2021
Hyd rog en Startups
Accelerators of innovation: an opportunity for the Ruhr region Katherina Reiche Chairwoman of the Board of Directors at Westenergie FOREWORD AG and Chairwoman of the National Hydrogen Council
What do California's Silicon Valley and the city cannot be used. Hydrogen will pave the ting natural gas grids for H2 transport will dustry and politics work together towards Pearl River Delta in South East Asia have way for a decarbonised economy, emission- eventually bring hydrogen into people's one goal, great things are possible. The Ruhr in common? They have both been a driving free mobility and climate-neutral heat ge- homes - a cost-effective way to decarbo- region could become a "Hydrogen Valley" in force behind high-tech revolutions and neration. This energy carrier could trigger nised heat. This is also being tested in the the heart of Germany and Europe. And who ground-breaking technologies. They have a new German economic miracle. And the Ruhr region - in Holzwickede near Dortmund. knows? Perhaps Bottrop will then become the built economic ecosystems that promote Ruhr region has what it takes to be the "Palo Alto" of the fuel cell and Gelsenkirchen innovation, enable added value at record starting point and centre of this develop- The startup scene in the Ruhr region has a the "Shenzhen" of the hydrogen economy! levels and create many new jobs. ment. key role to play and can give our region the decisive edge. The region is one of Germa-
Germany, on the other hand, missed out on As Germany's largest metropolitan area, the ny’s leading clusters in the field of H2 start- the economisation of the internet and then Ruhr region is the perfect place for urban ups and can generate the speed needed in Katherina Reiche the launch of the smartphone, even though H2 projects in which millions of people can the global race to become the first decar- important spadework for these technolo- participate. Research institutes in Mülheim bonised economy. Young companies and gies was done here. We can’t allow this to and Oberhausen are pushing technologies universities with a strong practical orienta- happen again with the next breakthrough such as the fuel cell. The chemical industry tion in Bochum and Dortmund can develop innovation. And that is hydrogen. in Essen has been using hydrogen for de- H2 solutions with global application potential.
cades. Duisburg is planning to replace co- This H2 report paints an impressive picture.
H2 is the prerequisite for achieving the Paris king coal with hydrogen for the production It shows us that if all the forces from re- climate goals. It is needed wherever electri- of "green steel". And the conversion of exis- search, the new economy, traditional in-
2 KEY RESULTS
Ecological transformation: Hydro- Innovation through cooperation: Increase dynamics: Germany cur- 1 gen will play a fundamental role in the 2 The Ruhr region has all key prereq- 3 rently lacks the necessary speed to energy transition in the coming decades - uisites needed for the development of a establish an internationally leading H2 econ- the 24-fold increase in annually installed hydrogen ecosystem - strong H2 research, omy. Whereas in 2014, 16 % of all new glo- electrolysis capacities between 2015 and an enormous density of relevant players, a bal electrolysis patents were registered in 2019 already points to the enormous market multitude of possible applications in estab- Europe, by 2019 the figure had fallen to 9%, volume of the sector. lished industries and strategic initiatives while the USA and above all China have sig- that bundle existing projects. nificantly increased their share.
The Ruhr region is a H2 startup clus- Hardware meets software: Startups 4 ter: Startups are a central vehicle for 5 bring digital innovations into the hy- accelerating the development of the hydro- drogen economy that increase technologi- gen economy. An analysis of the distribution cal efficiency and create decisive competi- of H2 startups in Germany shows that North tive advantages in the medium to long term.
Rhine-Westphalia and Bavaria are home to The establishment of the first European 2H over half of them - with the Ruhr region and startup hub in the Ruhr region can therefore the Munich metropolitan area clearly stan- be seen as another key asset for the area. ding out with 18 % each.
