In Erftstadt, a city near Cologne, grid energy provider GVG Rhein-Erft and distribution operator RNG are currently testing the effects of blending 20 volume percent hydrogen in the natural gas network there. The interim results of the field test running since October 2022 are thoroughly positive. All of the connected gas consuming installations, according to independent test organization TÜV Rheinland, are running 100 percent problem-free. Citizens as well as the businesses connected were able to use their devices like usual throughout the whole heating season. The consuming devices did not need to be altered in order to use the gas blend. The gas tightness of the network was unaffected.
Up to now, only a blending of 10 vol.% hydrogen has been allowed for the German gas grid. The test confirms that “both the gas network and the connected gas consuming installations can tolerate twice that amount of hydrogen blending,” as stated by Reiner Verbert, project manager at TÜV Rheinland. This test is the first to be carried out in a low calorific gas grid in Germany. The field test is to run until the end of December of this year. A total of 100 households from the city regions of Niederberg, Borr and Friesheim are taking part in it.
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The area is particularly well suited for this pilot run important for the energy transition because the network of about nine kilometers (6 miles) was only just built in 2007 – so the technical state is very modern. The distribution lines and house connections are also easy to monitor. Both the network topology and device technology of the test households are therefore especially suited to provide informative results before transferring this innovative system to other areas of the country.
The technical university TH Köln has programmed a free online calculator intended to make the construction as well as design of electrolysis stations easier. Prof. Peter Stenzel from the Cologne Institute for Renewable Energy explained: “In one of my lectures, the question came up of how to support construction planning agencies or industrial companies in the conception of such plants. Students and staff of the institute accordingly developed the Electrolysis Calculator, which enables an initial rough design to be made based on the outputs.”
The tool shows, for example, how many full load hours a planned system would be in operation, how much hydrogen would be produced and which use cases would be possible. The basis for the calculations is the relative ratio of electricity sources for operation of the electrolyzer. In addition, it is possible to specify how large in capacity the electrolysis plant should be.
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Stenzel explained further: “To make the result more visual, our tool also shows possible use cases for the transport, industry and building sectors: How many fuel cell cars or buses could run for a year on the amount of hydrogen generated? How many tonnes of crude steel could be produced with it? How many residential buildings with condensing boilers could be heated for one year with the hydrogen or with the generated waste heat?”
Behind us lies an extraordinary period with a plurality of crises: pandemic, war, climate catastrophe, energy scarcity, inflation, etc. Even if the acute phase of the pandemic is over, other crises are still ongoing and will presumably remain with us for some time to come.
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Nevertheless, in the meantime, some things have settled into place. Inflation is not rising further at least, and the natural gas situation has been mastered, for the time being. Even the blackout predicted by some after the shutdown of the last three remaining nuclear power plants in Germany did not materialize. Instead, there is more renewable energy in this country than ever before – particularly in the electricity sector.
A good opportunity to take a breath and take stock of the situation: Where do we stand today? How is the energy transition progressing? What has been achieved so far in H2 and FC technology?
I have been engaged in hydrogen and fuel cells since 1997. At that time, this topic was a teeny-tiny niche. Fuel cells seemed interesting because they emit only hot air – only steam –and no harmful carbon compounds at all. There was hardly any literature on them; only a few research activities and demonstration projects. Federal support programs for them were nil.
A few car manufacturers were “already” experimenting with metal hydride storage for FC cars in the 1990s, and others with hydrogen. At the turn of the millennium, the first H2 and FC trade fairs and congresses emerged, but a portion of these disappeared again shortly after.
Optimistic developers joyfully announced back then that hydrogen-powered vehicles would be on the roads in 2004, and fuel cell-powered heaters in basements. Instead of series production, however, what followed were promises that it would finally happen in 2007, 2010, 2014 and 2017. H2 hype followed H2 hype, but of a market, there was no sign.
