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Hydrogen Industry Leaders eMagazine January 2024

A MESSAGE FROM INDUSTRY: WHAT TO EXPECT IN 2024

ISSUE 20

COMING UP 2

ISSUE 20

Facilitating Mobility and Amplifying Hydrogen Technology

Addleshaw Goddard: Behind the Optimism Lies Considerable Challenges

A Message From Industry: What to Expect in 2024

Eastern Europe Strikes Gold with Natural Hydrogen Discovery

Podcast Write Up: Hydrogen in Decarbonising Hard-toAbate Sectors

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FOREWORD

“A Message From Industry: What to Expect in 2024.”

How Natural Gas Now Will Facilitate Hydrogen Later

As we enter a new year, what can the hydrogen sector expect to see over the next 12 months? This issue breaks down the movements in legislation, policy announcements and the latest discoveries across Europe. Additionally, Hydrogen Industry Leaders brings you the general objectives of the latest insights into the renewables market, how natural gas now will facilitate hydrogen later, and the western outlook for hydrogen. Through our international projects section, we explore the core innovations across the globe, including how Australia is boosting hydrogen research through a new refuelling station, the acceleration of green hydrogen infrastructure across Africa, the latest developments from the EU, and efficiency breakthroughs that could greatly harness solar energy. Hydrogen Industry Leaders looks at current hydrogen projects, innovations and policies shaping the hydrogen economy that will undoubtedly lead the way for the future of low-carbon energy.

Floyd March Editor f.march@peloton-events.co.uk Hannah Wintle Multi Media Journalist

International Projects: How is Australia Boosting Hydrogen Research Through a New Refuelling Station?

Chelsea Bailey Multi Media Journalist Olivia Staveley Graphic Designer 3

ISSUE 20

Haskel

Facilitating Mobility and Amplifying Hydrogen Technology

“We are very passionate about training and educating, and this is a big part of our business model.” Jake Martin, Hydrogen Business Development Manager - Emeai at Haskel

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Hydrogen will be a key piece of the jigsaw puzzle for achieving zero-emission fuel, but without specialised infrastructure, hydrogen will not be a viable alternative to traditional fuels. Haskel is facilitating hydrogen mobility with its GENO hydrogen compression systems. To help to create the specialised infrastructure needed, Haskel is designing and manufacturing gas-handling solutions that can efficiently and reliably compress, store, and distribute hydrogen across the globe. Its range of standardised GENO compression filling systems aims to speed up the transition to hydrogen for many industrial processes.

HASKEL IS FOCUSING GREATLY ON HYDROGEN COMPRESSION TO SUPPORT INDUSTRY Hydrogen Industry Leaders spoke to Jake Martin, Hydrogen Business Development Manager - EMEAI at Haskel about its GENO hydrogen compression systems. Jake highlighted the interesting journey to find this refuelling solution: “For the first few years, we focused heavily on hydrogen refuelling stations and solutions. These are big compression, storage, and dispensing solutions and whilst that is actively still a large market for us, we are now focusing heavily on the compression side.” Focusing on the compression side means that Haskel is working to support industry where there is a requirement to compress gas from anywhere from 20 bar up to 500 bar. This is part of the new envisaged GENO hydrogen compression systems range. Key features of Haskel’s GENO hydrogen compression systems include: • Standard containerised solutions of 20 ft or 40 ft • Integrated compressed air system for pneumatic valve actuation • Compression capability of over 2000 kgs per day • Suitable for filling Tube Trailers with pressures of up to 1,050 bar

BY CHELSEA BAILEY

between 20 and 500 bar to support various gas inlet sources, such as onsite electrolyser, Tube Trailers, or manifold cylinder pack • Installation, maintenance and service support packages provide peace of mind across the life of the GENO system.

TECHNOLOGY NEEDS TO EVOLVE TO MEET CURRENT MARKET DEMAND If hydrogen mobility is to play a major role in the world’s energy transition and help combat climate change, boosting refuelling infrastructure will be key to its adoption. This is reflected by The Hydrogen Council which has predicted that there will be over 10,000 hydrogen refuelling stations by 2030. Jake explained that to boost refuelling infrastructure and realise the hydrogen economy, the industry needs to begin exploring the possibilities of hydrogen now rather than later: “Hydrogen is a difficult molecule to work with and hydrogen refuelling stations are complex systems. We have to take into account where we are going to get quick wins now and where funding will be supported for investment in hydrogen compression systems.”

HASKEL’S TECHNOLOGY COULD HELP BOOST RELIABILITY Whilst there is still a huge demand for hydrogen refuelling stations, Haskel is now making another step into the market by producing hydrogen and delivering it in Tube Trailers. The GENO compression system utilises Haskel’s hydraulically operated H-Drive hydrogen compressor to enable output pressures of up to 1050 bar. Greater energy density storage supports high-pressure hydrogen storage for Tube Trailer applications. In addition to this, the way the H-Drive is designed means it can deliver great efficiency, reliability and robustness. Haskel’s H-Drive compressor uses a piston instead of a diaphragm to reduce the volume of hydrogen. This is because diaphragm compressors have complicated start/stop procedures and higher CAPEX requirements.

