by eaugsten | Jan 17, 2025 | Hydrogen economy, Market, Networks, News, Policy
Gas network operators continue to count on political support
In October 2024, the German Federal Network Agency approved the plans for the hydrogen core network. Hydrogen is expected to flow through some sections as early as 2025. Despite turbulent times, the network operators remain confident about the new infrastructure.
The approval of the H2 core network should create planning security for storage and network operators as well as hydrogen users. This was stated by the Federal Minister for Economic Affairs and Climate Protection Robert Habeck on October 22, 2024.
Just 15 days later, the Ampel Coalition leading the federal government collapsed. The word “planning security” seemed like a bad joke. In the meantime, some things are falling into place and even some important legislative amendments could still make it through the German Parliament.
No time for worries
The prospective operators of the H2 core network are largely unfazed by the fuss. They are optimistic that they will continue to receive political support. This is certainly partly due to the fact that the advanced status of the project leaves no time for doubt. The first hydrogen pipelines are due to go into operation as early as 2025. And conversely, every meter of hydrogen pipeline built increases the pressure on politicians to continue.
In addition, the hearing on the Hydrogen Acceleration Act showed that almost all parties support hydrogen as a raw material – with the exception of the AfD. “The current political situation has no influence on these decisions,” says Sebastian Luther from Corporate Communications at Ontras Gastransport, which is already working on the conversion of a pipeline route. “I don’t expect the situation for the hydrogen core network to deteriorate if there is a change of government. It might even get better with a CDU-led government,” says an employee of another grid company. He hopes that the pipeline negotiations with Norway might even be resumed.
And the German Association of Energy and Water Industries (BDEW) summarizes: “The implementation of the hydrogen core network is now underway. The application has been approved and the companies can start implementing it.”
Key data
The H2 core grid is to gradually go into operation by 2032 and have a feed-in capacity of 101 GW. The variant approved by the Federal Network Agency in October is slightly smaller than the application: 9,040 instead of 9,666 km of lines, 18.9 instead of 19.8 billion euros.
Hydrogen for refinery
Three network operators who want to complete the first sections as early as 2025 are Ontras Gastransport, Gascade and the consortium around the GET H2 Nukleus. Ontras plans to connect the Total Energies refinery in central Germany first. “We continue to assume that we will connect the customer in the real-world laboratory for the energy transition Energiepark Bad Lauchstädt to the emerging hydrogen core network as planned in 2025 – making it the first in the country,” says Ontras.
According to the press release, the entire supply chain has already been contractually agreed. The ground-breaking ceremony for the 25‑km section from Bad Lauchstädt to Leuna took place in summer 2023, followed by the installation of the pig lock a few months later (Fig. 1). The section is part of the Bad Lauchstädt Energy Park, which is being funded by the BMWK as a real-world laboratory for the energy transition. In the pilot project, the gas network operator wants to gain experience that will save time and work when converting other gas pipelines, explains Gunar Schmidt, Ontras Managing Director of Operations and Safety. As part of the H2 core network, Ontras intends to create a total of around 600 km of hydrogen transport pipelines in central Germany.
From the Baltic Sea to Sachsen-Anhalt
Gascade Gastransport is also in the starting blocks. “We have been working on the planning for the implementation of the H2 transportation projects for some time. Now we can actually get started – with conversions of current natural gas pipelines and new construction projects,” said Managing Director Christoph von dem Bussche in October. Gascade primarily wants to build import pipelines in the North Sea and Baltic Sea regions. The first pipeline project entitled “Flow – making hydrogen happen” should be able to transport large quantities of hydrogen from Lubmin on the Baltic coast to Bobbau, a district of Bitterfeld-Wolfen in Sachsen-Anhalt, by 2025.
The Lubmin-based electrolyzer operator HH2E, of all companies, has just made headlines with its insolvency (see p. 7). However, this does not affect the pipeline project, as Gascade explains. On the one hand, the company is hoping for a new investor and, on the other, there are other producers who want to feed into the pipeline.
Pipelines in the Baltic Sea region and southwest Europe are to follow in subsequent years, as well as the AquaDuctus offshore pipeline, which will bring hydrogen from a North Sea wind farm with a capacity of 1 GW to land.
Hydrogen in the West
Construction work on the first core network section, the GET H2 Nukleus project, is also underway in the Ruhr region. The overall system with many partners involved is scheduled to go into operation as early as mid-2025. It includes a large electrolyzer (RWE), a conversion of existing pipelines (Nowega and OGE) and a partially new pipeline route (Nowega, Evonik). Construction of several pipelines has already begun in 2023.
