Hydrogen will be a future “bucket of cash” for Siemens Energy but will only start earning money for the company in the medium-term, said the newly-formed company’s CEO as he also predicted an important role for wind unit Siemens Gamesa Renewable Energy in its future plans for H₂.

Christian Bruch, who took the helm at the energy-focused spin-off of German industrial giant Siemens ahead of a stock market listing later in September, said Siemens Energy was well placed to play a big part in the emerging hydrogen economy, with interests spanning electrolyser technology, conventional gas turbines that can be adapted to burn H_2, and renewable power generation.

Bruch said hydrogen was currently the subject of “intense discussion” but added: “Let me be crystal clear, this is something where we invest today money, not an area where we can earn money today.

“This is a future bucket of cash which is important to develop…but will only provide cash in the mid-term.”

Hydrogen, whether of the ‘green’ renewable variety or produced from abated fossil fuels, has been widely touted as a key business line, and in some cases potential saviour, for companies involved in the energy transition, including some coming from conventional gas and coal power generation, or from fossil fuels.

But Bruch said green hydrogen still has “quite a journey to go” and is still at the stage of pilot projects proving themselves.

He added that Siemens Gamesa, which will be 67%-owned by Siemens Energy after its listing, will play a key part in the new company’s H₂ strategy.

“For example, how can we develop hydrogen at the bottom of a wind turbine tower and produce hydrogen directly offshore and bring molecules to the coast?”

Bruch said hydrogen was just one of the many synergies Siemens Gamesa would have with the wider Siemens Energy group, pointing to power transmission that will become more important as wind generation is cited further from points of consumption.

He also noted that many of Siemens Energy’s technology customers from the oil & gas sector are increasingly investing in offshore wind, allowing the relationship to continue in a new sector.

Transition

Green hydrogen to be 'bucket of cash' for Siemens Energy – just not yet, says CEO