Hydrogen Report Draft 2

Hydrogen report

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Minister Eamon Ryan TD:

Green hydrogen momentum is growing

Ireland is committed to playing its full part in EU and global efforts to stop climate change and, in so doing, harnessing the opportunities and rewards that will come from moving quickly to a low-carbon society, writes Minister for the Environment, Climate and Communications, Eamon Ryan TD.

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We have set ourselves the ambition of halving greenhouse gas emissions by the end of the decade and becoming carbon neutral by 2050.

Green hydrogen will have an important role to play in achieving our climate ambitions and decarbonising our energy system by 2050. As a zero-carbon energy dense molecule, it will be pivotal in the so-called ‘hard to decarbonise’ sectors, such as high-temperature heat industries like cement production or heavy transport vehicles, where direct electrification alone may be challenging.

It also offers a solution for decarbonising our electricity sector. Producing hydrogen from electrolysis at times of surplus renewables as a long duration store of energy can be used to create electricity at times of scarcity, thus providing flexibility and ensuring security in our energy system.

Ireland also has one of the best offshore renewable resources globally and this presents a significant industrial opportunity for us. We could produce significantly more renewables than we will ever need alone, creating opportunities to develop new green products and export renewable energy internationally. We already know countries such as Germany are actively looking to source clean hydrogen for import and Ireland is one of a small number of countries who have the natural resources to supply this.

National Hydrogen Strategy and programme

In July 2023, the Department published the National Hydrogen Strategy, which was a major milestone for the hydrogen sector in Ireland. This strategy sets out both the long-term vision for green hydrogen in our economy and energy system, as well as the short-term actions to enable early growth in the sector. Our focus now is on implementing it. Developments in the hydrogen sector will cut across many sectors, notably with offshore renewables. Delivering the 21 actions set out in the strategy will require strong coordination across government departments, agencies, and industry, which has already started.

Given its complexity and the many moving parts, we are developing a National Hydrogen Programme in 2024 which will set out a detailed plan for delivery of our hydrogen ambitions, clear governance, and ownership of actions. We will establish a dedicated National Hydrogen Programme office in my department to oversee its delivery, ensure close cooperation with other policy areas, and enhance our engagement and communications with industry. This programme will be essential to delivering on our policy commitments in the years ahead as set out in Climate Action Plan 2024.

In December 2023, the Department completed a detailed analysis of the economic opportunities associated with developing a significant offshore renewable sector in Ireland. This analysis confirmed that Ireland can become an internationally competitive supplier of renewable hydrogen, particularly in northwest Europe

“We are developing a National Hydrogen Programme in 2024 which will set out a detailed plan for delivery of our hydrogen ambitions...”

Minister for the Environment, Climate, Communications and Transport, Eamon Ryan TD

where pipeline transportation is economically favourable. This work supported the development of our Offshore Industrial Strategy, already published, and Future Framework Policy Statement, which will be published by May 2024, which set out the long-term approach to delivering the offshore renewables needed to power our hydrogen ambitions.

The Department continues to work closely with our counterparts in neighbouring countries to cooperate on renewable hydrogen development and further explore the opportunity for export. In 2023, we executed cooperation agreements with the United Kingdom and Germany for green hydrogen and have engaged closely with others also. The Danish presidency of the North Seas Energy Cooperation has also set out hydrogen as a key priority during its presidency this year. This is something we actively support as it represents the best way to explore what a North Seas hydrogen supply corridor to Europe might look like. Better outcomes can be achieved for all by cooperating and working on this together.

Hydrogen sector at EU level

The past year has also been a significant one for the hydrogen sector at EU level. In March 2024, the results of the first hydrogen bank auctions were announced. With a total of 132 bids received, sufficient to deliver 10 per cent of Europe’s REPowerEU hydrogen targets, this auction demonstrated that there are projects on the ground ready to deliver. The EU Hydrogen and Decarbonised Gas Market Package was also agreed, marking another key milestone for the sector. This package sets out the regulatory rules and market frameworks to enable the coordinated development of an integrated EU hydrogen market and will be an important enabler to infrastructure deployment in future years. Finally, the sixth Projects of Common Interest list was published, marking the first time that hydrogen cross border infrastructure projects could be awarded PCI status.

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Future developments

To develop Ireland’s hydrogen sector further, there are areas where progress is needed in the short-term. The geological storage of hydrogen will be essential to the commercial viability of capturing our surplus renewables and storing them. We need to ensure we better understand Ireland’s storage potential and develop the legislative and regulatory frameworks to support it.

There is also a clear need to support early innovative projects which can showcase green hydrogen across the value chain in Ireland, at a small yet commercial scale. The Department is actively working to secure funding to support these types of projects, as signalled in the National Hydrogen Strategy.

On the ground momentum is growing and there have been some major recent steps forward:

• in 2023, Project Shamrock was awarded EU funding to establish a hydrogen hub in Galway; and

• the Celtic hydrogen cluster to be developed in the Cork region was recently announced.

These industry-led initiatives are vital to establishing the hydrogen sector in Ireland. The Government will ensure that we work to support their development where possible.

Whilst the past year has seen significant milestones achieved for the sector, we still have a distance to travel. Our core focus has been on ensuring we have the right foundations in place to grow. Through continued cooperation and dialogue, we can support this growth and ensure that we pursue the best interests of the country through responsible, transformative climate action.

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Preparing Ireland’s gas network to transport hydrogen

A decarbonised gas network will help reduce emissions, support the achievement of Ireland’s climate ambitions and secure Ireland’s energy security with least disruption.

The gas network infrastructure can be adapted to transport zero carbon gases, such as green hydrogen. It has already transformed once, from carrying town gas to natural gas over 40 years ago, and more recently adapted to biomethane when it was first introduced onto the Irish network in 2019.

To ensure that the Irish gas network is ready to transport hydrogen, Gas Networks Ireland is working with research institutes and academia, including its research project with University College Dublin Energy Institute (UCDEI).

Gas Networks Ireland is preparing the network to safely transport blends of hydrogen in the natural gas imported from the UK through its two subsea interconnectors. Ireland currently imports 77 per cent of its natural gas demand, and the entire transmission and

distribution system is being assessed to be hydrogen ready.

Phase One of this research found that domestic appliances such as gas boilers could take up to 20 per cent of hydrogen blended with natural gas without the need for retrofitting.

Phase Two of the research which concluded in late 2023, involved over 300 of the largest users of networked gas in the country and found that 90 per cent of the end users’ equipment is compatible with blends of 20 per cent hydrogen, while the remaining 10 per cent of Irish industry would need further assessment to determine the extent of modifications required.

Phase Three of this research, HyGreenNet will focus on the gas network and investigate the operational, safety and material compatibility, and is

underway with initial results expected by the end of 2024.

Gas Networks Ireland is also working with AMBER, the Science Foundation Ireland’s centre for Advanced Materials and Bioengineering Research to undertake important research to determine how compatible the materials that make up Ireland’s gas pipeline are with hydrogen – an important first step for green hydrogen in the decarbonisation journey of Ireland’s gas network. The research project “Material Testing and Development under Variable Hydrogen Ratios” is being carried out by scientists from AMBER – SFIs multi–University Centre for world class Advanced Materials and Bioengineering Research, hosted at Trinity College Dublin – in conjunction with engineers from Gas Networks Ireland.

Another research collaboration underway is with the Hydrogen Safety Engineering and Research Centre (HySAFER) at Ulster University looking at the safety of hydrogen blends in the gas network with peer gas network operators in Northern Ireland.

Additionally, Gas Networks Ireland is one of several industry stakeholders funding a €16 million strategic partnership with Irish third-level institutions that will examine how to holistically decarbonise the overall Irish energy sector. Hosted by UCDEI, NexSys (Next Generation Energy System) is also supported by Science Foundation Ireland (SFI).

Timeline: Ireland’s gas network hydrogen evolution

2024-2030: Preparing for hydrogen blends

• Getting the existing gas network ready to accept blends of hydrogen/natural gas at the Moffat Interconnection Point in Scotland and accept green hydrogen injection at certain points on the gas network.

2024-2030: Cluster development

• Support the development of hydrogen clusters through repurposing gas infrastructure, including the production, storage,

In depth discussions at Gas Networks Ireland’s Network Innovation Centre on research project “Material Testing and Development under Variable Hydrogen Ratios” with AMBER’s Principal Investigator, Rocco Lupoi; Gas Networks Ireland’s Materials Development Manager, Aidan Toher and AMBER’s Lead Researcher, Nisith Tewary.

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Gas Networks Ireland’s Hydrogen Programme Director

To progress its hydrogen ambition, Gas Networks Ireland has formed a dedicated hydrogen team led by a Hydrogen Programme Director. Brian Mullins has been appointed to this newly created role.

Brian has 20 years’ experience across a number of senior roles in both the supply and networks aspects of the gas business. Brian joined Bord Gáis Éireann on its Graduate Programme in 2004, working firstly in the gas and electricity trading side of the business before joining the Networks business in 2013. Brian holds degrees in Commerce (B.Comm) and Economics (MEconSc) from University College Cork and a Diploma in Management Practice from the IMI.

transport and end-use of green hydrogen at key locations.

2030-2040: Gas network conversion

• Hydrogen networks are developed to link these clusters by repurposing existing pipelines, providing access to decarbonisation for gas dependant customers not in proximity to the clusters.

2040-2045: European Backbone:

• Repurposing one of the existing gas interconnectors to enable green hydrogen export/import, providing energy system resilience and access to the UK and European hydrogen networks.

European Hydrogen Backbone

Gas Networks Ireland is participating in a major project to help the European Union meet its new accelerated goals and radically increase the use of hydrogen by 2030. The European Hydrogen Backbone initiative is focussed on planning for the future development of a hydrogen market. Five large-scale hydrogen pipeline corridors are envisaged. These new corridors will initially connect domestic local hydrogen supply and demand in Europe, before expanding and connecting European regions amongst each other, and then connecting neighbouring regions with hydrogen export potential. The planned Hydrogen Backbone network will largely be based on repurposing existing natural gas infrastructure. It is anticipated that by 2040, Ireland could be connected to the new European Hydrogen Backbone via a repurposed subsea pipeline to the Moffat Interconnector in Scotland.

