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Search for the ideal hydrogen storage

Search for the ideal hydrogen storage

Interview with Thomas Korn, CEO of water stuff & sun

Startup company water stuff & sun has developed a novel technology that is designed to provide a safe and easy way to store hydrogen. The solution’s key component is its microvalve system. A pressure regulator controls the release of hydrogen progressively from 1,000 bar down to just a few bar. H2-international spoke to Thomas Korn, CEO of water stuff & sun, about how it works and the challenges encountered.

H2-international: Mr. Korn, the storage and refueling of hydrogen is a challenging issue. How do you solve that problem?

Korn: As it stands, the storage of hydrogen in conventional compressed gas tanks is complex and expensive. There is a trade-off between performance, safety and cost. We have a surprising solution to this: Instead of using a small number of large cylindrical tanks, our technology allows us to store the same amount of hydrogen in multiple spherical carbon-fiber vessels the size of a tennis ball. The silicon microvalve system, which is built into every pressurized ball, means that all the vessels act identically and in unison, just like a large tank. The expense involved in ensuring the safety of hydrogen stores can be significantly reduced if the energy is split into multiple small vessels. As a result, we save almost half the carbon fiber material compared with a standard pressurized tank. We call these ball-shaped high-pressure storage vessels Sfeers.

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They allow hydrogen cells to be scaled as required and integrated into hydrogen batteries of any shape. Green hydrogen can thus be used in a variety of motive and stationary applications such as trucks, drones and airplanes. The next generation of these energy stores will be 95 percent lighter and up to 30 times cheaper than lithium ion batteries – while still carrying the same amount of energy.


Fig. 2:
Doing the rounds: a Sfeer ball at the EES trade fair in Munich

How does the hydrogen battery work?

Hydrogen batteries are low-pressure hydrogen tanks containing Sfeers which are filled at up to 1,000 bar. The hydrogen battery enclosures are designed for low pressures and can therefore be perfectly adapted to the available installation spaces in a wide array of mobility products. When hydrogen is extracted, the pressure in the hydrogen battery enclosure decreases and activates the microvalve system in all the Sfeers once the pressure drops below a mechanically programmed ambient pressure range. These then release hydrogen, together providing the energy required for a hydrogen engine or a fuel cell.

The pressure in the hydrogen battery rises again above the pressure activation level that is set during the manufacture of the micromechanical components. Once the pressure level has been reached, all the microvalves close. The pressure in the battery stays constant or reduces further if the consumer withdraws more hydrogen. The activation pressure is set to the supply pressure of the consumers. The hydrogen battery can be thought of as a low-pressure tank, but with the capacity of a high-pressure tank.

The concept increases the safety level while at the same time reducing the amount of material used. Since their highly adaptable shape means they can make best possible use of the available space, hydrogen batteries outperform conventional pressurized tanks in terms of volumetric and gravimetric power density.

Microvalve technology has its origins in satellite technology. How is this technology produced?

Satellites have a gas propulsion system that secures their position within the communication window. Even in the early days, industrial developers started to use microsystem technology to regulate gases due to financial pressure to make ever smaller and lighter satellites. Our innovation centers on the development of micromechanical switching elements that don’t need electrical energy for their control; instead they are controlled passively by the ambient pressure. As in semiconductor engineering, highly industrialized manufacturing processes are used that can create thousands of identical parts on large silicon wafers. Valves, gas channels and the five-stage pressure regulator are produced and joined in four silicon layers. All chip components are built into a space measuring 4 x 4 x 2.5 millimeters (0.16 x 0.16 x 0.1 inches).

How did you come up with the idea of spherical high-pressure vessels?

The technology was invented by Prof. Lars Stenmark, who taught microsystem engineering in the Ångström Laboratory at Uppsala University and who had already applied earlier inventions to the aerospace industry. When he told me about his hydrogen storage invention, I was all for it. A physical hydrogen storage vessel that combines two existing technologies and resolves the trade-off between safety, cost and performance in hydrogen tanks – we couldn’t resist and founded the company water stuff & sun in January 2017.