Investment security required
A grid operator would secure the construction of a normal new pipeline with watertight contracts with customers. However, for a complete grid for a new energy source, the sums involved and the uncertainties are too great. Many grid operators say that the H2 core grid is a historic task for them. Even for large corporations, the investments are at least very unusual, if not unique.
And so, despite being financed by the private sector, state aid is still needed. In addition to the IPCEI projects (Important Projects of Common European Interest), which receive large subsidies from the federal and state governments with the explicit blessing of the EU’s state aid watchdogs, the assistance consists primarily of government backing for amortization via the grid fees. The Federal Network Agency is to set the standardized nationwide ramp-up grid fee at the start, so that the first customers are not deterred.
The high level of investment at the beginning and the delay in income has resulted in a financial gap. The federal government wants to bridge this gap with a so-called amortization account. Initially, money is to flow from this account to the network operators, and later back again – at least that is the plan of the Ampel Coalition. “Offsetting costs via the amortization account allows us to invest in the core network without having to have all the deals clear,” says Dr. Dirk Flandrich, Head of the “Flow – making hydrogen happen” program at Gascade.
The northern German grid operator Hamburger Energienetze, which wants to supply several industrial companies in the port area with hydrogen, has expressed similar views. The prospect of uniform grid fees now gives the grid operators financial security, they say.
So the foundations are there. However, neither the H2 ramp-up nor the core grid are in the bag. For the amortization account to fill up again as planned, the conditions must also be right for H2 producers, storage companies and consumers. They all have to come together to conclude long-term contracts.
And this in turn requires a stable political framework, both in Germany and in Europe. The expansion of renewable energies, the definition of green or low-carbon hydrogen and the EU’s gas package are just a few of the keywords. While the grid operators are working on their core grid construction sites, there are therefore also plenty of political construction sites for the German government and the EU. Tackling these will be the task of the new EU Commission and the future German government.
Author: Eva Augsten
by Ole Raubner-Wagner | Dec 13, 2024 | Development, hydrogen development, Hydrogen economy, Market, News
Recycling as a Key Factor for Resource Efficiency
The hydrogen economy as a crucial technology for replacing fossil resources is subject to high expectations in terms of sustainability. Hardly any other growth area is the subject of such controversial discussions about how ‘green’ it really is. In the context of resources, the hydrogen economy however is about more than just ideological considerations. Electrolysers and fuel cells contain rare and valuable raw materials, such as the precious metals iridium and platinum. From economic and strategic perspectives, they must be recovered after the end of their life. Recycling is a must—and should be considered from the outset, not only when the end of life of the plants and vehicles is reached. But where does the circular economy stand today in the context of hydrogen? We provide an overview using the example of PEM technology.
Many valuable raw materials go into the stacks of electrolysers and fuel cells. When considering the weight, one could almost overlook the value drivers. It is only when looking at the value of the raw material components of a PEM stack (Proton-Exchange-Membrane) that it becomes clear that the focus is primarily on the CCM (Catalyst Coated Membrane). It consists of an ionomer that is coated with precious metal.
Valuable and Rare: Raw Materials in the Hydrogen Economy
Even though the composition of the stacks is constantly being optimized and therefore these 2016 data no longer completely correspond to reality, the precious metals on the membrane remain the value driver.
Precious metals are not only valuable, some of them are also extremely rare. This is particularly true for iridium, which is indispensable in PEM electrolysis. In May 2022, the Hydrogen Council [1] spoke of announced 175 gigawatts of electrolyzer capacity by 2030. Since then, the goals have become even more ambitious. According to experts’ estimates, 40 percent of this is expected to be realized with PEM technology. Based on the average amounts of iridium currently used per gigawatt, this would require around 28 tons of iridium—more than will be available during the same period.
The experts at the precious metal specialist Heraeus Precious Metals in Hanau, whose core business includes trading, products, and recycling of precious metals, estimate that, out of the very low annual production quantities of iridium, a maximum of cumulative twelve tons can be used for the hydrogen economy by 2030.
Circular Economy as a Lever for Growth
The industry is primarily addressing this challenge with technological innovations. The experts at Heraeus are doing this with catalysts that require significantly less iridium, reducing the required amount to seven tons by 2030. This however clearly demonstrates how important the establishment of a circular economy for raw materials will be for further growth, as an increase in production quantities of iridium is not considered realistic from the experts’ perspective.