Celtic Hydrogen Cluster

Hydrogen clusters or hydrogen valleys are where hydrogen production, transport storage and end use occur within a local geographical region. These clusters often will centre around large industrial energy users who are leveraging hydrogen in order to decarbonise their processes and/or heat

The European Hydrogen Backbone map shows the hydrogen network of 39,700km by 2040 comprising of 70 per cent repurposed gas networks connecting 21 European countries www.ehb.eu.

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demand. In the National Hydrogen Strategy, clusters have been identified as likely to form in the early stage of the hydrogen market evolution between 2025 and 2035, as locating hydrogen production, storage and end use in close proximity reduces the need for larger capital expenditure to transport the hydrogen. In time, these clusters will be linked by dedicated hydrogen networks to improve their security of hydrogen supply and provide them access to international hydrogen markets for import and export.

In Ireland, a number of clusters are anticipated to develop in regions such as Cork, Dublin, Galway, and Limerick. Progress has already been made in Cork where the Celtic Hydrogen Cluster was launched in November 2023. The Celtic Hydrogen Cluster is looking to benefit from the existing nexus of energy producers and consumers which are currently connected by or in close proximity to an existing natural gas network which could be repurposed to transport and store hydrogen to stimulate a hydrogen cluster in this area to take advantage of the offshore wind energy which will be produced from the Celtic Sea in the future. The companies currently involved, include the owners and operators of large power stations, the oil refinery, renewable energy developers and Gas Networks Ireland. Gas Networks Ireland has joined together in order to progress individual and joint projects which all fall under the umbrella of the Celtic Hydrogen Cluster.

Renewable gas of the future – green hydrogen

Green hydrogen is a carbon free gas that can be made from renewable electricity through a process known as electrolysis. Ireland has a significant opportunity to develop indigenously produced renewable/green hydrogen at scale and decarbonise sectors which are hard to decarbonise and fully optimise its renewable generation potential. Embedded in this is an opportunity to utilise the existing gas network to transport and store hydrogen and deliver greater integration between Ireland’s gas and electricity networks.

The EU is predicting that approximately 14 per cent of energy consumption across Europe will be from hydrogen by 2050, and up to 20-35 per cent of the total energy demand in the UK. In Ireland’s case, at least 2GW of non-grid limited capacity is targeted to be in development by 2030. As noted in the National Hydrogen Strategy, the development of hydrogen at scale in Ireland will require the development of a national hydrogen network and the repurposing of existing gas network assets can offer cost savings versus the alternative of building a new hydrogen network from scratch.

To prepare Ireland’s 14,725km gas pipeline to transport hydrogen, Gas Networks Ireland is:

• Conducting research with industry and academia

• Testing hydrogen compatibility and functionality on Ireland’s network

• Collaborating nationally and internationally with other energy network operators

• Rolling out both on and off network innovation

• Creating an evidence-based hydrogen safety case

• Building expertise, skills and knowledge

• Working with an extensive range of stakeholders to deliver the vision of a hydrogen economy at scale in Ireland

Ireland’s future hydrogen economy.

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Gas Networks Ireland’s hydrogen research projects

• End users considerations study

• Off-grid distribution network testing

• Industrial and commercial boilers

• Materials hydrogen compatibility project

• Research and testing of network materials for the transportation of hydrogen blends

• Trinity College Dublin (AMBER)

• Hydrogen blend safety research project

• Preventive and mitigation strategies

• Ulster University HySAFER centre

Government’s National hydrogen Strategy

Gas Networks Ireland strongly welcomed the publication of the Government’s National Hydrogen Strategy in July 2023 as an important milestone in the decarbonisation of Ireland’s gas network, which is essential in the transition to a net-zero energy system in Ireland by 2050.

The report published by the Department of Environment, Climate and Communications (DECC) outlines the future role green hydrogen gas - harnessed from offshore wind – and the gas network will play in specific areas of Ireland’s energy system and the hard to abate sectors such as transport, industrial heating and power generation.

The gas network is Ireland’s hydrogen-compatible infrastructure and reliable energy backbone which will continue to play a central role in the country’s future clean energy and hydrogen economies. The cost of repurposing the existing gas network to transport hydrogen is estimated to be a fraction (10 per cent to 35 per cent) of the cost of building new dedicated hydrogen pipelines, and as the gas pipelines are already in the ground, it is the least disruptive option to help create a national hydrogen network at scale.

Hydrogen fuel cells: Decarbonising freight transport

A MaREI researcher has hypothesised that in a scenario whereby the State meets its net zero targets, hydrogen fuel cell vehicles will account for approximately 24 per cent of the entire haulage fleet in the State by 2050.

Fionn Rogan, a senior research fellow at University College Cork’s MaREI, was speaking on the findings of a paper he co-authored with fellow MaREI energy specialist Vahid Aryanpur which specifically examines emissions emanating from the freight sector.

Using the Times Ireland Model (TIM) to calculate breakdowns in freight sector projections based on three energy variables – supply, demand, and end use – Rogan states that there is “undoubtedly” a strong role to be played by hydrogen fuel cell-powered haulage vehicles, from both a cost and

an emissions reduction perspective.

While the research finds that – due to cost variables – the freight sector will predominately be enabled by battery electric haulage vehicles, the scope for hydrogen fuel cell powered vehicles is up to 25 per cent of the overall haulage fleet, and is necessary if the freight sector, which accounts for 20 per cent of emissions generated in transport, is to play its role in reducing overall transport emissions, which account for 34 per cent of total energy-related emissions.

“In our study, we see a lot of battery

electric vehicles. They dominate in all categories; in heavy, medium, and small trucks, we see electrification by 2050,” Rogan says.

“We can see that, in the circumstances in which we move beyond business as usual and fully adopt policies necessary to meet net zero, that by 2050, at least 20 per cent of the vehicle fleet will switch to fuel cell vehicles when we take into account factors such as reduced cargo capacity and increased refuelling time.”

Referring to his study, Rogan points to the key learnings which have been

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established under the scenario of the Government fully pursuing net zero by 2050 policies.

“Cargo capacity is a key variable in the switching to battery electric vehicles and fuel cell vehicles. Recharging time is another. For instance, when we decrease cargo capacity and increase recharging time, this necessitates an increase in fleet size.”

Examining energy security, Rogan outlines that, with an overall reduction in the import of liquefied natural gas (LNG), as well as volatile oil markets driven by geopolitical events, there are numerous benefits to be realised by the increased use of hydrogen in the freight transport sector.

“Looking at the reduction in diesel import demand and cost in our net zero scenario, there is quite a reduction in imports and in fuel savings. That means less exposure to volatile international oil prices, and there are significant health benefits to be realised from this reduction in emissions.”

Context

The need for solutions to reduce emissions from carbon are self-evident. Between 1990 and 2001, overall CO2 emissions have risen by 115 per cent. Within this total increase, the transport sector has contributed to 34 per cent of energy-related CO2 emissions.

Trucks, by far the largest category for road freight vehicles, make up around only 5 per cent of overall road stock yet are responsible for 20 per cent of overall transport emissions. Moreover, demand in the freight sector is expected to double between now and 2050.

This is a variable in which Rogan expresses statistical confidence, as the MaREI has been working closely with the Economic and Social Research Institute (ESRI), a government think-tank which specialises in economic and social variables, including population and economic growth.

Conclusion

In his concluding remarks, Rogan explains that electric trucks are projected to become the dominant mode of haulage vehicle under all pathways, whether the Government continues with a ‘business as usual’ approach to climate policy, or whether it fully realises the net zero ambitions to which it must pursue.

This is due to future costs of oil and gas, as well as national climate targets. The scope for hydrogen use in fuel cell engines hinges on whether the technology –which is unlikely to be rolled out in any significant way before 2030 – can gather momentum as the State seeks to increase wind energy production which is the key to electrolysis for the production of ‘green’ hydrogen.

National Hydrogen Strategy

The National Hydrogen Strategy sets out generalised targets for the road haulage sector. The National Road Haulage Strategy 2022-2031 states: “Though the use of hydrogen in road transport is expected to be limited before 2030 due to the slower pace of technological advancements in this area when compared to battery electric vehicles, the [National Hydrogen] Strategy recognises that hydrogen could play an important role in the decarbonisation of road freight transport, especially in certain areas where batteries may not be the most appropriate technological solution.”

Fionn Rogan, a senior research fellow at University College Cork’s MaREI,

The green hydrogen opportunity in Irish decarbonisation

In December 2023, Bord na Móna marked a key milestone in the company’s history and the final step of its brown to green journey by using peat to co-fire its Edenderry Power Station for the final time.

The plant now runs on 100 per cent biomass while continuing to provide 118MW of renewable electricity to the national energy grid and supporting Ireland’s target of 80 per cent renewable energy by 2030 and net zero emissions by 2050.

As the company leaves its indigenous fossil fuel roots behind, a €100 million investment into Edenderry has transformed it into a 100 per cent renewable baseload power plant that is an integral part of a larger eco energy park vision.

Today, 40 per cent of Ireland’s electricity comes from renewable sources. Bord na Móna’s vision for Ireland’s 2035 energy system incorporates 90 per cent renewables with 10 per cent flexible decarbonised gas generation. That gas generation will be decarbonised using either green hydrogen or biomethane.

Opportunities in green hydrogen

Hydrogen is ‘green’ when electricity produced by renewables is used for electrolysing water. In times when generation exceeds demand, the excess electricity that would otherwise be wasted can be used to produce green hydrogen. The International Energy Agency predicts that global renewable energy capacity could rise as much between 2022 and 2027 as in the previous 20 years, amplifying the challenge of how to use excess energy. Producing green hydrogen during favourable wind and solar conditions for use when conditions are less favourable for renewables could be a solution.

Thermal generators typically use fossil fuels such as natural gas. These generators are

required to transition to a net zero power system, so it is vital to decarbonise these by replacing the fossil fuel with a carbon-neutral/carbon-free gas. In addition, these generators benefit the electricity system by providing inertia to stabilise the grid.

