by artificial intelligence, demand is also being stoked by the anticipation of robust economic growth and weather-related events.

One solution could come from green hydrogen. This process produces hydrogen with an electrolyzer that separates water into hydrogen and oxygen. It fulfills the promise of being a clean energy solution. However, this is still a new technology, and without industry subsidies, it’s impossible to deliver green hydrogen at scale. To emphasize this point, McKinsey recently cut its U.S. green hydrogen forecast for 2030 by 70%.

Many people believe that the market for green hydrogen will be among the programs targeted for cuts by the Trump administration. But that may not be true. The industry is on the verge of some key innovations that could make the technology easier to commercialize. If these innovations position American companies to take a leadership role in the sector, it could be attractive to the president-elect.

It won’t be easy for the Trump administration to remove the tax credit for green hydrogen created by the Inflation Reduction Act, which has bipartisan support. Ironically, the incoming administration could play a role in lowering regulations that have made it difficult for some companies in the sector to meet the requirements to get the tax credit.

This is still a risky sector, and some may call it uninvestable. But if you have an appetite for risky energy stocks, here are three green hydrogen companies to consider.

FuelCell Energy Shows Why Location May Hold the Key

The current alternative to green hydrogen is hydrogen created using natural gas. That’s been a difficult pill for the industry to swallow because hydrogen made with natural gas is much less expensive to produce. Low natural gas prices in the United States create a double whammy for the industry.

But, it also means there could be an opportunity for countries like FuelCell Energy Inc. (NASDAQ: FCEL) to do business in countries with higher natural gas prices. One such country is South Korea, where FuelCell Energy has significant operations. The company’s fuel cells currently produce over 100 megawatts of sustainable electricity nationwide. It recently signed a memorandum of understanding (MOU) with Korea Hydro & Nuclear Power Co. Ltd in which the companies would jointly pursue hydrogen energy business initiatives.

That’s the good news. The bad news is that the company announced a global restructuring in November 2024 in anticipation of slower-than-expected investment in clean energy. And that came after announcing a 1-for-30 reverse stock split.

Bloom Energy Attracts the Attention of Analysts After Data Center Wins

Data centers have become one of the most widely discussed topics in the investing community. It’s a supply and demand issue. In this case, there isn’t enough power for supply to keep up with demand. The next green hydrogen company on this list, Bloom Energy Corp. (NYSE: BE), is getting well-positioned to take the lead in this sector.

In November 2024, the company announced a deal with American Electric Power Company Inc. (NASDAQ: AEP). The terms of the deal have Bloom supplying up to one gigawatt (GW) of its products. That marks the largest commercial procurement of fuel cells in the world as of this writing. Under the terms of the agreement, AEP is ordering 100 megawatts (MW) of fuel cells, and there is an expectation of more orders in 2025.

The response has been swift and positive. Analysts appear willing to overlook the company’s disappointing earnings report and are raising their price targets even though the payoff for the AEP deal isn’t likely to emerge until 2026.

Plug Power Has a Backlog of Projects But Still Needs Time

If you just looked at Plug Power Inc.‘s (NASDAQ: PLUG) website, you’d be encouraged by all the contracts, joint ventures, and partnerships the company lists. The company’s fuel cell-powered commercial vehicles are used by companies such as Walmart Inc. (NYSE: WMT), Home Depot (NYSE: HD), and Amazon.com Inc. (NASDAQ: AMZN).

However, when you look at the company’s recent earnings, you see a story of declining year-over-year revenue and continued negative earnings per share (EPS). PLUG stock is down 52.8% and analysts continue to downgrade it.

However, hydrogen and green hydrogen stocks are generally a long-term play. In the case of Plug Power, a small speculative investment today could yield enormous returns if hydrogen becomes a realistic alternative to battery electric vehicles (BEVs). That said, with short interest over 24%, you should pick your entry point carefully. This may be a better trade for now.

The article “3 Green Hydrogen Stocks That May Survive the Trump Chopping Block” first appeared on MarketBeat.

Link: https://www.theglobeandmail.com/investing/markets/stocks/HD-N/pressreleases/29866797/3-green-hydrogen-stocks-that-may-survive-the-trump-chopping-block/

LATROBE VALLEY BROWN COAL TO CLEAN HYDROGEN PROJECT FACES COLLAPSE

Published: 21:15 05 Dec 2024 EST

A high-profile plan to produce clean hydrogen from Australia’s brown coal for export to Japan is on the verge of collapse, with Kawasaki Heavy Industries — one of Japan’s largest industrial conglomerates — pulling out of the Hydrogen Energy Supply Chain (HESC) project.

The ambitious project aimed to transform brown coal from Victoria’s Latrobe Valley into liquefied hydrogen, transported to Japan via a specially developed supply chain. The process relied on untested carbon capture and storage (CCS) technology to offset emissions by sequestering CO₂ in Bass Strait.

Initially supported by $2.35 billion from the Japanese government and $50 million from Victoria’s government, the project promised an economic boost for the Latrobe Valley’s coal industry.

However, delays and escalating costs have plagued its implementation. Kawasaki has now opted to pursue domestic hydrogen sources, scaling back its hydrogen carrier infrastructure for a “more realistic” approach.