In addition to considerations regarding raw material supply, the value of precious metals naturally plays a significant role. Typically, the recovery of the installed precious metals is part of the plan from the outset because they represent a significant share of the investment costs (CapEx). Reuse reduces the total cost of ownership by supplying future systems. Furthermore, the CO2 footprint of recycled precious metals is up to 98 percent lower compared to primary materials [2].
Recycling of non-precious metal components, such as titanium, steel, or aluminum, also contributes to reducing the total cost of ownership, even if the material value is lower. A higher value is created when it is possible to reuse them, but many questions still remain unanswered.
Establishment of Structures and Processes
To establish a sustainable and efficient hydrogen economy, efficient and economically viable structures and processes are needed. In principle, the recycling value chain can be divided into four major areas: return structure, processing & pre-treatment, recycling & refining, reutilization. The benefits of the circular economy can only unfold when all four components of the value chain are effectively designed, organized, and implemented.
Various Steps of a Circular Economy
Step 1: Return Structure
The return structure includes the processes and infrastructure required to return electrolysers and fuel cells at the end of their life cycle. This involves collection, logistics, and also the tracking of materials. It is essential to develop a clear concept here before the materials enter circulation. Once they are lost sight of, it becomes difficult to ensure widespread return.
A central issue here is the uncertainty about how the recycling infrastructure will develop in the future. Who should be responsible and accountable for the return? The manufacturer? The operator? The recycler? To avoid missing the opportunity to regulate in a timely manner, close collaboration along the entire value chain and supporting regulatory requirements are needed.
Step 2: Processing and Pre-Treatment
Once the stacks have been successfully collected, the next step is to process and pre-treat them. This is essential because a good yield for the materials can only be achieved if they are as homogeneous as possible before recycling.
Science and industry are still searching for the best method for the efficient and scalable separation of materials. One option is disassembly. In this approach, the stack is dismantled and broken down into components, specifically those for which processes already exist. For instance, the MEA (Membrane Electrode Assembly) has been processed in existing recycling and refining processes at Heraeus Precious Metals for more than ten years.
However, this approach is associated with a high procedural effort and is limited in terms of scale effects. Therefore, methods for automated or semi-automated disassembly are being considered, similar to those already widely used in traction batteries from electric vehicles.
In particular, for fuel cells, there is also the option to crush them as a whole using industrial shredding facilities. However, the resulting material mixture must then be separated in downstream separation and sorting processes, requiring careful attention. The by far most valuable components are the fragments which are destined for precious metal recycling. When separating and sorting these, certain impurities that would lead to more complex treatment or poor yields should be removed.
Therefore, pre-treatment and subsequent recycling steps are ideally carried out by a single source.
Challenges for Pre-Treatment
Overall, many questions remain unanswered. A major challenge is posed by the different designs of the stacks, particularly with regard to the automation mentioned. Agreement on standards and consideration of the entire life cycle, including recycling, already in the design, would significantly contribute to the solution. For example, a screw connection is easier to detach than an adhesive surface or a weld seam. Manufacturers, policymakers, and associations should address this issue.
Furthermore, the different components enter very different post-processing streams with very different requirements. With precious metals and membranes, (raw) materials are recovered, while for other components such as bipolar plates, a possible reuse of the component itself is on the table. Such functional recycling goes far beyond material value. Currently, it is not yet clear what is possible and economically feasible. This also leads to a lack of requirements for reutilization, which could serve to adjust the disassembly processes so that the components are not damaged and reuse remains realistic.
Step 3: Recycling & Refining
For precious metals, well-established processes have existed for decades to recover the valuable material. Initially, the material is thermally treated to remove non-metallic residues and the water. Subsequently, the material is carefully homogenized, and a representative sample for material analysis is drawn before further processing. This so-called sample serves to analytically determine the precious metal content of the material and forms the basis for the calculation of the amount of precious metal that will be compensated. In hydrometallurgy and refining, the precious metal is then recovered and highly purified.
Materials from the hydrogen economy are some of the more demanding materials in precious metal recycling. Iridium is chemically challenging, and the thermal treatment of fluorinated membranes requires special care in the safe post-treatment of emissions. Precious metal specialist Heraeus Precious Metals is one of the few companies that can efficiently process these material streams for its customers. Iridium has been processed on a ton scale for years, and significant investments have been made in the necessary facilities for the hydrogen economy.