The role green hydrogen is expected to play in Irish life is outlined in the 2023 Climate Action Plan, which was published in December 2022. This plan included a target for 5GW of offshore wind by 2030 with an additional 2GW for green hydrogen production. That production is not envisaged until post 2030. In 2023, the Department of the Environment, Climate and Communications (DECC) published the National Hydrogen Strategy which includes actions to deliver our national ambition. One of the key actions is to “develop the commercial business models to support the scale up and development of renewable hydrogen, targeting surplus renewable grid electricity pre-2030 and an initial 2GW of offshore wind from 2030”.

The role of green hydrogen is reaffirmed in the 2024 Climate Action Plan, but the emphasis has changed from having 2GW of offshore wind for green hydrogen “in production” to “under development” by 2030. While the inclusion of green hydrogen in national policy is welcome, the pathways to delivery need to be defined.

EirGrid, Ireland’s Transmission System Operator, reported that 8.3 per cent of the total wind energy available was dispatched down in 2022 as it could not be accommodated by the grid. In the absence of rapid delivery of new grid infrastructure, this electricity will continue to be generated with nowhere to go and could be used to power electrolysers to deliver green hydrogen before 2030 instead. Bord na Móna believes that green hydrogen can make a significant contribution to our 2030 targets if onshore renewables are used for its production.

Wind and solar, by their nature, are intermittent sources of energy and, whilst forecasting is improving, there are times when they do not materialise and result in a ‘Dunkelflaute event’. This lack of wind or solar leaves a significant gap in energy production, presenting a major challenge for an electricity system with high renewable penetration like the Irish system. Using green hydrogen as a fuel to produce electricity during those times is a solid, carbon-neutral solution to this problem.

Green hydrogen also enables the possibility of decarbonising hard-toabate transportation industries such as aviation, maritime, rail and road haulage by using hydrogen directly as a gas, or for the production of e-fuels. When processed with biogenic carbon dioxide, such as the CO2 captured from a biomass power plant, green hydrogen can be utilised to produce Sustainable Aviation Fuel (SAF) to support the energy transition of the aviation sector.

The 2024 Climate Action Plan aims for a 50 per cent reduction in carbon emissions in the transport sector by 2030. In addition, the EU’s ReFuelEU Aviation initiative requires the proportion of SAF blended with traditional aircraft fuel supplied to EU airports to increase gradually to 6 per cent by 2030 and almost 70 per cent by 2050. Today, Ireland imports all its aviation fuel, demonstrating that much work is needed

but so is the potential for massive gain. A 2023 feasibility study by SkyNRG and SFS Ireland concluded that by 2050, Ireland could generate approximately €2.55 billion in revenues and create around 1,000 skilled jobs by producing indigenous SAF.

In an increasingly volatile and uncertain world, the security of supply is now at the forefront of many minds. The Sustainable Energy Authority of Ireland’s (SEAI) Energy in Ireland Report 2023 highlighted that the State imports 81 per cent of its energy, most of which is fossil fuel.

Green hydrogen could replace the dependency on imported fossil fuels with indigenous production, facilitating energy security and, given Ireland’s renewable energy potential far exceeding its demand, even opening up the potential for future export markets. 4

Last delivery of peat to Bord na Mona's Edenderry Power Station.

Ireland has a golden opportunity to move from energy consumer to energy supplier on the world economic stage.

These renewable energy and green hydrogen opportunities can also indirectly benefit the people of Ireland as an emerging energy industry generates growth, becomes a catalyst for innovation and creates jobs, often in rural areas supporting regional investment.

Strategies for green hydrogen adoption

The Government released its National Hydrogen Strategy in July 2023, a policy statement on renewable hydrogen that sets out its long-term vision. Bord na Móna’s green hydrogen strategy is closely aligned with the Government’s objectives and this year the semi-State has achieved an important step in its three-phase strategic approach.

Phase I of Bord na Móna’s three-stage approach includes the development of a 2MW green hydrogen pilot project at the Mountlucas Wind Farm in County Offaly. The project was granted planning consent in May 2023, and work is progressing on commercial development.

The original plan to move on to Phase II of the Bord na Móna hydrogen strategy, involving the development of medium-sized projects, has been re-evaluated in priority terms with a shift to focus on Phase III, large-scale production of green hydrogen and potential production of SAF.

One of the main drivers for Bord na Móna’s change in focus is the clarity brought by the National Hydrogen Strategy in terms of end-uses for green gas, particularly around e-fuels. Targets set out under REPowerEU set mandates for 1.2 per cent of the aviation fuel mix in 2030 to be eSAF, rising to 35 per cent e-SAF by 2050. Estimations are that the demand for aviation fuel in the EU alone could approach 50 million tonnes by 2050, broken down into a minimum of 35

million tonnes of SAF, of which nearly 12.5 million tonnes would need to be e-SAF. For Ireland to meet this demand indigenously, work on large-scale projects to produce e-fuels needs to start now.

With Bord na Móna’s Edenderry Power Station now fuelled by 100 per cent biomass, the carbon that is emitted by the plant is classified as “biogenic”. As part of Phase III, Bord na Móna is exploring the development of a Sustainable Aviation Fuel production project at the Edenderry site, which could produce up to 150,000 tonnes of e-SAF, representing nearly 19 per cent of the estimated annual EU-mandated SAF volumes for Ireland in 2050.

Recognising the challenges

Whilst the opportunities for Ireland to play a leading role in green hydrogen production are clear, the energy industry recognises that there are challenges to overcome.

Using hydrogen for power generation and energy storage is a good concept, however, there is a question about long-term storage. Solutions range from geological storage in depleted gas fields, aquifers, or salt caverns to liquified storage at low temperatures in insulated tanks, compressed hydrogen in pressurised containers and materials-based storage where compounds such as ammonia get employed as hydrogen carriers. While these options are technically feasible, they are expensive to test and build, which creates uncertainty around financing projects.

To kick-start the hydrogen industry, we may have to acknowledge that, given the uncertainty and high costs of long-term storage, hydrogen production projects may need to leverage solutions that do not require storage such as injecting and blending the hydrogen into the existing gas network.

One obstacle to meeting 2030 and 2050 targets

in Ireland is a planning process not suited to passing large-scale infrastructure plans in a streamlined, time-sensitive way. Taking the planning process into account, infrastructure projects can take 10 to 15 years to complete from inception to energisation, therefore inefficiencies in the process create a risk of pushing out timelines for meeting climate targets.

Streamlining planning processes in Ireland will be increasingly important as new concepts for energy production emerge. The delivery of e-fuels, such as SAF at scale, will require a facilitative planning approach to underpin efficient production. The process requires hydrogen and a biogenic carbon source and having these elements close to each other will be key to the commerciality of the fuel.

The National Hydrogen Strategy sets out a vision alongside actions to achieve this ambition. However, those actions need to be prioritised and delivered cohesively and collaboratively. The strategy contains interdependent objectives, requiring a detailed roadmap that stakeholders can follow which will ultimately provide certainty to the market and confidence to investors.

Funding is a key enabler to achieving the aims of the National Hydrogen Strategy objectives. In the absence of firm commitments to overcome challenges in the policy framework and a clear route to market, the industry may not materialise in time to truly contribute to our 2030 climate targets. There are currently no national funding mechanisms for the early pilot projects

needed to kick-start the industry. European funding is available, but it is targeted at largescale projects. The National Hydrogen Strategy provides an opportunity for Ireland to fund initiatives at a national level, launching projects that will demonstrate the economic hydrogen value and incentivise commercial investment.

The time is now

For Ireland to achieve its net zero targets, it needs to act now with the funding of pilot projects that will give the country essential expertise and knowledge in this nascent industry. These pilot projects will pull in other stakeholders, such as the Commission for Regulation of Utilities (CRU), to develop the safety case and regulatory framework for hydrogen in the energy sector that is currently absent.

For its part, Bord na Móna is working hard through its climate solutions and renewable energy business to develop projects to electrify sectors where possible. However, in sectors where electrification is not feasible, the case for using green hydrogen is strong. With its extensive landbank, ability to colocate hydrogen and biogenic carbon production, and its head start with its biomass-fuelled Edenderry Power Station, Bord na Móna is perfectly positioned to be a key partner and driving force in the green hydrogen journey.

W: www.bordnamona.ie

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German Ambassador to Ireland: Hydrogen

cooperation is ‘an obvious win-win’

Germany’s Ambassador to Ireland, Cord Meier-Klodt, speaks with Ciarán Galway about cooperation to unlock Ireland’s enormous offshore renewable energy potential and deliver on Germany’s similarly massive energy demand.

Ciarán Galway (CG): Currently, what are the German Embassy in Dublin’s most significant strategic priorities in relation to hydrogen?

Cord Meier-Klodt (CM-K): To put it bluntly, you could say: To turn the potential of an obvious win-win scenario in the relationship between our two countries into a reality. To link, as fast as possible, the enormous potential that Ireland has in the field of green hydrogen to the equally enormous need that the German industry has for green hydrogen in replacing other sources of energy and become carbon-neutral within until 2045.

For that, we need to look for mutually beneficial ways of exploiting this unique opportunity. This has to do with putting Ireland on the mental map of decisionmakers in the Federal Government of Germany as well as businesses and to

stress the need for speedy progress to politicians and experts in Ireland.

CG: How can the environmental and economic benefits of green hydrogen be unlocked at political, industrial, and public levels through cooperation between Ireland and Germany?

CM-K: Business circles, especially German internationally exposed business circles, know how to exploit opportunities. But in order to do that on a sustainable basis, they need a clear and transparently designed legal and political framework.

In this regard, the Irish Government has already delivered on many aspects of this ambitious objective. A point in case is the remarkable pioneering work that is on-going at the recently founded Maritime Regulatory Authority.

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“Germany has an enormous demand for green hydrogen. At the same time, imports need to be diversified. We have learned a painful lesson in this regard.”

Germany’s Ambassador to Ireland, Cord Meier-Klodt

The next step is all about providing the necessary infrastructure and laying the financial foundations that are required to develop this infrastructure. This will require massive investment, mostly but not exclusively in the area of offshore wind parks, ports and pipelines. This requires a mutual understanding on a reasonable burden sharing among all players involved.

None of this can be achieved by one party alone: Actors in politics, business and the society as a whole need to work hand in hand to achieve those ambitious targets. The German Government is doing its homework as well: the bill on the H2 core grid has just passed parliament and a hydrogen acceleration law is in the making.