3 1. BACKGROUND
1.1. Starting point and objectives Hydrogen is a promising option in this scene in the region, which speaks for the transformation process. In the fields of dynamism and innovative strength at the The fight against global climate change and industrial production and in the heating interface between research and industry. the requisite reduction of greenhouse gas and mobility sectors, it could prove to be a The aim of this report is to highlight this emissions demand an enormous economic genuine low CO2, or even, in its green var- strength and to demonstrate what is need- and social transformation. This is not a new iant, a CO2-free alternative to other energy ed in order to take the H2 cluster in the Ruhr insight, but at the moment legally binding sources. When hydrogen is used, for exam- region to the next level. and coordinated political initiatives in Europe ple in fuel cells, no carbon dioxide is pro- are gaining significantly in momentum - first duced - only heat and water together with and foremost the European Green Deal which electricity. This means that (green) hydro- aims to make Europe climate neutral by 2050. gen can play a key role in reducing green- This show of political strength opens up a house gas emissions in Germany without window of opportunity where green innova- restraining industrial production. tions in all sectors of the economy are being promoted through new legal frameworks and As an industrial centre in the heart of funding. In contrast to the digital transfor- Europe, the Ruhr region has a chance of mation of the last few decades, it is primarily becoming one of the most important inno- industrial regions that are facing great chal- vation clusters in the field of (green) hydro- lenges, but also seeing new opportunities. gen. There is a very lively hydrogen startup
4 Figure 1: H2 strategies in the 56 strongest Source: World Energy Council Germany economies worldwide 2021
1.2. The political transformation Since the consequences of energy policy 2017 2018 2019 2020 and of technological developments are not The economic opportunities offered by entirely foreseeable, there are risks in rely- Japan December 2017 hydrogen are also becoming increasingly ing on hydrogen. But it is at least as risky to France1 June 2018 important in public perception, although wait and see. The mobility industry and the South Korea January 2019 there is a high level of polarisation. Without Tesla automotive group are the most pro- Australia November 2019 going into the debate in detail, the key facts minent examples of how sectors that have Netherlands April 2020 to note are: Green hydrogen, which is the grown over decades can be disrupted, and Norway May 2020 focus of developments in the long-term, is even established players are struggling with Germany June 2020 not an existing energy source, but an energy innovation gaps. Against this background, EU July 2020 carrier. As such, it must always be produced it is not surprising that 13 of the 56 strong- Spain July 2020 by using electricity. If it is to play a central est economies in the world have adopted Portugal July 2020 2 role in the energy transition, there must be H2 strategies in recent years. Another 13 In preparation France September 2020 a stronger expansion in renewable energies countries are preparing strategies and in Bulgaria Morocco Poland Russia3 October 2020 worldwide. Looking at the European Green 28 initial discussions are at least underway China New Zealand Sweden Finland November 2020 Deal, this is precisely the political goal for (World Energy Council Germany 2021). Ulti- United Kingdom Oman Slovakia Chile November 2020 the coming decades and it is supported by mately, such political activities are instru- Italy Austria Canada December 2020 a broad political majority. This is why hydro- mental in creating new framework condi- Colombia Paraguay gen is gaining relevance. tions and establishing facts in a still rather
uncertain market. 1) H2 Development Plan 2) H2 Action Plan 3) Green H2 Strategy
5 Figure 2 : Electrolysis capacity (in megawatts) Source: Own chart based on Internatio- becoming operational annually 2015-2019, by nal Energy Agency 2020 region
143 Government investments, subsidies and tions for this future technology. The region
legally binding measures to regulate CO2 and the German economy as a whole can are the most important political framework benefit in the long term by making domestic conditions for the development of a global industries fit for the future on the one hand hydrogen economy. The growth of the sec- and by exporting new machines and techno- tor can be roughly estimated by looking at logy on the other. the rapid increase in the production of hy- drogen (Figure 2 ). While Europe is currently 24 x still leading the way, the USA and China in 55 particular are clearly catching up. These changes create opportunities in particular 46 for strongly industrialised countries and re- gions that have the scientific know-how as
25 21 well as the necessary infrastructure along- 14 16 side established companies in the relevant 10 9 10 6 sectors such as the energy industry and 6 4 3 4 1 2 steel production. In contrast to the digital economy, a local ecosystem is a fundamen- 2015 2016 2017 2018 2019 tal prerequisite for the hydrogen economy. This is precisely what makes the Ruhr region Japan North America China Europe Global one of the most promising European loca-
