Siemens Gamesa has released a whitepaper today (June 9) that sets out a roadmap to help drive down the cost of green hydrogen production by 2030 helping to create competitive opportunities in the industry.
The white paper outlines that green hydrogen price parity with fossil-based hydrogen is achievable from onshore wind by 2030 and offshore wind by 2035 if appropriate policy frameworks and market mechanisms are established.
As well as this, the whitepaper additionally outlines the potential path needed to ensure that green hydrogen becomes a mainstream energy source.
The ‘Unlocking the Green Hydrogen Revolution’ whitepaper highlights four key requirements to help deliver low-cost green hydrogen within the next decade.
A drastic increase in the capacity of renewables would be need as the green hydrogen revolution relies heavily on this.
The world needs up to 6,000GW of new installed renewable energy capacity by 2050, up from 2,800GW today to generate the expected demand for hydrogen (500 million tonnes).
As well as this, the need to create a cost-effective demand-side market for green hydrogen is important to drive down the costs of equipment, infrastructure and day-to-day operating costs.
Currently the main operating cost for green hydrogen production is powering the electrolysers, a decrease in energy costs lowers the cost of the hydrogen and increases demand.
Development of the supply chain is key as no one provider can own the entire production and distribution process.
Initiatives are currently fragmented and costly meaning renewable energy companies, electrolyser manufacturers, network providers and water treatment specialists need to work together to build a resilient supply chain.
The final key factor is to build the right infrastructure in terms of logistics, storage and distribution with a need for investment in hydrogen pipeline networks to unlock the potential of green hydrogen.
Andreas Nauen, CEO of Siemens Gamesa, said, “When it comes to green hydrogen, we need to act now. It took three decades for wind and solar to reach grid parity with fossil fuels, and we cannot afford to wait that long for green hydrogen to reach price parity with fossil-based hydrogen.
“Wind will play a powerful role in accelerating the production of green hydrogen, which is vital to decarbonising our economy. Therefore, to unlock the potential of green hydrogen, we need to drive down costs quickly.
“To do this, we need a consensus between industry, policymakers and investors to rapidly develop the demand-side market, build the supply chain and roll out the necessary infrastructure.”
You can read the whitepaper here.
Building a green hydrogen economy in the UAE – An interview with Siemens Energy
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