A consortium of 30 European energy players including Spanish gas distributor Enagás and gas utility Naturgy, and Italian developer Falck Renewables, plan to deliver solar-based green hydrogen at a price of €1.50 ($1.82) per kilogramme before 2030 – equivalent to the cost of fossil fuels-based grey hydrogen today.
Unlike other initiatives to slash the price of electrolyser-based green hydrogen, the envisaged price of the ‘HyDeal Ambition’ as the consortium is called, already is slated to include transmission and storage.
The initiative targets to achieve a massive 95GW of solar and 67GW of electrolysis capacity before 2030 to deliver 3.6m tonnes of green hydrogen per year to consumers in the energy, industry and mobility sectors via the gas transmission and storage network.
That is equivalent of 1.5 months of oil consumption in France. The solar capacity needed for the huge green hydrogen output by far surpasses that of Europe’s top solar producer, Germany, which by the end of last year had reached 54GW.
Complete industrial ecosystem
"HyDeal Ambition brings together visionary CEOs and entrepreneurs, who share the determination to accelerate the energy transition,” HyDeal spokesman Thierry Lepercq said.
“HyDeal Ambition constitutes a complete industrial ecosystem spanning the whole green hydrogen value chain (upstream, midstream, downstream, finance), and results from 2 years of research, analysis, modelling, feasibility studies and contract design.
“HyDeal Ambition makes it possible to produce and deliver competitive green hydrogen in Europe.”
Spurred by the EU’s green hydrogen strategy launched last summer that targets a capacity of electrolysers for the production of green hydrogen of at least 40GW, initiatives for the large scale production of the renewables-based gas and the machines to produce it have proliferated.
Norwegian electrolyser maker Nel in January had presented plans to cut for a new 2GW electrolyser factory — set to be the world’s largest — that is slated to produce machines that can churn out green hydrogen at a price of $1.50/kg by 2025. UK-based ITM Power recently completed construction of a 1GW factory in Sheffield, and has enough cash to build a second hydrogen gigafactory.
Some 10 million tonnes of hydrogen are produced in Europe every year - mainly used for oil refining and the production of ammonia for fertiliser (and other chemicals).
Start in Spain
Electrolysis OEMs, engineering and EPC providers in the HyDeal Ambition group include French companies McPhy and Vinci construction.
The consortium has opted for a phased approach, and plans to start first deliveries in Spain and the Southwest of France, followed by an extension towards the East of France and then Germany.
A first initiative is planned within a year in Spain, based on a portfolio of solar sites with a capacity of close to 10GW.
Enagás last year had already announced its ‘Green Hysland’ project to produce hydrogen from solar power on the Balearic Island of Mallorca.
• Solar developers: DH2/Dhamma Energy (Spain), Falck Renewables (Italy), Qair (France)
• Electrolysis OEMs, engineering and EPC providers: McPhy Energy (France), VINCI Construction (France)
• Gas TSOs: Enagás (Spain), OGE (Germany), SNAM (Italy), GRTgaz (France), Teréga (France)
• Energy and industrial groups: Gazel Energie, subsidiary of EPH (France), Naturgy (Spain), HDF Energie (France)
• Infrastructure funds: Cube, Marguerite, Meridiam
• Consultants and advisors: European Investment Bank, Corporate Value Associates (CVA), Clifford Chance, Cranmore Partners, Finergreen, Envision Digital, Energy Web