6 "The development of a hydrogen econo- my holds huge opportunities for North Rhine-Westphalia in terms of ecology and economy: if used systematically, hydrogen can enable us to save 25% of our current CO2 emissions in the future. 1.3. Importance of the ecosystem In addition, governments must offer subsidy chain. Governments are pushing these de- This could create up to 130,000 additio- programmes and incentive systems to boost velopments, but we also need players with nal jobs. Thanks to our central location The basic prerequisite for the development innovation in the hydrogen economy. At the enough courage to get the innovations on in Europe and our industrial strength, of a hydrogen economy is the existence of moment the costs of producing clean hy- the road. Startups play a decisive role here we have everything it takes to become an ecosystem that covers the entire value drogen are still relatively high and the market as they are dynamic and willing to take risks the top hydrogen location in Europe. chain, starting with the generation and pro- volume is rather small - a constellation that (Seitz et al. 2020). They are able to give the Our Hydrogen Roadmap North Rhine- vision of (renewable) energy for the produc- should be bridged by political initiatives and hydrogen economy the necessary push and Westphalia shows the way - and is an tion of the gas in large electrolysis plants, financial incentives. The goals of these pro- investment figures already indicate how im- incentive for companies, startups and through storage and transport and finally its grammes at national and multilateral level portant they are becoming in the H2 sector research institutes to go full steam ahead use, for example in fuel cells in the mobility are a close exchange between industry and (Figure 3). with innovative solutions in the field of sector or as an energy carrier in steel pro- science, feasibility studies or launching pilot hydrogen." duction. Research institutes and industry projects in towns and cities - such as H2 bus- must cooperate if we are to succeed in buil- es in public transport, for example. – Prof. Dr Andreas Pinkwart, Minister ding up a well-functioning and sustainably for Economic Affairs, Innovation, Di- profitable ecosystem. What matters now is When it comes to hydrogen, the goal must gitalisation and Energy of the State of combining scientific innovations with prac- be to put the existing technical innovations North Rhine-Westphalia tical experience from industry, creating syn- into practice as quickly as possible. The pre- ergies and jointly leveraging the economic requisite for this, as emphasised above, is potential of hydrogen (Hebling et al. 2019). an ecosystem that covers the entire value
7 Figure 3: Investments in young hydrogen Source: Own evaluation based on "The potential of H2 for the decarboni- companies (founded since 2000) in Europe data from Crunchbase sation of large industrial sectors is fi- 4 and the USA in million US dollars nally being recognised. Since the real
potential of H2 can only be unleashed + $ 250 MM funding on a large industrial scale, it is important round Nikola that investors along the entire value + $ 210 MM funding round Nikola chain simultaneously focus on scaling: We need investments in new techno- logies in order to optimise and increa- se efficiency and also in the expansion 72.6 69.1 of production capacities and in infra- structure. Industrial centres such as the Ruhr can and must set the right sig- nals, and public authorities, industry heavyweights, private investors as well 38.7 as SMEs and startups must all play an equally active role. A huge future mar- ket is emerging!"
19.6 15.8 – Robert Gallenberger, Partner at the Industrial Technologies Fund of btov 7.2 6.2 7.0 5.5 5.6 1.4 1.5 Partners
2015 2016 2017 2018 2019 2020
Europe USA 4) No IPO financing was taken into account. This relates to capital raised by ITM Power (UK), SunHydrogen (USA) and Nikola (USA). 8 2. THE RUHR as a hydrogen region
2.1. Basics and fields of application The existing gas pipeline network plays a fields of application are in part struggling central role in hydrogen distribution and with efficiency problems, one particularly The hydrogen economy can be roughly di- this gives the Ruhr region a huge advan- promising area of use is in industry. This vided into three areas: production, storage tage: Air Liquide already operates a 240- is precisely where the Ruhr region has its and distribution as well as usage of the kilometre H2 pipeline in the Ruhr and neigh- strengths. It is home to a diversity and den- energy carrier. Up to now, hydrogen has bouring regions – the longest in Europe sity of industries that benefit from climate- mainly been produced from gases such as – and supplies large industrial consumers. friendly hydrogen - from steel production to methane or natural gas. Another possibili- In addition, the Essen-based gas network the chemical industry and refineries (Inter- ty is the production through electrolysis of operator OGE is planning to convert existing national Energy Agency 2019). The enor- water – a process that, in view of the long- gas pipelines to create the first publicly ac- mous potential within the region is term goal of CO2 neutrality, is likely to be of cessible hydrogen grid. illustrated by the example of Thyssen- the greatest importance in the future. The krupp's Duisburg steelwork, which alone term green hydrogen is used if the electri- The basic technology for the usage of hy- is responsible for 2.5% of Germany's CO2 city needed for production comes entirely drogen is the fuel cell which can be used in emissions and which is aiming for CO2 neu- from renewable energy sources. Electroly- various applications: for example in mobi- trality by 2050 (Handelsblatt, 2019). sis is therefore a key technology in the hy- lity and logistics, i.e. in cars and trucks, in drogen economy. trains and even in aviation. The use of fuel cell systems for electricity and heat is also well developed. However, whereas these
9 Figure 4: Sketch of the hydrogen economy: "Evonik is committed to the development "From wind turbine to electric motor" of the hydrogen economy: We are invol- ved in various stages of the value chain in the hydrogen economy. We already transport and produce hydrogen for
Production Distribution Usage our customers and our processes, we and storage are researching new solutions to pro-
Fuel cell applications duce speciality chemical products with lower emissions and we want to close the gaps in the hydrogen economy."