Victorian Energy Minister Lily D’Ambrosio had previously expressed doubts about the feasibility of adequately capturing carbon from the coal and safely sequester it.

Environmental groups, including Friends of the Earth, labelled the project impractical and economically unviable.

“Using brown coal in a climate crisis to produce hydrogen is absolute nonsense,” said Freja Leonard, the group’s gas campaigner.

A 2022 confidential government report noted local support for the HESC but highlighted opposition from some stakeholders and ongoing financial and logistical hurdles.

Despite successfully generating hydrogen under trial conditions in January 2022, the project faced overruns and delays.

Victorian Greens leader Ellen Sandell called for the project to be scrapped, describing it as an environmental and economic failure.

With Kawasaki Heavy Industries’ decision to pull out of the project, future of the HESC remains uncertain.

Link: https://www.proactiveinvestors.com/companies/news/1062248/latrobe-valley-brown-coal-to-clean-hydrogen-project-faces-collapse-1062248.html

Hyundai Motor Unveils Next Step in its Hydrogen Legacy with new INITIUM FCEV Concept

Hyundai Motor Company holds ‘Clearly Committed’ event in Korea to reinforce its vision for a hydrogen future
INITIUM hydrogen fuel cell concept vehicle showcases the company’s new ‘Art of Steel’ design language and reflects Hyundai Motor’s customer-centric approach
Hyundai Motor Group Executive Chair Euisun Chung underscores commitment to HTWO hydrogen business brand following CES 2024 debut

SEOUL, South Korea, Oct. 31, 2024 /CNW/ — Hyundai Motor Company today unveiled its INITIUM hydrogen fuel cell electric vehicle (FCEV) concept at its ‘Clearly Committed’ event held at Hyundai Motorstudio Goyang.

INITIUM is a Latin word meaning ‘beginning’ or ‘first’, representing Hyundai Motor’s status as a hydrogen energy pioneer and its commitment to develop a hydrogen society.

Hyundai Motor Unveils Next Step in its Hydrogen Legacy with new INITIUM FCEV Concept

INITIUM provides a preview of a new production FCEV that Hyundai Motor plans to unveil in the first half of next year. The concept encapsulates the company’s 27 years of hydrogen technology development and reflects its clear commitment to achieving a sustainable hydrogen society.

“Hyundai Motor’s clear, unwavering commitment to hydrogen over the past 27 years is rooted in our belief in its potential as a clean, accessible and therefore fair energy source for everyone,” said Jaehoon Chang, President and CEO of Hyundai Motor Company. “We are dedicated to pioneering a future where hydrogen is used by everyone, in everything, and everywhere. We invite you to join us on this journey.”

Hyundai Motor launched its HTWO hydrogen value chain business brand earlier this year at CES 2024, highlighting how Hyundai Motor Group Executive Chair Euisun Chung is focusing the Group’s efforts on hydrogen energy.

Unveiling its vision for HTWO Grid – an end-to-end hydrogen energy solution that spans production, storage, transportation and utilization – Executive Chair Chung expressed the Group’s commitment to actively participate in the development of a hydrogen society and underscored the Group’s capabilities to achieve this goal, highlighting that “The shift to hydrogen energy is for future generations.”

Past, present and future: Hyundai Motor’s hydrogen vehicle development

Hyundai Motor hosted a Hydrogen Heritage Talk session, showcasing its 27-year history of FCEV development. The panel talk between executives allowed visitors to experience and engage with Hyundai Motor’s dedication to the development of FCEVs.

For the new millennium Hyundai Motor began its ambitious Mercury Project, aimed at bridging ground to industry leaders, and the Polaris Project, which focused on the independent development of the company’s core fuel cell stack technology.

In 2005 Hyundai Motor established its Mabuk Environmental Technology R&D Center, accelerating the development of hydrogen fuel cell vehicles. At the time, Hyundai Motor Group Honorary Chairman Mong-Koo Chung encouraged researchers at the facility to push boundaries, empowering them to pursue engineering challenges with courage and confidence.

“You can never make something great by creating it just once,” Chung said. “Don’t worry about budget, let young engineers try making every type of car they dream of. There’s no need to save money by developing the same car 100 times over. It’s fine if all 100 models are completely different to each other.”

Hyundai’s hydrogen evolution saw it become the world’s first automaker to mass-produce hydrogen FCEVs, introducing its first dedicated hydrogen fuel cell model in 2018. These FCEV development achievements highlight Hyundai Motor’s clear commitment to creating a better tomorrow.

More information about Hyundai Motor and its products can be found at: https://www.hyundai.com/worldwide/en/ or Newsroom: Media Hub by Hyundai

SOURCE Hyundai Motor Company

[email protected]

Link: https://www.newswire.ca/news-releases/hyundai-motor-unveils-next-step-in-its-hydrogen-legacy-with-new-initium-fcev-concept-838960530.html

SwRI joint industry project targets heavy-duty hydrogen refueling infrastructure growth

December 9, 2024

The Southwest Research Institute (SwRI) announced a joint industry project (JIP) to help spur the growth and innovation of fueling technologies and infrastructure for hydrogen-powered heavy-duty vehicles.