• Flexible inlet supply pressure ranging 5

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Gaseous hydrogen is compressed and transferred into long tube-like cylinders that are stacked onto a trailer to be hauled by trucks for easy transportation. Steel or composite cylinders are often bundled together into packs known as manifold cylinder packs (MCPs) and delivered to the site on the back of a truck or hydrogen Tube Trailer.

Once transported between sites, hydrogen is then taken from the Tube Trailer and used as an energy source at a specific location, either for hydrogen-fuelled vehicles or to power wider manufacturing processes.

THE HYDROGEN INDUSTRY MUST FOCUS ON EDUCATION

Jake explained that one lesson that has been learned is the importance of education. He said that focusing on education and consumer awareness will be imperative to seeing the widespread adoption of hydrogen in mobility.

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To create its hydrogen compression systems, Jake expressed that there have been plenty of lessons learned along the way: “We’ve been through processes over the last ten years of installing these systems and working out where the difficulties are, what needs to be done, and how we can implement that on our systems.”

On this, Jake stated it is imperative that the industry must: “Educate the client to help them to make the right decision.” Continuing, he explained that Haskel’s focus is on leaving a lasting legacy: “The biggest thing for us is that we understand what our end-users are trying to figure out. Understanding how renewable energy sources like hydrogen work is the key to creating the sustainable communities of the future. Getting to know these renewable energy sources better through this increasing awareness will help to drive forward technological developments. Haskel’s modular GENO hydrogen compression systems aim to make hydrogen mobility easier and enable the storage and transport of hydrogen in Tube Trailers. It could greatly support the transport sector to become one step closer to its net zero targets.

ISSUE 20

BEHIND THE OPTIMISM LIES CONSIDERABLE CHALLENGES ADDLESHAW GODDARD At the recent Hydrogen Industry Leaders Conference, Addleshaw Goddard delivered a presentation establishing the outlook for the future of hydrogen and the ongoing projects to help attain this vision.

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Beginning the address, Suzanne Moir Partner at Addleshaw Goddard explained that they are: “Lucky enough to be involved in delivering a number of really exciting projects in the hydrogen sector, including the Aberdeen Hydrogen Hub and the joint venture between BP and Aberdeen, City council and the H100 Project.” The vision of the Aberdeen Hydrogen Hub includes a joint venture between bp and Aberdeen City Council that aims to deliver a scalable, green hydrogen production, storage and distribution facility in the city powered by renewable energy.

INCREASED PROJECT ANNOUNCEMENTS ARE SLOWLY BUILDING CONFIDENCE The hub plans to be developed in three phases, scaling with growing demands for hydrogen. The first phase involves building a hydrogen refueling facility for buses and trucks, powered by a solar farm. It aims to produce over 800 kilograms of green hydrogen per day from 2024 – enough to fuel 25 buses and a similar number of other fleet vehicles. Phase two could see production scaled up to supply over three tonnes per day of green hydrogen for road, rail, freight and marine, by 2030. Phase three could scale up further to supply hydrogen for heat in buildings and potentially export. Expansion would be enabled by the expected increased availability of local renewable power sources, including developments that emerge from the ScotWind offshore wind initiative. On this, Suzanne enlightened attendees that: “We are seeing advanced indicators on how to structure the deal with bp and to develop new hydrogen projects targeting a portfolio in the UK of 500 MW.” Additionally, gas distribution company SGN is working closely with Fife Council to bring H100 Fife to Levenmouth - the world’s first 100% hydrogen-to-homes heating network. The project is the first of its kind to directly supply clean power to produce hydrogen gas

BY FLOYD MARCH

for domestic heating as a green alternative to natural gas. SGN is offering renewable hydrogen to homes, which can be used in the same way as natural gas, with the benefit of being a zero-carbon fuel for heating and cooking. In the first phase, the network will heat around 300 local homes using clean gas produced by a dedicated electrolysis plant, powered by a nearby offshore wind turbine. Eligible households, including local Fife Council tenants, are being invited to participate in H100 Fife. Householders in the network area can choose to participate by opting for a hydrogen supply. Cllr Colin Davidson, Convener - Levenmouth Area Committee, said: “This is an exciting opportunity for Levenmouth. We’re part of the world’s first trial of green hydrogen to homes for heating, hot water and cooking. This puts Fife at the forefront of tackling climate change.” Addleshaw Goddard are positioned across the value chain at different stages of development, which was evidenced with their involvement in the James Hutton Institute demonstration project which combines onsite generation of renewable energy, hydrogen production, storage and battery technology.