– Dr Harald Schwager, Deputy Chair- Electricity from renewable Electrolysis Gas grid Mobility energies man of the Executive Board Evonik
Green hydrogen Transport Electricity and heat
Grey, blue and turquoise hydrogen Hydrogen
Storage Off-grid and other applications
Industrial and other material applications
Use of fossil natural gas Reforming/ Gas stations and other gases Pyrolysis
10 Figure 5: Number of annually registered Source: Own analysis based on data patents in the field of electrolysis between from the Fuel Cells and Hydrogen 2014 and 2019 Observatory
2310 2156 2.2. Research meets industry With its unique characteristics, industrial history and experience, the Ruhr region Research work focussing on practical appli- 1701 56 has the necessary potential and the op- cations is a decisive factor in the internatio- portunity to develop into one of the central 53 199 nal competition for innovation. A look at the European hydrogen clusters. The region is 180 1316 development of relevant patents indicates 481 home to several universities and has large where Germany stands internationally in 33 research capacities in the hydrogen sector 1078 391 the field of hydrogen. Overall, the number of 168 - for example at the universities of Bochum, patents filed annually in the field of electro- 47 Dortmund and Duisburg-Essen, as well 754 340 lysis - which can be seen as an indicator of 140 as the Westphalian University of Applied 48 the expected market ramp-up - roughly tri- Sciences. In addition, there are a number 134 338 913 981 pled worldwide between 2014 and 2019. There 38 of non-university research institutions with was a particularly sharp increase in China. 117 303 625 correspondent specialisations, the most Starting from a relatively low level, China 239 358 important being the Fraunhofer UMSICHT 184 has now clearly overtaken the USA and Eu- 75 Institute in Oberhausen, the Max Planck In- rope, with the European share of newly filed stitute for Chemical Energy Conversion in patents falling from 15.5 % in 2014 to 8.6 % 2014 2015 2016 2017 2018 2019 Mühlheim, the Hydrogen and Fuel Cell Cen- in 2019. These figures are a clear indication ter (ZBT) in Duisburg and the “Gas- und Wär- of how important it is to continue to streng- Europe (incl. Germany) Germany USA China Global me-Institut” in Essen. then existing research clusters, particularly in the Ruhr region, and to ensure that theory Increase between 2014 +70% +47% +101% +1208% +206% and practice are combined. and 2019 11 “The role of hydrogen as an energy carrier is gaining real momentum – not just in research but also in indus- trial testing. This is crucial since re- search has to go hand in hand with the However, apart from research and individu- project at the interface between industry technical development of innovations. al practice-related projects, the emergence and research, connecting companies along As a storable and CO2-free energy car- and development of a hydrogen ecosystem the entire value chain to create a nation- rier, hydrogen can be used in diverse is also dependent on coordinated efforts by wide hydrogen infrastructure. A hydrogen fields, from industrial manufacturing established players who can create the ecosystem is thus being established which (steel, chemistry) to transportation necessary infrastructure and a broad de- will extend from the heart of the region and heat supply. Demand will be par- mand base through major investment pro- throughout North Rhine-Westphalia and ticularly high in industry-heavy areas jects. And the Ruhr region is well positioned parts of the Netherlands and Belgium and such as the Ruhr region. The biggest in this respect: in addition to the initiatives that benefits above all from the chemical, obstacle: the lack of renewable energy of locally rooted companies such as E.ON, petrochemical and steel industries (Agora in Germany. Political action must be Westenergie, Thyssenkrupp, RWE and EVO- Energiewende and AFRY Management Con- taken!”