SwRI’s H₂HD Refuel (hydrogen heavy-duty refueling equipment and facilities utilization evaluation laboratory) JIP aims to strengthen the acceptance of hydrogen fuel use by heavy-duty vehicles to help the mobility industry meet its decarbonization and zero-emission goals by advancing hydrogen refueling station (HRS) technologies.

Over the next four years, SwRI researchers will use hands-on experiments, system modeling and theoretical studies to strengthen existing HRS equipment and procedures and explore potential alternatives.

(Photo: Supplied)

“There are less than 60 hydrogen refueling stations in the U.S., but only one or two currently exist that can meet the specific needs of heavy-duty hydrogen-powered vehicles,” said Dr. Thomas E. Briggs, Jr., institute engineer with SwRI’s powertrain engineering division.

“Many light-duty hydrogen stations face significant technical challenges, including supply chain issues, mechanical failures, and lack of infrastructure. Considering the multimillion-dollar investment per station, these issues reflect a significant technology gap that industry and government must bridge before building additional heavy-duty refueling stations.”

The H₂HD Refuel project hopes to address these issues by connecting hydrogen vehicle manufacturers, original equipment manufacturers and refueling station operators to develop innovative, dependable and compatible HRS technologies.

The program will investigate a broad range of HRS-related topics to help solve existing technical challenges, such as discovering the best onboard hydrogen storage method: liquid, H70 gas or cryo-compression, and comparing the performances of refueling station flow components. The project also plans to study hydrogen losses from cryogenic systems that occur from boil-off and system inefficiencies.

“Connecting industry stakeholders is vital to developing compatible and reliable hydrogen refueling technologies and associated infrastructure,” said Angel Wileman, the JIP project manager from SwRI’s mechanical engineering division. “H₂HD Refuel’s comprehensive approach will ensure that the industry can meet the growing demand for heavy-duty hydrogen vehicles efficiently and safely. This JIP is another example of how SwRI is leading the way when it comes to hydrogen energy research.”

Members will benefit from access to SwRI-led research and hydrogen storage system models. They can also participate in interactive workshops and bi-annual meetings for networking and knowledge sharing and gain economic and performance insights for different hydrogen storage systems.

Link: https://www.trucknews.com/sustainability/swri-joint-industry-project-targets-heavy-duty-hydrogen-refueling-infrastructure-growth/1003191939/

Hydrogen project investments are accelerating but uncertainty remains, IEA says

FILE PHOTO: Media tour to a hydrogen energy demonstration zone in Beijing · Reuters

Forrest Crellin

October 2, 2024 2 min read

By Forrest Crellin

PARIS (Reuters) – Final investment decisions for hydrogen projects have doubled over the last 12 months, dominated by China, but installed capacity and demand are low as the industry faces uncertainty, the International Energy Agency (IEA) said in a report on Wednesday.

The investment decisions represent a five-fold increase of current low-emission hydrogen production by 2030, with China covering more than 40% over the last 12 months, which would eclipse solar expansion at its fastest rates, the group said.

Demand targets, however, are only just over a quarter of the production projects, and progress made so far in the hydrogen sector is not sufficient to meet climate goals, the IEA added.

Most projects are also at early stages, the IEA said, and the project pipeline is at risk due to unclear demand signals, financing hurdles, incentive delays, regulatory uncertainties, licensing and permitting issues and operational challenges.

“Policymakers and developers must look carefully at the tools for supporting demand creation while also reducing costs and ensuring clear regulations are in place that will support further investment in the sector,” said IEA Executive Director Fatih Birol.

Global hydrogen demand could grow by around 3 million tonnes (Mt) in 2024, concentrated in the refining and chemical sector, but that should be seen as a result of wider economic trends rather than the result of successful policies, the IEA said.

Demand is currently largely covered by hydrogen produced by unabated fossil fuels, with low emissions hydrogen still only playing only a marginal role, it added.

Technology and production cost pressures remain a large factor, with electrolysers in particular slipping due to higher prices and tight supply chains, while cost reduction relies on technological development and achieving economies of scale.

(Reporting by Forrest Crellin; editing by David Evans)

Link: https://ca.finance.yahoo.com/news/hydrogen-project-investments-accelerating-uncertainty-050552013.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFGEAuVTgHqtKUl1JvtOv_uhmbe3imp19kjMT4nwmfdqF6y8qFsD6MdC7WxX1EgT6Iog-3RCAmAx6nSPjIAmY9WEkEryiaIgrf0VrcZkAm5J5h9LwugoPgIAIpsJvesJU5VIYOq7epNFmcfZKaQKoRMNkVXeLlnEdarZAqOIEKZU

A hydrogen-heated home in Alberta lays ground for future low-carbon communities

Hydrogen development attractive in province thanks to vast reserves of natural gas

Amanda Stephenson · The Canadian Press · Posted: Nov 21, 2024 1:05 PM EST | Last Updated: November 21

The home in Sherwood Park, a community of about 75,000 people, is a joint project between electricity and natural gas utility company Atco and residential developer Qualico. (Handout/The Canadian Press)

On the outside, the new house just east of Edmonton looks like any other Canadian suburban home.

