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HH2E files for insolvency

HH2E files for insolvency

Big plans and professional marketing – HH2E’s appearance was downright impressive, but on November 8, 2024, the Hamburg-based start-up filed for insolvency on its own initiative. The reason for this was probably that the British majority shareholder Foresight Group did not want to finance the planned large-scale H2 project in Mecklenburg-Vorpommern after all.

Plans included the construction of electrolyzers near Leipzig and in Lubmin. On the Baltic Sea, there was talk of building a 100-MW plant (1,000 MW by 2030) on the site of the former nuclear power plant and investing over €45 million. Although the planning for this is continuing for the time being, there is currently no investor, according to the latest reports.

HH2E CEO Alexander Voigt told Mitteldeutsche Zeitung: “We remain committed to maintaining continuity and stability in our operations while we work on a long-term solution. I am convinced that we will soon find a strategic partner who shares our passion for green energy and can support the vision of HH2E AG.” Voigt founded the solar company Solon in 1996 and is considered a pioneer in renewable energy.

The planned HH2E project Thierbach near Borna in Sachsen, which is to include a further 100-MW electrolyzer on the site of the demolished lignite-fired power plant, is initially only indirectly affected as HH2E-Thierbach-GmbH is a wholly owned subsidiary of the Hamburg company founded in 2021, but remains solvent itself. As part of this Net Zero LEJ project, Leipzig/Halle Airport is to be supplied with green fuel together with DHL.

Götz Ahmelmann, Director of Leipzig/Halle Airport, explained: “As a company, we are convinced of the environmental and economic importance of the industrial production of sustainable aviation fuel (SAF).” In his opinion, however, the conditions for the production of sustainable aviation fuels on an industrial scale “remain excellent.” “With strong partners and extensive areas, supported by an important customer such as DHL, which is committed to climate-neutral flying, we are ideally positioned.”

In insolvency proceedings instigated on the company’s own initiative, the company management can continue to run the business if there are justified hopes of being able to restructure the company. A trustee appointed by the court monitors the process. There is justified hope that the insolvency will enable the company to shed previous constraints and gain more room for maneuver through new collaborations.

No doubts about the core network

No doubts about the core network

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

Enertrag opens office in Hamburg

Enertrag opens office in Hamburg

To strengthen its “role in the global hydrogen economy,” Enertrag, a developer and producer of renewable energies, opened its Hamburg office in fall 2024. At the new branch, Enertrag wants to contribute to the decarbonization of the logistics and shipping industry. And: “We want to supply not only the shipping industry, but also numerous other industries with green hydrogen,” announced CEO Gunar Hering in front of more than 80 invited guests at the official opening of the new premises. These occupy the top floor of the historic Laeiszhof, a magnificent, richly decorated clinker brick building in the center of the Hanseatic city.

As the center of wind energy in Germany, Hamburg will also be an important location for the hydrogen industry in the future. This is demonstrated by the construction work underway since last year for the 100-megawatt electrolyzer in Moorburg and for the Hanseatic city’s H2 industrial network (see H2-international, May 2024). The port therefore offers “ideal conditions to act as a hub for the import and export of hydrogen and its derivatives,” continued CEO Hering. In close cooperation with the shipping company F. Laeisz, the H2Global Foundation and other neighbors in the Laeiszhof, Enertrag wants to advance the infrastructure for the trade and use of green hydrogen.

Nikolaus Schües, CEO of the F. Laeisz Group, which operates its own ships for the transportation of ammonia, emphasized the importance of maritime logistics for the energy transition. The development of a sustainable and competitive energy supply can only succeed through cross-sector cooperation, he said, adding that “Shipping is an important link in this, not only as a transporter, but also as a user of hydrogen-based energy sources.” The traditional shipping company, which celebrated its 200th anniversary in spring 2024 and used to transport saltpeter, bananas and wheat, among other things, is focusing on green methanol and green ammonia for the future. And is planning to convert parts of its fleet to these energy sources.