NIK, specialized firms such as Air Liquide sulting 2021). This H2 cluster will not only and Linde are active in the region. Grid ope- help to secure endangered jobs in the regi- – Prof. Dr Angelika Heinzel, Managing rators OGE and Amprion are planning to ex- ons, but also generate many new employ- Director of the Hydrogen and Fuel Cell pand production capacities and distribution ment opportunities (Ludwig Bölkow Sys- Center (ZBT) grids - both in and outside the region. temtechnik 2019).
The strength of the Ruhr region lies above all in combining industrial power with scien- tific expertise in cooperation projects (IW
Consult 2020). In addition, the GET H2 initia- tive in the Ruhr region is a genuine flagship 12 2.3. Projects and new networks this has led to greater momentum on many levels. The European Clean Hydrogen Alli- Building an ecosystem in a new and capital- ance, launched in 2020 as an initiative of the intensive field such as hydrogen is a real EU Commission, aims to bring together all challenge. This is why traditional support stakeholders involved - first and foremost programmes based on existing structures companies - and to promote investment as quickly reach their limits. The lack of clear the overriding goal (European Commission market opportunities restricts financing 2020). In Germany, the mission of the Na- options and the differing interests of rele- tional Hydrogen Council, also launched last vant players can hinder dialogue. However, year, is to promote the implementation of cooperation is needed along the entire value the National Hydrogen Strategy. The GET H2 chain, linking all actors with their various initiative, mentioned above, has set itself competencies and goals: producers of re- the goal of developing a hydrogen market as newable energies, innovators in the field of well as the related infrastructures and value electrolysis, corporations that are driving chains in Germany and Europe. the expansion of the infrastructure both fi- nancially and technologically as well as con- There is a need for cooperation in the H2 sumers, to name but a few. sector at all levels: the EnergyAgency.NRW plays an important role in North Rhine-West- Industry and policymakers have all recog- phalia. One of its networks, the Fuel Cell, nised the need for new joint ventures and Hydrogen and E-Mobility Network NRW,
13 "With our established industry, lead- ing research institutes and strong in- frastructure, we in the Ruhr region have what it takes to get the hydrogen market off to a good start. Innovative which was founded back in 2000, has de- Projects such as the conversion of the startups are also bringing the necessa- veloped into a hub that facilitates access Ruhrbahn fleet from diesel to fuel cell bus- ry dynamism into the region. To be suc- to funding programmes and initiates nu- es from 2024 to 2033 make the transition cessful in international competition, we merous projects. In addition, other regio- to the hydrogen economy particularly tan- need to combine these strengths and nal associations have been formed in the gible. The RH2INE initiative endorsed by work more closely together - because Ruhr region. The h2-netzwerk-ruhr e. V. was the North Rhine-Westphalian Ministry of hydrogen is teamwork. That is why we founded as early as 2008, and in recent years Economic Affairs and the Dutch province of are happy to cooperate in initiatives in particular the landscape has become South Holland should also be mentioned. It such as Essen’s H2 Advisory Board that more dynamic: Good examples are new ini- aims to create a climate-neutral Rhine-Al- aims to improve networking in the re- tiatives such as the Hy.Region.Rhein.Ruhr pine transport corridor. In this context the gion." association in Duisburg, the bundling of Port of Duisburg is already working on the competencies in the H2 Unit of Essen Eco- decarbonisation of freight transport and – Bernd Tönjes, Chairman of the Board nomic Development Agency or the H2UB inland shipping. Nevertheless, as important of Executives RAG-Stiftung in Essen, which is the first hub to bring to- as the various projects may be, at their core gether European startups, companies and they should all be geared towards building research. However, it is important to create a comprehensive H2 ecosystem in the Ruhr a common basis that bundles the different region. networks and aligns them towards a com- mon goal.