But inside, the home’s state-of-the-art furnace is fuelled not by the Alberta norm of natural gas, but by pure hydrogen — making it the first of its kind in Canada.

Built as a demonstration and open to the public for tours, the home aims to show that hydrogen gas can be used safely and effectively for heating buildings, while also being part of the clean energy transition.

The home in Sherwood Park, a community of about 75,000 people, is a joint project between electricity and natural gas utility company Atco and residential developer Qualico.

They say their ultimate goal is to have all of the 37,000 homes in Qualico’s proposed future Sherwood Park community of Bremner heated by pure hydrogen.

“We hear from our builders that there is a great deal of [public] interest in low-carbon living,” said Brad Armstrong, vice-president for community development with Qualico.

“Nobody is interested in polluting the environment, so I think there is a broad appeal there.”

LISTEN | New hydrogen testing facility in Edmonton a first in Canada:

Radio Active6:35A new hydrogen testing facility in Edmonton is the first one in Canada

Canada’s first hydrogen testing facility is opening right here in Edmonton. Adam Malcolm is the director of applied chemistry services at InnoTech Alberta.

Light, storable and energy-dense, hydrogen has garnered a great deal of global interest in recent years because it produces no direct greenhouse gas emissions.

Within Canada, hydrogen development is particularly attractive in Alberta because of the province’s vast reserves of natural gas.

While hydrogen fuel can be produced through a number of industrial processes, including using renewable electricity, the vast majority of the world’s current hydrogen production is produced using fossil fuels — in particular, natural gas.

A lot of the excitement around hydrogen’s potential has been related to its usefulness in the transportation or industrial sectors.

When it comes to the decarbonization of home heating, the focus in North America has been on electrification and the installation of heat pumps, not hydrogen.

But Greg Caldwell, Atco’s director of utility hydrogen strategy and decarbonization, said there are some jurisdictions where hydrogen makes more sense.

Hydrogen home heating has been tried in a handful of other jurisdictions globally, such as the Netherlands, with mixed results. (Handout/The Canadian Press)

In Alberta, for example, the province’s electricity grid is already under pressure due to the rapid phaseout of coal-fired generation.

While there has been a corresponding boom in wind and solar energy generation in the province, the intermittent nature of these renewable sources of electricity means that during periods of extreme demand, the grid can become dangerously short of supply.

Forecasts show electricity demand in the province will only continue to grow as more people switch to electric vehicles and the growth of AI drives demand for power-hungry data centres.

To avoid blackouts during cold snaps and other periods of peak demand, it makes sense to look to hydrogen as a home-heating solution rather than invest in massive expansion of the electricity grid, Caldwell said.

CBC Explains

Alberta has lofty hopes for the hydrogen energy market. But there are still a few gaps to be filled

Although regulatory changes will have to be made to permit it, hydrogen can be transported through the same pipelines that already supply communities with natural gas.

And doing so would be far cheaper than building wind and solar farms big enough to handle the few days a year when extreme cold causes home heating demand to spike.

“When you look at the scale of the challenge of trying to get to an affordable, but also a lower-carbon heating system, hydrogen comes out as the winner in this jurisdiction,” Caldwell said.

Hydrogen home heating has been tried in a handful of other jurisdictions globally, such as the Netherlands, with mixed results. Some people have expressed concerns about the risk of explosion or pipeline leaks, though Caldwell said when done correctly, hydrogen heating is just as safe as natural gas.

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He said the biggest drawback currently is cost. The cost of hydrogen fuel today is about double the cost of natural gas, Caldwell said, though he added homeowners would not see their utility bills double since the cost of the fuel itself is only a small portion of a utility bill.

The dual hydrogen-fuelled gradient furnace and water heater installed in the home is also more efficient than a traditional furnace, he added.

“I do think we’ll see the cost of the fuel come down with competition and with new projects being built,” Caldwell said, adding there are several new hydrogen production facilities currently underway in Alberta, including one by Air Products and one by Dow Chemicals.

In the meantime, Caldwell said he hopes the demonstration house in Sherwood Park helps show people that residential heating with hydrogen is viable.

“Hydrogen is just getting started,” he said.

“It can look a little scary economically, or it can look scary even technically, but what we’re telling you is we can do it. We can build it today.”

Link: https://www.cbc.ca/news/canada/edmonton/a-hydrogen-heated-home-in-alberta-lays-ground-for-future-low-carbon-communities-1.7389591

Energy Security in Uncertain Times: How Canada and Taiwan Can Partner for Strategic Gain

Karen Hui: Research Scholar, Greater China, APF Canada

October 17, 2024

A renewable energy wind power plant on the coast of Penghu, Taiwan. | Photo: Getty Images

Taiwan’s heavy reliance on imported energy is a glaring national security risk, especially as tensions with China continue to rise. The island’s domestic energy production is negligible — currently, domestic sources account for only about three per cent of its energy consumption, a predicament made worse by a 2016 decision to phase out the use of nuclear power.

Taiwan depends on imported oil, coal, and natural gas, much of it shipped through sea lanes susceptible to disruption, especially the South China Sea and Taiwan Strait. China could readily exploit this Achilles’ heel by imposing a naval blockade; in 2022, Beijing conducted a military drill explicitly targeting the island’s oil-importing ports — Keelung and Kaohsiung. If Beijing were to target these ports or some other aspect of Taiwan’s import capacity, not only would the effects on Taiwan be devastating, effectively crippling its economy and its ability to defend itself, but it would also have much wider repercussions, given Taiwan’s centrality to global supply chains.