CG: What opportunities are there for German companies to assist in scaling the hydrogen industry in Ireland?

CM-K: German companies can bring in a lot of proven experience and innovation skills on virtually all aspects of infrastructural and technology – from offshore windmills over port expansions to pipelines and electrolysers – and many German companies are already based in Ireland and stand ready to deliver.

On the other hand, and in order to allow for proper planning of infrastructural needs, direct exchange with potential German off-takers needs to be facilitated. German steel mills like ThyssenKrupp or Salzgitter, for example, are in the process of establishing direct reduction plants in order to decarbonise production.

CG: What is the significance of the Joint Declaration of Intent (JDI) on cooperation in the field of green hydrogen between the Irish Department of the Environment, Climate and Communications and the German Federal Ministry of Education and Research?

CM-K: While we know that there is a massive need for green hydrogen, our National Hydrogen Strategy speaks of up to 130 TWh annually by 2030, many more detailed questions about the processing, transport, storage, and use of green hydrogen remain to be answered.

This must swiftly be taken up by science and research in order to deliver an even sounder basis for planning and decision-making. Through our bilateral cooperation we will also see specialised knowledge developing with scientists in Ireland as well as Germany that will be of vital use in both countries.

CG: How will cooperation between Ireland and Germany help simultaneously accelerate the EU’s energy transition and enhance European energy security?

CM-K: Clearly, we need to cooperate with other partners in Europe. It simply is not economic, sustainable, nor secure to think about energy policy only from a national perspective. It is also a question of solidarity in the end.

We therefore see our national and bilateral initiatives embedded in the overall European efforts to decarbonise our economies and secure supplies. REPowerEU, after all, speaks of 10 Mt of green hydrogen to be produced within the EU by 2030. The EU also has a key role to play when it comes to establishing a European hydrogen backbone.

CG: Where does Ireland fit into Germany’s overarching vision for green hydrogen?

CM-K: Again, Germany has an enormous demand for green hydrogen. At the same time, imports need to be diversified. We have learned a painful lesson in this regard.

So, in principle, we are interested in cooperating with various partners that do have a potential for green energy. Some of them already have a long-standing tradition when it comes to offshore energy production and might, therefore, be a bit ahead of Ireland.

However, Ireland’s potential is just so huge that any solid hint that Ireland is speeding up the process of setting the framework to harvest this potential in big style will be of great interest to German stakeholders. This is particularly true, as we are in the process of finalising a specific Hydrogen Import Strategy.

Navigating Ireland’s energy future: Bord Gáis Energy’s vision for hydrogen

Faced with significant challenges in establishing a secure and sustainable energy system, Ireland requires a united effort across the private sector, regulators, and the State.

Bord Gáis Energy holds that hydrogen, as a zero-carbon alternative to fossil fuels, can be pivotal in Ireland’s journey to net-zero and ensuring long-term energy security.

Internationally, strategies and policies in countries such as the United States, the United Kingdom, Japan, Germany, and the Netherlands aim to support hydrogen production, storage, and transport, with collaborative efforts to secure supplies.

For Ireland to realise the full potential of its hydrogen industry, close collaboration is needed between government and stakeholders as we move into the next stages of the national strategy.

The role of hydrogen in creating a net zero energy system

Between 2035 and 2040, Bord Gáis

Energy predicts that hydrogen demand will increase almost sixfold through the need for a zero carbon alternative in the areas of industry, heat, power generation, and transport. This increased demand is due to the many benefits it offers, including:

• Versatility: Hydrogen’s versatility as an energy carrier addresses challenging-to-decarbonise sectors like industrial processes and freight transport. It is now globally recognised as a credible and scalable fuel option to facilitate the decarbonisation of these critical sectors.

• Storage and scalability: Hydrogen provides storable, scalable, and flexible resources for electricity production.

• Bridging the gap with wind energy: Green hydrogen – using electricity

to split water into hydrogen and oxygen – can harness Ireland’s abundant offshore wind energy resources, to deliver significant volumes of an increasingly global commodity. As such, hydrogen should be seen as the key link between Ireland growing its wind resources offshore and actually achieving a net zero energy system.

Central to our vision for hydrogen

• Utilising offshore wind for hydrogen production: Bord Gáis Energy plans to harness Ireland’s abundant offshore wind resources to produce hydrogen at scale.

• Versatile applications and local distribution: The produced hydrogen will have many routes and uses, including powering the Whitegate

Power Station and the peaking plants in Athlone and Dublin, while also being distributed through a local network to industries and data centres for daily operations.

• Surplus storage in Kinsale: Surplus hydrogen will be transported offshore to a repurposed storage facility in Kinsale, ensuring availability during low renewable energy production periods.

• Leveraging our parent company’s expertise: Drawing on our parent company Centrica’s expertise, Bord Gáis Energy leverages experience in developing hydrogen projects, including successful ventures such as maintaining a largescale storage facility at Rough and its redevelopment to store over half of the UKs potential hydrogen demand. Using this experience and expertise, we are investigating the potential for hydrogen storage at the Kinsale gas field.

• Partnerships for net zero goals: Our parent company’s successful trials in small UK clusters have stimulated demand and enabled collaboration across the hydrogen value chain. Bord Gáis Energy aims to replicate these synergies and investments in Ireland, working with like-minded partners to create an indigenous cluster utilising natural resources off the southwest coast.

Our key recommendations for strengthening Ireland’s hydrogen strategy

We view the publication of the Government’s National Hydrogen Strategy as a key first step in developing Ireland’s hydrogen industry.

In our feedback to the Government’s consultation, we advocated for these key inclusions:

• Establishment of long-term targets: The establishment of clear, longterm targets for hydrogen production. These targets will provide essential signals for investment and ensure the necessary volumes of hydrogen are available to support decarbonisation efforts.

• Co-funding for production and conversion projects: We emphasise the importance of co-funding production and conversion projects. This will offer confidence that the necessary volumes will be available to those pursuing hydrogen for decarbonisation.

• Development of certification scheme and market review: Bord Gáis Energy highlights the need for a certification scheme to support the export of hydrogen. Additionally, a thorough review of the power market is essential to integrate hydrogen effectively alongside wind and solar energy sources.

• Holistic energy system review: A comprehensive review of the energy system to optimise the integration of gas, electricity, and hydrogen networks. This review will reduce constraints and costs while maximising the benefits of renewable energy sources.

Ireland stands at a pivotal juncture in its plans to scale up hydrogen production, crucial for ensuring energy security and decarbonising sectors of the economy. We must build upon the momentum gained from the publication of the 2023 strategy by putting in place policies, funding, and targets to develop a productive hydrogen sector.

As a key stakeholder and advocate for the hydrogen industry, we remain committed to working with government, agencies, and private investors to develop the next phases and help deliver a secure, reliable, and indigenous zero-carbon fuel source for Ireland’s energy needs.

W: www.bordgaisenergy.ie

Hydrogen and the future of energy in transport

Hydrogen use will become “an important lever” in the transport sector after projected advances in technology, production, and storage capacity, and will be particularly prominent in the decarbonisation of aviation, an International Energy Agency (IEA) researcher claims.

Shane McDonagh, an IEA research analyst and former researcher at UCC’s MaREI, has outlined that by 2050, hydrogen will be in widespread use throughout the heavy-duty transport sector both directly and in the form of hydrogen-based fuels, and that the most significant scope for development is in the aviation industry, although there are wider roles to be played in maritime and to a lesser extent road transport.

McDonagh acknowledges that these are long-term aspirations as hydrogen production is “likely to be limited” prior to significant demand emerging in these sectors and before the introduction of

In November 2023, a Virgin Atlantic Boeing 787 became the first aircraft to complete a transatlantic flight powered by green hydrogen.

Moving Ireland’s Energy

Hydrogen demand by sector in a net zero emissions by 2050 scenario

Source: IEA

adequate storage and distribution capacity, which is not anticipated to happen prior to 2030. Furthermore, he indicates that as electricity becomes the dominant source of energy for road transport, the use of biofuels will shift to shipping and particularly aviation.

McDonagh says that the key lesson being drawn from IEA research thus far is that there is a need to “use electricity directly where possible”, suggesting where practical, direct electrification generally provides the lowest costs and carbon emissions of the competing solutions.

Given the current limitations of batteries, this still leaves significant room for hydrogen and in the IEA’s net zero emissions by 2050 scenario “electricity demand for hydrogen-based fuels production will increase total transport electricity demand by 6,000 TWh to reach a total of almost 17,000 TWh,” he explains.

Opportunities and limitations

Hydrogen is touted by McDonagh as having a “prominent” role to play in the reduction of emissions. However, in concluding, the analyst is mindful that hydrogen will play a role which is

“complementary” to wider electricity and bioenergy use in all transport sectors.

“In shipping, biofuels are increasingly used, reaching about 20 per cent of fuel demand, but due to limits on sustainable biomass availability and competition with the aviation industry, we could see green ammonia emerge as the most dominate zero emission fuel in 2050, meeting about 50 per cent of fuel demand.

“Hydrogen, which is not as well suited as ammonia and biofuels for long, transoceanic journeys, is used for shorter range coastal vessels.

Hydrogen could account for 15 per cent of shipping fuel demand in 2050; and the other 15 per cent of fuel will still come from oil.”

He concludes, rationalising: “One of the reasons for the slow transition of maritime shipping to zero carbon fuels is that for ammonia and hydrogen especially, new ship designs and standards will be needed.” Even once these ships are built, turnover will be low as “shipping vessels have lifetimes of 20 to 30 years”.

Moving Ireland’s Energy

National Hydrogen Strategy: Actions to be undertaken

Develop and publish data sets showing the likely locations, volumes, and load profile of surplus renewables on the electricity grid out to 2030.

Establish an early hydrogen innovation fund to provide co-funding supports for demonstration projects across the hydrogen value chain.

Adopt EU standards for renewable and low carbon hydrogen and develop a national certification scheme to provide clarity to end users as to the origin and sustainability of their hydrogen.

Develop the commercial business models to support the scale up and development of renewable hydrogen, targeting surplus renewable grid electricity pre-2030 and an initial 2GW of offshore wind from 2030.