14 3. DEVELOPMENT of the Ruhr cluster
3.1. H2 startup cluster in the Ruhr region Startups are extremely important in the de- velopment of a hydrogen ecosystem: they Hydrogen is not only a topic of interest to put novel ideas into practice and are there- 1.8 % research and industry. With the change in fore key indicators of the innovative strength 3.5 % 7.0 % political and social framework conditions, of a particular region. The distribution of the startups also see new market opportunities 57 German startups shows that two federal 0 % 1.8 % 1.8 % 7.0 % here. This is clearly reflected in the growth states, North Rhine-Westphalia and Bavaria, in the number of startups in the H2 sector: account for more than half of German hydro- Ruhr region 0 % Until 2010, there were virtually no startups gen startups - with the Ruhr region and the 17.5 % in the hydrogen industry in Germany, the few Munich metropolitan area clearly standing 29.8 % 7.0 % 0 % exceptions being largely involved in specia- out as H2 innovation clusters (Figure 6). The 5.3% lized electrolysis and fuel cell technology Ruhr alone is home to 18 % of all German hy- 1.8 % applications. Since 2015, however, a clear drogen startups. The Ruhr region's strength increase in startup dynamics can be ob- in terms of research, industry and infrastruc- 0 % 26.3 % served: 41 of the 57 identified hydrogen ture is therefore also reflected in the startup 7.0 % Munich area startups based in Germany were founded scene. This confirms the huge potential of 17.5 % during this period. These startups are active the region and its chances of making a name in all three fields of application - production, for itself as an international cluster in the storage and distribution as well as usage. field of hydrogen (Hirschfeld et al. 2020). Figure 6: Regional distribution of hydrogen startups in Germany
15 "The dynamism of startups is a crucial success factor in the hydrogen market ramp-up. However, unlike in the digi- tal world, they need partners who, in addition to financial resources, also The locational advantages of the Ruhr re- contribute skills along the entire value gion are not only reflected in the number chain. OGE has set up the H2UB with of startups but also in the fields of specia- the aim of creating a centre and bea- lisation of the H2 startups here. Most of the con of cooperation where established newly founded companies in the region fo- companies, research institutes and cus on industrial applications and in putting startups can contribute their strengths research results into practice – for example and mutually benefit from each other." in the field of electrolysis (see highlights in Figure 7). Publicly funded projects such as – Ralf Werner, CIO OGE NEWELY or LIKELY, where a wide variety of players are involved in the further tech- nical development of electrolysis, are good examples of the links between research, industry and startups. Alongside their re- search expertise, startups in the Ruhr re- gion also stand out for their smart solutions with an industrial focus, producing, among other things, components for hydrogen fil- ling stations or cutting torches.
16 Production Other production methods Usage
Electrolysis systems & suppliers Mobility Off-grid and other fuel cell applications
Distribution and storage Other uses / industrial applications
H2 Range GmbH
Electricity and heat
Figure 7: Hydrogen startup landscape * Ruhr area 17 where state funding is directed specifically at startups and at the same time the at- tractiveness of the location for investors is strengthened.
3.2. More dynamism through startups "Even when I was studying energy and process technology in Serbia, my focus Startups are pioneers who are always look- was always on the links between re- ing for competitive advantages and conse- search and practical applications - the quently put scientific innovations into prac- potential in the field of hydrogen has tice as quickly as possible. In the H2 sector, always fascinated me. In 2011, I moved in particular, research-based startups are to the Ruhr University Bochum where enormously important because they are in I was in charge of important projects close contact with the scientific world, but and worked with top international at the same time have a business mindset people in the field of hydrogen. But and never lose sight of the end product. the connection to industries in the re- Membrasenz, one of the many startups in gion is just as important to me: having the Ruhr, is working precisely at this inter- customers and partners close by is an face: Their research into the development enormous advantage in the field of hy- of a membrane needed in electrolysis is a drogen." vital contribution to one of the key techno- logies in the hydrogen economy, increa- – Dr Jelena Stojadinovic, Founder and sing the region’s chances of becoming an CEO Membrasenz international leader in this field. To achieve this, an H2 ecosystem must be developed