Platinum-containing material after incineration
Special Processes for Special Materials
For the ionomer membranes, there is another possibility. Ionomers are special fluoropolymers that, due to their unique properties, significantly contribute to the functionality of fuel cells and PEM electrolyzers. They are complex to manufacture and therefore expensive. In addition, their handling after end-of-life is currently the subject of controversial discussions in the EU due to a proposal to regulate PFAS (per- and polyfluoroalkyl substances). Therefore, increased efforts are being made to find solutions for their reutilization. Work is underway to chemically separate the ionomers from the precious metals and process them separately.
To develop cycles for such demanding materials as fluoropolymers, collaboration among manufacturers, users, and recyclers is necessary, as demonstrated in the H2Circ funding project of the US Department of Energy: In this consortium, companies along the entire value chain work on the recovery of materials, especially ionomers. [3]
Step 4: Reutilization
After the recovery process is completed, the material is ready to be reused. This is not a problem for precious metals, as recycling provides high-purity materials according to internationally certified standards, which do not differ in their properties from primary materials.
In contrast, for ionomers, there are neither established recycling processes nor defined requirements for the recyclate. Unlike with precious metals, the recycled material here differs from that produced in primary manufacturing. Therefore, it requires not only the development of recovery processes, but also applications and markets for consumption.
Similar to the functional reuse of components, the ecosystem faces a chicken-and-egg problem here: Before the requirements for the use of the recycled material are clarified, the recycling processes cannot be meaningfully developed, also with regard to a possible business model. This is because only when the value of the output is clear can the costs of the process be calculated to determine if they will be worthwhile.
Setting the Stage for the Future
The Hanau-based precious metal company, Heraeus Precious Metals, systematically employs collaboration. For example, the company works with manufacturers of fluoropolymers to establish closed cycles for ionomers. Heraeus begins considering the value chain, including recycling, in the early stages of development together with its customers. It is also working on developing holistic solutions in public projects such as the aforementioned Department of Energy research project.
Even though the recycling of fuel cells and electrolyzers is currently limited in volume, its importance for the development of the hydrogen economy and the promotion of a circular economy should not be underestimated. Experts anticipate significant amounts of precious metals from the hydrogen economy by the end of this decade. It is important to take advantage of this window of opportunity to develop efficient processes across all parts of the value chain and to build corresponding recycling capacities.
Autoren: Ole Raubner-Wagner, Gisela Mainberger, both Heraeus Precious Metals GmbH & Co. KG, Hanau
Sources:
- Hydrogen Council, Hydrogen Insights 2023 [L]
- International Platinum Group Metals Association e.V, 2022, The Life Cycle Assessment of Platinum Group Metals (PGMs), [L]
- American Institute of Chemical Engineers, 2024, AIChE Selected by DOE to Lead New Hydrogen Electrolyzer and Fuel Cell Recycling Consortium, [L]
- Stahl et al., Ableitung von Recycling- und Umweltanforderungen und Strategien zur Vermeidung von Versorgungsrisiken bei innovativen Energiespeichern, Umweltbundesamt, 2016 [L]
- Kalkulation durch Heraeus Precios Metals, basierend auf Materialanteilen basierend auf H. Stahl et al., Ableitung von Recycling- und Umweltanforderungen und Strategien zur Vermeidung von Versorgungsrisiken bei innovativen Energiespeichern, Umweltbundesamt, 2016
by Julia Glapińska | Nov 13, 2024 | Europe, Hydrogen economy
Two German universities in Oldenburg and Hanover and the Polish training company Studium Wodoru are proving that cross-border training for pioneers in the green hydrogen industry makes sense. The Polish edition of this program has just started for the second time.
Studium Wodoru is a Polish training and research company. Based on the many years of experience of its founders, it deals with education and consulting. The company, together with the University of Oldenburg, runs a certified study program “Hydrogen for TOP Managers”. It is a sister program of the German edition „Wasserstoff für Fach- und Führungskräfte“ (“Hydrogen for Specialists and Managers”), which has been successfully implemented in Oldenburg for several years.
The advanced training program „Wasserstoff für Fach- und Führungskräfte“ won third place at the NordWest Awards 2024 of the Northwest Metropolitan Region.
Thanks to the efforts of Studium Wodoru, the German management training program was adapted to the Polish market. The reputation and prestige of this program led to employees of companies from the eastern part of Germany, who are either already present in Poland or are planning to expand into the Polish market, asking about the opportunity to participate. Representatives of one of the Swiss companies are also taking part in the second edition.