WHOLE SYSTEMS APPROACH CAN INCREASE SCALABILITY Applying a whole systems approach to this type of project aligns with the aim: “To develop a scalable and repeatable model for farmers and other rural communities. Even on a small scale project, you can see that whole system approach being applied.” Addleshaw Goddard are also taking experience and learnings from international projects and attempting to apply them into Scottish projects, such as the development of green hydrogen in Oman. “We’re [Addleshaw Goddard] also looking at property consenting and regulatory requirements for subterranean storage of hydrogen across Scotland and the UK. So we’re looking at the whole value chain in the hydrogen sector. 9

“THE UK AND SCOTLAND DO NOT HAVE A WELL-DEFINED LEGISLATIVE FRAMEWORK FOR HYDROGEN PROJECTS.” 10

“We have a perspective on what it takes to deliver a hydrogen project and some of the issues which need to be addressed if the hydrogen industry is going to achieve its big, heavy, audacious goals, including the 10 GW in the UK by 2030.”

FID CONTINUOUSLY PROVING PROBLEMATIC Despite the optimism surrounding the market in terms of pilots and demonstrations, it is important to note the issues surrounding FID. “As of today, only 4% of potential production has even taken a final investment decision. This is slow progress and it’s largely as a result of key challenges facing the complex hydrogen value chain, the observations and recommendations of the IEA.

“AG really resonate with the experience on the ground, and I think they’re also consistent with the views of almost anyone you might speak to who’s involved at the sharp end of hydrogen projects.” This is important because building an investable hydrogen value chain is going to be required in order to deliver that big clean energy goal. Public funding will only go so far in delivering the confidence required by the private sector, before further investments will need to be supported by the market. AG predicted as much as £11bn will come through this type of private funding.

PEEL BACK THE OPTIMISM AND YOU’LL FIND A MYRIAD OF CHALLENGES This makes it of paramount importance that the sector addresses some of the challenges involved in developing the hydrogen economy. Suzanne made the suggestion that: “Hydrogen projects are just like any other project, and the economic viability of a project hinges on certain key factors. The first of these is demand (the availability of long term offtake agreements) with a credible kind of project, because a good credit risk is essential for the stability and profitability of a project. “Hydrogen is no different from any other sector and committed obligations from end users are required before the project becomes a viable investment proposition. And it has been clear that finding offtake commitments of this type is quite difficult, particularly in a sector such as transport, where technology is still developing and cost is prohibitive compared to more traditional technologies.” Supply chain inflation has been a particular and persistent issue. Expanding a relatively nascent economy such as a hydrogen one in the current global economic climate has been troubling at times. However, funding opportunities through AR2 of the HPBM, the EU and the IRA coming from the US all indicate a willingness to invest in the market.

From an Addleshaw Goddard perspective, it was explained: “This is another major issue with some projects. There’s been increases in supply chain costs of up to 100% this year. Financing costs have already increased dramatically, which is compounding the problem.” Suzanne went on to explain the regulatory issues, including the lack of consistency in the approach to regulate hydrogen projects becoming a barrier to investment. There’s very little hydrogen specific legislation and projects must navigate the different and existing legislative landscape that applies to each different development component and the regulatory and safety legislation generally applicable.

“I ENCOURAGE RESIDENTS TO FIND OUT MORE ABOUT THIS PROJECT AND SEE IF YOUR PROPERTY COULD MAKE THE SWITCH TO GREEN HYDROGEN.” 11

ISSUE 20

How Natural Gas Now

Will Facilitate Hydrogen Later 12

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BY HANNAH WINTLE

With a goal to produce 10 million tonnes of renewable hydrogen and import 10 million tonnes by 2030, various European strategies have been introduced to facilitate the hydrogen economy throughout the continent. The EU Hydrogen Strategy was introduced in 2020, only to be further complemented by 2022’s REPowerEU plan, bolstering the case for renewable hydrogen and accelerating the energy transition. To successfully decarbonise and move towards a cleaner future that is less dependent on fossil fuels, the focus is on green hydrogen. However, with technology advancements still to be made and decarbonisation needing to gain a stronger foothold sooner rather than later, other options must be explored simultaneously. With over four decades of experience within the energy sector, James is optimistic about the role of hydrogen in Western Europe, while remaining realistic about the challenges still to face: “Europe’s hydrogen economy is poised to lead global hydrogen efforts. Ultimately, without hydrogen, there will be no net zero.”

DOMESTIC PRODUCTION MUST BECOME A PRIORITY Russia’s invasion of Ukraine in 2022 soon led to the restriction of energy resources, and a stark realisation for the rest of Europe about the reality of their energy security. Certainly, the focus among Western European nations shifted as leaders faced potential energy shortages. The only long-term solution to the crisis is to fulfil energy needs through domestic production. James explained: “Until last year, we’ve never seen a commodity weaponised in the way Russia did with liquid natural gas and oil. The domestic production of energy has been on the back burner for decades in Europe. “Germany, Europe’s largest economy, was recently labelled the world’s worst-performing developed country. A big shift from previously being known as the world’s producer of ‘everything luxurious.’

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All of this points to the importance of domestic production. Domestic production equates to independence.

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The events of the early 2020s have been formative for the future energy transition of Western Europe, from the invasion of Ukraine to the introduction of landmark hydrogen policies. As we enter 2024, Hydrogen Industry Leaders spoke to James Hill, Chief Executive Officer of MCF Energy, to gain an insight into the outlook for hydrogen’s role in Western Europe as we inch closer to the region’s climate deadlines.

