Hydrogen energy is set to play a vital part in the transition towards zero-carbon economies, with estimates that it could contribute 20pc of the required greenhouse gas emission reductions needed to achieve global targets by 2050.

The potential uses of hydrogen in industrial markets and domestic applications are wide-ranging. Hydrogen offers traditional industrial sectors challenged to reduce greenhouse gas emissions with the possibility of zero-carbon molecules and process improvement. This is particularly attractive to sectors such as chemicals, steel and refining that require high-grade heat, where decarbonisation may be difficult to achieve through electrification alone. For domestic customers, hydrogen offers new and better options in everyday life, such as carbon-free transport systems.

Hydrogen produced from renewable energy sources is the vital goal. Electrolysis is the ideal complement to renewable electricity. In combination, they offer a low- or zero-carbon route to hydrogen production. Governments and businesses worldwide are seeing the potential. Targets have been set in several European countries—with the EU as a whole aiming for 40GW of installed electrolyser capacity by 2030. In France alone, €7bn ($8.5bn) will be invested in the development of the hydrogen economy between now and 2030. Market projections show potential for huge growth in the market for electrolysers worldwide.

Learning by doing, and delivering projects of increasing industrial scale will help to drive cost improvements

Scope for technological development

At Air Liquide, we see potential in the full range of electrolyser technologies already in play. Long-established and cost-effective approaches, using alkaline electrolysis technology, have scope for further expansion in a growing market, notwithstanding the increasing deployment and competition from newer proton exchange membrane (PEM) technology. Emerging approaches, such as solid-oxide electrolysis and anion-exchange membrane technology, while less mature, hold promise. In our view, there is space for each of these to develop and grow.

Achieving cost competitiveness

The key challenge facing technologists and electrolyser project developers will be achieving cost-competitiveness. Hydrogen production by electrolysis is currently three-to-four times more expensive than traditional methods such as steam methane reforming. But projections indicate that it can be cost-competitive by 2030.

Learning by doing, and delivering projects of increasing industrial scale will help to drive cost improvements. Learning is happening in the field. We have wide experience of on-site installation as an engineering procurement and construction (EPC) contractor, delivering complex projects. We have more than 35 electrolyser units in operation worldwide already, of varying scale, mainly using alkaline electrolysis technology. But we also operate one of the first at-scale PEM plants, in Hobro, Denmark. The HyBalance facility was inaugurated in 2018 and has delivered 120t of hydrogen since its launch. The hydrogen is supplied to industrial customers as well as clean transportation, supporting a network of hydrogen refuelling stations for vehicles in Copenhagen.

€8bn – Air Liquide planned investment in hydrogen supply chain by 2035

We have also invested in the world’s largest PEM plant at Becancour in Quebec, with a 20MW capacity. Powered by 99pc renewable energy, the four units on-site can produce more than 8.2t of low-carbon hydrogen every day, supporting North American industrial customers and mobility markets. The H2V Normandy project under development in France is of a larger scale still, at 200MW, with capacity for hydrogen production of up to 28,000t/yr. It forms part of an ambitious initiative to develop new energies to decarbonise industrial activities in the Seine Valley. It is estimated that the project will avoid 250,000t of CO₂ emissions per year.

The value of partnership

Partnerships are an important part of the strategic landscape, reflected in the growing web of alliances between companies internationally. Collaboration and co-creation are also vital to developing projects quickly, effectively and competitively. While we have experience in all aspects of the hydrogen value chain—from research and development to operations, downstream technologies such as compression and liquefaction, and a growing position in hydrogen refuelling—we recognise that no single company can meet the projected demand on its own.

We understand, therefore, the value of long-term relationships with leading companies to develop and deploy electrolyser technology on a global scale. By partnering with Siemens Energy in Europe, we have gained exposure to different parts of the emerging market and created a mechanism for the co-creation of large industrial-scale hydrogen projects in collaboration with customers, and laying the ground for mass manufacturing of electrolysers in Europe—especially in Germany and France.

Siemens brings electrolyser technology, electrical grid integration, and solutions along the Power-to-X value chain, while Air Liquide contributes 40 years of experience in hydrogen activity, access to large projects, EPC capabilities, as well as R&D expertise and complementary technologies such as liquefaction.

Integral to carbon management toolkit

Electrolysers represent an integral part of the toolkit to manage carbon emissions. Hydrogen production from electrolysis complements other technologies that support the energy transition—such as carbon capture and storage, liquefaction, compression, and pipeline development and management.

The production, management and use of gases including hydrogen have been at the heart of Air Liquide’s business since it was established in 1902. The development of electrolysers, on such a large scale, therefore, represents a link to our heritage and scientific past, as well as a key part of our journey to sustainable future growth. Our plans to invest approximately €8bn in the hydrogen supply chain by 2035 shows our confidence in this market and is a sign of our commitment to contribute to the low-carbon societies of the future. We also aim to bring our total electrolysis capacity to 3GW by 2030.

Dominique Rouge is vice president, sales & technology at Air Liquide Engineering & Construction

 

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Author: Dominique Rouge