Develop a roadmap to bring net zero dispatchable power solutions to market by 2030, to support the delivery of a near net zero power system by 2035.

Undertake further work to assess the role that integrated energy parks could play in our future energy system, including their potential benefits and the possible barriers (market, legal, or other) that may exist.

Publish the draft National Policy Framework on Alternative Fuels Infrastructure, and support the rollout of hydrogen powered heavy duty vehicles and refuelling infrastructure in line with EU requirements set out in the recast Renewable Energy Directive and Alternative Fuel Infrastructure Regulation.

Through the development of the National Industrial Strategy for Offshore Wind, assess the feasible potential for end uses such as eFuels, decarbonised manufacturing and export of hydrogen and its derivatives.

Undertake further work to determine the quantities and profile of zero carbon long duration energy storage needed out to 2050, and develop a roadmap as to how it can be delivered.

Undertake a review of the existing licensing and regulatory regimes relevant to the geological storage of hydrogen, and progress the necessary legislative changes and development of regulatory regimes to facilitate future prospecting and development of underground hydrogen storage solutions.

Continue work to prove the technical capabilities of the gas network to transport hydrogen through the network and closely work with the network operators in neighbouring jurisdictions in respect to interoperability between the networks.

Develop a plan for transitioning the gas network to hydrogen overtime, taking due consideration of:

a. plans to develop a biomethane sector in Ireland;

b. the prioritisation of end uses set out in the National Hydrogen Strategy and their likely locations where known,

c. the need to maintain energy security through the transition;

d. how existing end users can transition from natural gas to hydrogen, or to alternative energy solutions such as electric heating; and

e. the potential use of hydrogen blends during a transition phase, the costs associated and how the transition from blending can occur.

The plan should look to identify where the network can be repurposed, or where new pipelines may be required and provide detailed costings and a programme of work.

Progress work to identify and support the development of strategic hydrogen cluster.

Commence a review of current approaches to energy systems planning and make recommendations to support a more integrated long-term approach to planning across the network operators including electricity, natural gas, hydrogen, and water.

Establish a working group with the relevant regulators, government, and industry representatives to develop a safety roadmap to delivering the necessary safety frameworks and regulatory regimes across the entire hydrogen value chain.

Adopt the hydrogen and decarbonised gases market package into legislation once approved by the EU institutions.

Undertake a review across the entire hydrogen value chain to identify any other gaps within our spatial planning, environmental permitting, and licensing regimes.

Engage with Ireland’s research sector to ensure sufficient focus is given to renewable hydrogen development and work to commission relevant research to help close the knowledge gaps identified throughout the National Hydrogen Strategy.

Continue to engage in EU hydrogen related initiatives and develop cooperation in the fields of renewable hydrogen development with neighbouring jurisdictions and international partners.

Through the expert advisory group on skills established under the Offshore Wind Delivery Taskforce, continue to assess, and support the future skill needs of the offshore wind and renewable hydrogen sectors.

and update the Terms of Reference of the Interdepartmental Hydrogen Working Group to recognise its role in terms of oversight and implementation of the National Hydrogen Strategy.

Moving Ireland’s Energy

Unlocking Ireland’s hydrogen potential

Hydrogen Europe’s infrastructure and energy policy director Kamila Waciega discusses the path for Ireland’s green hydrogen market and the challenges regarding infrastructure development.

Hydrogen is one of the leading options for renewable energy storage. With the market expanding in both Europe and beyond, Kamila Waciega believes that Ireland must invest in hydrogen infrastructure, and suggests that there is an opportunity to become an export hub.

Hydrogen Europe assists the hydrogen sector in policy support and identifies challenges relating to scaling renewable hydrogen delivery. As such, Waciega and her colleagues have researched at length the benefits of Ireland producing green hydrogen. These include:

1. decarbonising ‘hard to abate’ sectors within industry;

2. ensuring no transport mode is left behind in the energy transition;

3. reducing societal waste and enhancing EU value chains and skills; and

4. making a net zero energy system possible.

Waciega explains: “We envision that hydrogen is a solution that will serve both the industry and energy transport, while also broader serving societal purposes, and contributing to optimisation of the energy system”

“It is expected that electrification will drive the entire energy transition with almost 50 per cent of energy generated by renewable electricity by 2050. However, we are also expecting that 20 per cent will come from renewable hydrogen and its derivatives.”

For that to happen, Hydrogen Europe has been advocating for a European framework for the clean hydrogen market and related infrastructure. The development of the latter involves a combination of European legislation, setting renewable hydrogen targets, and concrete financial project support.

Within the framework, one of the main renewable hydrogen targets that will drive the market for hydrogen and infrastructure, the amended Renewable Energy Directive (RED III) includes binding targets that have been agreed upon for the industry and transport sector. The directive is also part of the Fit for 55 package, which aims to reduce greenhouse gas emissions by at least 55 per cent by 2030.

Moving Ireland’s Energy

“To be ready for green hydrogen production tomorrow, we must have necessary enabling infrastructure today.”

Kamilla Waciega, Hydrogen Europe

Waciega believes that the Red III Directive is essential for increased hydrogen supply and therefore for providing the right signals and incentives for hydrogen infrastructure.

“For the first time, we have a deal which not only contains a general target in terms of renewable energies for the entire Union, but we also have specific targets for industry and for transport. This time around, we also have targets for hydrogen; this is completely new for the industry in general, and our sector in particular.”

RED III sets the target of 42.5 per cent of renewable fuels of non-biological origin (RFNBOs) in the overall hydrogen consumed by industry by 2030 and 60 per cent by 2035.

As for the transport sector, there is a combined sub-target of 5.5 per cent for advanced biofuels and renewable fuels of non-biological origin. There is an additional target of a minimum of 1 per cent generated by renewable liquid or gaseous transport fuels which will be from RFNBOs primarily.

Waciega explains: “This is something very important because this is a framework which will drive the entire market.”

Favourable conditions

The policy framework from the European Commission strategy aims to accelerate the production of hydrogen from renewable energy sources, so it becomes a major component of Europe’s energy supply by 2050. With two delegated acts formally published in June 2023, the policy framework is essential for Ireland to consider when moving to hydrogen.

“We already have a deal – this means that the three institutions, the European Parliament, the European Commission, and the Council of the European Union agree that this is the form of text that we want to have into EU legislation, and this must be

transposed into national legislation. That will also happen in Ireland,” Waciega explicates.

Waciega explains that there is a significant geographical imbalance between renewable hydrogen generation potential and hydrogen demand.

Ireland, she outlines, has particularly favourable conditions for green hydrogen production given its “immense renewable energy potential” in offshore wind has the capability to produce “significantly more renewable electricity than needed to meet indigenous needs”.

REPowerEU target

REPowerEU set a remarkably ambitious target for hydrogen production though Waciega suggests that the policy framework is inadequate to drive it.

“To be ready for green hydrogen production tomorrow, we must have the enabling infrastructure today,” she says, adding: “We need to think about the time it takes to complete these types of projects.”

“In Ireland, developing the infrastructure needed for hydrogen production, transport and storage, it will unlock the possibility of meeting internal consumption demand but above all, there is a great prospect of becoming an export hub for the resource through gas interconnectors and shipping.”

Waciega concludes that Ireland must have two major priorities if it is to become “the power plant of Europe”. The first is to deliver on renewable energy sources (RES) commitments and accelerate investment in renewable resources. The second is to create mechanisms for investing in hydrogen production facilities as well as infrastructure.

The role of renewable hydrogen in a resilient and secure net zero electricity system

Meadhbh Connolly, Future Opportunities Manager at ESB, explains why the decarbonisation of the electricity system requires more than just renewable energy generation and how ESB is committed to supporting the delivery of a net zero future for Ireland by investing almost €2 billion every year.

Renewable hydrogen is becoming a crucial and strategic choice for the energy transition which can help Ireland reach its net zero emissions target while adding security to the energy system. It can be made from renewable electricity and water, stored in large quantities for long periods and then used as a carbonfree fuel for backup power, replacing the fossil fuel energy sources we have depended on for decades.

ESB’s almost €2 billion every year is being invested to aid the delivery of Ireland’s climate target objectives across

the energy sector as part of the organisation’s ambitious commitment to achieving net zero by 2040. At a national level, there is a legally binding target to achieve net zero emissions by 2050. As a result, Ireland must transform its energy system from fossil fuel-based to zero carbon in the coming decades.

“The World Energy Council refers to the energy trilemma: sustainability, security, and affordability. Renewable hydrogen can play a central role in security of supply and resilience in a net zero future – ensuring that demand for electricity

can always be met and that the power system can cope with and recover from shocks and stresses,” says Connolly, who adds that for decades, the power system has been secured through energy stored in the form of coal, peat, oil, and gas. “A fleet of thermal power plants turned these fossil fuels into electricity when required. We now need to find a low carbon solution for this energy storage and ‘dispatchable generation’ i.e., generation that can turn on or off as needed, which is not always possible with weather-dependent renewables.”

The scale of the required energy storage is beyond what can be achieved using either batteries or pumped storage, although both will be essential players in the net zero power system of the future.

Future options

• Carbon capture and storage (CCS): This technology involves capturing the carbon dioxide (CO2) emitted from fossil fuel power plants and storing it underground. However, CCS has not been commercially successful to date for power generation, as it is costly and complex. Moreover, CCS reduces the efficiency of power plants, thereby increasing the reliance on natural gas for a given power output. For technical and commercial reasons, CCS plants require to run most of the time, and this would result in the system operator ‘dispatching down’, or reducing the output from, renewable energy sources. CCS also does not eliminate CO2 emissions, leaving a residual CO2 legacy for future generations.

• Nuclear power: This technology uses nuclear fission to generate electricity with low CO2 emissions. However, nuclear power is prohibited by the Electricity Regulation Act 1999. It would take decades to develop the policy and regulatory frameworks to build and operate a nuclear plant, making it unlikely to contribute to the 2050 target for Ireland. Moreover, nuclear

power is better suited as a baseload plant. In fact, nuclear and renewables are competing primaryenergy options with greater nuclear penetration, requiring less renewables to generate the zerocarbon energy needed.