“Additionally, domestic production of energy reduces the EU’s carbon footprint by at least 30%. This is significant and in line with the efforts of the energy transition.”

The need for energy security has proved a catalyst for the rise of renewable energy and accelerated policy decisions surrounding the wider energy transition. Growing a nascent industry such as hydrogen on such a geopolitical backdrop as the Russia-Ukraine war may therefore prove more successful due to the sheer necessity of it, though that growth won’t occur overnight, and a more immediate solution is still needed throughout this ongoing energy crisis. 13

NATURAL GAS WILL BE THE ‘BRIDGE FUEL’ IN THE ENERGY TRANSITION Despite the potential hydrogen is displaying at present to play a more pivotal role in Europe’s energy market, the complexities brought forward by the Russia-Ukraine war have impeded on the regulatory environment, and James expressed that it will take time to reach a consensus. Furthermore, while green hydrogen will take further technological development, investment, and policy backing to be a fully viable alternative to fossil fuels, blue hydrogen is emerging as an intermediary solution. In order to facilitate the blue hydrogen projects being proposed around Western Europe, and in line with domestic production goals following the ongoing energy crisis, Europe requires an appropriate ‘bridge fuel’ – natural gas. “Green hydrogen is much more expensive to produce and therefore maintain, making blue hydrogen a central focus for the time being. The production of blue hydrogen is the ‘next’ step in the transition,” James said. “Renewables need different infrastructure, a new system, and funding. Fortunately, discussions and movement around this have been taking place for some time. “In a nutshell, a steady natural gas supply in Europe is required before we can accelerate the production of hydrogen. Fortunately, domestic natural gas projects, like ours, are underway. Natural gas is the cleanest fossil fuel available to us, so it’s referred to as the ‘bridge fuel’ in the energy transition.” To help navigate this interim period, MCF Energy are delivering large-scale natural gas 14

exploration for Europe’s energy crisis, with the goal of strengthening Europe’s energy security and independence through domestic energy production.

2024 COULD BE A PIVOTAL YEAR FOR WESTERN EUROPE’S HYDROGEN ECONOMY Each year, more policy decisions are being made to support the hydrogen economy. While hydrogen won’t serve as the ultimate solution, it will form part of the future energy mix of Western Europe and help to establish energy security across the region. As we enter 2024, the challenges faced in 2023 could propel the EU forward in its hydrogen agenda. James explained: “By 2050, hydrogen demand across the EU is expected to increase significantly. Next year will likely be the start of this enhanced trajectory, given the EU hopes to have a firm grasp on the regulatory challenges it has faced this year around energy. “The challenge will be in building the infrastructure and supply chain for this revolution. This will require major support from the EU to accomplish.” Despite these challenges, and the circumstances faced over the past two years, Europe is still well positioned to take the lead in the global hydrogen economy. The energy security wake-up-call Western Europe collectively experienced has facilitated an urgent response, and while there is still a place for natural gas as a placeholder solution, the development of the green hydrogen industry is underway, poised to step in as a vital part of the decarbonisation solution.

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The world is changing, and now, in the midst of the energy transition, Europe needs access to the bridge fuel that will help accelerate the transition, which is natural gas.

ISSUE 20

A MESSAGE FROM INDUSTRY: WHAT TO EXPECT IN 2024 As the industry enters 2024, coined as a critical year across the value chain, Hydrogen Industry Leaders reached out to those on the front line of growing the economy across production, storage and distribution for their outlook on 2024. Suppliers to the sector have often felt the sharp end of growing the hydrogen economy. Establishing off-takers and a concrete supply chain is by far the hardest aspect for developments in the field. Despite this, Anders Johansson, Vice President, Heavy-Duty OEM at Westport Fuel Systems, a global supplier of advanced fuel delivery components and systems, said: “Industry and political stakeholders are slowly acknowledging the importance of hydrogen in meeting the UK’s net zero goals. “In addition, hydrogen fuel systems have proved to be especially efficient for larger vehicles, namely those in the commercial transportation sector such as HGVs and buses. 16

POSITIVITY PRACTICALLY BEAMING FROM SOME IN THE SECTOR This positivity is being echoed from a fuel cell perspective, with Greg Harris, Chief Commercial Officer at Intelligent Energy, telling Hydrogen Industry Leaders: “At Intelligent Energy, we doubled our sales of hydrogen fuel cell units in 2023 and customers’ forecasts tell us demand for products will accelerate even further during 2024.” From this it can be assumed that momentum is definitely building in the sector as industry realises batteries alone cannot meet zero emissions or net zero targets. “We expect demand for fuel cells will continue to be greatest where hydrogen subsidies are highest and the fuel is available at a reasonable cost.” From an intellectual property perspective Reddie and Grose have seen significant progress in green hydrogen production, and expect to see this continue into 2024.

