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Siemens Gamesa presents a plan to reduce the cost of “green” hydrogen

Wind turbines in Brandenburg, Germany.

Patrick Pleul photo union Getty Images

So-called “green” hydrogen production using onshore wind turbines could reach fossil-based hydrogen parity by 2030, according to a white paper from Siemens Gamesa Renewable Energy.

In a statement Wednesday, the company, a major player in wind turbines, also said green hydrogen produced by wind from the offshore sector could reach price parity by 2035.

The above scenarios depend on the availability of “appropriate policy frameworks and market mechanisms”

;, the statement said.

The Siemens Gamesa White Paper outlines four key areas for cost reduction: increasing renewable energy capacity; creating a “cost-effective demand-side green hydrogen market”; supply chain development; and infrastructure support.

“It took three decades for wind and solar energy to reach the parity of the fossil fuel network, and we can’t afford to wait that long for green hydrogen to reach fossil-based hydrogen price parity,” said Andreas Nauen, the company’s chief executive.

Described by the International Energy Agency as a “universal energy source”, hydrogen has a diverse range of applications and can be used in sectors such as industry and transport.

It can be produced in different ways. One method involves the use of electrolysis, with an electric current separating water into oxygen and hydrogen.

If the electricity used in the process comes from a renewable source, such as wind or sun, then some call it “green” or “renewable” hydrogen.

At present, however, most hydrogen production is based on fossil fuels, and green hydrogen is expensive to produce.

Recently, a number of large industrial companies have announced plans to integrate green hydrogen into their operations.

In addition, major economies such as the European Union have set out plans to install at least 40 gigawatts of renewable hydrogen electrolyzers by 2030.

Efforts are also being made to reduce costs. On Monday, the US Department of Energy launched its Energy Earthshots initiative and said the first would focus on reducing the cost of “pure” hydrogen to $ 1 per kilogram (2.2 lbs) in a decade.

According to the DOE, hydrogen from renewable sources today is estimated at about $ 5 per kilogram. “Pure hydrogen is changing the game,” US Energy Secretary Jennifer M. Granholm said on Monday, adding that it would help “decarbonise the heavily polluted sectors and industry.”

On Wednesday, Ben Gallagher, a leading analyst on emerging technologies in the Wood Mackenzie research group, tried to highlight how the environment around green hydrogen appears to be changing.

“The increasingly dynamic low-carbon hydrogen market has seen a flood of government support, corporate commitments, announced projects and even intrigue by bystanders over the past 18 months,” he said.

“We believe that this activity boils down to a paradigm shift that will see green hydrogen – hydrogen created by the electrolysis of water using renewable energy – emerge as a key element of the energy transition,” he added.

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