• Biofuels: Biofuels are made from organic matter, such as wood, crops, or waste. They can be used to produce electricity with lower CO2 emissions than fossil fuels, depending on the material and the method of production. However, there are limited domestic resources of biofuels in Ireland and, therefore, need to be used carefully and selectively, depending on the supply, price, and sustainability of biofuels, as well as the demand, efficiency, and emissions of different sectors. The best use of biofuels is in sectors

that have fewer options to use electricity, such as industry, shipping, heavy-duty road transport, and aviation.

• Interconnection: Interconnection has an important role to ensure efficient trading of electricity, however, interconnection is only part of the solution to ensure security of supply as sometimes the weather patterns are similar in different regions and there is not enough wind or sun on either side of the interconnector to meet the power needs.

Connolly outlines that ESB has analysed almost two decades of weather data from Ireland, France, Great Britain (GB) and Spain. “The analysis shows that there is a high correlation between wind patterns in Ireland, France, and Great 4

“Interconnection has a necessary but insufficient role to play in achieving net zero by 2050.”

Meadhbh Connolly, Future Opportunities Manager at ESB

Britain. This means that when there is low wind in one country, there is likely to be low wind in the others as well. This happened in 2021, when there was a period of up to six weeks of low wind in all these countries.”

There is a “negative correlation” between solar power in Spain and wind power in Ireland, she adds. This means that when there is more sun in Spain, there is less wind in Ireland, and vice versa. This suggests that interconnection with Spain could help balance the supply and demand of renewable energy in Ireland. However, there are also some years when both wind and solar power are low or high in both countries. For example, in 2010, there was a ‘low wind’ year in Ireland and a ‘low solar’ year in Spain. This means that interconnection alone cannot solve the problem of surplus or shortage of renewable energy.

“Therefore, interconnection has a necessary but insufficient role to play in achieving net zero by 2050,” Connolly explains.

In summary, the above alternative solutions are either not viable or not sufficient for Ireland to achieve a resilient, secure net zero electricity system by 2050.

“Renewable hydrogen, on the other hand, offers a unique opportunity to harness the abundant wind resources in Ireland, while providing flexibility, stability, and storage for the electricity grid.”

Renewable hydrogen:

What is it and why is it important?

“Renewable hydrogen production opens the option of flexible demand which is valuable in a power system dominated by renewables because the demand can be switched off during periods of low renewables and ramped up when there is surplus. Renewable hydrogen can also

create new economic opportunities for Ireland, such as building a domestic hydrogen industry, exporting hydrogen or its products to other markets, and attracting new investments and jobs in the green economy,” states Connolly.

How can renewable hydrogen help achieve secure and resilient net zero electricity?

Resilience is increasingly important for the electricity system in the context of electrification of the transport and heat sectors – where our reliance on electricity is much higher.

“As we transition to net zero, the geopolitical risks associated with the physical supply and price of fossil fuels will be replaced with the meteorological risk associated with weather-based power systems,” says Connolly.

The recently published National Hydrogen Strategy called out the role of renewable hydrogen in a net zero electricity system: by reducing the carbon emissions of the conventional generation that will still be needed to fill in the gaps when variable renewable electricity is low and by storing electricity from variable renewable generation to support the grid and deal with seasonal wind changes. A recent report from the IEA suggests that zero carbon dispatchable generation, which can use renewable hydrogen in gas turbines or fuel cells, will provide between 5 and 15 per cent of electricity needs in a net zero power system to ensure system reliability and efficiency.

“Ireland has the unique capability to produce enough renewable energy onshore and offshore to meet multiples of our energy demands. Renewable hydrogen enables storage of this energy to cover multiple weeks of electricity demand,” she adds.

The enablers

The National Hydrogen Strategy is a positive step towards the development of hydrogen as a key pillar of a secure net zero economy, complementing our vast renewable energy resources. The strategy identifies the need for regional clusters where production, high demand users, and large-scale storage are near each other so that hydrogen infrastructure can be used by more than one party. Long-term underground storage of hydrogen is acknowledged as crucial for the future cost-effectiveness and price stability of hydrogen.

“There are challenges to overcome to make hydrogen a viable and competitive option in the energy market. Ireland can look at best practices and lessons learned from other countries that have advanced their hydrogen agendas and supported their hydrogen industries.” For example, Germany, France, Netherlands, and the UK have all adopted national hydrogen strategies underpinned by concrete targets, measures, and funding mechanisms for scaling up hydrogen production and consumption. Some of the key elements of these strategies are:

• a funding scheme that can bridge the cost gap between fossil fuels and low-carbon alternatives, such as hydrogen;

• incentives for investment in large infrastructural projects such as underground gas storage and hydrogen clusters, leveraging EU schemes that can facilitate access to public funding and state aid, as well as foster cross-border collaboration and innovation; and

• commercial frameworks and supports that incentivise existing and new thermal power plants to transition away from fossil fuels.

“By replicating and adapting these best practices and frameworks to the Irish context, Ireland can create a conducive and attractive environment for hydrogen development and innovation and achieve its net zero power system goals,” adds Connolly.

ESB generation and trading activities and plans

“ESB believes renewable hydrogen will play a critical role in the decarbonisation of many sectors. We plan to use our existing capabilities and future renewable growth to become a leading player in large scale renewable hydrogen production, thereby enabling renewable electricity to meet the energy

requirements of Ireland’s future zero carbon economy.”

In partnership with dCarbonX, Snam, and Bord Gáis Energy, ESB is proposing to redevelop the decommissioned gas reservoirs in the offshore Kinsale gas fields for large-scale storage of hydrogen whilst initially offering the possibility of natural gas storage as a strategic reserve until large volumes of hydrogen are available for storage. The Kestrel Project represents a unique opportunity to deliver large scale energy security of supply which, in turn, will support the expansion of renewable energy production (wind and renewable hydrogen) in the years ahead. ESB and Bord Gáis Energy operate significant electrical generation at the nearby Aghada and Whitegate gas-fired power stations and the integration of essential large-scale storage will support the transition of these stations to net zero emissions in the future.

ESB will also develop renewable hydrogen production, storage and zero carbon dispatchable generation at Moneypoint in County Clare, as a key component of the Green Atlantic @Moneypoint project.

ESB is also developing a lighthouse project on our site in Aghada, County Cork to demonstrate the production of hydrogen for use in zero carbon power generation technology. This proof of concept will help ESB to build its fleet of zero carbon dispatchable generation assets which support intermittent renewables.

As part of the HyNET low carbon cluster in the UK, ESB is working with industrial partners and turbine manufacturers to get Carrington power station ready to use hydrogen as a fuel for producing decarbonised power. The learnings from this project will help us reduce the carbon emissions of ESB thermal plants in Ireland and develop zero carbon energy clusters at strategic coastal sites in Ireland.

The journey to net zero

Ireland has an ambitious Hydrogen Strategy which needs to be underpinned by effective policies, regulations, and funding mechanisms. ESB will leverage its expertise and experience to support delivery of these. A net zero power system requires dispatchable generation capacity and energy storage facilities to ensure a reliable and robust supply of electricity. Renewable electricity and renewable hydrogen can cooperate to securely transition to a net zero power system. “ESB’s strategy to reach net zero by 2040 will help build the four main infrastructure elements: renewables, hydrogen production, hydrogen storage, and zero carbon ondemand power generation at strategic clusters, to provide a secure, resilient, reliable net zero power system,” says Connolly.

For more information, visit: W: www.esb.ie

Moving Ireland’s Energy

Hydrogen gaining traction in Irish transport

Ireland’s climate targets for the transport sector, as defined by both the Climate Action Plan and EU requirements under the European Green Deal, hinge on the energy transition. It is a fundamental codependence in which hydrogen will play a role.

Currently, the challenge of decarbonising transport is determined by the fact that fossil fuels currently equate to 95 per cent of the fuel mix in transport – with the remaining 5 per cent comprising liquid biofuels and electricity.

Figures from the SEAI indicate that the transport sector emitted 14.5 Mt of carbon (MtCO2eq) in 2022, representing 40 per cent of the State’s total energy related CO2 emissions. Additionally, private cars accounted for approximately 40 per cent of transport energy demand and road freight a further 22 per cent.

Speaking to eolas Magazine, Assistant Secretary with responsibility for climate action at the Department of Transport, Caoimhín Ó Ciaruáin, contextualises the necessary response. “The scale of the

transformation required is enormous,” he says, adding: “We will only achieve this transformation by aggressively pursuing policy actions across the avoid, shift, and improve framework for transport decarbonisation. The Climate Action Plan has established this roadmap for delivery.”

Alternative Fuels Infrastructure Regulation

In July 2023, the Council of the European Union announced the adoption of the Alternative Fuels Infrastructure Regulation (AFIR) under the EU Fit for 55 package. AFIR is intended to support the transition of road-based transport away from fossil fuels and towards electric vehicles and zero emission fuels.

The AFIR mandates the minimum recharging/refuelling infrastructure requirements for the EU’s transport network. Establishing targets up to 2030, the implementation of AFIR plans to provide such infrastructure along Europe’s main transport corridors, known as the trans-European transport (TEN-T) network.

From 2030 onwards, hydrogen refuelling stations must be provided without the need for subscription. Furthermore, operators must fully inform consumers of the availability, waiting times, and prices at their stations.

Welcoming the announcement, Minister for Transport Eamon Ryan TD asserted: “The provisions in AFIR align closely with our national decarbonisation policies for Ireland’s transport sector

Moving Ireland’s Energy

“Now, in 2024, we are delivering a feasibility study for the deployment of a green hydrogen refuelling station on the eastern TEN-T corridor between Dublin and Belfast.”

Caoimhín Ó Ciaruáin, Assistant Secretary, Department of Transport

and support the much-needed move away from fossil fuels across Europe. Adoption of this law at a European level sends a strong signal about the European commitment to transition away from fossil fuel.”

Working group

In response, in October 2023, the Transport Minister established an interdepartmental Alternative Fuels for Transport Working Group to facilitate policy development across both the Department of Transport and the Department of the Environment, Climate and Communications (DECC) and to coordinate actions relating to alternative fuel infrastructure and renewable energy across the transport subsectors: land, aviation, and maritime.