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BY FLOYD MARCH

Olivia Buckingham, Technical Assistant at Reddie & Grose explained: “One company leading the way in the development of innovation in green hydrogen production is Siemens Gamesa, who began their pilot project connecting a wind turbine to an electrolyser in 2021.” Continuing Olivia commented: “As with many successful innovators, Siemens Gamesa’s early-stage innovation is underpinned by patent applications, which puts the company in a strong position to reap commercial reward from their technology when it comes to market.”

SOME COMPANIES ACROSS PRODUCTION MORE GUARDED ABOUT 2024 Despite this optimistic messaging coming from all angles of the hydrogen sector, in which there is plenty, there are also some pressure points that need massaging during 2024 and beyond.

“National infrastructure in the UK is still a long way behind where it needs to be, however, we see local production being an important stepping stone to get to a hydrogen future.”

Kelly Cole, General Manager for Electric Power at Finning UK & Ireland voiced: “The primary hurdle lies in creating low-carbon energy solutions that are not only environmentally friendly but also financially sound and technically robust.” When it comes to microgrids and decentralised systems, adopted systems must be scalable and flexible while suppliers must offer comprehensive operational support. It’s also crucial to balance CAPEX and OPEX costs when making this transition. “At Finning UK & Ireland, all our gas generators can handle a 25% hydrogen blend, and we even have a demonstrator running on 100% hydrogen.”

STILL A LONG WAY TO GO FROM A POLICY AND REGULATION PERSPECTIVE Resonating with these sentiments, Christophe Bianchi, Chief Technologist, Office of the CTO at Ansys added: “The energy industry must respond simultaneously to a dual challenge: that of decarbonisation, on which the future of the planet depends, and that of competitiveness, on which the survival of any company depends.” 17

However, the current economic climate is not conducive to taking risks. To cover needs and electrify entire sectors of industry: “We need to improve the efficiency of existing solutions on the one hand, and deploy technologies that are not yet operational on the other.” Ricardo also have measured optimism and cautiousness heading into 2024, with Dr Hamish Nichol, Head of Hydrogen stating: “Ricardo predicts that going into 2024, public and private sector organisations working across the hydrogen value chain will still not be prepared for the Carbon Border Adjustment Mechanism (CBAM).” The EU’s recently introduced carbon pricing system will impose a fee on a range of carbon-intensive goods imported into the EU from sectors with the highest risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. For EU nations the decision to ‘make’ versus ‘buy’ for green hydrogen will be strongly influenced by the CBAM, yet with very different carbon intensity requirements for ‘low-carbon hydrogen’ around the world could this make the EU a less favourable target market over other regions? The first phase of CBAM is in effect until the end of 2025 and requires only monitoring and reporting of the embedded emissions for goods imported into the EU, while the second phase starting in 2026 will require importers to pay for the embedded emissions of their imports. “With the first quarterly reports due for submission by the end of January 2024, businesses cannot afford to delay. With just two years until the financial impact of CABM really hits, does this give extra impetus for investment in these sectors within the EU rather than reliance on imports. Rounding up, Dr Nichol implored: “It would be great to see the EU becoming a world leader in green steel, green fertiliser and green cement, making tangible steps towards our net zero aspirations, and in so boosting the hydrogen market.”

“We expect the market adoption of this type of hydrogen technology to grow in 2024.” With the UK Government seemingly interested in growing both blue and green hydrogen production, Mona Bhagat, Business Development Director – Energy Transition at KBR Consulting International said: “Hydrogen and carbon capture and storage (CCS) technologies will play a critical role in mitigating climate change in 2024 and beyond. “However, for energy companies venturing into hydrogen and CCS, there are several challenges. The primary one being the need for technological refinement to enhance efficiency and safety. Paul Willacy, managing director of waste-tohydrogen firm Compact Syngas Solutions, said: “The hydrogen industry is going to step out of the shadows and into the limelight in 2024 as it becomes an increasingly vital part of the drive to hit net zero. “Hydrogen will become an essential fuel for transport, with fuel cell electric vehicles growing their market share, and hydrogen cementing its place as a viable alternative to fossil fuels for HGVs, trains, ships and even planes” From an Xoserve perspective: “2024, we can only hope, will be the year of action enabling the energy industry to take substantial steps towards achieving net zero emissions and decarbonising heat.”

The Future System Operator is expected to begin operations in June to establish a solid plan for the deployment of hydrogen. In the meantime, the gas industry will be readying itself in preparation for a decision from the Government on the potential regulatory and commercial frameworks needed to support a future hydrogen economy. CEO and Founder of Hydrogen Safe, Andy Lord, commented: “The green energy sector shows absolutely no signs of slowing, yet we fail to equip our workforce with the skills that they need to work confidently and safely with hydrogen. If we are to benefit from the opportunities that the move towards achieving net zero presents, we must all take responsibility for putting the correct infrastructure in place.”

“Patents will be an important tool in driving forward the innovation that is needed to meet climate change and energy security goals, providing a commercial reward in return for investment in the development of new technology.”

