HIL Issue 06

CAN WE REALLY PRODUCE

The fourth state of matter can unlock a multitude of new

HYDROGEN MARKET

With the hydrogen economy never breaking the glass ceiling despite being around for decades, has the time of massmarket appeal finally arrived?

Technical and cost issues have held the hydrogen economy back from booming across the world. However, as the need for an energy transition has never been stronger, with the climate crisis, the war in Ukraine and cost-of-living crisis, experts predict that the hydrogen economy could grow into a $1 trillion per year market.

Predictions from Goldman Sachs coupled with the EU hatching extremely ambitious plans to install 40GW of electrolysers within Europe and an extra 40 outside of Europe by 2030 have set the green hydrogen wheels of optimism in motion.

Hydrogen fuel cells to be winners in hydrogen boom

Citigroup has also conducted a series of analysis and concluded that the biggest boom in the hydrogen economy will come through hydrogen fuel cells. According to the analysts, the global fuel cell industry should be focused on reaching levels that batteries can’t.

Speaking in an earlier statement, a spokesperson at Citigroup said: “Fuel cells enable both decarbonisation and energy resilience, and we see them as crucial in harder-to-abate sectors like commercial vehicles and marine.”

Hydrogen Industry Leaders frequently debates the balance of public and private investment for the hydrogen economy. Analysts have concluded that funding from the public sector, namely the recent inflation reduction act, has created

the perfect environment to build this subsection of the hydrogen economy.

Funding gaps still remain globally, but shrinking regionally

This has encouraged markets dramatically as there were original concerns around previous false starts in the sector.

According to Citi’s base case, they see the fuel cell market hitting 50GW and $40 billion by 2030 with further acceleration to 500GW/$180 billion by 2040.

With all the newly found optimism surrounding hydrogen as a viable alternative energy source, some may ask what is holding the hydrogen boom back?

This is something that many analysts have battled with over the last decade or so, but there are varying expectations surrounding the off-takers and financing models in the hydrogen economy. While the markets have been stimulated, there needs to be further revenue streams to really kick off and push on with the energy transition.

As evidenced in this year’s market performances, there is still a lot of key players in the hydrogen economy, such as the US, UK and EU.

Hydrogen and fuel-cell stocks have seen dips, losing about 70% YTD compared to -25.1% by the S&P 500. Even the biggest leaders in the sectors have taken a hit. PLUG stock has returned -31.3% YTD.

The often cliched ‘chicken and egg’ dilemma is currently gripping the hydrogen economy, but big hitters such as Plug Power are attempting to shake off the shackles of this debate.

COULD HYDROGEN PRODUCTION GROW INTO A $1 TRILLION PER YEAR MARKET?

Despite spiralling operating costs and widening losses, they are determined to push on in hydrogen projects, most recently signing off an agreement with Amazon to decarbonise operations.

Investing in hydrogen is a long game, and Plug Power has gone all-in on green, and is confident its return on investment will be significant enough to cover the losses they are currently experiencing.

This should incentivise other large company and SMEs to keep cracking on hydrogen projects, investing in R&D and bidding for hydrogen contracts all over the world.

For Q2 2022, PLUG’s operating expenses increased 132% year-over-year to $114.44 million; operating loss widened 63.9% Y/Y to $146.91 million while net loss and net loss per share worsened 73.9% and 66.7% year-over-year, respectively. For the full year, PLUG has a consensus loss per share estimate of $0.94, good for 14.8% year-overyear increase.

Meanwhile, FuelCell saw Its Q3 2022 loss for the period ended July loss from operations expand 164.5% year-over-year to $28 million while adjusted EBITDA loss widened 301.5% year-over-year to $20.77 million. The company’s consensus revenue estimate of $27.87 million for the fiscal 2023 first quarter indicates a 12.4% Y/Y decline.

What is holding the hydrogen economy back?