Campus Gut am See
The program is held at the “Gut am See” campus in Görlitz. The location is no coincidence. The border town of Görlitz (between Poland and Germany) makes it easier for interested people on the Polish side to participate. On the other hand, German professors, lecturers and industry experts come to the courses. You could say they meet halfway.
However, the language barrier was a problem, as practically none of the participants knew enough German to learn such difficult material. Therefore, the organizers decided to offer the option of simultaneous translation, i.e. the lectures of German professors are continuously translated.
Each participant also receives teaching materials in Polish. However, informal conversations were mainly held in English. For the lessons, thanks to the kindness of the owners, a campus was created for the duration of the meetings at the “Gut am See” castle complex (a disused brown coal mining area) located directly on Lake Berzdorf. The unique atmosphere and the idyllic location directly on the lake always create favorable learning conditions and promote rest and regeneration.
Trend – green hydrogen
The trend towards green hydrogen began in western Germany a few years ago. The “Hydrogen for Specialists and Managers” program has been successfully implemented in Oldenburg since then. This trend is now also emerging in eastern Germany and is continuing further east.
Experts of Studium Wodoru are trying to stay close to what is happening in Germany and at the same time closely monitoring the changes in Poland. Germany already has a very high level of hydrogen know-how, which is reflected, among other things, in the large number of hydrogen installations. The course is now intended to provide an opportunity to train qualified Polish personnel.
The information and knowledge transfer has so far mainly taken place in one direction (east), but some ideas and suggestions from Polish lessons are also being incorporated into the German edition.
Keep one’s ear to the ground
Studium Wodoru employees actively participate in trade fairs, conferences and important events, such as the Hannover Messe 2024 ((s. Hzwei-Heft Juli 2024). Studium Wodoru is a member of the German-Polish Wind Energy Club, the Polish-German Chamber of Industry and Commerce and the Europa Forum association, which, like the Polish-German Chamber of Industry and Commerce is a platform for establishing contacts for companies from Poland and Germany.
Representatives of the H2-Studium also took part in this year’s Hydrogen Forum at the Siemens Innovation Campus in Görlitz. The company also cooperates with the QLEE Association – Qualification Association in Lusatia for Renewable Energies, which has been supporting the energy transition for several years. Studium Wodoru is in constant contact with representatives of local authorities and the German consulate in Wroclaw. The European city of Görlitz/Zgorzelec is the sponsorship of the Polish edition of the “Hydrogen for TOP Managers” program.
What do hydrogen studies offer?
With the support of mentors, students gain the ability to evaluate projects from different perspectives: from the perspective of a designer, an investor and a user. The courses provide know-how in the field of technology, legal issues and financing. After completing the program, participants have expert knowledge in the planning and implementation of hydrogen projects.
It is important that during the classes each participant receives an entry ticket to the H2 network and valuable contacts, not only in Poland or Germany. The course ends with an exam and the receipt of a prestigious certificate from the University of Oldenburg (Certificate of Advanced Studies).
Training course conducted by EMD International A/S
Studium Wodoru invited the best experts, including practitioners, to collaborate. For example, EMD International A/S from Denmark, whose representative conducted courses on their software for planning hydrogen plants. During the exercises, the students carried out calculations for a group project and individual work, among other things. The course received very high marks from the students, who also received a monthly license to use the software after completing the training.
Networking
Networking is an important part of the course. The Alumni Forum takes place once a year in Oldenburg. During the course, each participant is given access to the e-learning platform, a database of graduates of the hydrogen course. As soon as you say “good morning”, you will also be included in this huge network of H2 contacts.
Some representatives of Studium Wodoru Team are already making plans for the future and want to address their offer to interested parties from the Czech Republic and Ukraine, among others.
Lectures, case studies and individual projects
The “Hydrogen for TOP Managers” program is aimed at managers of various companies and institutions who understand the need for a rapid energy transition. Specialized knowledge in the field of future technologies is increasingly in demand in consulting and law firms, banks and insurance companies. The need for a qualified team is particularly evident in transport, energy and industrial companies – in the automotive, chemical and steel industries.
The study program is divided into three sequences. In individual meetings, topics such as how fuel cells work, the political framework and the stakeholder environment are discussed. There are also topics related to hydrogen technology, business models and the legal framework.
Sequence I – Hydrogen functions, policy framework and stakeholder environment
- Potential functions of hydrogen in the decarbonisation of the energy system.