ISSUE 20

EASTERN EUROPE STRIKES GOLD WITH NATURAL HYDROGEN DISCOVERY Hydrogen comes in many forms and can be produced from multiple avenues, all adding to the total hydrogen mix ahead of intense climate targets. In recent revelations to the sector, Getech has announced support for natural hydrogen exploration in Eastern Europe. Getech, a world-leading locator of subsurface resources, has commenced a natural hydrogen exploration project in Eastern Europe for a prominent European energy company. This study represents an important step in harnessing natural hydrogen (also called white and geological hydrogen), a potential game-changer in the energy transition. The project is founded on Getech’s extensive subsurface data and geoscience expertise. The approach exploits the distinct magnetic characteristics of ophiolites – igneous rock formations considered prime sources of natural hydrogen. By mapping the extent and geometry of these formations, Getech provides vital data to identify potential hydrogen sources. As part of the project, Getech undertakes 3D inversion modelling to distinguish the magnetic properties of ophiolites from other sources of magnetic anomalies. 20

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BY FLOYD MARCH

PROFICIENCY MEASURES TO LOCATE MORE HYDROGEN AT A FASTER RATE This contract not only strengthens Getech’s relationship with an existing client but also enhances its proficiency in locating natural hydrogen. Integrating unique AI and machine learning tools into its methodologies, Getech is well-positioned to win similar projects in the future. Anticipated as a pivotal energy resource for the future, natural hydrogen offers a sustainable pathway in the energy transition, and Getech is ideally positioned to facilitate this shift. With its vast proprietary geological and geophysical data and over 30 years of expertise in locating subsurface resources, Getech is set to become an important player in the evolving energy transition landscape. Natural hydrogen, producing only water as a byproduct, stands out as a clean energy source. It holds great promise as a carbon-free fuel for vehicles and power generation, as well as in a range of other industrial applications. Richard Bennett, CEO at Getech, commented: “This collaboration with a respected European energy company signifies a vital step into the realm of natural hydrogen exploration. “Our expertise in geoscience and AI analytics, especially in gravity and magnetic data analysis, is critical in pinpointing hydrogenrich formations. This project not only demonstrates Getech’s skillset but also underscores our commitment to advancing the energy transition.”

UNITED NATIONS AND THE IEA ON THE SAME PAGE FOR NEW HYDROGEN AVENUES While this discussion has dominated conversations in the renewable energy and hydrogen sector, there is an abundance of reports exploring this option. Most notably in the Sustainable Hydrogen Production Pathways in Eastern Europe, the Caucasus and Central Asia report conducted by the United Nations Economic Commission for Europe.

“Yet this can be complicated for renewable technologies, since the sun doesn’t always shine, and the wind doesn’t always blow.”

opportunities in the future, especially in connection with renewable hydrogen.

In the report, they implored: “Low-carbon hydrogen deployment is crucial for achieving the Paris Agreement goals and for deep decarbonisation of the hard-to-abate sectors.

ACES IN THEIR PLACES WHEN IT COMES TO DIFFERENT HYDROGEN STRATEGIES

“By the end of 2022, more than 70 countries globally have drafted or already adopted national hydrogen strategies, demonstrating that hydrogen is seen as one of the strategic priorities for the energy sector transition.”

Kyrgyzstan and Tajikistan face similar energy shortage problems and have a significant hydropower share in their energy mix, which provides low-carbon, but intermittent, energy. Reliance on hydropower produces challenges associated with an energy deficit during winter and an energy surplus during summer. This creates the potential for intermittent hydrogen production using surplus electricity from hydropower plants.

The nine countries considered in this specific study were: Armenia, Azerbaijan, Belarus, Republic of Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

SUB GROUPING BY GEOGRAPHIC FEATURES AND POLICY IS ADVISED According to the report authors, the nine countries were best divided into four separate groups which align to geographic features and individual energy policies. Armenia, Belarus and Moldova are united by dependence on energy imports and an orientation towards natural gas. “In all three countries, renewables have so far received limited development, but in Armenia and Belarus, nuclear power plays a significant role. With relatively unambitious greenhouse gas emission reduction targets, there is practically no potential local demand for lowcarbon hydrogen over the next 10 years.” However, Belarus and Moldova’s proximity to the EU market could open additional 22

“Azerbaijan and Turkmenistan are major energy exporters towards the EU and China. Natural gas dominates their energy mix. As the role of the oil and gas sector is great in both countries, they developed significant competencies that could be put to good use in the energy transition to net zero. “Their climate policies do not yet create significant incentives for decarbonisation and low-carbon technologies deployment. Still, the key consumers of gas from Azerbaijan and Turkmenistan - the EU and China - are actively developing the hydrogen economy, which could create additional incentives to embark on the path to decarbonisation.

Hydrogen could potentially replace imported oil products. However, more pressing problems, such as energy security and infrastructure wear-out, currently take priority in the region. Kazakhstan and Uzbekistan are showing impressive momentum in launching the low-carbon energy transition– despite being rich in and exporting their own fossil energy resources. Both countries are drafting national hydrogen strategies with the support of international organisations and are actively deploying renewable energy. According to this study, the potential production of low carbon hydrogen, in all considered countries, is about 3.4-13.2 Mt of hydrogen annually by 2040. All of these considerations alongside the discovery and active implementation of retrieving naturally occurring hydrogen paint

a strong picture of the future of hydrogen in Eastern Europe and its surrounding areas.