18 i i The startup Membrasenz is a prime exam- Although the public image of startups is industrial sector. Central prerequisites are The startup PMR Tech, founded in Herne ple of how innovative research can be strongly dominated by B2C companies strategic partnerships with industry and in 2019, wants to push the industrial trans- transferred into commercial practice. In such as Zalando, startups already generate opportunities for on-site exchange. formation forward. The product, a hydro- 2011, as part of a research project at the the majority of their turnover in the B2B gen-oxygen gas generator based on a water Ruhr University Bochum, founder Dr Jelena sector - 69 % to be precise (Kollmann et al. "Industry is showing great interest in electrolyser, has successfully completed Stojadinovic began developing a membrane 2020). This makes them important partners our product and overall you can sense initial practical tests and is on its way to go whose material properties make alkaline of established companies which benefit a lot of dynamism in the field of inno- to market. With the help of the generator, electrolysis more energy-efficient. She filed both as customers and through profitable vative hydrogen solutions. At the same hydrogen and oxygen can be used in a cut- a patent application for the promising new joint ventures with the startups. In the Ruhr time, the road to market maturity as a ting torch, for example on steel, as a climate development and received various grants region, the greatest potential of new hy- hardware startup is not easy - especial- -friendly alternative to the natural gas or to finance the spin-off including an EXIST drogen technologies lies in the reduction ly when it comes to financing. Industry propane gas currently used. Thanks to the business startup grant. Membrasenz was of greenhouse gas emissions in industrial is therefore very important for compa- wide range of possible applications, this founded in 2015. The membrane is now ne- production processes. This poses particu- nies like us, not only as a customer, but also offers smaller companies the opportu- arly ready to be launched on the market and lar challenges for small and medium-sized also as a strategic partner. Our aim is nity to improve their CO2 balance. the company is cooperating with several companies which find it more difficult to to exchange ideas on the ground, build partners on setting up production. implement technological developments trust and convince people." alongside their core business. Startups such as PMR Tech are pushing such inno- – Phillip Reisenberg, Founder and CEO vation processes and making a decisive PMR Tech contribution to the future viability of the
19 i Startups are often important vehicles for in- As a spin-off from the Westphalian Univer- novation, especially in the hardware sector: sity of Applied Sciences, ProPuls is contri-
In the H2 sector, funding programmes offer buting its hydrogen expertise to practical founders the opportunity to set up business fields. ProPuls holds patents in both elec- models focused on research transfer and to trolysis and fuel cell technology and is wor- act as a link between science and business. king on numerous R&D projects - in coope- As a result, startups with a scientific back- ration with research institutes, established ground are emerging, equally active in re- companies and other hydrogen startups. search projects and product development, For example, the company is involved in bringing together different actors in their the EU-funded projects Promet H2 and NE- work and bundling resources. This is exact- WELY which aim to develop improved and ly where the H2 startup ProPuls comes in, a cost-effective electrolysis processes, and, company that is pushing innovative proces- together with the Westphalian University of ses in electrolysis and fuel cell technology in Applied Sciences and the startup iGas Energy, collaboration with various partners. is planning test facilities in the electrolysis research project Hydra15. "The huge interest in our expert event "Digital Drives Hydrogen" on March 4 and in our new Tech Trend Report show that, unlike in all the other indus- trial sectors, digitalisation is not just 3.3. Digital expertise through startups can be diverted in real time. The Block- can be done. Events, network meetings and a simple transformation issue, but the cENtive project is developing a blockchain face-to-face talks are enormously important crucial factor in setting the course for The successful development of the hydro- application that secures and manages the for startups in order to establish direct a universal circular hydrogen econo- gen economy depends to a large extent on feed-in and use of green hydrogen as well contacts with industry. At the same time, my, with North Rhine-Westphalia and the establishment and expansion of techni- as its certification in the form of e-certifi- the mainstream economy should communi- Germany as future H2 business centres cal infrastructures and components. At the cates. And finally, startups such as IOX offer cate its needs clearly to startups in the form in Europe and worldwide." same time, the ecosystem must think digi- versatile hardware and software solutions of reverse pitches or startup challenges. tally from the outset if it is to be competi- that can be used to push digitalisation and This would enable startups to see where the – Dr Klemens Gaida and Peter Hornik, tive internationally. There is a high demand optimisation of production processes. The market opportunities are and give industry Managing Directors of the Digital In- for digital solutions in the hydrogen sector players in the hydrogen economy should the chance to see for itself the added value novation Hub Düsseldorf/Rheinland in order to increase efficiency in the net- actively exploit these potentials in order to of cooperation. Strategic partnerships can working of the infrastructure, for example. build the most efficient applications possi- then be formed that will speed up the de- The advantage of startups is that they often ble right from the outset. velopment of the ecosystem tremendously. already have the necessary digital expertise or even digital products that can be used in In order to connect the old and the new the H2 sector. economy, the hydrogen ecosystem must actively promote networking - formats such
The startup Easy Smart Grid, for example, as the H2 Tech Innovation Night organised is developing control systems with which by the H2UB and the digihub Düsseldorf excess electricity from renewable sources Rheinland are good examples of how this
21 4. WINDOW OF OPPORTUNITY – why now?