Further issues holding the hydrogen boom back is undoubtedly the fact that there is no current merchant market for hydrogen. To ensure hydrogen projects can become financeable, they must have a bankable offtake scheme.

As there are likely to be several models that define how the hydrogen economy plays out, a lot of investors interested in the hydrogen economy will be on the sidelines observing how the first rounds play out.

HYDROGEN INJECTION

HYDROGEN TO BE INJECTED INTO UK STATION FOR THE FIRST TIME

British Gas owner Centrica has announced hydrogen will be injected into an emergency gas-fired power station for the first time.

The pilot, backed by Centrica, has invested in an industry joint venture and will trial the use of hydrogen at an existing “peaking plant” at its Brigg station in Lincolnshire, the Guardian recently revealed.

Traditionally, peak power stations only run when there is high electricity demand. This pilot is the perfect opportunity to answer the questions surrounding grid capabilities and hydrogen capabilities during times when there is a surge in demand.

Additionally, exploring how the hydrogen economy can be used in areas such as Lincolnshire, where investment opportunities aren’t as large as other industrial clusters around the UK, will be good in changing the mindset around net zero in those types of places.

If the hydrogen economy can provide local jobs, and boost the economy of the region, then NIMBY’s mindset is sure to change, which can only be a positive for the hydrogen sector and wider net zero agenda.

The 49MW gas-fried station in Brigg is specifically designed to meet demand during peak times or when generation from renewables is low. It is estimated to operate for less than three hours per day.

This pilot is part of a wider £8m programme from the Net Zero Technology Centre which has delegated funding for 20 projects in total.

Centrica has also increased its stake in HiiROC, the start-up behind the project, from 2% to 5%, a small investment for the £4bn energy giant.

In its early stages, just 3% of the gas mix is expected to be hydrogen, rising incrementally to 20%. This is to ensure all safety standards are met and to find the sweet spot of hydrogen blend for the site. This can offer the benchmark for further projects to build on.

As the Guardian reported, Greg McKenna, managing director of Centrica Business Solutions, said: “Gas still plays a huge role in maintaining a secure, stable supply of power in the UK, with around 40 per cent of our power coming from natural gas. So, it’s vital that we find ways to reduce the carbon intensity of gas plants like that at Brigg.”

We’re delighted to get the grant funding from the NZTC in order to explore the role of hydrogen in providing the low carbon backup power we’ll need to maintain the security of supply as more renewable energy comes on stream.

MICROGRIDS

Listen To The Full Podcast

we don’t require as much maintenance as perhaps a product that does run on oil bearings. So, actually our lifecycle costs end up paying themselves off much sooner. I think from a cost savings perspective, I think it really helps our customers.

It’s why we sell into a number of different industries. And particularly it’s really good when, as I said, they create their own gas. For example, you know, talking about microgrids and some of the success stories, I was just reading an article this week.

There’s a company in Australia that we’ve sold some microturbines to, and what they

MICROGRIDS AND THE EVOLUTION OF OFF-GRID TECHNOLOGY FOR HYDROGEN PROJECTS

PLASMA ELECTROLYSIS

HYDROGEN REALLY BE MADE FROM PLASMA?

When discussing the fourth state of matter, it is difficult not to think of almost every sci-fi movie since the late 1980s. However, recent research by N Saksono et al. found that plasma electrolysis has great potential in industrial hydrogen production.

The core findings of the ‘Hydrogen production by plasma electrolysis reactor of KOH-ethanol solution’ report were that “Plasma electrolysis produces more hydrogen with less energy consumption than hydrocarbon or Faraday electrolysis.”

This paper investigated the hydrogen production by plasma electrolysis of KOHethanol solution at 80 °C and 1 atm. The effects of voltage, KOH solution, ethanol addition, and cathode deep on plasma electrolysis performance were studied.