Within this remit, the working group will be tasked with leveraging the full potentials of the National Hydrogen Strategy, the Draft National Biomethane Strategy, and the development of offshore renewable energy strategies. The working group’s final report is expected to be published by the end of 2024.

“There is a huge amount of ambition in relation to hydrogen and the Alternative Fuels Infrastructure Regulation requires a significant investment in the space over the next decade,” Ó Ciaruáin explains.

“Specifically, Article 6 of AFIR establishes infrastructure targets for the delivery of refuelling stations – serving both light and heavy-duty vehicles – at

all urban nodes on the TEN-T network and every 200km on the TEN-T corridor. This translates into the construction of hydrogen refuelling stations in Dublin, Cork, Galway, and Limerick that are capable of dispensing one tonne of hydrogen each day. The first deployment of this type of infrastructure is set for 2027.”

With transport regarded as one of the first movers for green hydrogen deployment, the Department of Transport is working closely the Department of the Environment, Climate and Communications on the National Hydrogen Strategy. “The challenge,” Ó Ciaruáin asserts, “is to deliver the necessary assets and derisk the associated investment.”

All-island collaboration

As outlined in the National Hydrogen Strategy, there is now an alignment between the carbon emission reduction targets and statutory requirements in Ireland, both north and south. Recognising the all-island nature of both energy and transport, the strategy highlights the associated “opportunities for strategic cooperation on green energy transition”.

Similarly, the revised National Development Plan 2021-2030 (NDP) incorporates a priority which commits to “exploring potential cross-border and all-island approaches on renewable energy, such as... the potential of hydrogen power”.

As such, the strategy details that, under the Shared Island initiative, both the

Government and the northern Executive are supporting a feasibility study to determine the potential to establish hydrogen refuelling stations along the main road network between Dublin and Belfast, “which is the most intensively used transport route by heavy duty vehicles on the island”.

In January 2024, in a written response to Denis Naughten TD, the Transport Minister confirmed that his department was “progressing the delivery of a feasibility study” into the establishment of a green hydrogen refuelling corridor between Belfast and Dublin.

The Minister indicated that a review of the safety, regulatory, and infrastructural frameworks for the use of hydrogen as a transport fuel on the island of Ireland – again cofounded by the Shared Island Fund and the northern Executive – has already been completed. It is understood that the final report from the study is being considered and will be presented to the Minister “with a view to publishing it thereafter”.

Speaking to this, Ó Ciaruáin details: “Previously, in 2023, we worked with colleagues in the Department for the Economy to develop a hydrogen safety study using funding from the Shared Island Fund and the Department for the Economy.

“Now, in 2024, we are delivering a feasibility study for the deployment of a green hydrogen refuelling station on the eastern TEN-T corridor between Dublin and Belfast before seeking to apply the lessons from that experience at a national level.”

Innovation driving the energy transition

Energia Group’s Long Mountain wind farm is the first in Ireland and the UK to produce green hydrogen on-site and highlights the potential for hydrogen in the energy transition, writes David Macartney, Corporate Development Director, Energia Group.

Green hydrogen produced on a wind farm and being used to power zero emissions urban busses, sounds like something that might be happening in a forward-thinking country at the forefront of energy decarbonisation. What many people perhaps do not realise is that it is happening in Northern Ireland today as a result of the investments Energia Group has made to further broaden our focus on the energy transition to complementary technologies we think will play a supporting part along the pathway to net zero.

The specific role for green hydrogen in the future is unclear, but with over three years’ experience of hydrogen infrastructure and the supply chain required to support these investments, we have developed an expert understanding of many facets of the technology. This has enabled us to successfully apply for funding and working collaboratively with academic and industry partners on a number of initiatives that explore the role hydrogen can play in the decarbonisation of the energy.

Long Mountain wind farm and hydrogen electrolyser.

Our green hydrogen journey so far

Over three years ago, utilising a temporary hydrogen refuelling station, we powered the first hydrogen bus in Belfast. In a series of further firsts on the island, Energia Group had the first consented green hydrogen electrolyser facility, the first green hydrogen production from a wind farm and the first permanent hydrogen refuelling station. Our hydrogen refuelling station at Milewater Road in Belfast has dispensed over 21,000 kilograms of hydrogen for zero emission busses manufactured by Wrightbus and operated by Translink around Belfast.

Supported by EU funding through the GENCOMM project, Energia Group has installed a 1MW electrolyser on our Long Mountain wind farm in County Antrim. The electrolyser has been producing green hydrogen from the renewable electricity generated at the wind farm, including that which would otherwise have been lost to system constraints and curtailment, since June 2023. The on-site electrolyser converts this energy to green hydrogen via electrolysis, whereby the electrolyser splits water molecules from an on-site borehole into hydrogen and oxygen.

We also created a consortium of partners and led the funding application for a £4 million UK OZEV grant for the supply of three double deck busses (now owned by Translink) and the hydrogen refuelling station in Belfast. All of this initial activity has also been a catalyst for the further expansion of the hydrogen bus fleet in Belfast, with 20 additional busses ordered by Translink, produced in Ballymena by Wrightbus and delivered in 2022.

The wider opportunities

Energia Group’s leadership in this space has helped to support the development of an emerging green hydrogen sector in Northern Ireland and with the Northern Ireland Energy Strategy and the Irish Government’s Hydrogen Strategy, we are well positioned to explore future opportunities for hydrogen on the island. While a number of potential use cases for green hydrogen are apparent, the further deployment continues to be affected by what is effectively the chicken or the egg paradox, in relation to the supply and demand for green hydrogen. In anticipation of specific policy supports for green hydrogen, we

have sought to overcome this challenge through partnership and collaboration with businesses, the public sector and academia. A number of colleagues are currently involved in green hydrogen focused groups, including within Wind Energy Ireland and Hydrogen Ireland, as well as with Queen’s University Belfast, Ulster University, GENCOMM Interreg, and the National Standards Authority of Ireland.

Another very interesting project that we are very proud to be part of is the Belfast Maritime Consortium, led by Artemis Technologies. The consortium was successful in a UK Government funding round and received a £33 million innovation grant to develop zero emissions electric hydrofoil ferries in Belfast. As the consortium’s energy partner, Energia Group is responsible for the installation of the electric hydrofoil charging infrastructure and we have assisted in a trial for the future use of hydrogen. The Artemis project is significant globally and locally, as it will utilise the potential of zero carbon hydrogen fuel cells as part of the effort to decarbonise maritime transport. It will also lead to more than 1,000 jobs being created in Northern Ireland over a tenyear period.

What is next?

Energia Group has consent for the development of a 4MW electrolyser at

its Rathsherry wind farm in County Antrim and we are looking at other opportunities across the island of Ireland. Crucial to our ability to invest further in green hydrogen will be the progression of the hydrogen strategies of the respective governments in Ireland and Northern Ireland, to the implementation of clear and certain policies. Policymakers will have to consider the end-to-end use cases for green hydrogen, including the transportation and storage of the gas, as well as how to facilitate the supply chain required to support hydrogen’s role in decarbonisation.

As the first of its kind in Ireland or the UK, our Long Mountain electrolyser has proven our ability to produce green hydrogen on a wind farm. Our partnerships have proven some of the use cases for that green hydrogen. Our plans for the future will be largely dependent on policies that can create demand and support the production of green hydrogen that can play an important role in assisting to decarbonise the so called hard to abate sectors on the island. W: www.energiagroup.com

David Macartney and the Long Mountain electrolyser.

Moving Ireland’s Energy

‘A sustainable and longstanding hydrogen partnership between Germany and Ireland’

Ciarán Galway speaks with the German-Irish Chamber of Industry and Commerce’s interim Chief Executive Officer, Alexandra Voss, about developing a sustainable and longstanding hydrogen partnership between Germany and Ireland.

Ciarán Galway (CG): Currently, what are the German-Irish Chamber of Industry and Commerce’s most significant strategic priorities in relation to hydrogen?

Alexandra Voss (AV): The current strategic priority for the German-Irish Chamber of Industry and Commerce (GICC) is to position itself as information broker between Germany and Ireland. By founding the German-Irish Hydrogen Council (GIHC) we have enabled direct communication and knowledge transfer between the members of the GIHC as well as stakeholders of the German and Irish hydrogen industry.

We work to nurture mutual development and cooperation. Additionally, we support decisionmakers on policy regarding the trajectory of the hydrogen journey in Ireland.

A key aspect of this is demonstrating that Germany can become a significant off-taker for green hydrogen produced in Ireland due to the need to decarbonise the German economy.

To demonstrate this, we are developing a feasibility study outlining the route to the German market for green hydrogen produced in Ireland. We aim to have this study available by the end of 2024 for use by the industry in Germany and

Ireland as their initial roadmap for trade, collaboration, and discussion.

CG: What opportunities are there for German companies to assist in scaling the hydrogen industry in Ireland?

AV: Over the last few years, the German industry has prioritised sustainability, with hydrogen being a key means to decarbonise various sectors. Germany has developed innovative solutions for the effective production, transport, and utilisation of green hydrogen, with adaptability and compatibility at the forefront of this development.

German companies are eager to share

Moving Ireland’s Energy

their expertise, products, and solutions with Irish partners, potentially addressing scaling challenges faced by local communities and industries in Ireland. Additionally, Germany has invested significantly in technology needed to scale up green hydrogen production through wind energy. As such, German expertise and technology can be a driver needed to accelerate the development of on and offshore wind generation in Ireland

CG: What are the opportunities unlocked by the Joint Declaration of Intent (JDI) on cooperation in the field of green hydrogen between the Irish Department of the Environment, Climate and Communications and the German Federal Research Ministry?

AV: The Joint Declaration of Intent (JDI) between the Irish Department of the Environment, Climate and Communications and the German Federal Ministry for Research and Education aims to stimulate bilateral research initiatives and research projects to do with green hydrogen.

It will enable Irish companies to partner with German organisations on research projects, potentially reducing research costs for Irish businesses and providing access to a large pool of researchers and research institutions.

For German institutions, it enables research in areas where expertise and research opportunities may have been limited. Overall, this collaboration is expected to benefit both Irish and German hydrogen research efforts. Something we are already seeing in the early stages of the first joint projects between Irish and German organisations.

