Oxford Institute for Energy Studies’ Post

The Gas Transmission System Operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland, and Germany's Ontras have successfully completed a pre-feasibility study of the Nordic-Baltic Hydrogen Corridor (NBHC). This significant study, initiated in January 2024, defines the key conditions for implementing the NBHC, aimed at transporting renewable hydrogen between the six countries.  The study provides a comprehensive framework covering the technical, legal, organizational, and economic aspects necessary to realize the hydrogen corridor, which will play a crucial role in achieving the European Union's decarbonization goals with hydrogen produced and further supplied within the EU territory.   The Nordic and Baltic region provides significant renewable hydrogen potential identified within the pre-feasibility study at the amount of approx. 27.1 million tons (Mt) of renewable hydrogen production (based on combined onshore and offshore wind and solar) by 2040. This creates a large hydrogen market creation and export potential towards continental Europe which the NBHC aims to address.  By 2040, the corridor is projected to transport up to 2.7 million tons (Mt) of renewable hydrogen annually between the countries. The pre-feasibility study indicated that the NBHC can be one of the first operational cross-border hydrogen pipelines in Europe. The NBHC pipeline is currently planned to be 48 inches (1,200 mm) in diameter, with several compressor stations and spanning approximately 2,500 km.   You can read more from the press release.

Long-term outlook improvements for renewable hydrogen production in Europe The reduction in electrolyser capital costs (by almost 50 percent by 2040, according to NREL or even more, according to IEA or IRENA) would help narrow the cost gap between renewable and fossil fuel-derived hydrogen production. But apart from the capital expenditures, the price of electricity is a crucial factor contributing to the overall cost of hydrogen production. And as capital costs decrease over time, the share of electricity costs in total renewable hydrogen production costs becomes more significant, ranging between 60 and 90 percent of the Levelized Cost of Hydrogen (LCOH) in 2040, depending on the electrolyser utilisation rates, in Hitachi Energy’s H2-2023 European country forecasts. Hitachi Energy’s Power Reference Case forecast results show the expected utilisation of flexible electrolysers (Proton Exchange Membrane technology-based) connected to the grid and operating within the constraints of the Renewable Hydrogen Delegated Act regulation. The higher the electrolyser utilisation, the more renewable hydrogen producers can amortise their electrolyser capex and fixed operating and maintenance costs and produce renewable hydrogen at a competitive price. A key driver for the increase in utilisation is the availability of low-marginal cost electricity from renewables or nuclear (whilst nuclear are not an RFNBO-compliant source of green hydrogen). While the short-term utilisation is reduced in our latest forecast due to delays in renewable capacity additions caused by the economic crisis, the outlook improves from 2027 onwards, as shown in the chart below, reflecting the average utilisation across Europe. We observe a 6% increase in the European annual average utilisation of electrolysers in 2030 and 2040, supported by increased wind and solar PV capacity projections across multiple European countries in Hitachi Energy’s H2-2023 forecast (by absorbing excess generation, flexible electrolysers reduce the renewables’ price cannibalisation and improve the economic outlook for wind and solar projects). If you would like to know more about our electricity prices and LCOH forecast, please contact us: => https://lnkd.in/dJHMCnS2 => You may also contact my colleagues Pankaj Thakkar and Majd Badawi, who will be at the 'Hyvolution A World of Hydrogen' event in Paris next week, if you would like to meet in person. #Europe #EU #Renewables #CleanEnergy #EnergyPrices #EnergyTransition #GreenEnergyFuture #Hydrogen #PowerGeneration #WholesalePower #GreenEnergyFuture #CleanPower #EnergyPolicy #EnergyReform

For development of LNG/CNG, hydrogen, and other eFuels from renewable energy (nuclear, wind, solar, tidal, geothermal etc.), origin of CO2 now becomes the critical chain of raw material procurement. The key take-away from the following article are as follows; - "The time limitations on CO2 from Specified Industrial Sources being an eligible Avoided CO2 Emission will also impact its long-term viability as a source of CO2 for e-fuel production." - "DAC technology is also more power-intensive for each unit of CO2 captured, which may need to be considered in the overall GHG savings calculation and may limit such technology to locations with availability of hydro or geothermal power." - "...Combustion of municipal waste to produce electricity in facilities with a total thermal rated input exceeding 20 MW ... "... The legislative rationale for this approach, as set out in the EU ETS, is to enable the Commission to consider the reported data by 31 July 2026 to ascertain whether the scope of the EU ETS should be expanded to cover incineration of municipal waste from 1 January 2028 and whether member states should be able to “opt out” until 31 December 2030..." "...In the event that the EU ETS is so expanded, and without contemplating any other changes to the EU ETS or RED III as a result, all CO2 emissions from the combustion of municipal solid waste in the EU in facilities of this size would be “accounted for” under the EU ETS regime ... " https://lnkd.in/gbCvNFvf #oilgas #energy #technology #money

