Wind energy major Siemens Gamesa says it believes green hydrogen from onshore wind can achieve price parity with fossil-based hydrogen by 2030 and that green hydrogen from offshore wind can do so by 2035, with appropriate policy frameworks and market mechanisms in place
In a new white paper, Unlocking the Green Hydrogen Revolution, Siemens Gamesa sets out a roadmap to drive down the cost of green hydrogen production in the next decade and outlines the path needed to ensure that green hydrogen becomes a mainstream energy source.
The company has called for a ‘joined-up approach,’ encouraging market demand and scaling production, highlighting four key requirements to deliver low-cost green hydrogen within the next decade.
The first is to significantly increase capacity. “The world needs up to 6,000 GW of new installed renewable energy capacity by 2050, up from 2,800 GW today to generate the expected demand for hydrogen,” said the company.
Secondly, said the company, there is a need for a cost-effective demand-side market for green hydrogen to drive down the cost of equipment, infrastructure and day-to-day operating costs. Currently, the main operating cost for green hydrogen production is powering electrolysers, so a decrease in energy costs lowers the cost of the hydrogen and increases demand.
Third, a supply chain needs to develop because no one provider can own the entire production and distribution process. At the moment, initiatives are fragmented, and therefore costly, meaning renewable energy companies, electrolyser manufacturers, network providers and water treatment specialists need to work together to build a resilient supply chain.
Fourth, the right infrastructure needs to be developed in terms of logistics, storage and distribution and investment is needed in hydrogen pipeline networks to unlock the potential of green hydrogen.
Siemens Gamesa chief executive Andreas Nauen 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. 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.”
Siemens Gamesa is already expending significant resources in wind-to-hydrogen solutions. Its Brande Hydrogen site in Denmark has been granted status as official regulatory test zone by the Danish Energy Agency, providing a freer framework to develop innovative green energy solutions.
Here, Siemens Gamesa has integrated a battery, turbine and electrolyser to serve as a testbed for technology.
In addition, Siemens Gamesa and Siemens Energy have joined forces to develop an innovative solution that integrates an electrolyser into an offshore wind turbine as a single synchronised system to directly produce green hydrogen.
The solution will lower the cost of hydrogen by being able to run off grid, opening up more and better wind sites.
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