Fig. 3:
A view of the lab shows the test setup for microchip evaluation

Is there already a prototype?

We have already produced and tested prototypes of switching valves and the key element of the valve system – the pressure regulator – in the clean room of the Ångström lab in Uppsala. We have also put a carbon fiber Sfeer prototype through a burst test and validated our simulation model with the results. At the moment we are building the first system prototype of a hydrogen battery with three Sfeer cells. The prototype and its use in a micromobility application will reach technology readiness level 5 in the first half of 2024. At that point we’ll start to develop hydrogen batteries for specific mobility products with several manufacturers and go on to industrialize them in the next stage. There is a great deal of interest from industry. For example, we have already submitted a joint funding project with an aircraft manufacturer and the German Aerospace Center. We are working with our partner Keyou to develop hydrogen batteries for converting and retrofitting trucks and buses. Additionally, we’ve managed to stimulate interest from a mining machinery manufacturer and a truck OEM.

Returning to the refueling process: Am I right that you are intending to swap the tanks?

Hydrogen batteries don’t need to be refueled in the vehicle; they are exchanged at swap stations or, in the case of small applications, they can also be exchanged by hand. That way, refueling can take place quickly and cost-effectively. The empty hydrogen batteries are refilled at central compressor stations and returned to the swap stations. The low operating pressure and the limited quantity of H2 in the hydrogen battery enclosure makes this ease of handling possible. In comparison with conventional high-pressure or liquid hydrogen refueling stations, the expense and complexity are significantly reduced, which in turn lowers the capital and operating costs and thereby also the hydrogen price. For heavy-duty vehicles, for instance, with hydrogen, several hundred liters of fuel energy equivalent need to be compressed, cooled and transferred. By simply swapping the hydrogen battery, the process can be completed in just a few minutes.

The financing required will be considerable. What are the next steps for your company?

The need for capital in a tech startup is always an issue – it’s a continuous process. We have just started a new financing round in which our existing investment partners, such as the investment arm of Kreissparkasse Esslingen-Nürtingen, or ES Kapital for short, the company Besto, run by the entrepreneurial Beyer and Stoll families, and machinery and tooling factory Nagel, have already registered an interest. I would refer to them as relatively down-to-earth, regional investors that have been involved from an early stage. The plan is to invest the new cash in the development of a prototype in the motive application area, as mentioned earlier, among other things. The raw materials for the production of semiconductor chips are all affordable. Carbon fiber and silicon are readily available on the market. That is an advantage in terms of further scaling. If everything goes according to plan, we will see the first of our batteries in a vehicle or aircraft by 2025.


Fig. 4:
The H2 battery should be quick and easy to swap in and out of a truck

When and how will the market for your solution evolve?

The transformation of energy systems is well under way. Infrastructure for natural gas- and oil-based fuels is being replaced by hydrogen and liquid hydrogen derivatives such as ammonia, methanol or synthetic fuels. The competition for technology leadership and, ultimately, energy leadership began long ago. In China and the USA, many billions of euros are now being invested in hydrogen technologies and their infrastructure; we Europeans are attempting to counter this with the Green Deal. Hydrogen projects are sprouting up all over the place. As far as we are concerned, the market has already started; we’re currently concluding cooperation agreements with initial vehicle and machinery manufacturers.

Where will the first market be that manages to develop?

We need to take a multitrack approach and are therefore also looking at the USA and the Arab world. The country that achieves the lowest hydrogen prices by investing will attract a lot of companies and investment. In the EU and Germany I hope that the greenhouse gas quota gives us an instrument that is competitive.

You won a prize at the World CleanTech StartUPs Awards, otherwise known as WCSA 2023. What particularly impressed the judges?

Firstly, the award as a platform is a very interesting network in itself. Applications for WCSA 2023 were invited by ACWA Power in strategic partnership with Dii Desert Energy and the French institute for solar energy CEA-INES, among others. The judging panel recognized the transformative potential of the hydrogen battery. The innovation could create an efficient and flexible infrastructure for H2. The electricity costs for hydrogen production from renewables are very low in Dubai. That’s why ACWA invited us again at the end of 2023 to present our solution locally. That will be extremely exciting.