Looking at more detail surrounding the methodology, the hydrogen production was analysed using bubble flow meter and hydrogen analyser. The electrical energy consumption was measured by a digital multimeter. The effectiveness of plasma electrolysis in terms of hydrogen production was evaluated by comparing it with Faraday Electrolysis.

Plasma has unique advantages for hydrogen production

The results showed that hydrogen produced by plasma electrolysis is 149 times higher than the hydrogen produced by Faraday electrolysis. The optimum hydrogen production was 50.71 mmol/min, obtained at 700 V with 0.03 M KOH, 10% vol ethanol and 6.6 cm cathode deep, with energy consumption of 1.49 kJ/mmol.

The result demonstrates a promising path for hydrogen production by utilising a plasma electrolysis reactor. However, implementing this technology into the hydrogen economy is not as straightforward as it first seems.

Breaking down some of the findings in further detail in the report, the research describes the formation of plasma in the electrolyte solution during plasma electrolysis.

The report explained: “It also observes the correlations of KOH concentration, ethanol additive percentage, voltage, cathode depth, and electrical energy consumption in the hydrogen production. It compares the effectiveness of plasma electrolysis with Faraday Electrolysis.”

The result of this research can be seen in the table opposite. When highlighting the effects of potassium hydroxide, the report found: “This result was obtained using 10% ethanol as an additive at 500 V and with cathode deep 6.6 cm. This research shows hydrogen generation at 0.05 M is higher than 0.03 M and 0.1 M KOH; it was 37.80mmol/min, 15.97 mmol/min, and 35.98 mmol/min, respectively. Energy consumption showed a similar pattern.”

Continuing, it stated: “The energy consumption at 0.05 M is lower than the energy consumption at 0.03 M and 0.1 M KOH; it was 1.25 kJ/mmol, 3.68 kJ/mmol, and 2.83 kJ/mmol, respectively.”

From this, the authors concluded that normal electrolysis is characterised by high electrical energy consumption and producing less hydrogen, while

effects does ethanol consumption have on hydrogen production?

is generated in the gas

the

and the surface of the solution.

ethanol is easier to vaporise than water,

discharged

is easier to form.

to be bigger in

in aqueous

Moving on, the authors then experimented with the effects of cathode depth on hydrogen production. Cathode Depth is the distance between the tip of the cathode and the surface of the electrolyte solution.

The deeper the cathode was, the more hydrogen was produced. The discharge plasma was generated in the gas envelope between the electrode and the surface of the solution. At a depth of 6.6 cm, more electrolytes were in contact with the cathode, allowing more electrons to move freely to the cathode.

Electron excitation intensified plasma generation, thus increasing hydrogen production. The increase of cathode deep causes an increase in energy consumption because the movement of electrons in the liquid zone is easier than in the gas zone, and the electrical current increases.

However, it was found that the presence of hydrostatic pressure hindered the stability of the gas, allowing electric current to flow easily to the cathode. A smaller amount of energy was used for gas formation due to the position of the cathode that was close to the solution surface. Consequently, the plasma was formed and stabilised quickly due to the lower influence of hydrostatic pressure. The plasma stability can resist electron movement effectively.

The electrons are responsible for creating the active species in plasma that breaks down the water to produce hydrogen.

It was discovered that plasma in the electrolysis solution “will increase the production of hydrogen by forming compounds of hydrogen radicals and hydroxide radicals. High voltage excites the electron to attack OH- ion and H+, forming OH* and H*.”

Saltend Chemicals Park , Hull

The more electrons that attacked the vapour solution, the greater the plasma volume and the hydrogen produced. As the voltage increased, the amount of energy consumption decreased.

Experiments have been conducted in order to produce hydrogen by plasma electrolysis and to study the influence of the variables during the hydrogen production by plasma electrolysis, such as KOH concentration, ethanol additive, depth of the cathode, and voltage.

The report concluded by explaining: “The result shows that KOH concentration and percentage of ethanol additive influence the level of hydrogen production and electricity consumption during the plasma electrolysis. An increase in the voltage causes a decrease the electricity consumption and an increase in hydrogen production.

