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The race to make green hydrogen competitive is on

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One style of hydrogen production uses electrolysis, with an electrical current splitting water into oxygen and hydrogen. If the electricity utilized in this process comes from a renewable source then some call it “green” hydrogen.

Alex Kraus | Bloomberg | Getty Images

Siemens Energy and Air Liquide have announced plans to establish a three way partnership focused on the production of “industrial scale renewable hydrogen electrolyzers in Europe.”

The move, announced on Thursday, represents the most recent attempt to seek out a approach to drive “renewable” or “green” hydrogen production costs down and make the sector competitive.

The establishment of the three way partnership — Siemens Energy can have a 74.9% stake, while Air Liquide will hold 25.1% — is subject to approval from authorities.

If all goes to plan, its headquarters will probably be in Berlin, with a facility producing electrolysis modules, or stacks, also based there.

Plans for electrolyzer production within the German capital had been previously announced. Manufacturing is about to start in 2023, with a yearly production capability of three gigawatts reached in 2025.

The European Union’s executive arm, the European Commission, has previously said it wants 40 GW of renewable hydrogen electrolyzers to be installed within the EU in 2030.

In Feb. 2021, Siemens Energy and Air Liquide announced plans related to the event of “a big scale electrolyzer partnership.”

Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a various range of applications and will be deployed in a big selection of industries.

It may possibly be produced in quite a lot of ways. One method includes using electrolysis, with an electrical current splitting water into oxygen and hydrogen.

If the electricity utilized in this process comes from a renewable source resembling wind or solar then some call it “green” or “renewable” hydrogen. Today, the overwhelming majority of hydrogen generation relies on fossil fuels.

In Oct. 2021, Siemens Energy CEO Christian Bruch spoke of the challenges facing the green hydrogen sector. On Thursday, he stressed the importance of scale and collaboration going forward.

“To make green hydrogen competitive, we’d like serially produced, low-cost, scalable electrolyzers,” Bruch said in a press release. “We also need strong partnerships,” Bruch added.

Air Liquide CEO François Jackow described the creation of the three way partnership as “major step towards the emergence of a number one European renewable and low-carbon hydrogen ecosystem.”

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Siemens Energy and Air Liquide’s plan for a three way partnership represents the most recent attempt by multinational firms to put down a marker within the green hydrogen sector.

Just last week, oil and gas supermajor BP said it had agreed to take a 40.5% equity stake within the Asian Renewable Energy Hub, an unlimited project planned for Australia.

In a press release, BP said it could grow to be the operator of the event, adding that it had “the potential to be one among the most important renewables and green hydrogen hubs on this planet.”

In Dec. 2021, Iberdrola and H2 Green Steel said they might partner and develop a 2.3 billion euro (around $2.42 billion) project centered around a green hydrogen facility with an electrolysis capability of 1 gigawatt.

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