Germany’s RWE is one of the first energy companies to appoint a board member dedicated to hydrogen, leading a new department focused on its development.

Sopna Sury, who started her new role in February, tells Hydrogen Economist about the organisational changes at RWE that have put hydrogen into the spotlight—and that she believes it will become as important to climate protection as drinking water is to everyday life.

What are your priorities over the first months in your new role? 

“Hydrogen is the global shooting star of the energy transition”

Sury: Taking on responsibility for hydrogen at RWE and for developing the first projects on an industrial scale is a dream job. Hydrogen is the global shooting star of the energy transition because it opens up technical possibilities for decarbonising areas of industry that would not be achievable through electrification.

We see huge potential for hydrogen at RWE because we are excellently positioned along the entire value chain. Since I took up my position, my focus has been on pooling all hydrogen-related expertise within the group and on driving existing projects forward while looking for new opportunities and forging alliances. 

What have been the benefits, so far, of establishing a dedicated hydrogen business unit?

Sury: It displays the importance we attach to this area. With the mandate of a board member entirely focused on hydrogen it is easier to push projects forward that involve more than one RWE subsidiary.

In our company, hydrogen means linking technologies as diverse as offshore wind and gas reconversion. Our new organisational structure allows us to be more agile when implementing complex projects. This constellation has already proven its worth in practice, for example in the preparation of extensive funding applications.

Which regulatory changes would you like to see in Germany, the UK and the Netherlands? 

Sury: There is broad political commitment to hydrogen in these countries and at the EU level. Plus, the German government and the EU have promised large amounts of funding. The conditions are promising, but the task now is to create a framework that enables green hydrogen to be produced, transported and used economically. 

One example is grid regulation. An efficient infrastructure as the backbone of a European hydrogen economy requires an integrated approach of grid regulation that gives all stakeholders planning security. Network customers need clarity about which types of hydrogen will be available when and under what conditions. Network investors need to know which costs will be recognised in the network charge calculation and how they can refinance them.

Another example is the need for a green hydrogen definition so that it can be credibly counted towards climate targets. Such a definition should be balanced—not too strict, not too lax. If the rules are too strict, they could delay the market ramp-up and distort competition.

What shape do you think the European hydrogen market will be in by 2030? 

Sury: Hydrogen will have found its way into everyday industrial life. The focus will be on speeding up hydrogen infrastructure expansion because hydrogen will be recognised as a game-changer—as important for climate protection as drinking water is for everyday needs. 

“The conditions are promising, but the task now is to create a framework that enables green hydrogen to be produced, transported and used economically”

I expect that, by 2030, the first hydrogen clusters will have emerged across the EU, bringing together renewables, pipelines and storage infrastructure, and industries. Economies of scale and international competition will have led to falling purchase prices and the expansion of renewable energies will have further accelerated throughout Europe to meet the additional demand from hydrogen production.

I am sure that in ten years’ time green hydrogen will still be more expensive than grey hydrogen, but the price difference will have narrowed significantly, bringing competitiveness within reach. In industry, green hydrogen will be used on a large scale to reduce the carbon footprint of production. New gas-fired power plants will only be built hydrogen-ready or retrofitted in 2030. Imported hydrogen will increasingly flow into the market because European production will not be able to keep up with green hydrogen demand.

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Author: Karolin Schaps