“The deeper the cathode submerged in an electrolyte, the more hydrogen produced, which is characterised by plasma glow, and the greater the amount of electrical energy used.”

In this study, the optimum level of hydrogen production is 50.71 mmol/min, and the optimum energy consumption is 1.49 kJ/mmol. Obtained by plasma electrolysis at 700 Volt, with 0.03 M KOH, 10% ethanol, and a cathode 6.6 cm deep, this level of hydrogen production is 149 times higher than the level of hydrogen produced by normal electrolysis.

PURIFICATION TECHNOLOGY

A new project developed by Teesside University alongside a leading industry partner is set to make a major impact in the implementation of hydrogen as a net zero fuel; what are the finer details of the project?

Scientists at the university are working with leading hydrogen consultancy EnAcumen to develop a first-of-its-kind hydrogen purification process.

The project is developing a unique technology which aims to overcome the difficulties in extracting hydrogen from ammonia.

Ammonia, a compound of nitrogen and hydrogen, has long been acknowledged as integral to the successful implementation of hydrogen as a commonly used fuel.

Its zero-carbon and high hydrogen content is recognised as an effective hydrogen carrier, enabling hydrogen to be safely and efficiently stored and transported to the point of use.

Ammonia has well-established facitlities

The well-established facilities for ammonia production and infrastructures worldwide for storage and transmission provide ammonia with indispensable advantages, underpinning its role in enabling a clean energy future.

At the intended ‘point of use’, ammonia can be decomposed into hydrogen and nitrogen with minimal energy and free of carbon emissions.

However, the current decomposition technology leaves residual ammonia and nitrogen by-products which are considered as impurities and can poison

the intricate components of hydrogen fuel cells, debilitating their performance and rendering them ineffective at converting the chemical energy of hydrogen to electricity.

As a result, scientists around the world are striving to develop a conjoint ammonia and nitrogen removal process that provides clean and pure hydrogen for any fuel cell. The stringent process requirements are nearly impossible to achieve via standalone cleaning methods.

Universities are uniquely positioned to trial new innovations

The Teesside University and EnAcumen team have embarked on a difficult pathway to develop and test a novel tandem separation process for ammonia and nitrogen.

The project, named ‘Joseph’ after the renowned 18th century British chemists Joseph Black and Joseph Priestley, who worked to separate ammonia gas, combines membrane and sorption mechanisms for effectively separating ammonia and nitrogen, resulting in pure hydrogen for the use in fuel cells.

The Teesside University technical team working on ‘Joseph’ consists of leading chemical engineering experts in gas separations and process safety, Dr Faizan Ahmad, Dr Humbul Suleman, Dr Paul Russell and Dr Danial Qadir.

The project forms part of the Tees Valley Hydrogen Innovation Project (TVHIP), a Teesside University-led initiative which is supporting the growth of the region’s hydrogen economy.

PROJECT ‘JOSEPH’ TO DELIVER GROUND-BREAKING HYDROGEN PURIFICATION TECHNOLOGY

What do the technical leads have to say?

Joseph’s technical lead Dr Faizan Ahmad said: “This is an exciting time for the hydrogen economy.

Effectively removing ammonia and nitrogen after its decomposition has remained the biggest bottleneck.

“We are positive that having such a growing choice of potential separation technologies like Joseph will inspire further development in hydrogen fuelled energy generation and transport options.”

Dr Humbul Suleman, who is investigating different sorption options for the technology, added: “This research under the TVHIP will provide sister solutions in the field of carbon capture, pollution abatement, and greenhouse gas removal.”

EnAcumen has entered a strategic partnership with TVHIP to collaborate on research, co-innovation, and talent development and to encourage the exchange of ideas for developing off-theshelf solutions for hydrogen purification.