"Hydrogen has long been seen as an is- With the German National Hydrogen Strat- sue solely for the big players: However, egy and the European Union's Green Deal, Science: Research & the increasing number of small com- policymakers have expressed their will to experts panies being founded in the H2 sector build up and support the hydrogen economy highlights the potential of startups in in the long term, sending a clear signal to this field. They are essential drivers business, science and society. These pro- € of innovation, add dynamism to the clamations are linked to stricter regulation H - market ramp-up and are an important of emissions and support for the energy Regulation: 2 Support: ecosystem bridge between theory and practice. In transition in the form of subsidies - both are CO2 price & Funding and limits subsidies order to exploit these opportunities to important drivers of the hydrogen ecosys- the full, we must continue to promote tem. The development of production capa- the transfer of research into practice cities and infrastructures, in particular, is as well as cooperation between start- dependent on public funding as this is the ups and established companies." only way to reduce the production price sig- nificantly. The Ruhr region, with its industri- Startups: Established companies: Intra- & entrepreneurship Industry, energy & logistics
– Franziska Teubert, Managing Direc- al heavyweights, the density of H2 research tor Startup Association and the high level of startup activity in this Fundamentals: infrastructure (e.g. pipelines) & access to renewable energies sector, has all the important prerequisites needed to build up one of the leading inter- Figure 8: The hydrogen ecosystem
22 national clusters in the hydrogen economy. Four recommendations for the next stages A new entrepreneurial spirit has been example of a successful best practice in the What we have to do now is to exploit the of development of the hydrogen ecosystem 2 growing in the field of hydrogen and field of logistics. The important thing here current momentum in order to strengthen in the Ruhr region can be derived from this lots of new companies are being set up - is to create genuine opportunities for peo- the ecosystem even further. report: with the Ruhr region leading the way. This ple to talk face-to-face, ultimately enabling development should be strengthened by not only networking but also joint projects. In most fields of application the use promoting more spin-offs from universities 1 of hydrogen is still at the outset, so and research institutes. An inter-universi- This report makes it clear that start- research is a central component in the hy- ty platform should be set up, located, for 3 ups bring enormous dynamism into drogen market ramp-up. In order to suc- example, at the University of Duisburg-Es- the hydrogen ecosystem. Strategic part-
ceed in international competition, H2 re- sen and the ZBT. The incubator Cube 5 in nerships between startups and industry search in the Ruhr region must be pushed Bochum, which supports potential founders offer special opportunities: Startups con- forward with a stronger focus on applicati- at the Horst Görtz Institute for IT Security, tribute innovation and speed, while estab- ons and established on a broader basis. The could serve as a model for this. The plat- lished industry brings experience, customers aim should be to expand research output in form must also be open to founders from and, above all, the necessary capital. For the region, increase the number of qualified outside the Ruhr region in order to create a such joint ventures to flourish, the ecosys- employees and give more weight to ideas pull-effect. At the same time, the H2UB in tem must offer programmes that reduce and stimuli from practice. To this end, the Essen should be given special support as a the cost of cooperation, financially as well funding of the existing institutions should national and international magnet for exis- as in personnel, and thus make projects be reassessed and potential for expansion ting startups, so that the Ruhr region can possible in the first place. The DataHub identified – especially at the interfaces be- become a hydrogen hotspot in the start- Ruhr, run by Gründerallianz Ruhr, is just one tween practical projects and joint ventures. up ecosystem. Startport in Duisburg is an of the companies that undertakes this task
23 in the field of digital innovation. A compa- This is why it is so important to appeal to rable programme for industrial applications the entire H2 economy in the Ruhr region with a focus on hydrogen would significantly to work together and to develop lean and speed up the innovation process between pragmatic formats. Close cooperation with startups and industry. By bringing industry neighbouring regions is also needed, with into contact with startups, investment ac- everyone working together to promote hy- tivities of the established economy in the drogen. This is the only way to make the re- Ruhr region and North Rhine-Westphalia gion the top hydrogen cluster in Germany and could be strengthened in the medium term Europe and to raise hydrogen to the next and thus benefit the innovative capacity of level as a central component of the energy the area as a whole. transition.
Alongside the political will described 4 above, all players in the hydrogen eco- system must work together on this task. The increasing number of initiatives, net- works and projects is a positive sign. At the same time, however, there is a need for more coordination and a common strategy so that the strengths of the individual acti- vities can be bundled and developed jointly.
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