AI HAS A CONTINUED ROLE IN GROWING THE HYDROGEN ECONOMY Looking at the technology involved in such implementations, the IEA explored the further benefits of using AI technology in the renewable sector. They said: “One of the most common uses for AI by the energy sector has been to improve predictions of supply and demand. Developing a greater understanding of both when renewable power is available and when it’s needed is crucial for next-generation power systems.” That’s where machine learning can play a role. It can help match variable supply with rising and falling demand – maximising the financial value of renewable energy and allowing it to be integrated more easily into the grid. “To address this, Google and its AI subsidiary DeepMind developed a neural network in 2019 to increase the accuracy of forecasts for its 700 MW renewable fleet. Based on historical data, the network developed a model to predict future output up to 36 hours in advance with much greater accuracy than was previously possible.”

In contrast, the countries of Central Asia, the Caspian region, and Eastern Europe, are still at the initial stage of evaluating hydrogen’s role in more long-term strategies. 23

PODCAST WRITE UP

ISSUE 20

HYDROGEN IN DECARBONISING HARD-TO-ABATE SECTORS In this episode, Hydrogen Industry Leaders sits down with Kelly Cole from Finning UK & Ireland to discuss hydrogen blending, decarbonising the power generation and construction industries, and collaboration.

What is/will be the role of hydrogen in the construction and power generation industry? Hydrogen could play a significant role. Hydrogen can be used as a reliable source of power in construction sites. If you look at the green source of the technology and it can outperform them like solar and wind, hydrogen can be delivered and be far more like a conventional fuel, and if you compare the two conventions, hydrogen is more sustainable than fossil fuels. It has a high energy density, making it more appealing. However, some would argue that hydrogen is not as advanced as some of those sources of power. So, we need to address those problems like storage and delivery of hydrogen. There are also safety concerns about hydrogen, which we need to address headon as hydrogen is highly flammable. The necessary safety precautions need to be put in place and systems to fundamentally account for those physical properties of hydrogen. Now, today there are several options. Use hydrogen, for instance, you can use in a combustion engine, and it can be used with prime or backer power on construction sites. It can also be used for fuel cells. This gives us a clean and efficient method of powering construction equipment, especially if you need low noise, as most construction sites do in urban environments. 24

I think a second point we need to address head-on with alternative fuels such as hydrogen is economics versus sustainability. A big challenge with hydrogen, especially green hydrogen is the cost, and the cost required to harness hydrogen is approximately 3 to 5 times more than diesel. So, the cost of hydropower needs to be reduced significantly. To do that, we need to increase the manufacturing capability of hydrogen and the technologies used to produce it. What is the role of collaboration (and global collaboration) when it comes to meeting our targets? Collaboration is super important, and I think it’s important at a global level as well. The energy crisis is a global challenge, not just the UK, it’s global. So, we’ve got to work to learn faster and develop solutions, which work technically commercially at the government level. The Global Initiative launched at the COP21 Paris Climate Convention to support innovation investment, to make greener energy affordable, attractive, and accessible to all, is super important. You’ve seen industries come together as well to emphasise the need for international collaboration. If industries can come together and push well and learn together, that’s super important. We see the collaboration between the UK, India, and China working together really well. Even businesses are working

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together, so we’ve got fantastic collaboration on some projects with Caterpillar, Microsoft, and the US Department for Energy. From your point of view, what percentage of hydrogen blending would be best to meet net zero goals? From our perspective we would want to go to 100%. Now I can understand why some areas you’re going to be 20%. To me, 20% is just a step. We would want to go to 100%. So, we’ve done some modelling, and you can see that 20% of a small reduction in NOx, you have a small reduction in carbon, you go to 100%. I can understand that in some areas like the gas network going to people’s houses, they may not want to change 100% there but for our generators, 100% has got to be the answer. It is a positive step. To meet our GHG emission targets by 2050, it requires significant action and significant change to get there. It will help us play a massive role and compensation for the UK. How do you see the future of hydrogen, what’s in store for the UK and the hydrogen sector? The future can be really exciting. First of all, to me, it’s all about supporting our customers with energy needs. Now we have customers who work in hard-to-electrify locations and that may be because it is a quarry or they’re building a tunnel so that they move locations. They may require a really fast response. They may require that the bank goes up and down huge, huge loads, or they may need really strong resilience like a data centre customer. Our role will be to optimise the energy solution and optimise it to their criteria. Those criteria will probably be met by customers. It may be cost, it may be resilience, it may be emissions, and that will need to use a blend of technology. It won’t be one solution, it will be fuel cell battery, solar, wind, or tethered machines. We need that whole mix of technology. It is about putting all the energy solutions together and optimising them for our customers.

