Connect with us

Hi, what are you looking for?

World News

The race to make green hydrogen competitive is on

One type of hydrogen production uses electrolysis, with an electric current splitting water into oxygen and hydrogen. If the electricity used in this process comes from a renewable source then some call it “green” hydrogen.

Alex Kraus | Bloomberg | Getty Images

Siemens Energy and Air Liquide have announced plans to set up a joint venture focused on the production of “industrial scale renewable hydrogen electrolyzers in Europe.”

Advertisement. Scroll to continue reading.

The move, announced on Thursday, represents the latest attempt to find a way to drive “renewable” or “green” hydrogen production costs down and make the sector competitive.

The establishment of the joint venture — Siemens Energy will have a 74.9% stake, while Air Liquide will hold 25.1% — is subject to approval from authorities.

If all goes to plan, its headquarters will be in Berlin, with a facility producing electrolysis modules, or stacks, also based there.

Plans for electrolyzer production in the German capital had been previously announced. Manufacturing is set to begin in 2023, with a yearly production capacity of 3 gigawatts reached in 2025.

The European Union’s executive arm, the European Commission, has previously said it wants 40 GW of renewable hydrogen electrolyzers to be installed in the EU in 2030.

In Feb. 2021, Siemens Energy and Air Liquide announced plans related to the development of “a large scale electrolyzer partnership.”

Advertisement. Scroll to continue reading.

Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a diverse range of applications and can be deployed in a wide range of industries.

It can be produced in a number of ways. One method includes using electrolysis, with an electric current splitting water into oxygen and hydrogen.

If the electricity used in this process comes from a renewable source such as wind or solar then some call it “green” or “renewable” hydrogen. Today, the vast majority of hydrogen generation is based on fossil fuels.

In Oct. 2021, Siemens Energy CEO Christian Bruch spoke of the challenges facing the green hydrogen sector. On Thursday, he stressed the importance of scale and collaboration going forward.

“To make green hydrogen competitive, we need serially produced, low-cost, scalable electrolyzers,” Bruch said in a statement. “We also need strong partnerships,” Bruch added.

Air Liquide CEO François Jackow described the creation of the joint venture as “major step towards the emergence of a leading European renewable and low-carbon hydrogen ecosystem.”

Advertisement. Scroll to continue reading.

Read more about energy from CNBC Pro

Siemens Energy and Air Liquide’s plan for a joint venture represents the latest attempt by multinational firms to lay down a marker in the green hydrogen sector.

Just last week, oil and gas supermajor BP said it had agreed to take a 40.5% equity stake in the Asian Renewable Energy Hub, a vast project planned for Australia.

In a statement, BP said it would become the operator of the development, adding that it had “the potential to be one of the largest renewables and green hydrogen hubs in the world.”

In Dec. 2021, Iberdrola and H2 Green Steel said they would partner and develop a 2.3 billion euro (around $2.42 billion) project centered around a green hydrogen facility with an electrolysis capacity of 1 gigawatt.

Source link

Advertisement. Scroll to continue reading.

You May Also Like

World News

Americans don’t need a passport to get to the No. 1 global city to take a working vacation. Kansas City, Missouri, was named the...

Business News

Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June...

Business News

Pro-choice activists are seen outside of the US Supreme Court in Washington, DC on June 15, 2022. Mandel Ngan | AFP | Getty Images...

World News

CAIRO — Qatar’s emir arrived in Cairo late Friday for talks with Egypt’s president, his first visit to the country following years of frayed...

Financial News

An aerial view of Apple Park is seen in Cupertino, California, United States on October 28, 2021. Tayfun Coskun | Anadolu Agency | Getty...

World News

The Supreme Court in a 5-4 decision on Friday overturned Roe v. Wade, the landmark ruling that established the constitutional right to abortion in the U.S. in 1973. The...