CG: What role did the GermanIrish Hydrogen Council/GermanIrish Chamber of Industry and Commerce play in enabling this process?

AV: The German-Irish Chamber of Industry and Commerce played a pivotal role in enabling the Joint Declaration of Intent. The Chamber leveraged its extensive contacts in German industry and political

“Ultimately, fostering relationships and enabling bilateral exchange and discourse is key for developing a sustainable and longstanding hydrogen partnership between Germany and Ireland.”

Alexandra Voss, interim Chief Executive Officer, German-Irish Chamber of Industry and Commerce

stakeholders, as well as its Irish network, to draft and sign the declaration. This document marks the first of its kind between Germany and Ireland on a hydrogen-related topic and will be the foundation for further agreements fuelling collaboration and the mutual development of hydrogen infrastructure in both countries.

CG: How can technology partnerships with German industry expedite the hydrogen export opportunity for Ireland?

AV: Technology partnerships with German industry are crucial for aligning efforts between Germany and Ireland in the hydrogen sector. To expedite the hydrogen export opportunity for Ireland, clear information is needed from these partnerships. Specifically, Germany’s demand and offtake capacity for green hydrogen produced in Ireland over the years to come.

This, coupled with a clear route to market, and comprehensive pricing strategies, will provide Irish developers with the confidence to invest in hydrogen infrastructure beyond domestic demand, knowing there is

long-term demand from an important EU partner such as Germany.

CG: How can the mutual benefits of this cooperation be realised in the short-to-medium-term?

AV: In the short term, it is essential to reassure Irish developers of Germany's interest in green hydrogen produced in Ireland, while also informing German off-takers of the potential supply from Ireland. Discussions, meetings, and constant exchange between German and Irish partners is crucial, which is part of the German-Irish Chamber of Industry and Commerce's raison d'être.

In the medium term, purchase obligations and commitments are necessary to instil confidence for effective project development. Ultimately, fostering relationships and enabling bilateral exchange and discourse is key for developing a sustainable and longstanding hydrogen partnership between Germany and Ireland.

Ireland’s energy and climate plans ‘not sufficient’

The European Commission states Ireland’s National Energy and Climate Plan (NECP) is not adequate if the State is to play its role in helping the EU meet its emissions reductions targets.

With annual average temperatures 0.9°C higher than in the 1900s and the last 30 years presenting a 7 per cent increase in annual rainfall, the Government has been set climate action mandates by the European Commission which it is legally obliged to meet.

To achieve this, the National Energy and Climate Plans (NECPs) are the framework by which Ireland and other EU member states report to the European Commission on their climate and energy objectives and targets set out under various EU regulations and directives.

Member states are required to develop NECPs on a 10-year rolling basis, with an update halfway through that covers the five Dimensions of the Energy Union.

The developments are reflected in the legislative and policy framework adopted under both the Fit for 55 package and the REPowerEU plan.

The Governance Regulation, within which the NECP framework sits, consolidated the existing patchwork of planning, monitoring, and reporting obligations member states had under the different pieces of EU legislation across energy, climate, and other Energy Union related policy areas.

Assessment of the draft NECP

The assessment finds that the cumulative impact of the draft NECPs (including draft figures from Belgium, Ireland, and Latvia) are not sufficient to reduce greenhouse gas emissions by at

least 55 per cent by 2030, as is legally required by Fit for 55 legislation.

Under the Effort Sharing Regulation, the plan provides emission projects demonstrating that with existing policies and measures, Ireland is not on track to meet its national greenhouse gas emissions reduction target of -42 per cent in 2030, with the Government’s proposed target equating to -10.2 per cent.

Regarding Ireland’s share of renewable energy in gross final consumption, Ireland’s submitted contribution to the target (31.4 per cent) is significantly below the one outlined as mandatory under EU legislation (43 per cent).

The Commission also indicates that despite Ireland’s draft NECP focusing on the use of renewable hydrogen on hard-to-decarbonise sectors, and aiming to produce a target of 2GW of offshore wind capacity dedicated to renewable hydrogen production by 2030, the plan contains “no targets set for RFNBO use in industry”.

Additionally, the assessment states that “the hydrogen strategy is based on domestic production, and no references to international partnerships in the form of agreement, memorandum of understanding or bilateral talks for imports have been included”.

Similarly, on land use, land-use change, and forestry (LULUCF), Ireland’s draft NECP does not clearly set out a pathway and instead includes projections for existing measures with no clear implementation of timeframe.

The Commission reiterates its call for Ireland to enhance its efforts on greenhouse gas emissions reductions and better prepare for an increased uptake of renewables and improvement of energy efficiency measures.

Ireland is consequentially required to submit the final updated NECP by 30 June 2024, taking consideration of the Commission’s recommendations and individual assessments.

Indaver stands ready to contribute to Ireland’s emerging hydrogen economy

The recovery of black-bin waste that cannot be reused or recycled to produce energy in the form of electricity is not a new concept. What is new is the contribution waste-to-energy (WtE) can make to the hydrogen economy and the decarbonisation of Ireland’s energy system.

Indaver is ready to construct a 10MW hydrogen electrolyser on its existing WtE plant in Duleek, County Meath. This innovative solution would maximise the utilisation of existing resources and align seamlessly with Ireland’s 2024 Climate Action Plan objectives.

Producing hydrogen from indigenous waste would provide a pathway to Ireland’s energy independence, reducing reliance on external energy sources and enhancing national security. The stability of this supply would present an invaluable asset to Ireland’s energy landscape, offering a dependable source of power that complements the intermittent nature of renewables like wind and solar.

Indaver has the potential to produce enough hydrogen to decarbonise the

equivalent of 180 buses, or five to six freight trains, per year. The electrolyser is conveniently located on the NorthSouth corridor near to major transport networks across the island of Ireland. This includes the M1 motorway which is part of a designated European TEN-T road network along which hydrogen refuelling stations must be deployed. In addition, a rail freight line runs adjacent to the site boundary and the facility is less than 3km from Drogheda train station on the North-South rail corridor. This provides a unique opportunity for Indaver to help decarbonise the transport sector, contributing to targets outlined in the Renewable Fuel Transport Obligation as well as the Alternative Fuels Infrastructure Regulation. Being of 10MW scale, Indaver’s project is of an appropriate

scale for an all island demonstration project. With limited routes to market, government support is needed to overcome initial barriers associated with an emerging hydrogen market.

Following the publication of the National Hydrogen Strategy in July 2023, policy is beginning to take shape, but tangible implementation of its actions on an accelerated timeline is needed in order to achieve our 2GW target of renewable hydrogen by 2030. Early commercialisation of this sector is imperative, which includes making the Early Innovation Hydrogen Fund available as soon as possible for demonstration projects.

Indaver stands ready to support Ireland’s ambition for a more sustainable future, and is committed to investing in the necessary infrastructure to harness the potential of a domestic, sustainable fuel source.

E: info@indaver.ie

W: www.indaver.com/locations/ireland

EU hydrogen bank pilot results due imminently

The European Commission is set to publish the results of the first EU-wide hydrogen bank pilot auction at the end of April 2024.

The European Commission will release a wide range of information about the bids in the auction, including the expected total costs of hydrogen production and the intended origin of the electrolysers which must be used in the successful projects.

The auction is understood to have established a ceiling price of €4.50/kg for bids submitted.

Through the auction, the Commission is to award production subsidies for up to ten years for the successful projects. The bid winners will be those which are able to produce as much renewable hydrogen at an optimal cost.

The Commission has stated that, upon the closing of applications in February 2024, there were 132 projects for which applications were received emanating from 17 different countries. These prospective projects have a total electrolyser capacity of 8.5GW with the potential to produce 880,000 tonnes of ‘green’ i.e. renewable hydrogen per annum. However, only a small number of these applicants are likely to be awarded subsidies in this round of bidding.

Moving Ireland’s Energy

In order to be considered at auction, prospective developers were required to submit a completion bond for 4 per cent of the subsidy value which they will lose if they do not finish their projects. Following award, plants have to be built within five years.

Hydrogen bank

In March 2023, the European Commission set out new plans to stimulate and support investment in sustainable hydrogen production through the establishment of a European Hydrogen Bank (EHB).

The auctions are a new development funded by the EU Innovation Fund under the umbrella of the European Hydrogen Bank. The Commission has stated that the objective of the auction mechanism is to expand the portfolio of support mechanisms that the Innovation Fund currently provides through grants, project development assistance, and other blended financial instruments.

It is also envisaged that it will enable a faster rollout of innovative technologies needed for the green transition, especially in hard-toabate sectors.

European Union decision-makers have outlined that the hydrogen bank helps address the initial financial challenges in the production of green hydrogen to create an emerging renewable hydrogen market. The bank also has international dimension which aims to facilitate renewable hydrogen imports to the EU.

Under REPowerEU, the European Union is aiming to produce 10 million tonnes (Mtoe) of renewable hydrogen by 2030, coupled with 10 Mtoe of imports.

There are four pillars of the EHB, of which the first two are financing mechanisms aimed at scaling the EU domestic market,

and for international imports into the EU.

The third pillar is linked to transparency and coordination – assessing demand, infrastructure needs, hydrogen flows, and cost data.

The final pillar is streamlining existing the financial instrument – coordinating and blending these with new public and private funding, both in the EU and internationally.

In order to achieve the 10 Mtoe of domestic renewable hydrogen production foreseen in the REPowerEU plan, total investment needs are estimated at €335 billion and €471 billion including between €200 billion and €300 billion needed for additional renewable energy production.

The vast majority of this will come from private funding, but public funding (through the EU financial instruments and state aid) will play an important role in ‘pump priming’ in order to eventually leverage increased private investment, particularly in the early days of establishing the hydrogen market.

Second auction

Results of the first auction are imminent, but the Commission has already outlined plans for a second auction to take place before the end of 2024.

The second auction’s budget is to increase from €800 million to €2.2 billion, with the EU outlining that there will be new developments in light of the experience throughout the process of the first auction.

However, the timing marks a significant delay to ambitions outlined by the President of the European Commission, Ursula von der Leyen, who has previously stated that her ambition is to have the second round of auctions take place in the spring of 2024.