CEO Kevin Fothergill said: “At EnAcumen, our mission is to help our customers solve the most demanding technical and scientific problems of the future, and we are constantly evaluating new technologies that can help achieve that.

“We are excited to be a part of this important collaboration with TVHIP as we work together to explore and evaluate diverse processing technologies for hydrogen production and purification.”

HYDROGEN PROJECTS FROM AROUND THE WORLD

Australia Project

T LINE Hydrogen has signed a MoU with Blue Cap Mining to develop the energy requirements for Blue Cap’s Lord Byron Gold Mine in Western Australia.

The new mining project will be the first carbon-neutral mine in Western Australia, and it is one of only two active mines in Australia to reach the milestone.

It is said that the project will begin development in early 2023 and will see LINE Hydrogen design, develop, and operate renewable technologies at the site to replace fossil fuel-based power generation. Renewable technology from a green hydrogen production plant will provide green power to the operation during nonrenewable energy generation periods.

In addition to this, the plant will provide green hydrogen as a diesel fuel replacement on the site including mining equipment, generators, and vehicles.

Switching to green energy is essential for the country as the mining sector currently accounts for roughly 10 per cent of Australia’s total energy use

Poland Project

Solaris has been awarded an order by ZTM Lublin to supply the first hydrogen bus to Lublin, Poland.

The Urbino 12 hydrogen bus is a vehicle featuring solutions based on hydrogen technology and will be able to carry 85 passengers, 29 of whom can be seated.

Solaris has said that the bus will boost a variety of solutions to enhance the comfort of passengers and the driver’s work. It will include a passenger counting system, a video surveillance system, air conditioning, a ticket vending machine with a cashless payment capability, an air disinfection system for the vehicle interior and USB charging ports for passengers.

In addition to this, the bus will help to decarbonise Poland’s transport sector through the use of hydrogen. The company explained that hydrogen is a clean energy source and that hydrogen-powered buses stand out due to their short refuelling time.

German Project

A German company, the Chemours Company, plans to enter a joint venture with BMT FUMATECH Mobility GmbH, an established player in multiple hydrogen markets.

Rooted in both companies’ understanding of the role that heavy-duty fuel cell membranes can play in driving the global hydrogen economy, THE Mobility F.C. Membranes Company GmbH will see Chemours and BWT integrate their resources and expertise.

Denise Dignam, President of Advanced Performance Materials at Chemours, said: “The estimated size of the heavy-duty fuel cell membrane market is expected to grow to about $900 million by 2030, which speaks volumes to how critical this technology is and will continue to be, as the planet pursues robust goals for decarbonisation,”

Continuing, she said: “This is an ideal partnership, possessing everything required to go from monomer to membrane with the agility, efficiency, and production volume necessary to bring affordable hydrogen energy solutions to mass markets.”

THE Mobility F.C. Membranes Company will supply to the EU, USA, Japan, China, and Korea at the offset. It will enable downstream customers to accelerate broad conversion to green, hydrogenpowered heavy-duty transportation.

South Africa Project

South Africa will see land leased by HDF Energy representing six different locations where 1500MW of photovoltaic plants will be deployed with more than 3500 MWh of hydrogen-based long-term storage.

HDF Energy has explained that it will serve more than 1.4 million inhabitants all day and all night, all year round. These projects represent an investment of USD 3 billion. Eskom issued a request for proposal in April 2022, which was followed by a meticulous selection process. The selected bidders will lease a total of 6184 hectares of land for a period of between 25 and 30 years each. The HDF’s Renewstable architecture will provide stable and dispatchable power, thus adding stability to the grid.

Nicolas Lecomte, HDF’s Director for Southern Africa, said: “This is a very exciting result, and the team is more than ready to hit the ground running. “While addressing immediate challenges related to the lack of baseload and dispatchable electricity, HDF Energy projects in South Africa will kick start the large-scale industrial deployment of the hydrogen economy in the country and create jobs in Mpumalanga for the workers of the coal industry in transition.”

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