To reduce its energy insecurity, Taiwan is boosting its supply of renewables by diversifying its energy partnerships and bolstering its ability to produce more energy domestically.

Canada, as a global leader in clean energy, is well-positioned to support these ambitious goals while advancing its own climate ambitions and deepening its Indo-Pacific energy ties. Specifically, it can partner with Taiwan on developing capacity in two types of clean energy: offshore wind power and hydrogen, both of which are at the forefront of global decarbonization efforts.

Taiwan’s Precarious Energy Position

A significant portion of Taiwan’s current energy imports comes from politically volatile regions. For instance, nearly 60 per cent of its crude oil, the island’s primary energy source, originates in the Middle East, particularly Saudi Arabia (31.2%) and Kuwait (17.8%). The vulnerability of these shipments is amplified by having to transit through chokepoints in the Strait of Hormuz, which is facing a potential blockade. Taiwan’s coal imports, meanwhile, increasingly come from Russia — the share of its coal imports from Russia has tripled in the past decade to 12 per cent, a clear risk given Russia’s close ties with China. Moreover, Taiwan’s energy stockpiles are scant: it has a meagre 11 days’ worth of natural gas, 39 days of coal, and 146 days of oil. A maritime blockade by China could paralyze Taiwan’s economy within weeks.

Some of Taiwan’s domestic policy decisions have further eroded its energy autonomy. It was once a regional leader in nuclear power; in the mid-1980s, Taiwan generated roughly half of its electricity needs through its three nuclear power plants. However, high-profile nuclear accidents such as the 1986 Chernobyl disaster and a controversy over a local nuclear waste facility increased anti-nuclear sentiment on the island. Taiwan’s Democratic Progressive Party (DPP), formed in 1986, capitalized on this sentiment, helping the party distinguish itself from the incumbent Nationalist Party, or Kuomintang (KMT).

When the DDP regained power in 2016, it pursued a “nuclear-free homeland” policy of phasing out all nuclear reactors in Taiwan by 2025. Taiwan’s nuclear power generation now comes from just two plants that provide six per cent of its electricity. The nuclear-free policy has created an energy gap largely filled by imported liquefied natural gas (LNG), thereby deepening Taiwan’s import dependence.

Graphic Design: Chloe Fenemore

To fill the yawning energy gap, Taiwan’s government, under former president Tsai Ing-wen’s “Energy Transition Policy,” set an ambitious 2025 energy mix target of 20 per cent renewable energy, 30 per cent coal, and 50 per cent LNG. But as of 2023, renewable sources accounted for only around 9.5 per cent of electricity generation. The slow transition to renewables, combined with rising electricity demand, has led to power shortages and has renewed public support for nuclear energy. The pro-nuclear KMT, which has held a legislative majority since the January 2024 elections, is pushing to amend regulations to extend the operational lifespan of existing nuclear plants.

Taiwan’s new president, Lai Ching-te, doubled down on his predecessor’s 2016 plan to deploy 20 gigawatts (GW) of solar and over 6.7 GW of offshore wind through partnerships and domestic development policies. He pledged C$38 billion (900 billion New Taiwan dollars) by 2030 to explore advanced energy sources, creating an opening for a partnership with Canada.

Canada: A Hydrogen Powerhouse

Taiwan’s leaders have recognized hydrogen’s unique properties as a versatile, low-carbon energy carrier (see Box 1), viewing it as indispensable to its carbon neutrality goals. They have set a target for hydrogen to constitute up to 12 per cent of its total energy consumption by 2050 through a two-pronged strategy to build a robust hydrogen supply chain. In the short term, Taiwan aims to team up with major international hydrogen exporters to bridge the immediate supply gap while it builds its domestic production capacity. Concurrently, Taiwan is prioritizing technological self-reliance in hydrogen production, focusing on localizing key technologies, including carbon capture, hydrogen production processes, and efficient utilization methods.

Hydrogen: The ‘Fuel of the Future’

Hydrogen is not an energy source per se, but an energy carrier. Similar to a battery, it stores energy that can be released later for various applications. To use hydrogen as a fuel requires specific processes, with two common categories: blue hydrogen and green hydrogen.

Blue hydrogen is derived from natural gas, but the process releases significant amounts of carbon dioxide. However, the deployment of carbon capture and storage technology can mitigate these emissions.

Green hydrogen is produced through electrolysis, a process that splits water (H2O) into hydrogen and oxygen using renewable energy sources such as wind and solar power. Free from greenhouse gas emissions, this method is considered the more environmentally sustainable option. Once obtained, hydrogen can be burnt directly or mixed with oxygen in a fuel cell to produce electricity and heat, powering vehicles and other industrial processes.

Canada is well-placed to support these goals. The country ranks among the world’s top 10 hydrogen producers, boasting a projected annual capacity of 212,000 tonnes of green hydrogen in 2024, and is predicted to be the world’s fourth-largest producer by 2030, trailing only Australia (the largest hydrogen producer), the U.S, and Spain. According to its 2020 federal hydrogen strategy, Canada aspires to break into the top three clean hydrogen producers by 2050.