At times, the fuel cell had already been laid to rest – at least in the media. Several areas of application that were considered at the time lost interest. For example, the fuel cell-powered movie camera or the FC cargo bike.
New momentum first came into play in the 2010s, when hydrogen was being contemplated as a storage medium for renewable energies. Until then, it had always been said: Energy storage isn’t something we need. It was only when the idea of sector coupling emerged that it gradually became apparent that hydrogen could be a suitable medium for this purpose.
During this time, buzzwords such as power-to-gas, decarbonization and electrification emerged. The fuel cell fell little by little out of focus; however, increasingly more sights were set on hydrogen.
Nevertheless, several years passed in which the much-invoked Energiewende (energy turnaround) did not really gain ground. It took events like Fukushima, Dieselgate, debates on the health-related limits of emissions, and the founding of Fridays for Future until it became clear to political decision-makers as well that we can’t get by without hydrogen.
What then followed was the European Green Deal and numerous national hydrogen strategies in many countries around the world. The first large commercial and industrial businesses began to change their strategy and – at least partially – turned away from fossil energy structures.
It became increasingly clear that solar and wind power, – contrary to the many prior negative prognostications – together with suitable energy storage, have the potential to defossilize not only the power sector but also other energy sectors.
Most recently since the Russian war of aggression on Ukraine, it has become obvious that the times of cheap fossil energies are over, once and for all – which is positive in multiple respects. Because high prices for natural gas, oil and coal, which are likely to keep rising due to the growing cost of CO2 certificates, not only reduce energy consumption, they demand a change to more decentralization as well as more independence.
But where do we stand now?
Today, we have available to us almost too many H2 trade fairs and congresses – worldwide. We have investment commitments in the billions from major corporations. We have political strategies for establishing a Europe-wide H2 backbone in order to distribute renewable energies in the form of H2 gas across the continent.
We also have, however, millions of citizens who are very unsure and fearful of the future. Many cannot afford either heat pumps or electric cars. So their complaints are loud but, at the same time, understandable. That is why it is all the more important today to explain the energy transition, as well as H2 and FC technology, in a way that makes sense.
We are at the beginning of a gigantic transformation process that demands a lot from us all. At the same time, this process holds immense potential for development and redevelopment. That’s why it’s crucial to talk more about opportunities and less about problems.
I am absolutely certain that this process of change is possible without substantial loss of prosperity. We can show how new jobs can be created, how sustainable environmental standards can be set, how resources can be conserved, and at the same time how the standard of living can at least be maintained, if not improved– worldwide even.
A prerequisite for this, though, is that we do not leave everything up to the free market, but rather create suitable framework conditions that offer sufficient freedom to act but also planning security and, above all, are generation-fair.
Initial concrete plans have emerged for the future of the PCK refinery in Schwedt, eastern Germany. On May 8, 2023, Enertrag and PCK Raffinerie GmbH presented a feasibility study that throws light on what will happen at the refinery site in the run-up to 2045. According to the report, extensive hydrogen infrastructure could be built at the location which would involve an investment of EUR 15 billion.
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The CEOs of both companies as well as the local Brandenburg economy minister Jörg Steinbach traveled especially to the town – a planned settlement whose appearance still bears the hallmarks of the socialist era. Together they presented their proposals for how the site could be made fit for the future while also allowing oil and gas operations to continue. The task of elaborating the plans prior to this announcement had fallen to a 15-member project team which had grappled with six different work packages over the course of eight months.
PCK chairman Ralf Schairer explained how it would be possible “to create added value in the region,” with the Schwedt refinery potentially obtaining hydrogen from the surrounding area by pipeline at a later date. However, the intention is also for significant quantities of hydrogen to be produced on site which are then either sold or processed further to make synthetic fuels or high-value chemical products. Looking ahead, more than 30,000 metric tons of hydrogen could be manufactured each year by the end of 2027.
“Here we envisage a center for green transformation.”