CEO Gunar Hering with Finance Senator Andreas Dressel and ship owner Nikolaus W. Schües (from left)

Enertrag, in turn, takes care of the production and availability of hydrogen derivatives. The CEO of the company, which has more than 1,100 employees on four continents, refers to the many years of experience in the production of green hydrogen, for example at the Uckermark combined-cycle power plant, which Enertrag has been operating since 2011.

Hamburg’s Finance Senator Andreas Dressel was delighted by the arrival of the business in the city. In a greeting to the future neighbors, who reside just a short walk away from City Hall, he said: ”Our city offers good framework conditions and investment opportunities, especially in the area of large-scale hydrogen projects.” In this respect, he continued, Enertrag is an asset for Hamburg in terms of advancing the ramp-up of the hydrogen economy here and in Germany.

Construction and conversion of the infrastructure for H2 distribution

Construction and conversion of the infrastructure for H2 distribution

“Hydrogen can come, the gas distribution network is ready”

There is extensive demand for hydrogen in both municipalities and industry. In this environment, plans for implementing these market requirements are now becoming more concrete. The recent decision to set up an H2 core network (see p. 18) is seen as the initial spark for this. In view of the supply situation, however, it is clear that the focus must increasingly be on the distribution network, which was also made clear at the DVGW Congress.

“The pace of transformation with the aim of accelerating the hydrogen ramp-up must be maintained, if not increased,” emphasized Prof. Dr. Gerald Linke at the DVGW Congress in Berlin in mid-September 2024. The Chairman of the Board of the German Technical and Scientific Association for Gas and Water also called for further regulatory measures that go beyond the political decisions that have already been made, such as the Hydrogen Acceleration Act, the import strategy and the hydrogen core network.

Stefan Dohler takes a similar view. The President of the German Association of Energy and Water Industries (BDEW) and Chairman of the Board of Management of EWE AG in Oldenburg emphasized the spirit of optimism with regard to the expansion of electrolysis capacities that has begun and the climate protection agreements for industry that were launched last summer: “We have to keep at it and must not lose momentum.” Dohler has observed a very high demand for hydrogen in EWE’s supply area.


Prof. Linke, DVGW: “In order to accelerate the hydrogen ramp-up in Germany, the focus in the expansion of hydrogen infrastructures must be placed more on the distribution networks.”
Source: Bildschön GmbH/Vollmeyer

Jörg Höhler, DVGW President and CEO of ESWE Versorgung in Wiesbaden, shares this view: “We have to keep the pressure on.” Höhler favors the broadest possible approach. It is not a question of deciding on electricity or hydrogen in the energy supply; no, you need both. Together with the energy supply companies Mainova and Entega, ESWE is working on a feasibility study for the development of a hydrogen infrastructure in the Rhine-Main region – a project that has since been awarded the New Gases Innovation Prize. However, Höhler is also calling for clear guidelines and support for the distribution network operators in converting the gas networks to hydrogen.

Portfolio of CO2-free energy sources needed
This appeal appears to have found a sympathetic ear at the Federal Network Agency (BNetzA). “The all-electric world is an economically inefficient path. We therefore need a portfolio of CO2-free energy sources,” stated Dr. Markus Doll at the event. For the Head of Systems and Grid Operation at the BNetzA, it is clear that a common target picture is required for consistent planning of the respective infrastructures. The goal must be integrated grid development across all energy sources, emphasized Doll in Berlin.

He sees the decision to build the approximately 9,000 km long H2 core network as the initial spark to solve the hydrogen sector’s chicken-and-egg problem. This project, which has now been approved by the BNetzA, is seen by the Bonn-based authority as the “basis and transition to the cyclical process of network development planning for hydrogen/natural gas.” For BNetzA expert Doll, the next steps are clear: appropriate infrastructure is needed for CO2-free energy sources. According to Doll, there are two prerequisites for feeding hydrogen into the grids. On the one hand, its use makes sense where it is economically efficient and, on the other, where no other decarbonization alternatives are available. In Doll’s opinion, biomethane plays a role in the concert of climate-neutral gases, especially at regional level.