Beyond production capacity, Canada also has expertise in carbon capture, utilization, and storage (CCUS) technologies, which are crucial for mitigating the emissions associated with blue hydrogen production. As one of only three countries with large-scale CCUS facilities for both electricity generation and large-scale industrial applications, and holding 14 per cent of the world’s CCUS patents, Canada can offer transferable technologies for producing clean hydrogen at relatively low cost.

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Canadian companies have also gained worldwide recognition for their hydrogen fuel cell technology. Over half the world’s fuel cell buses run on Canadian fuel cell powertrains, showcasing two decades of innovation. Ballard Power Systems, a British Columbia-based pioneer in this field, exemplifies the potential for Canada-Taiwan collaboration. The company is currently in discussions with stakeholders in Taiwan for the island’s first domestically built hydrogen bus.

However, hydrogen is not without criticism. “Blue” hydrogen, produced from natural gas with carbon capture, is often presented as a climate-friendly option. However, independent research reveals that actual CO2 capture rates are closer to 12 per cent, significantly lower than industry claims of 80-90 per cent. Green hydrogen offers a truly clean alternative, emitting no CO2 during production. Nevertheless, its high production cost makes green hydrogen a niche product, representing less than one per cent of global production. Taiwan, with its limited renewable energy capacity, could face challenges in scaling up green hydrogen production, as it requires a substantial and consistent supply of renewable electricity.

Offshore Wind: Shared Opportunity and Expertise

In one area — wind power — Canada has already made significant inroads into Taiwan’s renewable energy sector, with investments totalling nearly C$3.2 billion over the past six years. Northland Power, for example, is leading Taiwan’s landmark 1-GW Hai Long offshore wind project, scheduled for completion in 2025. Costing C$9 billion, Hai Long will comprise 73 turbines capable of powering more than one million Taiwanese households and industrial facilities upon activation, making it one of the largest offshore wind facilities in Asia.

While Canada does not yet have any operational offshore wind farms, its extensive experience in onshore wind energy provides a strong foundation for Taiwan’s offshore development. Ranked ninth overall in installed capacity in 2022, Canada’s thriving onshore wind sector is among the world’s largest per capita. Since pioneering eight wind farms in 1998, onshore wind power has expanded over 40-fold to 337 farms nationwide. This growth is expected to continue, with capacity projected to reach 18.17 GW by 2024 and 27.75 GW by 2029. The core technologies of wind turbines, including blades, generators, and control systems, share similar design principles across both onshore and offshore applications, making Canada’s expertise readily applicable to Taiwan’s offshore wind ambition.

Furthermore, Canadian companies are developing innovative solutions for grid stability and reliability, which are crucial for integrating large-scale renewable energy sources such as offshore wind farms. NRStor Inc.’s fuel-free and unprecedented compressed air energy storage facility, designed for integration with wind farms, can store excess wind energy and then release it during periods of high demand, mitigating the intermittency challenges of renewable energy.
In the long run, as Taiwan undergoes an industrial transformation to develop a green supply chain—particularly to bolster its domestic production of offshore wind components — Canada’s energy expertise offers valuable opportunities for long-term collaboration and leveraging Taiwan’s advanced manufacturing capabilities.

Navigating Turbulence

Despite the significant potential for Canada-Taiwan co-operation, such a partnership could face both geopolitical and commercial challenges. For hydrogen trade, Canada faces strong competition from regional energy exporters such as Australia, which is investing heavily in scaling green hydrogen exports and benefits from lower transportation costs due to geographical proximity. Taiwan’s East Asian allies, Japan and South Korea, produce more than half of the world’s hydrogen fuel cells, representing attractive partnerships. Taiwan’s Lai has specifically expressed interest in collaborating with Japan on hydrogen initiatives.

Similarly, Taiwan’s burgeoning offshore wind sector is attracting significant global investment, with more than 1,500 such investments approved in just the first eight months of 2023. This rush to invest highlights the advantage held by competitors such as Denmark, Germany, and Japan, all of which have decades of experience in building offshore wind capacity, developing mature supply chains, training skilled labour forces, and implementing cost-competitive technologies.

Another hurdle for Canada is domestic. While Canada is a top energy producer and exporter, commercializing its energy trade has always been a challenge. For example, due to limited pipeline capacity to transport oil and gas from production areas to coastal ports, over 90 per cent of its energy exports go to the U.S.

Similar bottlenecks could hamper Canada’s commercialization of clean energy if the necessary infrastructure investments are not made. Existing pipelines, storage facilities, and vehicles are primarily designed for fossil fuels such as oil and gas. Transporting clean energy, particularly hydrogen, requires an overhaul of existing value chains, from production and storage to transportation and end-use applications, which necessitates substantial investments in new infrastructure and technologies. Canada could risk missing out on the burgeoning global clean energy market, including opportunities in Taiwan, if it falls short in upgrading and expanding its energy infrastructure.