- The role of EU policy and Member Countries in the market introduction of hydrogen.
- Hydrogen strategy and green hydrogen market in Germany.
- Current obstacles to the widespread use of hydrogen.
- Measures at the policy level to promote hydrogen across the board.
- A look at the landscape of market participants.
- Sources of investment financing, KPO, European and national funds.
- Administrative decisions in the process of developing hydrogen projects.
Sequence II – Hydrogen technology
- Hydrogen – “Facts, facts, facts…!”
- Hydrogen production – “Every beginning is…?” Electricity is the best!”
- Types of electrolyzers, technology, supplier overview, market trends.
- What does a green hydrogen plant consist of, selection of components.
- Hydrogen storage – “And please pack…!”
- Hydrogen transport – “We are looking for elements with which we could travel…!”
- Applications of hydrogen – fire and flame. And much more…!
- Green hydrogen in transport.
- Hydrogen in heating.
- Hydrogen and green ammonia.
- Synthetic fuels Power2Fuel.
- Green hydrogen from biomass.
- Use of various renewable energy technologies for hydrogen production.
- IT tools for planning hydrogen plants.
Sequence III – Value creation, business models, legal framework and technical activities
- Energy industry and legal framework.
- Hydrogen: energy market perspective, HPA and PPA contracts.
- Sales markets and platforms for green hydrogen.
- Implementation projects: design, profitability and business models.
- Due diligence of hydrogen projects.
- Safety of hydrogen projects, technical and legal requirements.
- Maintenance and use.
- Optimization of hydrogen projects.
Importantly, participants also carry out a technical project (case study) along with models of administrative decisions and financial analysis. The project covers various aspects of hydrogen technologies (technical properties, process engineering, business models, permits, financing and operational management). This gives them concrete insights into the implementation of projects in practice.
Work is carried out in teams of a maximum of eight people. The result of the work is a finished business plan for the special purpose vehicle. At the end of the work, the groups carry out a professional due diligence (DD) of the project of the competing group. When working on the project, each group can count on the support of the coordinator not only during the lessons, but also outside of the lessons via the e-learning platform, e-mail contact or teleconference.
In addition, each participant creates his own, individual project on the topic of hydrogen: in the form of a project concept, a business plan for his own plant or as a problem study for the area of the economy surrounding hydrogen.
Trip to LEAG in Boxberg
Excursions
As part of the hydrogen course, trips to hydrogen-related companies in Germany are organized. There are still no green hydrogen production plants in Poland, although the country is the third largest hydrogen consumer in Europe. Therefore, hydrogen producers, manufacturers of hydrogen production and storage equipment, and companies that use green hydrogen are very interesting for Polish participants. Study trips offer a platform to combine theory and practice. In the first edition, the participants visited the LEAG power plant in Boxberg, the Sunfire company in Dresden, the steelworks in Saltzgitter and also took advantage of the invitation from Siemens Energy in Görlitz.
Fireside evening
Each seminar is connected to the so-called fireside evening. This is a meeting with a mentor who talks about his experience in the industry and the projects and tasks he was involved in. It is also an opportunity for integration and exchange of experiences and opinions between the participants of Studium Wodoru. We are pleased to announce that Sven Geitmann from Hydrogeit Publishing House has accepted the invitation as a guest in the second edition of Studium Wodoru.
Detailed information about the “Hydrogen for TOP Managers” program can be found at: www.studiumwodoru.pl
Author: Julia Glapińska, Studium Wodoru, Görlitz
by eaugsten | Nov 4, 2024 | Building energy, Europe, Germany, Hydrogen economy, News
Legal opinion is critical of hydrogen networks for household customers
Hydrogen pipeline networks are not suitable for meeting the requirements of municipal heat planning in the allotted time. There are still too many uncertainties when it comes to converting the natural gas grid. This is the conclusion reached by a Hamburg law firm.
Hydrogen will not be there for heating in the near future – so says at least a tenet of the German national hydrogen strategy. The initially scarce gas should first be used where other decarbonization technologies are not an option. But given the increasing pressure on homeowners and municipalities to comply with climate protection regulations, heating with hydrogen seems an attractive solution. Ultimately, depending on the number of inhabitants, by mid-2026 or mid-2028 municipalities must present in detailed heating plans how they want to approach the clean heating transition.
“We are of the opinion that hydrogen may, must and can be taken into account in municipal heat planning,” says Charlie Grüneberg, press spokesman of Zukunft Gas. The former natural gas association now calls itself “the voice of the gas and hydrogen industry.”