In November we received two awards at the Global EnergyTech Awards: the prize for the Best CleanTech Solution for Energy and a special prize for Best Stand Out Performer. We were the only winners from Germany. That helps.

Interviewer: Niels Hendrik Petersen


Fig. 5:
Thomas Korn

Thomas Korn has been working in the hydrogen field since 1998. The engineer’s experience includes work at BMW on fuel cell development. In 2015, he co-founded the hydrogen startup Keyou in Munich. The startup water stuff & sun was launched in 2017 in Unterschleißheim, Bavaria. The fledgling company now has 15 members of staff and a branch in Uppsala, Sweden.

Is exponential growth slowing down?

Is exponential growth slowing down?

Fuel Cell Industry Review 2022

Year 2022 saw fuel cell shipments creep up over 2021 numbers, though the latter was a remarkable year. When 2021 exceeded 2020’s MW numbers by over 70%, we thought we were finally seeing the uptick that had been anticipated – the classic “hockey stick” pattern. But the structure of the industry – and its reliance on only a few players for the majority of shipments – means that growth comes in spurts.

E4tech’s eighth annual Fuel Cell Industry Review showed just under 86,000 units shipped in 2021, or just over 2,300 MW, even with the COVID pandemic still hanging over markets. But this rapid growth was largely due to the activities of two vehicle OEMs, Hyundai and Toyota, together accounting for over 70% of the megawatts. But even after taking these out of the picture, growth continues – slowly but surely.

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E4tech is now part of ERM and the team is continuing to research and write the Review. The ninth FCIR shows that 2022 shipments were similar to the year before – with the continued but slow growth still led by Hyundai and Toyota, at over 60% of MW shipments, and by fuel cell buses and trucks into China. In 2022, we estimate nearly 89,200 fuel cells to have been shipped, amounting to almost 2,500 MW.

Analysis by region

For vehicles (which by far is the largest contribution, at 85% of all shipments by megawatts), much of the demand was localized to China and South Korea. China saw over 4,150 units being shipped, across all modes of mobility (including forklifts, now slowly taking off in the country), while South Korea saw nearly 10,400 deployments, dominated by Hyundai’s Nexo. Together with 831 Toyota Mirais going into the home market of Japan, Asia now accounts for around 15,600 units into transportation markets, or 17% of global shipments of fuel cells by number, but rather more impressively some 1,500 MW (60%) of the shipped megawatt count.

Hyundai is benefitting from the 50% subsidy for fuel cell vehicles in South Korea. South Korea is now also the single largest market for large stationary units, in CHP and prime power modes. Stationary shipments into the country grew from 147 MW in 2021 to 196 MW in 2022 (8% of the global MW count). These numbers illustrate the importance of South Korea for fuel cell shipments – and, moreover, the key role of sustained policy and subsidies in helping fuel cell companies and OEMs to achieve volume.

In context of the Japan’s Ene-Farm program, across all markets (stationary, mobility and portable), Asia accounts for 60,850 units (two-thirds of global shipments) and 1,770 MW (71% of global shipments). Behind Asia is North America, with around 14,550 fuel cell shipments (nearly 485 MW, or 19% of global shipments in megawatts), led by Toyota and Bloom Energy shipments to the United States. Europe accounted for roughly 13,250 of fuel cell shipments in 2022, down from just over 14,000 units in 2021. The fall in unit shipments followed the completion of the PACE program of the US Inflation Reduction Act and the imminent closure of KfW-433 grant funding by Germany. In megawatts, the count slightly increased, from a corrected 204 MW in 2021 to 228 MW in 2022, about 9% of the global market. Fuel cell vehicle shipments to Europe are lower than for Asia and the US because of the low subsidies provided by the national governments.

Analysis by application

Fuel cells for mobility, primarily cars, continued to dominate the overall count. Across all modes of mobility (including forklifts), 85% of shipments (2,100 MW) fell into this category in 2022, 150 MW more than in 2021. In units, mobility accounted for 35% of shipments in 2022, a slight fall from 2021’s share. So, the message is transportation is growing, but other fuel cell markets are growing too.