With regard to the required storage facilities, in particular the cavern storage facilities suitable for hydrogen, he hopes that these will develop “from the market”. However, he promised that the regulatory authority would take this into account in the network development plan (NDP).

Bringing hydrogen to the surface
Dr. Thomas Gößmann describes it as a mammoth project to maintain the gas infrastructure and develop the hydrogen infrastructure at the same time. At the event in Berlin, the head of Thyssengas used the example of North Rhine-Westphalia to explain how hydrogen can be rolled out across the country. To this end, a total of six regional clusters are to be developed as potential regions along the main lines of the core network: Cologne, Ruhr region, Middle Lower Rhine, Lower Rhine, Bentheim-Westmünsterland and Münster-Hamm. Thyssengas believes that these key regions are particularly suitable as nuclei for the development of an integrated H2 infrastructure. According to Gößmann, great attention should also be paid to the development of cross-border capacities. This would enable a broad diversification of supply sources.

Schwaben Netz is also already in the middle of developing a changeover strategy. Specifically, the activities are divided into three major projects. Project 1 deals with the gas grid transformation plan. Where are the connection points to the H2 core network? Where and when will the switch to hydrogen take place? These are the questions that are being investigated. Another project is target grid planning: the H2 requirements of large anchor customers in the grid area and grid areas that can be transformed cost-effectively are the challenges that the grid operator is addressing there. And the third project is a pilot project for the supply of hydrogen. Specifically, it involves an area with several residential units that is to be supplied with hydrogen from a chlor-alkali electrolysis plant in an industrial park.

These activities are already attracting serious interest. The Technical Managing Director of Schwaben Netz, René Schoof, reports “significant” hydrogen demand from industry and municipalities in Bavarian Swabia with a view to achieving the 2030 climate targets. A joint web query by Bayernets, Schwaben Netz and the Swabian Chamber of Industry and Commerce (IHK Schwaben) produced concrete figures. A total H2 demand with a capacity of 1,903 MW was reported for the year 2030. The Managing Director is certain that pure electrification of the energy supply would be too much for many. “We must also give small and medium-sized companies the chance to find the right solution for them,” emphasized Schoof in Berlin.

Great support for conversion to hydrogen
This year’s Gas Network Transformation Plan (GTP) also shows that gas network operators are working on implementation scenarios on a broad scale. This is the central planning instrument for the transformation of gas distribution grids towards climate neutrality. Following its launch in 2022, the number of participating gas distribution system operators rose to 252 in the third planning year. The GTP now covers gas pipelines with a total length of 450,000 km and reaches 381 out of 401 German districts.

   

As part of the gas grid transformation plan (GTP), the grid operators analyze their customers’ requirements up to the year 2045
Source: GTP 2024, DVGW/VKU)

The trend is clear: the majority of the approximately 1,100 municipalities supplied by the GTP participants plan to use climate-neutral gases in both industry and private households in the long term. (Only two percent of the municipalities were against the use in industry, seven percent rejected such use for private households). And two thirds of the more than 3,500 industrial and commercial customers surveyed also see a future need for hydrogen, with over 80 percent of large customers even expecting 10 million kWh or more each by 2030.

“Extensive studies by the DVGW and its institutes show that the German gas distribution networks can be technically upgraded for the safe distribution of hydrogen at comparatively low economic cost. This must be tackled now,” demands DVGW head Linke. For the technical conversion, the DVGW offers VerifHy, the central platform for quickly and conveniently checking the hydrogen suitability of gas networks and the products, components and materials used. Reliable information on H2 readiness can be called up at the touch of a button. VerifHy supports gas network operators in checking the suitability of their infrastructures for hydrogen. The database is thus set to become the central accelerator for the H2 network conversion.

Unproblematic changeover at Avacon
Avacon Netz has proven that a changeover is also possible in practice (see H2-international, Oct. 2022). Torsten Lotze from Asset Management Gas/Hydrogen refers to eight successful pilot projects with PE and steel networks as part of the DVGW project group “Hydrogen in gas distribution.” The network operators did not replace any components based on the analyses carried out in advance. “The above-ground inspection of underground pipelines before and after the conversion confirmed the technical tightness in each case,” reports Lotze. No technical anomalies occurred during operation.