The experiences from Baden-Württemberg, however, which was the first German state to rely on municipal heat planning, reveal a different picture. Raphael Gruseck, project leader of the regional advisory center for municipal heat planning in the region Stuttgart West, says, “Hydrogen for decentralized heat supply does not have a role in the heating plans that have already been completed for our district.” The issue is usually resolved as soon as one looks specifically at the availability and costs of hydrogen, according to Gruseck. And that is highly recommended: If the municipality backs the wrong horse and the hoped-for hydrogen is not available or is only available with a delay, the seemingly simple solution can become expensive. Citizens will then face high CO2 prices for natural gas heating and the state will have to pay fines to the EU.
Timetables for network conversion are not yet in sight
In this debate, a legal opinion from the Hamburg law firm Rechtsanwälte Günther is now providing a clear signal that speaks against hydrogen in municipal heat planning. Commissioners of the report were Umweltinstitut München, Deutsche Umwelthilfe, the WWF, GermanZero and Klima-Bündnis. The assessors thus examined the German heating planning law (Wärmeplanungsgesetz, WPG) and building energy law (Gebäudeenergiegesetz, GEG) for what scope for action municipalities have when evaluating hydrogen in the course of municipal heat planning. A sticking point is that the municipalities are not only allowed to make directional decisions themselves, but also have to. In other words: Elected governments cannot simply delegate their responsibilities to an engineering firm.
However, they must build on technical fundamentals. One problem is that the “gas network conversion is still largely unclear and not conclusively regulated” and therefore there are no concrete timetables for possible changes, according to the report. Such a timetable, however, in accordance with the WPG, must at least concretely stand in order to be able to designate a hydrogen network area. This is also necessary because there must be a “comprehensive economic viability assessment” for heat planning, including national economic and allocated costs. The municipality cannot simply “blindly” rely on hydrogen.
Narrow time window
However, the network operators have not yet been able to create the timetables. For this, in turn, the national grid networks agency (Bundesnetzagentur, BNetzA) must first lay down the rules, which is unlikely to be the case before the end of 2024. But heat planning must be in place in larger cities by the middle of 2026, and in the other municipalities by mid-2028. That can’t be done believes the climate alliance Klima-Bündnis – and therefore generally does not see hydrogen networks as an option for municipal heat planning.
The distribution network operator Gasnetz Hamburg sees it a little more optimistically. It recently launched a pilot project named H2-SWITCH100 (see H2-international, Feb. 2024), to collect data on the feasibility and economic efficiency of possible network conversions for individual sections. “With it, Gasnetz Hamburg has created the basis that provides the economic forecast for conversions described in the report as unrealistic,” says spokesman Bernd Eilitz. Whether concrete timetables can be provided for heat planning up to 2026 is, without the framework setting of the BNetzA, however, not predictable.
Industry and power plants first
Whether such a timetable can really demonstrate the timely availability of hydrogen is another question. Hamburg, for example, will be connected to the H2 core network at an early stage, and is planning its own large-scale electrolyzer and an ammonia import terminal. This will also be necessary to supply the basic material industries and power plants. The report by the firm Günther emphasizes that hydrogen pipelines are explicitly possible for such projects, even without designating a hydrogen network area. By using hydrogen in power plants and industrial operations, it can also indirectly promote the clean heating transition. After all, waste heat is generated there, which can be utilized via heating networks.Which network to decide on?Heating networks, with a high demand density, are usually the first choice for the heating transition. In Denmark, they are also widespread in small, rural communities. Of the decentralized solutions, electric heat pumps are the most popular in the energy transition plans. However, the electrification of heating and transportation at the same time will also push the electricity grids to their limits in some places. The municipalities then have to find concrete solutions. For Wiebke Hansen from the Umweltinstitut München, this is precisely a reason to contemplate hydrogen critically at an early stage. “Municipalities can thus concentrate better on expanding electricity grids and district heating,” she says.
by Hydrogeit | Oct 16, 2024 | Europe, Germany, Hydrogen economy, News
Things have become quiet in H2 mobility. At the cafe tables and also on Facebook, the topic of fuel cell versus battery-powered vehicles is discussed much less frequently and more subdued than it was two years ago, since it is gradually starting to sink in that hydrogen cars will not be available at first in large numbers.
At the earliest the end of this decade – probably more in the 30’s – could the topic of H2 cars become relevant again. Until then, Toyota und Hyundai – the only two relevant providers in this sector – have to see how they can get by with the slowly growing H2 refueling station network (see p. 32) and also the low demand.
