Energy Global Winter 2021

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T

he main target of this year’s 26th UN Climate Change Conference is to secure global net zero by the middle of the century and keep 1.5˚C within reach. Hydrogen (H2) is set to play a key role in the defossilisation of various sectors and industries and in realising climate-friendly mobility options. It is produced by using electricity to electrolyse or split water into hydrogen and oxygen. When the energy is sourced exclusively from renewables, it is called green hydrogen (green H2), which prevents both local and global carbon emissions. While many market players believe that the pathway to cost parity with grey (SMR-based1) or blue (SMR-based, combined with CCS2) hydrogen involves significant CAPEX reduction and efficiency improvement in the electrolysis technology, the truth is that the levelised cost of hydrogen (LCOH) is much more dependent on:

F The right location, where renewable electricity is widely available at an attractive levelised cost of electricity (LCOE) and high load factors.

F The availability of a suitable H2 infrastructure for efficient transport and storage over the next 5 - 10 years.

When considering the example of a 100 MW PEM electrolysis system with a 2021-level project realisation cost and the current technology maturity/efficiency, and comparing both to the 2025 outlook, it can be shown that the

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