The next main contributor to vehicle shipments is China, with a record 3,789 units (buses and trucks) being shipped over 2022. Together, these are estimated as contributing 387 MW to the overall count in 2022.

While nearly 1,000 fuel cell buses were shipped into China in 2022, fewer came to Europe in 2022 (only 99 registrations). According to CALSTART figures, as many as 82 new fuel cell buses were fielded in the US in 2022, mostly in California. Outside China, fuel cell truck shipments globally in 2022 remained minuscule. This could change, given the business plans of Cellcentric, Plastic Omnium, Hyzon and others.

Fuel cells for ships and for aviation remains exploratory, now with a growing emphasis on propulsion rather than hotel loads or auxiliary power. Forklifts continue to be a major application for fuel cells, albeit with fewer unit shipments in 2022 (over 9,650 units) compared to 2021 (over 13,400 units). Prime power and CHP comprise a large part of the remaining demand, in unit numbers and in MW. By number, micro-CHP still dominates, with Japan leading with its Ene-Farm program. ACE shows 42,877 units being installed in 2022, over 3,000 units more than the previous year. Outside Japan and Europe, micro-CHP shipped in negligible numbers, further demonstrating the criticality of country-to-country policy in supporting fuel cells. Together, prime power and CHP across the power range contributed 364 MW shipments in 2022, up from 335 MW in 2021. Although a growing emphasis for developers, fuel cells for grid support and off-grid power has remained subdued, at 14 MW (for both years). Shipments of portable fuel cells (including smaller ported APUs, less than 20 kW in power output) showed an increase, from just over 6,000 units in 2021 to nearly 8,000 units in 2022. These are supplied globally, but most feed into European and North American industrial and consumer markets.

Shipments by fuel cell type

PEM continues to outweigh other fuel cell types in shipments, both in volume and in MW capacity. Of the nearly 90,500 fuel cells shipped in 2022, over 55,000 were PEM. By megawatts, PEM fuel cells recorded 2,151 MW, 86% of the overall volume of shipments.

High-temperature PEM, generally utilizing methanol rather than hydrogen as a fuel, continues to grow, led by Advent Technologies. While still a fraction of overall PEM units at present, shipments are set to grow more aggressively given the improved logistics and increased runtimes enabled by the methanol fuel. DMFC (direct methanol) had a good year, with nearly 8,000 units shipped over 2022, mostly from SFC Energy.

SOFC (solid oxide) grew to nearly 27,000 units in 2022 (mostly micro-CHP, by number). The MW count grew from 207 MW in 2021 to 249 MW in 2022. Much of this is attributable to stronger sales from Bloom Energy. PAFC (phosphoric acid fuel cell) shipments fell, and while no new MCFC (molten carbonate) system placements were recorded over 2022, FuelCell Energy continues to produce significant volumes of stacks, for mid-life refurbishment of systems. AFC (alkaline) shipments increased to over 100 units in 2022, way down on other fuel cell types despite the lower cost potential, both for the fuel cell stack and the hydrogen purity requirement.

Summary

Fuel cells had a good year in 2022. Despite shipments being dominated by a few key suppliers into just a few countries, we are at last beginning to see shipments into Australia and South America, buoyed by the greater interest in hydrogen generally. And while interest is helpful, it remains the case that fuel cells have yet to break through the high capital cost threshold, and (for the hydrogen-fueled units) high fuel prices. We are slowly seeing this happen, through big changes to the supplier landscape, the IPCEI initiative in Europe, significant capacity upgrades to fuel cell production, and the Inflation Reduction Act in the US. But for now, the message remains the same: sustained support from governments is still needed to allow fuel cells to fully support the energy transition. Some fuel cell companies are now also purposing their designs to electrolysis, to help push the market, and with it the hockey stick.