The German transport ministry’s progressive move away from hydrogen technology with the planned conversion of NOW GmbH into an electromobility agency (see p. 6) is just one example of many.
The topic of hydrogen vehicles has not completely been abandoned, however, since something is brewing in the commercial vehicle sector, even if only slowly. The large corporations are rather cautious, but medium-sized companies are making moves. For example, this summer, FES GmbH Fahrzeug-Entwicklung Sachsen from Zwickau showed what’s going on. In the presence of the minister-president of Sachsen Michael Kretschmer as well as the former federal transport minister Andreas Scheuer, the eastern German company had a fuel cell truck drive out of the factory gate from which Trabants used to roll.
It is not surprising that technological leaps are more likely to be initiated by smaller players: They are the ones who act somewhat flexibly and react more quickly to changes in the market – in the case of FES because the company owner has been won over by hydrogen and is pushing the development of its know-how in the subject.
Large corporations, on the other hand, boast of innovative-looking prototypes at vehicle trade fairs such as the IAA, but hardly put any of it on the road – not for years (except Hyundai). Instead, they’re attaching themselves to extravagant technologies (e.g. liquid hydrogen, LH2) that require an entire infrastructure of their own and thus slow down the expansion of the pressurized hydrogen infrastructure, because the decision-makers are still unsure which horse they should bet on.
As long as it is not clear whether LH2 or GH2 will prevail and what ranges will be possible with solid-state batteries, there will be no noticeable progress – neither in the development of infrastructure nor in the development of production capacities for electric commercial vehicles.
Ultimately, only medium-sized businesses or start-ups can change this. The big players are too committed to the well-being of shareholders and are relying on the income from the current business model rather than changing fundamental things. Any cleanroom discussions at the European level won’t help either, because only lip service is paid there, while no concrete investment decisions are made.
Movement will only come into the system when a courageous start-up comes around the corner with a disruptive technology or a medium-sized company comes up with a new business concept. For example, if someone comes up with the idea of simply replacing entire electric tractors when their batteries are empty, just as horses used to be changed on carriage rides so that the brisk tour could continue.
The idea of battery changing stations failed years ago in Europe because German car manufacturers didn’t want to let anyone touch their hardware. But if a trucker after a coffee break simply had the trailer pulled on by an electric truck with a fully charged battery, there would be neither range restrictions nor hardware problems with the manufacturers.
Even if this idea cannot be implemented directly – usually, disruptive concepts do not arise from backward-looking, traditional companies, but especially from dynamic players who overcome rigid thought structures and think about the needs of future generations in truly innovative ways.
But until that happens, we will probably have to watch the chicken-and-egg game for a while longer and see how the H2 infrastructure development progresses just as sluggishly as the development of production capacities for fuel cell-powered commercial vehicles.
by Hydrogeit | Sep 13, 2024 | Europe, Germany, Hydrogen economy, News
On July 22, 2024, the transmission system operators submitted a draft application to the BNetzA to build the envisaged H2 core grid. With a planned total length of 9,666 km (6,006 mi), it will predominantly consist of converted natural gas pipelines (about 60 percent). The Doing Hydrogen route that was intended as a new construction line in the draft from November 2023 and was supposed to connect the former West Berlin is missing, however. This change was particularly criticized in the capital region.
The industry and trade chambers of the German state of Brandenburg announced in a statement in August 2024 that the “planned rapid conversion of the OPAL line coming from Lubmin (Mecklenburg-Vorpommern, MV) to hydrogen is expressly welcomed.” However, the deletion of the line section from Glasewitz (MV) to Ketzin (Brandenburg) was criticized and an absolutely necessary revision of the core grid application was called for.
As essential reasons for consideration the IHK cited, among other things, the “threat to all project development activities in the area of hydrogen in the northern and western Brandenburg regions,” which also includes, for example, a planned 130-MW electrolysis plant at the Falkenhagen (Prignitz) location. In addition, there are already numerous renewable energy systems in the region of interest that would have to be regularly curtailed due to existing network bottlenecks. Making use of the regulated renewable electricity by producing hydrogen is therefore absolutely essential in order to minimize redispatch costs.
The two-week consultation period ended on August 6, 2024, so no later than two months after submitting the application documents will approval of the final core grid occur on the side of the BNetzA. The first lines are to be converted to hydrogen as early as next year.