An integrity assessment was carried out in advance in accordance with DVGW data sheets G407 (conversion of steel pipes up to 16 bar operating pressure) and G408 (for PE pipes up to 16 bar operating pressure). The materials are “safe.” Nothing was found in the networks that was actually critical, emphasizes Manager Lotze.

With this knowledge, they are already in a position to take the next steps. “We can already evaluate grids and draw up a conversion roadmap,” summarizes the Avacon employee. This plan envisages five concrete steps:

– Inventory and documentation of the current network structure, materials and operating conditions
– Mesh analysis, material analysis and evaluation of hydrogen resistance
– Replacement measures for incomplete documentation
– Technical adaptations
– Conversion

On this basis, the grid operator has developed the Avacon gas grid transformation factor (GTF). Specifically, this assesses how well a gas network or individual components can be transferred to a future decarbonized energy system. In the integrity assessment, an H2 assessment as well as an assessment of safety, condition and data inventory are each presented as a key figure. Lotze explains that the GTF can be used to immediately determine where the overall grid stands and where individual local sections stand. In view of these findings and the progress made, the Avacon expert’s conclusion is not surprising: “Hydrogen can come, the gas distribution network is ready.”


It is clear that the H2 core network does not reach all industrial and commercial gas consumers with process heat requirements.
Source: Study Process heat – where does the energy come from? DVGW, DBI, DMT

Distribution grid of particular importance
Industrial customers are obviously also ready: According to the H2 market index (see info box), 76% of market players rate the importance of climate-neutral hydrogen for the future energy supply in Germany as high or very high. An important area of application there is process heat with temperatures between 100 and 1,500 degrees Celsius. This demand has amounted to around 200 TWh in recent years. This corresponds to almost a tenth of the final energy demand (reference year: 2020) of 2,318 TWh and a fifth of the gas demand in Germany.

A study commissioned by the DVGW (German Technical and Scientific Association for Gas and Water) analyzed the supply situation at over 5,600 industrial sites. The result shows the importance of the distribution network: 27 percent of the sites surveyed are less than one kilometer away from the planned H2 core network and could be supplied directly via it. However, 78 percent of the gas demand for process heat will arise at a distance of more than one kilometer from this network. A hydrogen-capable distribution network is therefore required to supply these locations. “In order to accelerate the hydrogen ramp-up in Germany, the expansion of hydrogen infrastructures must focus more on the distribution grids. They are of particular importance,” says DVGW head Linke, summing up the situation.

The H2 market index – barometer for the market ramp-up
The H2 market index serves to determine the perception of market players regarding the development of a hydrogen market in Germany. The objectives are to map the perceptions of various stakeholders, to identify challenges and potential problem areas and to record relevant indicators for measuring the progress of the hydrogen market ramp-up. The H2 market index covers the four areas of innovation environment, political and regulatory framework, infrastructure expansion and market development. The index results are mapped on a scale from 0 (negative) to 100 (positive).

An online survey of stakeholders in the hydrogen economy was conducted to determine the H2 Market Index 2024. A total of 311 index-relevant responses were included in the evaluation. The survey was conducted by the Institute of Energy Economics at the University of Cologne gGmbH (EWI) on behalf of the DVGW, the German Chemical Industry Association (VCI), the German Engineering Federation (VDMA) and the German Steel Federation (WV Stahl).

Sustainability in the Hydrogen Economy

Sustainability in the Hydrogen Economy

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:

  1. Hydrogen Council, Hydrogen Insights 2023 [L]
  2. International Platinum Group Metals Association e.V, 2022, The Life Cycle Assessment of Platinum Group Metals (PGMs), [L]
  3. American Institute of Chemical Engineers, 2024, AIChE Selected by DOE to Lead New Hydrogen Electrolyzer and Fuel Cell Recycling Consortium, [L]
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