ERM’s Review, a digest of the year’s activity, together with an analysis of fuel cell shipments by region, type and application year on year, is available at http://FuelCellIndustryReview.com. The 2022 edition is delayed, but coming soon. We would like to thank all the fuel cell shippers who graciously provide shipment numbers to us each year, which helps underpin our review.

Author: Stuart Jones, ERM, London, UK, Stuart.Jones@erm.com

On the way to becoming a green hydrogen partner

On the way to becoming a green hydrogen partner

Oman aims to score points with H2 infrastructure

Wind, sun and loads of expertise – these ingredients are to be used intensively in Oman to produce green hydrogen in the future. In contrast to other Gulf states, the Sultanate is making great strides in this regard. The green hydrogen is to be exported, but also used locally. First projects are underway and the infrastructure is being expanded. Experts see Oman as a promising partner for the clean energy transition in Germany.

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The excavators have rolled in; the sand has been swept out of improvised offices. The go-ahead has been given for a steelworks in the industrial port of Duqm in the Gulf state of Oman. Starting 2027, green hydrogen is to be produced here. “Vulcan Green Steel” is what the Indian owners from the family Jindal have named this business branch, for which a separate quay will be built to ship the products – directly opposite the other quays, from which containers and vehicles are transported across the Arabian Gulf. Customers for the green steel Jindal sees in Europe, for example in the German automotive industry.

The infrastructure in Duqm (see photo on p. 4) is growing rapidly, and the new steel plant is one of the building blocks of Oman’s future, which is to logically develop in the direction of green hydrogen. For the export, according to Dr. Firas Al-Abduwani of Oman’s energy ministry, ammonia and methanol are currently being considered as the main means of transport. Part of the new energy source, however, they want to use within the country. Other parts and products such as green steel are to be shipped via the industrial ports in Sohar, Duqm or Salalah in southern Oman, for example to Germany.

Future plans with the best prerequisites

Experts from the International Energy Agency (IEA) and the German foundation Stiftung Wissenschaft und Politik (SWP, see info box) see ideal conditions for the future plans of Oman: more than 2,000 kilometers of coastline, along which the wind blows around the clock, and eight to more than ten hours of sunshine per day.

Furthermore, the country has leading expertise in hydrogen production, well-developed ports with strategic positions and plants for desalinating seawater. These usually work with reverse osmosis to filter out dissolved substances. The associated costs for hydrogen production Dr. Dawud Ansari from the research group Globale Fragen (global questions) of SWP estimates as very little – he talks of about one percent of the cost per kilogram hydrogen.

The state institution Hydrom, however, does not want to commit itself to this yet. Hydrom has been developing a master plan for the green hydrogen sector in Oman since autumn 2022 and is creating the conditions for production. Also currently being discussed is the use of treated wastewater from the oil and gas industry.

Oman is pressing ahead with the development of green hydrogen as a future energy supplier so that it will be economically no longer predominantly dependent on dwindling oil and gas reserves. Also to be supported will be the country’s climate neutrality plans that the ruling sultan Haitham Bin Tarik set out in Oman Vision 2040. This could make the Sultanate a promising candidate for supporting the energy transition in Germany.

According to the Wuppertal Institut, a think tank for sustainability research, only up to one sixth of the expected H2 demand in Germany can be covered by domestic production in 2030. The majority will have to be imported – partners for this are being sought worldwide.

Pioneering work begins with five local consortia

Against this background, Oman is bringing itself in position: The strategy of Hydrom would allow for Oman to produce one million metric tons of green hydrogen annually starting 2030, and by 2050, it is to be around 8.5 million tonnes. By then, Oman wants to have fully reduced its CO2 emissions and additionally to have created around 70,000 new job positions. Estimated investment cost according to Hydrom and the energy ministry: around 150 billion US dollars.

To achieve the ambitious goals, pioneering work is now required: For example, it is important to attract companies that develop the corresponding technology. Electrolyzers for industrial processes that use sun, wind and water must be built. Furthermore, plans for sustainable, effective and economical business models are still needed.