Gunar Hering, Enertrag chairman
To make this happen, 32 megawatts of electrolyzer capacity from Siemens Energy are to be installed initially (see H2-international, May 2023). Capacity is then expected to be increased by 2027 to between 300 and 400 megawatts. By 2030, hydrogen production could be expanded to 160,000 metric tons a year, which would equate to around 20 percent (roughly 1 gigawatt) of the electrolyzer capacity envisioned in Germany’s national hydrogen strategy. This would allow for the annual production of 2 million metric tons of aviation fuel, methanol and high-value chemicals and 1 million metric tons of biofuels in addition to providing green heating to the town of Schwedt. The level of investment funneled into the area could run to approximately EUR 15 billion.
One key issue, though, according to Schairer, is that the total amount of liquid fuels processed is likely to be reduced from 11 million to 3 million metric tons per year. At first this caused him much concern. He explained, however: “Of the 11 million tons, only 20 percent of the value is generated in Schwedt. At 3 million tons, 100 percent of the value is created here. So the euros stay in the region.”
Directing his comments to the around 1,200 PCK employees, Ralf Schairer reassured them by saying: “We will be refining crude oil for many years to come. We are talking about an adjustment taking place over two decades.”
CEO of PCK Harry Gnorski added: “We are the largest producer of hydrogen in the region, but it’s still gray.” In order for gray to become green he hopes that industrial companies will establish themselves in the area. The size of the growth potential in northeastern Germany is illustrated by the rise of Enertrag, which currently employs 900 members of staff, a figure it says is set to grow to 2,000 by 2028. Speaking via video, Michael Kellner, parliamentary state secretary to the German economy minister, emphasized the point: “PCK and Enertrag are the two most important companies in Uckermark.”
Less water needed
When asked by H2-international about the water requirement in the region, project coordinator Tobias Bischof-Niemz responded: “This will reduce significantly.” It was stated that, up until now, PCK has held water rights for 20 million metric tons a year. Around 1 million tons of water would be needed annually per gigawatt of installed electrolyzer capacity. If 5 gigawatts of capacity is installed in the area, the quantity of water called for would be 5 million tons – in other words a quarter of the amount previously required.
ECK not PCK
Following the joint press conference, the gentlemen met with Schwedt’s mayor, Annekathrin Hoppe, and local residents to discuss the feasibility study as part of the “Zukunft Jetzt!” (Future Now!) talk-show series. Teasingly, Steinbach appealed for a campaign to be launched to change PCK’s name to ECK, thus symbolizing that Schwedt is no longer primarily focused on petrochemicals, instead becoming a base for manufacturing e-fuels and e-chemicals as part of a renewables, chemicals and fuel alliance.
In the heart of Thüringen – around Erfurt and the northern part of Thüringer Becken – is where TH2ECO is situating the regional hydrogen market currently in establishment. A partnership consortium of regional specialists has been developing this project since 2021. The partners from different renewable energy fields are grid operators as well as energy and power suppliers who are driving forward the building and expansion of a sustainable H2 infrastructure and the establishment of the new energy carrier hydrogen. With it from the start has been Kilian Fromm, project manager at Green Wind Innovation, to whom German economy minister Robert Habeck handed the H2Eco Award for this project during this year’s Hannover Messe.
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TH2ECO aims to create a regional hydrogen market that demonstrates how the complex system of a market with various economic, technical and regulatory requirements over the complete value chain –from green H2 production to its use – can work for the region and how the local value creation can be integrated in a supraregional market in the long term.
TH2ECO is committed to three core objectives: decarbonization, regionality and sustainability. Through ramp up of a low-carbon economy, CO2 emissions in Thüringen will be significantly reduced. With a grid-serving integration into existing grids, already existing structures in the region will be integrated.
