Created earlier this year (2022), the Green Hydrogen Taskforce is a collaborative effort between Fortescue Future Industries (FFI), and leading German energy, industrial, and technology companies including, Cobestro, E.ON, Linde, Luthardt, SAP, Schaeffler, thyssenkrupp Nucera, and thyssenkrupp Uhde.
Its White Paper found that industrial demand centres in Germany and the EU are ready to offtake five million tonnes of green hydrogen per year at present, with an addressable market of up to 27 million tonnes annually in the long term.
In May (2022), the European Commission unveiled its REPowerEU plan which had ambitions of producing 10 million tonnes of renewable hydrogen annually, while importing a further 10 million tonnes.
Read more: €34-49bn needed for hydrogen infrastructure
Uwe Wagner, Chief Technical Officer at Schaeffler, said, “The envisaged hydrogen partnership between Germany and Australia is a vital step to foster clean energy in Germany.
“To turn this goal into reality, quick industrialisation of electrolysis and other hydrogen technologies will be crucial. We stand ready to speed up the energy transition with the supply of high-quality components for the large-scale production of electrolysers.”
Quoting the RMI it also states that carbon price is likely to reach a threshold for imported green hydrogen to be competitive with fossil fuels by 2030, negating the need for ongoing subsidies.
The paper says, “Clear and timely government support is needed to signal confidence in a burgeoning green hydrogen market and remove barriers to investment, and the EU should adopt a certification scheme based on a clearly defined green hydrogen standard as quickly as possible.”
The action plan has recommended 10 top actions centred on the German/European market, and Australian market:
In both regions a required scale up of electrolyser and ammonia plans is possible but need immediate orders.
Standardised hydrogen farms with modularised components, tackled by a manufacturing coalition between core players in the market.
Early fiscal support to enable competitive prices with liquid natural gas (LNG) could break the chicken-egg problem by incentivising early movers.
Risk-taking infrastructure investors can aid industry scaling and drive down costs.
Green hydrogen and ammonia corridors from landing ports to domestic ports and industrial carriers must be put in place with legislation and regulation.
Political support by setting green quotas to stimulate demand for green hydrogen, fuels, and products.
Leverage the Australian-German corridor as a nucleus for a pragmatic 80% solution.
Public perception of green hydrogen should be encouraged by broad, mulit-facetted communication.
With a ‘war-time’ geopolitical back drop, speed and pragmatism should see the 80% solution begin to move while developing a 100% solution while ‘on the run’.
Developing the green hydrogen economy will bolster economic and energy security in both regions, while setting a trend for the rest of the globe.
Earlier this month (June 2022), Siemens Gamesa released its white paper, Unlocking European Energy Security, said Europe must deliver green hydrogen solutions to meet climate goals despite Russia’s invasion of Ukraine.
Dr. Andrew Forrest, Chair at FFI, said, “Germany and the European continent are facing stagflation for the first time in years. If structured appropriately, an accelerated uptake of green hydrogen also by means of green ammonia can be a powerful economic growth driver for Germany.
“Our White Paper estimates that for every €1 spent as a support mechanism by Government for green hydrogen, €10 is unlocked in private investment. Our message is very clear. The green energy industrial revolution is here. Do not allow the energy crisis to make the climate crisis worse.
“Germany can become a green energy superpower and we have outlined the pathway to make it happen, including the financial investment required by government. Business is ready.”
The coalition hopes the roadmap may serve as an example solution for other nations ahead of the upcoming G7 meeting on June 26-28, which is already set to discuss hydrogen, having developed a G7 Hydrogen Action Pact.
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