Taiwan’s Energy Security: High Stakes

Taiwan’s energy security is inextricably linked to its continued economic prosperity and global technological leadership. The island’s key industries, particularly its semiconductor sector, are highly energy-intensive. As global demand for AI drives an insatiable need for advanced semiconductors, Taiwan’s ability to meet this demand hinges critically on addressing its energy challenges.

The stakes could not be higher, considering Taiwan currently accounts for over 60 per cent of global semiconductor production and produces over 90 per cent of the most advanced semiconductors used in critical technologies such as AI, 6G smartphones, and autonomous vehicles.

Canada, with its commitment to strengthening Indo-Pacific ties and its expertise in clean energy technologies, has a prime opportunity to deepen its collaboration with Taiwan in this crucial area. The recent signing of a Foreign Investment Promotion and Protection Arrangement, a benefit shared by only a few Western countries, not only grants Canadian energy investors a significant advantage in the Taiwanese market, but also holds symbolic importance, fostering confidence in both Canadian and Taiwanese industries to explore further collaboration. Furthermore, the Collaborative Framework on Supply Chain Resilience endorsed by both sides underscores their shared commitment to establishing secure and sustainable supply chains, further bolstering collaboration on clean fuels, renewable energy, and achieving net-zero emissions.

• Edited by Erin Williams, Senior Program Manager, Vina Nadjibulla, Vice-President Research & Strategy, and Ted Fraser, Senior Editor, APF Canada

Link: https://www.asiapacific.ca/publication/energy-security-uncertain-times-how-canada-and-taiwan-can

‘Hype’ meets reality as Canada’s plans to export hydrogen to Germany stall

Irene Galea

Includes clarification

Berlin

Published October 6, 2024Updated October 8, 2024

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The White Rose offshore oil production platform at the Argentia Port Authority in Placentia Bay, Newfoundland is the site of a proposed hydrogen production facility.GREG LOCKE/Greg Locke

Canada’s efforts to establish a green hydrogen supply chain with European countries are being delayed by a supply-demand mismatch and the largest wave of global inflation in decades, hurdles that will see it fail in its goal to export hydrogen to Germany by 2025.

Canada and Germany first signed a memorandum of understanding to develop a transatlantic green hydrogen corridor in 2022, as Germany looked to cut its dependence on fossil fuels imported from Russia and decarbonize its heavy industries. But just months before the end of the 2024, no green hydrogen facilities in Atlantic Canada have been completed, financial terms with German companies remain elusive and infrastructure in Europe is far from ready.

The sobering reality of the green hydrogen deal belies the challenge of balancing large-scale infrastructure investments and meagre current demand, a chicken-and-egg problem that’s common with nascent technologies – one that is delaying hydrogen timelines globally.

Without an attractive price and the necessary infrastructure, German offtakers – end users – aren’t ready to sign deals with Canadian firms. But offtake agreements are crucial to demonstrate project viability to investors; without them, Canadian producers, who have high upfront costs, can’t secure final investment decisions and start production. Meanwhile, German pipeline builders, which will finance construction with user fees, won’t start building until these deals are in place.

In a statement, Natural Resources Canada spokesperson Michael MacDonald said the 2025 goal was “ambitious.” The first shipments will be “close to the original 2025 target,” he said, without providing a specific year. Canadian projects are at a range of planning phases, with some having started construction, he added.

“The aim is still to have the first shipments happen in the mid-2020s, probably around 2026, 2027 or 2028,” said Jens Honnen, an energy policy adviser at German consultancy Adelphi. Mr. Honnen is leading the implementation of the German-Canadian energy partnership on behalf of the German Ministry for Economic Affairs and Climate Action.

There are about 10 promising production projects in the Atlantic provinces, but none have secured a final investment decision yet, Mr. Honnen said.

Export Development Canada, on behalf of the Government of Canada, has provided several direct loans to hydrogen companies in Atlantic Canada, including $166-million to EverWind Fuels in Nova Scotia, which expects to start construction early next year and start production by 2027, according to spokesperson Rudee Gaudet. EDC has also given a $128-million loan to World Energy GH2 in Newfoundland and Labrador, which has received provincial approval and is targeting a final investment decision by early 2025.

To bridge the gap between the price at which Canadian producers can sell and what the German market is willing to pay, in July Ottawa announced $300-million in funding for producers in Atlantic Canada, matched by about $300-million from Germany for offtakers. These funds will be distributed through an auction process after the European Commission has completed its review of the agreement.

That’s not the only money on the table. In August, Ottawa finalized the details of its green hydrogen investment tax credit, which provides producers rebates of 15 to 40 per cent on the purchase and installation of eligible equipment. The tax credit is estimated to cost $5.6-billion over five years and an additional $12.1-billion between 2028 and 2035.

And earlier this year, Germany finalized plans to finance the country’s €20-billion core hydrogen network. But with a fragmented pipeline industry, strong energy lobby and fractured political climate, new pipeline construction remains an arduous task that could delay the market.

German companies can’t commit to deals without pipelines, “even if there is funding,” said Stefan Kaufmann, a German member of parliament, former hydrogen commissioner and adviser to World Energy GH2.

“In some areas, no pipelines are planned before 2040, even if the companies are willing and able to buy hydrogen and convert their plants for it,” Mr. Kaufmann said.