The first five international consortia have just been awarded contracts by Hydrom to produce green hydrogen and ammonia for export and domestic consumption on a total area of around 1,500 square kilometers (580 sq mi) in the region Duqm. A further 1,800 square kilometers of land are currently being made available in southern Oman, in Salalah, via a second public tender. This auction is running until April 2024.

Potential for German companies

German companies are already involved in development in Oman. But Oman’s high-flying plans offer much more potential. This is the view of, for example, Dr. Abdullah Al-Abri, Omani consultant at the IEA – and hopes that the cooperation that was agreed in a Joint Declaration of Interest with Germany in summer 2022 will gain momentum.

“So far, the potential customers for green hydrogen from Oman are still mainly located in Japan or Korea,” opined the expert. Dr. Ruth Prelicz, expert for hydrogen and renewable energy systems at the chamber of commerce AHK Oman, however, stressed: “In summer 2023, the German energy supply company SEFE (Securing Energy for Europe GmbH) concluded an offtake agreement for liquefied natural gas (LNG) from Oman. This contract for LNG deliveries serves to build trusting business relationships and is also seen as a precursor to later deliveries of green hydrogen.”


Alok Bisen, who works for the Indian steel company Jindal, showing the construction area for green steel production in Duqm

Ruth Prelicz is observing the development on site: She is supporting the hydrogen foreign office Wasserstoffdiplomatie des Auswärtigen Amtes (H2Diplo) and the energy dialogue of the German economy and climate protection ministry (BMWK) in Oman. The expert sees a number of opportunities for German companies to benefit from cooperation with Oman in the field of green hydrogen: “It’s not just about the acceptance of the end product. Oman is also interesting as a market for German high-tech technology. Siemens Energy and ThyssenKrupp are established as potential suppliers of electrolyzers in Oman. And in the area of hydrogen transport, the Bavarian hydrogen experts of Hydrogenious as well as MAN Energy Solutions have presented their technology in the field of liquid organic hydrogen carriers (LOHC) and methanol.”

Also companies specializing in hydrogen compressors, pipelines or measuring devices, in her view, will be in demand in the country in the future. Further opportunities for German companies could be in the areas of green hydrogen certification as well as training and education. According to the expert, TÜV Süd, for example, is already active in this in Oman.

Oman’s stable position in the region

That cooperation with the Sultanate is not only worthwhile from a trade policy perspective stressed Dr. Dawud Ansari of SWP. For him, closer (energy) relations with the Sultanate as Germany’s central partner in the region bring further advantages: “Germany has an interest in strengthening relations with and the economy in Oman, as the Sultanate constitutes a cornerstone of regional peace processes. Oman itself is very stable and safe – both in terms of trade relations and domestic policy and in relation to its neighbors. The Yemen conflict and other regional disputes will, thanks to Oman’s diplomatic fortitude and border security, not spread to the country.”

The research for this text was supported by Park Inn by Radisson Hotel & Residence Duqm as accommodation. https://www.radissonhotels.com

Further reading:

Current information from the state institution Hydrom, which is developing a master plan for the green hydrogen sector in Oman: hydrom.om

Vision 2024 of the Sultanate of Oman: oman2024.om

More information about the port in Duqm, where Oman’s first green hydrogen projects will appear: https://portofduqm.om

Stiftung Wissenschaft und Politik, Publikationen, Dawud Ansari: Wasserstoff aus Oman für Deutschland und die EU – nicht nur aus energiepolitischer Perspektive sinnvoll. SWP-Aktuell 2023/ 9.3.2023 https://www.swp-berlin.org/publikation/wasserstoff-aus-oman-fuer-deutschland-und-die-eu

Die Geopolitik des Wasserstoffs. Technologien, Akteure und Szenarien bis 2040. Studie von Jacopo Maria Pepe, Dawud Ansari und Rosa Melissa Gehrung, Stiftung Wissenschaft und Politik, 16.11.2023. https://www.swp-berlin.org/publikation/die-geopolitik-des-wasserstoffs

The International Energy Agency (IEA), a cooperation platform in the field of research, development, market introduction and application of energy technologies, has commented on Oman’s great potential for the production of green hydrogen: https://www.iea.org, subitems News / Oman