From production to use
Cooperating in the partnership and in coordinated project direction are, at this time, three energy providers (Green Wind Innovation, Boreas Energie, TEAG Thüringer Energie AG), three gas network operators (Ferngas Netzgesellschaft, SWE Netz, TEN Thüringer Energienetze) and a gas storage operator (TEP Thüringer Energie Speichergesellschaft) as well as several customers. The main areas for use of the H2 are transportation, the centralized heat generation as part of the district heat supply for Erfurt (SWE Energie) and in the industrial sector:
Transport: At freight village Güterverkehrszentrum (GVZ) Erfurt Ost with a refueling station for commercial vehicles from Jet H2 Energy as well as intralogistics applications and use in rail transport
Industry: businesses in industrial park Erfurter Kreuz
Heating: GuD-Heizkraftwerk of Stadtwerke Erfurt (SWE) for heat and power generation; blending in the natural gas distribution networks
Phase 1: Gas pipeline already under conversion
TH2ECO is divided into three phases, which illustrate the building stages of the emerging hydrogen market. In the initial phase up to 2025, it is planned that three electrolysis plants with a combined capacity of 25 MW go into operation in Thüringer Becken. The H2 transport is primarily being carried out via the existing 42-km natural gas pipeline currently under repurposing for 100 percent green hydrogen. In the city of Erfurt, SWE Netz is providing further supply via H2 lines.
GuD-Heizkraftwerk in Erfurt, the industrial park in Erfurter Kreuz and the local natural gas grid of municipality Kirchheilingen will consequently be connected via this pipeline. The natural gas rock reservoirs in Kirchheilingen will be unidirectionally integrated, which has already been investigated for H2 use and the feasibility was confirmed. Also the GVZ in Erfurt will already be supplied in the initial phase by the second quarter of 2025, where since the new gas grid connection is yet to be built, delivery is initially to take place via high-pressure trailers.
Phase 2: Expansion to 40 MW generation capacity
In the second phase, to expand the regional H2 market that has emerged, an expansion of generation capacities to 40 MW is envisaged during ramp up of the German hydrogen market. The H2 supply network is to be expanded, for which the gas distribution network of provider TEN Thüringer Energienetze will be connected and the H2 storage used bidirectionally. On the consumption side, Erfurter Gasnetz will be linked in and line connection to the GVZ will occur. Use of H2 in the GuD-Heizkraftwerk will be heightened and rail transport structures incorporated.
Phase 3: Supraregional integration
Subsequently, the project TH2ECO will be scaled further through the uptake of additional regional H2 generation and H2 importing from other regions. The network will be integrated into the supraregional H2 backbone, so supply to large industrial operations is guaranteed and each of the municipal utilities can achieve climate neutrality.
Exemplary for Germany
A high degree of innovation has been shown with TH2ECO already in the initial phase: Due to the potent network across the generation and consumption sides, market structures are emerging on both sides of the value chain that differentiate TH2ECO from other projects.
With three H2 producers and various consumers in different industries, a variety of new questions arise, which are approached in an exemplary manner in the TH2ECO project, thus constituting a blueprint for the German H2 market:
How will practical contract structures between H2 producers and consumers establish? Are there bilateral contract structures or are there central H2 vendors that bundle capacities on the generation side and distribute them among the customers?
How will energy surpluses be handled in the market? Who is responsible for curtailing and balancing energy quantities?
High H2 purities (5.0, or ≥999%) at withdrawal cannot be guaranteed in a converted pipeline. How can an efficient mechanism be found here?
In the heating or industrial sector, there are different regulatory frameworks than in transportation (THG-Quote credit systems). How can the different incentives be reconciled in one market?
Modularly constructed electrolysis units
Through joint planning and close coordination in the consortium, reliable and functioning structures will be created that reduce the risk for all project undertakers and enables a simultaneous ramp up of H2 supply and demand.
The H2 producer ensures economic H2 production in the initial phase through the intelligent combination of energy from their own wind and PV ground-mounted systems that supply the electrolyzers with CO2-free energy. Having their own RE plants guarantees that the H2 producers have available a long-term, plannable supply of electricity with fixed prices.