What would Scottish thermodynamic giants have thought of our hydrogen future? I recently received a letter from Stuart Mackay, Hydrogen Head, Scottish Government. It was in response to an ask of why ScoGov signed a COP28 agreement that hydrogen for building heat was a poor use yet Scotland’s Energy Minister is supporting the Fife H100 hydrogen trial. The response made me none the wiser. I used to write opeds for Energy Voice and the recent exchange with the Head of Hydrogen Policy reminded me of this piece – 3 years ago to the date: (https://lnkd.in/eyFqBGMZ) "I watched a Scottish Energy Forum’s webinar [Feb 2021] – The Future of Hydrogen in Scotland – presented by Stuart Mckay, the Scottish Government’s head of hydrogen policy. My emotions ranged from despair to anger at what I was seeing and hearing. I am a fiercely proud Scotsman, particularly regarding Scotland’s scientific contribution to the modern world, and after the webinar my mind drifted to what our Scottish thermodynamic giants – Rankine, Kelvin, Maxwell and Watt — would have thought. The presentation started and finished with this [attached image]. I imagined our scientists thinking: “Let me get this straight, we have renewable electricity that we convert to hydrogen, the hydrogen is processed, compressed and used for rail, heavy haulage, and domestic and industrial heating. Surplus hydrogen is also cryogenically frozen, stored and shipped to international destinations. But that is hugely thermodynamically inefficient. Burning gas is around four to five times less efficient than using the renewable electricity in a heat pump (Rankine being particularly vociferous here). Batteries are two to three times more energy efficient than fuel cells and developments will overcome current energy density concerns for heavy haulage. Yes, and bio-fuels too. Didn’t Network Rail state that for rail decarbonisation the solution will be mostly from extending electrification? Use hydrogen for electricity generation. Did I hear that correctly? Why not simply use the renewable electricity? He said that surplus renewables can be used to produce hydrogen that can be stored and used for times of renewable curtailment. But that will return less than half of the original renewable energy. Have they thought about other higher efficiency storage options and renewable generation that are not weather dependent, such as hydro, thermal, batteries, tidal, compressed air, geothermal, graviticity, abated fossil electricity, bio-fuels, BECCS? He said Germany wants molecules not electricity – but wouldn’t it make much more sense to sell them our surplus electricity and let them make their own molecules? This clearly doesn’t make any thermodynamic sense? It doesn’t seem to make commercial sense either. I know who we should talk to.” Part 2 – Rankine, Kelvin, Maxwell and Watt arrange a meeting with Adam Smith.

In 1874, Jules Verne envisioned a world where water would serve as fuel, unlocking an endless supply of heat and light. Fast forward 150 years, and we stand on the cusp of turning this sci-fi dream into reality. However, the journey towards #renewablehydrogen production through electrolysis encounters its share of challenges. Let's dive into a brief overview of these hurdles:   🌐 Regulation: 2023 witnessed crucial regulatory updates globally, signaling a commitment to renewable hydrogen as an energy vector. Despite this, substantial investments—like the €210 billion needed in Europe for RePowerEU by the European Commission—underscore the financial commitment required for transitioning to renewable hydrogen at scale.   📈 Offtaker: While, according to Hydrogen Council, the H2 project pipeline has surged by 35% since January 2023, Bloomberg states that only 10% of announced projects have secured offtakers for their hydrogen by 2030. Convincing "hard-to-abate" industries to shift from fossil fuels to renewable hydrogen remains a pivotal challenge, hinging on narrowing cost differentials over time.   ⚡ #RenewablePower: For renewable hydrogen to truly be green, it must synchronize its production with renewable energy availability. Achieving an hourly match between hydrogen production and renewable energy generation is a complex task, requiring a renewable energy source capable of keeping up with hydrogen production demands. Last week International Energy Agency (IEA) released the "Renewables 2023" report, and stated renewable power capacity for hydrogen production is forecast to grow by 45 GW between 2023 and 2028. Also, according to Bloomberg, powering H2 production with combination of different renewable power sources would be the way to go. For more info, check out the latest post from Martin Tengler: https://lnkd.in/dUWSsNZS   💸 Electrolizer Costs: Following electricity costs, electrolizers represent a significant expense in renewable hydrogen projects, aggravated by the need for periodic stack replacements due to degradation. As stated by the Center on Global Energy Policy, economies of scale are key to driving down electrolizer costs, and future advancements are expected to reduce their proportion in the overall project cost breakdown.   As we look to the future of renewable hydrogen in 2024, additional challenges may emerge. What other hurdles would you add? What aspects do you believe are crucial in overcoming these challenges? Stay tuned for updates and insights into the evolving landscape of renewable hydrogen in 2024! 🌍🔍 #greenhydrogen #decarbonization

