Green hydrogen: electrolysis, ammonia and other e-fuels Organised in partnership with the Hydrogen Council TUESDAY, 06 OCTOBER 2020 • 08:00-11:00 GMT+2 Opening remarks Dolf Gielen Director IRENA Innovation and Technology Centre 2 Please make sure to If you have If you encounter This session will be mute yourself questions for our any technical recorded and during the session panelists, please issues, please recording along to avoid background use the Q&A message us in the with the slides will noise Chat – and we be available on the will try to help. Innovation Week website Session overview 8:00-8:15 Setting the scene - IRENA 8:15- 9:30 Panel I: Electrolysis for green hydrogen production 9:30- 9:40 Digital break 9:40-9:55 Setting the scene – Hydrogen Council 9:55– 10:55 Panel II: Ammonia and other e-fuels 10:55- 11:00 Closing remarks 4 Setting the scene Setting the scene Emanuele Taibi Power Sector Transformation Strategies IRENA Innovation and Technology Centre 6 Hydrogen from renewable power: a global perspective Emanuele Taibi IRENA Virtual Innovation Week 6 October2020 IRENA’s work on Green Hydrogen Knowledge 2018 • Hydrogen from renewable power: Technology outlook for the energy transition (2018) • Hydrogen: A renewable energy perspective (2019) 2019 • Reaching Zero with Renewables (September 2020) • Technology Brief: Electrolyser Technologies (forthcoming in Q4 2020) 2020 Outreach Collaborative • Session on “Electrification of Fuels: Hydrogen” at IRENA Innovation Week Framework on (2018) Green Hydrogen • Thematic meeting “Decarbonizing complex sectors” at 18th Council (2019) • Ministerial Roundtable on Green Hydrogen at 10th Assembly (January 2020) Technology Brief • Establishment of the Collaborative Framework on Green Hydrogen (June Electrolyser 2020) Technologies Decarbonisation Pathways The 1.5⁰C goal requires all sectors to decarbonise by the 2050s. Renewables could provide over 60% of the reductions we need Hydrogen production costs Hydrogen from renewables has a great potential but electrolyser costs need to further decrease Source: IRENA (2019) Key assumptions electrolyser: Load factor: 4200 hours (48%), conversion efficiency 65% (today), 75% (2050) Hydrogen production costs: renewable electricity, CAPEX of electrolysers and operating hours IRENA’s new report on Green Hydrogen Electrolysers (Nov 2020) Key messages: • Capital cost reduction for electrolysers can be achieved through: economies of scale in manufacturing, learning by doing, innovation and optimization of the stack size Electrolysers • Projects and manufacturing are scaling up from kW to GW scale, while in parallel research and innovation are accelerating to reduce costs and » Use electricity to split water into improve performance: this report identifies areas where innovation is most hydrogen and oxygen needed and can be most impactful » Can provide demand-side flexibility by: • There is a trade-off between durability, efficiency and cost which make it » Adjusting hydrogen production to difficult to achieve a high performance in all three categories follow wind and solar generation profiles in periods of high resource • Trade-offs and focus area at the system level are: hydrogen compression availability vs. operating pressure of the electrolyser and simplification of the power » Seasonally store green electrons as supply equipment (e.g. coupling with PV) green molecules, supporting adequacy • Some of the key innovation needs at the cell level are: membrane » Can provide grid balancing services thickness, catalyst amount and type, coatings and electrode architectures • Some technologies require very rare materials like iridium: reduction in material requirements and switch to more common material are important for rapid scale-up PEM Electrolyser cost breakdown Balance of Plant Power Supply Electrolysis plant Deionized Water Circulation Hydrogen Processing Cooling Stack Catalyst Coated Membrane Balance of Plant Stack components incl. CCM CCM Cell Cell Porous Transport Layer (PTLs) Manufacturing Cell/CCM Stack PFSA Membrane Small parts (sealing, frames) Iridium Platinum Bipolar Plates (BPs) Collaborative Framework on Green Hydrogen • Green Hydrogen Ministerial • Strategic direction from Members on the Roundtable at IRENA’s 10th Assembly Framework: • Members called upon IRENA to continue • Establish a global knowledge database for green its work on hydrogen from renewable hydrogen power • Strengthen collaboration with existing hydrogen initiatives and other relevant stakeholders • IRENA has established a Collaborative • Evaluate the nexus between hydrogen and renewables Framework on Green Hydrogen in as well as the flexibility from coupling power and June 2020, to foster dialogue between hydrogen governments and private sector • Disseminate