A modular design and the flexible plant structure composed of several containerized MW electrolysis units will make adapting to the physical and legal requirements of hydrogen for different supply strings in the TH2ECO project at an electrolysis site possible. In this way, from the start, filling a high-pressure trailer with 5.0 purity green hydrogen as defined in EU directive REDII and eventually feeding CO2-free green hydrogen at 30 bar into the H2 grid can occur. Synergies of H2 demand and different revenue streams are thus used in a way that enables efficient cash intakes in the different areas of use.
H2Eco Award for TH2ECO
During Hannover Messe, TH2ECO and namely Green Wind Innovation was distinguished with the H2Eco Award – a distinction by the DWV (German hydrogen and fuel cell association) and Deutsche Messe for companies whose projects make an outstanding contribution to the ramp-up of the hydrogen economy. In the project TH2ECO, where it is a consortium member, Green Wind Innovation is responsible for the set-up of a modular 10-MW electrolysis plant. According to the assessment by the jury of notable figures, the project distinguishes itself through a special system technological, national economic contribution to climate protection and CO2 reduction.
TH2ECO MOBILITY is a HyPerformer
In the area of transportation, the planned refueling station in GVZ Erfurt will make higher revenue potentials with hydrogen possible. Recently, the subproject TH2ECO MOBILITY, led by consultancy EurA Innovationsberatung, was named a HyPerformer 2023 by the German transport ministry. To realize the development of an H2 mobility hub in the GVZ, 15 million euros of federal funding has been allocated.
In the area of industry, with a suitably coordinated H2 product, a CO2-free energy source will be created, which can also be used as a chemical starting material. For the centralized heating of Stadtwerke Erfurt, a CO2-free heating product will be available in the market.
Security of supply increasing
With TH2ECO, an H2 ecosystem is being created that uses the potentials of cheap renewable energies from wind and PV plants and incorporates the fluctuation of energy sources through the buffer and storage capabilities of an H2 pipeline. In this way, the constant demand from industry, daily fluctuating demand from transportation, and seasonally fluctuating demand in the heating sector can be brought together with renewable energy from regional sources.
In the combined heat-and-power station of Stadtwerke Erfurt, hydrogen is to be used to generate grid heat. About 40 percent of the residents of Erfurt can proportionately and directly benefit from this. Furthermore, by blending H2 in sections of the existing natural gas grid, households in these microgrids will be supplied with green hydrogen.
In the medium term, one of the largest economic centers of Thüringen, that is industrial park Erfurter Kreuz, as well as the rail transport systems will be incorporated. The planned connection starting 2030 to the German and European Hydrogen Backbone (EHB) will support the commercial prospects beyond the borders of Thüringen and Germany in the long term. In this way, the commerce of locations Germany and particularly Thüringen will be strengthened by the TH2ECO project.
Project development of the electrolysis station
Could you illustrate what the project development of the electrolyzers was like?
Fromm: During the realization of the electrolysis plant from Green Wind, the local community was actively involved early on through a presentation for the Bürgermeister in the town hall, in a building committee and in town council meetings. Like with the installation of wind energy in Thüringen, we are convinced that a fair involvement of the community in the projects is necessary. Additionally, consultation with critical stakeholders like regional water providers was done in order to ensure an environmentally considerate water supply.
What advantages are there at the electrolysis location?
Our approach is to use the complete feed-in energy of the electrolysis plant. Therefore, in addition to the generation of green hydrogen, the decoupling of local heat on site at the electrolysis plant is planned. A helpful potential, since its operation generates low-cost waste heat that – when locally used – is a helpful building block in the clean heating transition of the community, for example as part of a low-temperature heating grid.
Are there advantages on site beyond the waste heat?
Yes, definitely: We envisage that there will be an opportunity to visit at the electrolysis site, so it will become a place for knowledge expansion and learning. By being present locally, we want to develop a practical example that can be experienced and that gives the important topics of energy transition and sector coupling the visibility they deserve.
Author: Kilian Fromm, Green Wind Innovation, Berlin
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