The chamber of foreign trade Außenhandelskammer (AHK) Oman maintains a representative office of German industry in Oman’s capital Muscat. There, Sousann El-Faksch and Dr. Ruth Prelicz (ruth.prelicz@ahkoman.com) give information on the topic of green hydrogen: https://www.ahk.de/oman

Author: Natascha Plankermann

H2Direkt: Blueprint for heating with pure H2

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have converted parts of their gas network to 100 percent hydrogen in a test area. Mid-September 2023, the H2 feed-in system of the research project H2Direkt was put into operation in Hohenwart, regional district of Pfaffenhofen. Already in this heating period will ten customers be provided with pure hydrogen from there for 18 months initially via the rededicated gas network.

“The conversion of a natural gas network to 100 percent hydrogen with minor technical modifications is feasible, and the operation is safe,” said Bayern’s economy minister Hubert Aiwanger at the starting up ceremony. H2Direkt is therefore a blueprint for a climate-friendly energy supply.

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The feed-in system reduces the pressure of the supplied hydrogen and feeds it with 250 millibars into the corresponding network section. The green hydrogen required for this is being supplied by Westfalen AG in trailers by truck to Hohenwart.

The research institute DVGW-EBI had prior to this given the green light for all components installed in the distribution grid area. H2-suitable are also all the components installed in the boiler rooms of the households, including the original existing volumetric gas meters, which are perfectly suitable for accurate measurement with hydrogen. Due to the larger volume flow of hydrogen, they will nevertheless be replaced by commercially available but larger meters.

The 100-percent H2-capable condensing boilers come from the cooperation partner Vaillant. As part of the research project, regulations for the measurement of hydrogen are also being drawn up. The measuring concept for the field test has been approved by the calibration office (Eichamt) or the state office for weights and measures (Bayerisches Landesamt für Maß und Gewicht, LMG). H2Direkt is part of the TransHyDE project “Sichere Infrastruktur” (secure infrastructure) and funded by the German ministry for education and research (see p. 15).

55 MW electrolyzer to decarbonize Saarland

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab

The power plant site in Fenne, Völklingen, a long-standing power generation facility which celebrates its centenary this year, is now the focus of Iqony’s plans to meet the future energy needs of the industrial region of Saarland. Owned by the STEAG Group, Iqony specializes in renewable energy, hydrogen projects, energy storage, district heating and decarbonization solutions.

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The site is already a major energy intersection for the state of Saarland in southwestern Germany and is at the crux of the area’s district heating supply. Along with the present facility, the site will in future be home to HydroHub Fenne, an addition that will ensure it remains an essential part of Saarland’s energy system in the years ahead.

“Due to its existing infrastructure, we see the site as ideally suited to the building of a hydrogen production facility at this location. The existing grid connection allows us to draw sufficiently large amounts of renewably generated power to produce renewable hydrogen here, close to the point of use,” explains Patrick Staudt who is in charge of hydrogen at Iqony Energies, a Saarland-based subsidiary of Iqony.

The project will need to comply with the provisions of the European Union’s Renewable Energy Directive (RED) and its associated German legislation so that the hydrogen produced in Fenne can also be classified as climate neutral according to the strict criteria set out in EU law. Iqony’s own trading division will provide support to make sure this happens.

IPCEI notification is vital

Depending on the number of operating hours, HydroHub Fenne will produce approximately 8,200 metric tons of green hydrogen a year. “The current plan is to commission the plant in 2027 – assuming that the latest statements on the completion of the IPCEI notification by the European Union are correct,” says Patrick Staudt.

IPCEI stands for Important Project of Common European Interest. Iqony applied to have its Saarland hydrogen project recognized as an IPCEI back in spring 2021. Dominik Waller, who is responsible for project development alongside Patrick Staudt, explains the significance of the decision: “Our project needs to gain recognition as an IPCEI to allow the German government to support us financially with the investment. It’s impossible without IPCEI notification due to European law on competition and state aid.”