knowledge on transport and distribution of hydrogen • Disseminate and coordinate standards and regulatory frameworks • Sharing of best practices on financial mechanisms Emanuele Taibi [email protected] www.irena.org www.instagram.com/irenaimages www.twitter.com/irena www.flickr.com/photos/irenaimages www.facebook.com/irena.org www.youtube.com/user/irenaorg Panel I: Electrolysers production Panel 1: Electrolysers production Panellists Moderator Tim Karlsson Armin Schnettler Eiji Ohira Thorsten Herbert Denis Thomas Jan-Justus Schmidt Executive Director Executive Vice President, Director General Director for Market Global Business Co-founder New Energy Business Development and Development Leader - IPHE Fuel Cell and Public Affairs Water electrolysis, Enapter Siemens Energy Hydrogen Technology Group NEL Cummins - Hydrogenics NEDO 17 Moderator Tim Karlsson Executive Director, International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) 18 Panelist Armin Schnettler Executive Vice President, New Energy Business, Siemens Energy President, VDE 19 The power of green hydrogen Prof. Dr. Armin Schnettler New Energy Business, Siemens Energy Siemens Energy is a registered trademark licensed by Siemens AG. Frei verwendbar © Siemens Energy, 2020 We believe in the fundamentals of the market which is expected to grow to from MW to GW ranges H2 electrolyzer market potential: Market drivers and potential developments Key market drivers Global H market in Mt Green H electrolyzer 2 2 Recent developments: market potential in GW 2) • National & EU Hydrogen Strategies Regulatory support Growth mainly driven Market uncertainty are turning into real projects and to promote H and • Size of the market 2 by blue and green specific discussions other renewable based hydrogen • Time of market take-off energy forms, • Supplier consolidation happening e.g., synthetic fuel through strategic collaborations 546 (SPVs), JVs, and M&A Decarbonization • Markets developing/ramping up: self commitment of 8,1% Upside • < 5..10MW: 1st pilots and niche players and their potential customers to ~5 GW • 10..20MW: mobility/HFS 2,8% 5,6% • 150..350 industrial applications Economic push due 114 • > 1GW: bulk industry, e.g. large 76 87 to e.g., reduction of 2.3 steel, refinery, chemistry, and renewable prices, 0.3 GW GW CAPEX and increase export, e.g. synthetic fuels 2020 2025 2030 2050 2020 3) 2025 3) 2030 in CO2 or CNG price CNG: Compressed natural gas; 1) Based on market reports and regulatory support for hydrogen in Europe 2) assumption based SE NEB 21 October 2020 Frei verwendbar © Siemens Energy, 2020 What can Siemens offer to the P2X customers? Siemens competence along the value chain Siemens covers important parts of the value chain to deliver Power-to-X projects on turnkey basis Components and Equipment Planning & Financing Grid PtL-/PtG- Consulting Renewable Power Electrolysis CO / N Supply Synthesis Connection Equipment 2 2 Solution provider Wind Park Power Grid Electrolysis Machinery CO2 Capture Synthesis for Power-to-liquids • Onshore wind • Transmission PEM technology • Compressors • Capture from flue • Partnering (i.e. Methanol) • Offshore wind gas (PostCap) • CH3OH • Distribution • Storage systems Siem.-Gamesa • One face to the customer • Substations Silyzer 300 • DAC: external • CH4 • Water treatment • Overall system design • Transformers • NH3 • Elec. equipment • Integration of Siemens Photovoltaics • Power cable • Own concepts N2 Supply products and technology systems • Mech. equipment • Novel, flexible • Solar Fields/ • Air separation: & products from external methanol reactor partners Storage Systems • Turbines/engines external concept in R&D External Sourcing (back up power) stage BoP DAC: Direct air capture: Under development; no Siemens activities | CCU: Carbon Capture and Utilization | typical share in value addition SE NEB 22 October 2020 Frei verwendbar © Siemens Energy, 2020 Siemens Energy - The right partner to lead green hydrogen solutions Proven industrial-grade large- Fully Integrated solutions scale electrolyzer systems from green electrons to green >100,000 operating h in MW range molecules with our strong partner ecosystem Scalable solutions Siemens Energy Global G2M setup and Pre-fabricated and green hydrogen customer domain know-how pre-engineered packages configuration of industry- solutions specific solutions Reliable technology and Digital Services reliable partner H2 value chain design and with highest standards in optimization with Digital Twin safety and project excellence Armin Schnettler | Siemens Energy 23 October 2020 Frei verwendbar © Siemens Energy, 2020 Panelist Eiji Ohira Director General, Fuel Cells and Hydrogen Technology Group, New Energy and Industrial Technology Development Organization of Japan