Hydrogen energy has been gaining more and more attention, particularly because of its potential to assist the oil and gas industry in transitioning away from traditional sources of energy. This brief but informative guide explains the mechanics of producing green hydrogen and the opportunities and challenges that it presents. Read on to get up to speed. #GreenHydrogen #HydrogenEnergy #OilandGas #OilandGasIndustry #NetZero

The International Energy Agency (IEA) has released in last Sep. its highly anticipated Global Hydrogen Review 2023. The review provides a comprehensive overview of hydrogen production, demand, infrastructure development, policy initiatives, investments, and innovation worldwide. One of the key takeaways from the report is the growing global demand for low-emission hydrogen. While hydrogen use is increasing, most of the demand still comes from traditional sectors like refining and the chemical industry, relying on hydrogen produced from fossil fuels. To meet climate goals, there is an urgent need to transition to low-emission hydrogen and expand its use in heavy industry and long-distance transport. The report also highlights the role of the Clean Energy Ministerial Hydrogen Initiative and the Hydrogen Energy Ministerial Meeting in Japan in advancing discussions and strategies for hydrogen adoption. Decision-makers and stakeholders in the energy sector will find this review valuable for fine-tuning their investment strategies and facilitating the deployment of hydrogen technologies. Key Findings from the Global Hydrogen Review 2023: - Growing Demand: Global hydrogen use is increasing, but it remains concentrated in traditional sectors like refining and the chemical industry, predominantly relying on hydrogen produced from fossil fuels. -Low-Emission Hydrogen: To meet climate goals, there is an urgent need to shift hydrogen use in existing applications to low-emission hydrogen and expand its use in heavy industry and long-distance transport. -Policy and Investment: The report emphasizes the importance of policies that attract investment and facilitate the deployment of hydrogen technologies. Governments and industry need to collaborate to create a supportive regulatory framework and provide financial incentives. -Infrastructure Development: The development of robust hydrogen infrastructure, including production, transportation, storage, and distribution networks, is crucial to enable the widespread adoption of hydrogen across various sectors. -Innovation and Research: Continued innovation and research are essential to drive down costs, improve efficiency, and advance hydrogen technologies. Public-private partnerships and international collaborations play a vital role in promoting innovation in the hydrogen sector.

As we transition from fossil fuels to cleaner and renewable energy sources, Hydrogen may flow alongside Natural Gas throughout the extensive Natural Gas Pipeline networks. Learn more https://lnkd.in/e34m3f8s #energy #etrm #ctrm #gas

#Greenhydrogen will make up more than a quarter of China's #H2 supply by 2035: #Sinopec State-owned Chinese #oilandgas company predicts that year will see almost 12 million tonnes a year of renewable #hydrogen production #hydrogennews #hydrogenenergy #hydrogeneconomy #china #hydrogenproduction #hydrogentechnology #electrolyser #cleanhydrogen #renewables #renewableenergy https://lnkd.in/ef74i7vj

The race to establish a self-sufficient green hydrogen* manufacturing sector is off! And Europe, which has been making a big push to lead, is falling behind. Once again China dominates in the manufacturing of electrolyzers with a 40% global market share; the EU is slipping in building installed capacity, while the U.S. is a distant third. Green hydrogen requires substantial energy for this process, and in order to be truly clean, needs to be sourced from renewable technologies like wind and solar. But make note: this is the energy industry that will dominate the second half of the 21st century. *green hydrogen is made by electrolyzers, industrial equipment that splits water (good ol' H2O) into hydrogen and oxygen. The hydrogen gets stored as a liquid (at very cold temperatures) or as a compressed gas, and can be readily available at your corner gas station -- hence the particular interest of the oil & gas sector in this technology. https://lnkd.in/g4vu7_QX #greenhydrogen #cleanenergy #cleanenergytransition #sinovoltaics