The Hydrogen Stream: Ørsted kicks off first project, ArcelorMittal moves towards blue hydrogen

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Green hydrogen will require significant investments and time for its price to go “well below $1/kg”, and this is the main hurdle for its development in the steel sector despite its “potential”, said David Clarke, the vice president of multinational steel manufacturer ArcelorMittal. “We can all imagine how hydrogen costs might evolve going forward, but it fundamentally centers on the cost of clean electricity, which, again, we're looking at least on a 10, if not on a 20-year horizon before we see those economics being positive. And we don’t have that kind of time scale in which to make some meaningful dent in emissions from steel-making today, at least in Europe,” he said during a Bloomberg NEF (BNEF) Summit held on Monday. Bioenergy with carbon capture and storage (BECCS) sounds more of a feasible option, Clarke said, mentioning a project in Brazil and one in Belgium. “The technology box around BECCS-type technologies is either ticked, or basically on its way to being ticked.” Clarke also mentioned that ArcelorMittal is looking into direct electrolysis for steel production, instead of hydrogen.

Danish energy company Ørsted has started the onsite construction work of its first renewable hydrogen project (H2RES). The project in Copenhagen should produce hydrogen by the end of the year. Upon completion, it will have a capacity of 2 MW and produce up to around 1,000 kg of renewable hydrogen a day, which will be used for transport in the region. “The project will investigate how to best combine an efficient electrolyzer with the fluctuating power supply from offshore wind, using Ørsted's two 3.6 MW offshore wind turbines at Avedøre Holme,” reads a note released on Monday. Danish authorities awarded DKK 34.6 million (€4.65 million) to the development of the H2RES project to Ørsted, Everfuel Europe A/S, NEL Hydrogen A/S, Green Hydrogen Systems A/S, DSV Panalpina A/S, Hydrogen Denmark, and Energinet Elsystemansvar A/S. According to Ørsted, the “small” project will be “a very important first step” towards a hydrogen-based energy transition. Martin Neubert, Ørsted’s Deputy Group CEO, said during the virtual BNEF event that hydrogen is the Danish company’s “logical step” for them, mostly in Denmark, the U.K., the Netherlands, Germany, and Belgium. Ørsted is focusing on collaboration in four sectors: refineries, ammonia production, steel, and heavy transport.

A group of 11 companies led by Greek gas company DEPA Commercial, submitted an €8 billion investment proposal for the development of the integrated green hydrogen “White Dragon” project in Greece to the Greek Government and the European Union. It  should cover the entire hydrogen value chain. The project aims to gradually replace the lignite power plants of West Macedonia. “Hydrogen will then be stored directly (short-term hydrogen storage) and indirectly (streaming through DESFA’s natural gas pipeline) and, subsequently, through high temperature fuel cells will provide the country’s power grid with electricity as a fixed base load co-generation unit of green energy and heat,” reads a note released last week. Advent Technologies, Damco Energy, Greek utility, PPC, DESFA, Hellenic Petroleum, Motor Oil, Corinth Pipeworks, TAP, and Terna Energy are the other partners.

The average monthly wind speeds and solar irradiance recorded between mid-January and mid-April suggest conditions at Oakajee SIA in Western Australia are compatible with the creation of a green hydrogen hub. “With a 6,400-hectare footprint, the Oakajee SIA has the capacity to support an extensive renewable energy hub and deliver power at internationally competitive power prices, essential for the competitive production of green hydrogen,” reads a press release issued last Friday by the government of Western Australia. It has committed more than AUD35 million towards developing a renewable hydrogen industry in the state. “We think it is not beyond the pale to suggest that in the next 10 years we could be producing up to 100GW of renewable energy for hydrogen and by 2040 that could be up to 200GW of power,” Hydrogen Minister Alannah MacTiernan said last week, as reported by local media. Earlier this month, work began at Australia’s first regional renewable hydrogen plant. “Horizon Power will install a 704 kW)solar farm, 348 kW hydrogen electrolyzer and a 100 kW fuel cell in Denham, enabling excess renewable energy to be used to produce renewable hydrogen which will be stored on site and used to power homes as required,” the Government of Western Australia wrote in early May.

Dijon, a city Northeastern France, is launching a €100 million hydrogen project to reduce the CO2 emissions of the territory's public transport starting in 2023. The green hydrogen project launched in 2020 is based on the construction of two local green hydrogen electrolysis production stations, with an initial combined daily production capacity of 1,320 kg of hydrogen. By 2030, Dijon Metropole aims to renew its entire fleet of heavy vehicles with hydrogen (over 220 vehicles).

Norway-based consultancy DNV joined Hydrogen Taskforce, a coalition of U.K. organizations operating and innovating in and across the hydrogen sector. “DNV will bring its extensive experience in managing low-carbon hydrogen and other sustainable energy value chains to the Taskforce,” reads a note released on Monday. The Taskforce is working closely with the Government on the forthcoming UK Hydrogen Strategy, which is expected to be published by September.

Chinese hydrogen fuel cell technologies provider Refire announced that, assisted by Germany’s certification company TÜV Nord, it has been granted certificates by the Dutch Vehicle Authority RDW, which will allow the company to introduce its products and services into the European market. Refire’s systems can be integrated into passenger and commercial vehicles. “The achievement reflects Refire's outstanding expertise in the design of fuel cell systems for electromagnetic compatibility which is known in the industry to be one of the key challenges in fuel cell development,” reads a note released on Friday.

The president of the Port Authority of Malaga, Carlos Rubio, and the CEO of Buran Habitat, Alejandro Garcia, signed an agreement to promote the energy transition in the third tourist cruise port of the peninsula. H2B2, a company that develops hydrogen production systems based on water electrolysis, is a technology partner. Africa Castro, head of business development at H2B2, said that “renewable hydrogen allows maximizing the reduction of emissions in port ecosystems, already highly integrated in urban environments, providing a solution to different means of transport and industrial machinery.” According to Rubio, green hydrogen “is going to be a key element in the energy transition process because it adapts very well to the port environment.” The project hinges also on digital solutions, including Artificial Intelligence.

The Green Hydrogen Coalition, the Los Angeles Department of Water and Power, and other partners launched HyDeal LA, an initiative to achieve at-scale green hydrogen procurement at $1.50/kilogram in the Los Angeles Basin by 2030. HyDeal LA aims to lower costs through this commercial green hydrogen cluster at scale in California. HyDeal LA is part of HyDeal North America, a commercialization platform launched by the Green Hydrogen Coalition. It is modeled after HyDeal Ambition, a similar project in Europe committed to producing and buying 3.6 million tons of green hydrogen per year for the energy, industry, and mobility sectors at €1.5/kilogram (kg) before 2030.

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