The prospects are looking good for the project in Fenne. A final decision is expected in Brussels by the end of 2023 – more than two years after the original announcement was due. “Once we have the funding authorization from the EU, it will then be a matter of the government putting specific funding in place. That should happen in the first quarter of 2024 which will mean we are on track in terms of the project schedule,” elucidates Patrick Staudt.

Public funding of the project is necessary because there is not yet a functioning market for hydrogen in general or for green, i.e., renewable, hydrogen in particular. Hydrogen can help industry or, for example, local public transport avoid carbon dioxide emissions. However, hydrogen finds itself in financial competition with other energy sources such as natural gas. In economic terms, hydrogen is no match for other energy forms at present, precisely because a competitive marketplace has still to develop.

“We see this as a classic chicken-and-the-egg problem: Potential hydrogen producers are holding back on their investment decisions, waiting for definitive signs of future off-takers. On the other hand, potential off-takers are not investing in converting their processes and plant technology while there is no guarantee that the required hydrogen will be available in sufficient quantities in the future. The only way of getting out of this dilemma is if public authorities provide investment security for both sides in the form of funding,” acknowledges Dominik Waller.

As for the level of funding for HydroHub in Fenne and the overall capital outlay, Iqony is not at liberty to divulge specific figures for competitive reasons. However, a few hundred million euros are expected to be invested in the project. “We won’t be able to give a more exact figure until the tender for the plant technology has been concluded,” says Patrick Staudt. Though this will only be when the funding letter has been received. According to Staudt, this once again shows how fundamentally important the conclusion of the IPCEI process is in order to progress the project further.

Fig. 2: Site development

Tenders on the market

Another stipulation resulting from the funding conditions for an IPCEI-designated project is that the hydrogen produced can’t simply be sold in the usual way. “We’re obliged to use tenders to bring our product to market so that all potentially interested parties have a chance to participate,” states Dominik Waller. This is where the Fenne location is said to be to the company’s advantage, since it already has a disused gas pipeline connection that could be employed in future to link HydroHub Fenne to the hydrogen supply network being created. Waller continues: “It’s also why we are paying close attention to the current discussion on the government’s plans for a core hydrogen network – and here we see the need for further improvement, especially for Saarland.”

This expressly applies not only to the delivery of the future electrolyzer in Fenne through the core network draft, which was presented by FNB Gas to Germany’s Federal Network Agency in November 2023, but also to the present STEAG and Iqony power plants in Bexbach and Quierschied (Weiher power plant). “At both sites we want to build new, hydrogen-compatible gas power plants – just like the government itself has set out in its 2030 target, so we can switch off old coal-fired units, meet our national climate goals while at the same time ensuring the security of supply if wind and solar power aren’t available in sufficient quantities,” says Andreas Reichel, CEO of STEAG and Iqony.

Reichel adds: “Current government plans do not yet envisage bringing the core hydrogen network to these two locations, which will be necessary to make this happen. That said, we’re grateful to the Saarland regional government for its reassurance that this is precisely what it will be campaigning for in Berlin.” If such efforts are successful, it would enable Iqony to build new power plant capacity in Saarland by 2030 which is urgently needed to guarantee security of supply as well as ensure the green transformation of power generation in Saarland.

In the medium and long term, it is then hoped that these and other new gas power plants will be run on hydrogen to provide a reliable, carbon-neutral supply of energy. If the core hydrogen network planned by the German government is not immediately routed to within close proximity of the sites, this will be completely impossible. Despite the unresolved issues, Iqony is optimistic about the realization of its hydrogen and power plant projects on the River Saar:

“We have the technical and commercial expertise from more than 85 years in the global energy industry, we have the right locations and we have proven through the construction and commissioning of one of the world’s most advanced combined-cycle power plants in Herne, Nordrhein-Westfalen, at the end of 2022 under difficult COVID-19 conditions, that we can carry out challenging large-scale engineering projects on time and on budget – if the regulatory environment allows us to do so,” concludes Andreas Reichel.

Author: Dr. Patrick Staudt, Dominik Waller, both from Iqony