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Siemens Gamesa plans to reduce the cost of ‘green’ hydrogen

Wind turbines in Brandenburg, Germany.

Patrick Pleul | picture alliance | Getty Images

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

In a statement on Wednesday, the company ̵

1; a major player in wind turbines – also said that green hydrogen produced using wind from the offshore sector could achieve price parity by 2035.

The above scenarios depended on having “appropriate policy frameworks and market mechanisms in place,” the statement said.

Siemens Gamesa’s White Paper outlines four key areas that can help reduce costs: increasing renewable energy capacity; to create “a cost-effective green hydrogen demand market” development of a supply chain and infrastructure support.

“It took three decades for wind and solar to reach net parity with fossil fuels, and we can not afford to wait that long for green hydrogen to reach price parity with fossil-based hydrogen,” said Andreas Nauen, the firm’s CEO.

Described by the International Energy Agency as a “versatile energy carrier”, hydrogen has a wide range of applications and can be implemented in sectors such as industry and transport.

It can be produced in a number of ways. One method includes the use of electrolysis, in which an electric current divides water into oxygen and hydrogen.

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

At present, however, the vast majority of hydrogen generation is based on fossil fuels, and green hydrogen is expensive to produce.

In recent times, a number of major industrial companies have announced plans to integrate green hydrogen into their activities.

In addition, major economies such as the European Union have planned to install at least 40 gigawatts of renewable hydrogen electrolysers by 2030.

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

According to the DOE, hydrogen from renewable energy is priced at around $ 5 per tonne. Kg today. “Pure hydrogen is a switch,” U.S. Energy Secretary Jennifer M. Granholm said Monday, adding that it would help “decarbonize highly polluting heavy and industrial sectors.”

On Wednesday, Ben Gallagher, chief analyst for new technologies in the research group Wood Mackenzie, tried to highlight how the environment around green hydrogen seemed to change.

“An increasingly dynamic low-carbon hydrogen market has seen a flood of state aid, corporate commitments, announced projects and even spectator intrigue over the past 18 months,” he said.

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

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