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INTERNATIONAL PROJECTS

How is Australia Boosting Hydrogen Research Through a New Refuelling Station? A new green hydrogen station has been launched by CSIRO and Victorian Hydrogen Hub. How is this aiming to amplify hydrogen research efforts? The $2.5 million facility has been purpose-built to carry out hydrogen research, test hydrogen technology, and train the next generation on the use of hydrogen stations. This has been unveiled by Australia’s national science agency, Commonwealth Scientific and Industrial Research Organisation (CSIRO), and Swinburne University of Technology’s Victorian Hydrogen Hub (VH2), is located at CSIRO’s Clayton site in Victoria. It has been reported that the refuelling station could produce as much as 20 kilograms of green hydrogen daily through renewable power and electrolysis. As for its storage capabilities, it has a capacity of 80 kilograms. This is enough fuel for more than 10 hydrogen cars. The aim of the project is to support both national and world decarbonisation via leading research and the development of an Australian hydrogen fuel industry that is commercially viable, including domestic and export chains.

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At present, there are 12 hydrogen stations either in operation or being built in Australia, with the Toyota Mirai and the Hyundai Nexo being the only hydrogen passenger car models available for purchase in the country.

THESE EFFICIENCY BREAKTHROUGHS COULD GREATLY HARNESS SOLAR ENERGY Scientists from Ludwig Maximilian University (LMU) have recently unveiled a significant advancement in their efforts to enhance the efficiency of harnessing solar energy. Professor Emiliano Cortés, a prominent figure in experimental physics and energy conversion at LMU, along with Dr. Matías Herrán, a postdoctoral researcher at the Fritz Haber Institute of the Max Planck Society, explored the realm of nanotechnology to create cutting-edge nanostructures with the potential to transform the utilization of solar energy. In a statement issued, Cortés emphasized the core challenges they face in capturing sunlight: “Sunlight arrives on Earth ‘diluted,’ so the energy per area is comparatively low.” Traditional solar panels tackle this by covering extensive surfaces. Nevertheless, Cortés and his team are adopting a distinct strategy. In a recent article featured in the journal Nature Catalysis, they unveiled a two-dimensional supercrystal that not only sets new records but also presents a promising resolution to the challenge of energy dilution. The crux of the team’s innovation rests in plasmonic nanostructures, functioning as tiny magnets that focus and concentrate solar energy. To capture and utilize this concentrated energy, they collaborated with researchers from the University of Hamburg. “We first create particles in the range of 100200 nanometers from a plasmonic metal— which in our case is gold,” explained Herrán.

TOYOTA HYDROGEN FACTORY SENDS STRONG MESSAGE TO INDUSTRY: THE TIME IS NOW After the news that Toyota Motor Europe is set to establish local business operations for hydrogen, H2 Leaders gives a snapshot into the coordinated approach for the commercialisation of hydrogen technology. The steps to commercialisation of hydrogen is difficult to break down but through TMEs new approach, focussing on everything from development, production, sales, and aftersales in one central hub there are hopes for a successful project. This hydrogen factory will be used to meet current and future demands for fuel cell systems, while also supporting potential commercial partnerships. All of these action plans are in line with the wider strategies of carbon neutrality by 2040. By 2030, Toyota anticipates that Europe will emerge as one of the globe’s primary markets for hydrogen fuel cells, experiencing a consistent surge in various applications related to mobility and power generation. The impetus for this growth is driven by increasing investments and regulatory actions, such as the European Commission’s Green Deal committing €45 billion by 2027 and the EU’s transport infrastructure fund allotting 284 million euros (about one-third of its budget) for the establishment of hydrogen refuelling stations. The recent endorsement of the Renewable Energy Directive (REDIII) mandates that 42% of industrial hydrogen usage in Europe must originate from sustainable sources by 2030. Concurrently, Europe is strategically establishing hydrogen filling stations at intervals of at least 200 kilometres along the Trans-European Transport Network (TEN-T) corridors, solidifying its pivotal role in the realm of hydrogen technology.

HYDROGEN, LIKE SAND, GETS EVERYWHERE. ENGINEERING AND MATERIAL CRITICAL ASSESSMENT TO PROTECT YOUR ASSETS FROM HYDROGEN DEGRADATION • Global Expertise across a Network of 9000+ staff in 280+ Locations Worldwide • Modelling and Simulation of Critical Assets • Static and Dynamic Fracture Mechanics in Hydrogen Environments • SSRT Testing • Non-Metallics Permeation Assessment • Europe Leading Testing Capacity Mark Eldridge Director of Hydrogen

+44 (0)7827 926757 mark.eldridge@element.com

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FROM PROSPECT TO REALITY:

EXPLORING THE

BRAMBLE ENERGY UNVEIL $100/KW FUEL CELL STACK

CHANGING IMPACT HYDROGEN HAS ON THE GRID

WHICH COST DRIVERS SHOULD THE SECTOR USE TO CALCULATE LCOH?

COULD THE UK LEAD THE WAY FOR

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HYDROGEN PRODUCTION? P / 16

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This one-day conference will bring together key decision-makers from the public sector, entrusted to contribute and deliver to the overall net zero goals set by the UK Government. By attending, you’ll be able to hear first-hand information and be able to influence these decision-makers on where and how hydrogen can be incorporated to deliver maximum value.