Canada is not the only country behind schedule. In a report released earlier this year, the International Energy Agency (IEA) scaled back its expectations for the portion of renewable energy used to make hydrogen fuel between 2023 and 2038 by a third, in light of slow financial dealings and inflation. Only its China forecasts were unaffected.

Already, some major projects have been cancelled in response to inflation, interest rates and lack of demand. In late September, Shell and Equinor each scrapped plans for low-carbon hydrogen plants off Norway’s coast, with Equinor’s product earmarked for Germany in particular.

Germany intends to import as much as 70 per cent of its hydrogen by 2030, and Canada is one of several countries stepping up to meet that demand. But unlike suppliers such as Norway, Algeria and Egypt, which are planning to ship hydrogen in liquid form through pipelines, Canada’s hydrogen must first be converted to ammonia, a process that adds expense. And some experts have suggested that as much as 70 per cent of hydrogen’s contained energy could be lost in the process of transforming and transporting it.

“We’re seeing the difference between hype and reality,” Mr. Honnen said. “People are increasingly realizing that hydrogen, in the end, will not be a magic solution for every sector.”

Despite these challenges, hydrogen exports could help replace a coming drop in German demand for Canadian natural gas, which German diplomats have signalled in recent months.

In July, Karina Häuslmeier, deputy head of mission at the German embassy in Ottawa, told journalists that imports of gas to Germany are projected to drop by 30 per cent by the end of this decade and almost completely disappear by 2050. In late September, Germany’s special envoy for international climate policy, Jennifer Morgan, echoed that German and European demand would fall in the coming decades, in line with Europe’s 2045 net-zero goals.

Canada’s prices could catch up in the long term. In a scenario analysis for the year 2050, the Fraunhofer Institute, Europe’s leading applied research organization, forecast that Canada will be the cheapest location from which to import ammonia by ship.

Link: https://www.theglobeandmail.com/business/article-canada-germany-green-hydrogen-export/

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Canada and Germany had, and probably still have, such mighty ambitions for their hydrogen. Lauded as a can’t-miss step in the journey towards a clean energy utopia that would position Canada as a world leader in hydrogen, it is now cracking before it even really gets underway.

The goal of the deal was a good one. Germany wanted to reduce its reliance on vast amounts of Russian gas following the invasion of Ukraine in 2022. However, the nonstop delays and challenges of realizing a Canada-Germany hydrogen deal have exposed the folly of going all in on a non-developed energy source at the cost of an existing one. These problems make it very clear that both Canada and Germany have miscalculated by placing all their eggs in one basket for a long-term goal, instead of turning to alternatives like liquefied natural gas (LNG) in the short term.

The federal government announced that there was no “business case” for exporting LNG to Europe at the time.

Hydrogen has a good future as a clean, renewable source of energy, and that is undeniable. It is not going to happen overnight as it will require large-scale facilities for production and distribution, especially for green hydrogen. Canada and Germany signed their hydrogen agreement in 2022, aimed at jumpstarting Canadian hydrogen exports by 2025.

We are now sitting at the end of 2024, and the necessary infrastructure is not close to being completed. Facilities in Atlantic Canada intended to help supply the hydrogen are still in their planning stages, while German investment is falling behind.

As far as logistics go, hydrogen presents a huge challenge. To produce hydrogen, massive amounts of energy are needed, and the plan to use wind energy to power these facilities is very impractical. Hydrogen also must be converted into ammonia for shipment, which is another energy-intensive and expensive process. When ammonia does theoretically reach Germany, up to 80 percent of the original energy load is expected to have been lost. If such a loss could be captured in a photo, it could slot into the dictionary for the word “inefficient.”

Germany needs energy security given its divorce from Russian gas, and this demanded a far more immediate response in 2022. Rather than diversifying energy imports and turning to short-term solutions like Canadian LNG, Germany bet big on hydrogen, an infant technology in terms of commercial viability. Canada also jumped on the hydrogen train at a time when they should have been doubling down on LNG exports, a resource Canada has in abundance, and which, like most fossil fuels, can be stored and shipped with speed and efficiency.

While hydrogen has a future, refusing to embrace LNG as an export to Europe was a mistake when responding to Europe’s energy crisis. Both the United States and Qatar secured long-term contracts for LNG exports to Europe, while Canada has been absent from the table. Germany itself invested heavily in floating LNG terminals, highlighting how natural gas will remain a vital part of the European energy mix for years to come.

There is great irony in the fact that natural gas, while still emitting more than hydrogen, produces far fewer emissions than coal, which many European states have been forced to turn to in the wake of energy shortfalls. Germany is one of the world’s most prolific consumers of coal, and that has only intensified with the cutoff of Russian gas, undermining its ambitious climate goals. Canadian LNG should have played a greater role while hydrogen infrastructure was constructed in Canada, and investment capital was raised in Germany.

What the ongoing delays and inefficiencies in the Canada-Germany hydrogen deal demonstrate is a cautionary tale. While hydrogen has a key role to play in the future of global energy, it is not a silver bullet in the short term.

Link: https://energynow.ca/2024/10/canada-germany-hydrogen-hiccups-make-trudeaus-2022-no-business-case-for-lng-decision-look-even-worse/

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