By H.M, international expert.
Today, around 120 million tonnes of hydrogen are produced, 96% of which is from natural gas and coal by steam methane reforming and coal gasification. Green carbon-neutral hydrogen can serve as a next-generation sustainable energy carrier and can be stored and transported over long distances. Green hydrogen has the potential to complement other energy carriers such as electricity to assist in the decarbonization of the energy sector and the use of energy in end-use sectors such as transport, buildings and industry.
Most of the hydrogen used today is generated from fossil fuels (gray hydrogen), making it a carbon intensive process. A transition from a gray hydrogen economy to a green hydrogen economy is possible. The factors that determine the growth of green hydrogen in the EU and Africa are as follows. Hydrogen is enjoying an unprecedented level of international attraction as the cost of renewables falls and carbon emissions are increasingly penalized.
The global momentum is building in the hydrogen industry, with few sectors likely to remain untouched by this coming energy revolution. By the start of 2020, the global pipeline of hydrogen projects, through gray, blue and green projects, amounted to $ 95 billion. The reduction in carbon emissions from the blue and green hydrogen projects in this pipeline will be significant enough to offset Nigeria’s annual carbon emissions.
Progress has been made with the launch of national policies and government funding initiatives, including national hydrogen roadmaps, building on the momentum of existing pilot programs. Strategic memoranda of understanding between hydrogen countries that are ideally suited to hydrogen production and countries that have aggressive decarbonization targets and wish to use hydrogen are clear signs of traction in the market.
Hydrogen technology can unleash the vast amount of untapped renewable energy in Africa. Large-scale storage and flexible transmission of renewable energies would enable Africa’s green electrification. By using hydrogen as an energy carrier, large-scale renewable energy farms as well as mini-grid solutions could become commercially viable.
Hydrogen has a high energy density (compressed to 700 bar), so it is the only environmentally friendly alternative fuel for railways and cars. It could power vehicles carrying heavy loads and long-distance transport in trucks and buses. It could also power the millions of light commercial vehicles on which societies in the North and sub-Saharan Africa depend. There is a secondary application of renewable hydrogen after the power and transportation industries. It is used in the chemical industry (such as in the manufacture of fertilizers), the steel industry (used as a reducing agent) and as a reliable fuel for high temperature industrial processes.
North Africa and sub-Saharan Africa are ideal environments to develop the first hydrogen economies from scratch. This is because the flexibility of hydrogen is highly valued by African authorities. They understand that this is the most versatile energy carrier and could be the crucial missing link in their transition to green energy. This is a revolutionary new concept for Africa and would remove its current dependence on the grid for energy.
AFRICAN HYDROGEN ROUTES
Commercial potential of hydrogen in pipeline infrastructure in Africa
The hydrogen trade in Africa does not necessarily require a complete new infrastructure. There is exciting potential for the proposed hydrogen economy from existing and planned pipeline infrastructure in Africa, currently used to transport natural gas, oil and other chemicals. Large parts of this infrastructure could also be used for the transport of hydrogen. This could reduce installation costs and help establish a large-scale hydrogen economy in Africa more quickly.
Economic potential for Euro-African collaboration
The use of existing pipelines would support green and collaborative technological and economic development in Europe as well as Africa. The subject of using the existing pipeline infrastructure in Europe to transmit mixtures of hydrogen or pure hydrogen without natural gas is gaining more and more attention. Check out the many articles and studies on hydrogen production in North Africa and its export through existing pipelines to Europe at the links below.
The end of Africa’s dependence on fossil fuel imports?
The internal production, storage and trade of hydrogen in Africa could render fossil fuel imports obsolete. Most of the existing oil and gas pipelines extend to ports, offering the possibility of exchanging hydrogen abroad using tankers. Temporary local shortages or hydrogen surpluses could be solved by domestic hydrogen trade in Africa via pipelines and tankers or by import and export abroad from other continents.
Methods of transmitting hydrogen
There are many proven and pre-existing ways to store and transport hydrogen. These include compressed and liquid hydrogen (CH2 and LH2), liquid organic hydrogen transporters (LOHC), methylcyclohexanes (MCH) and ammonia (NH3). They each have different economic, physical and integrating properties – there is a need and a market for each. Studies indicate that only minor modifications are necessary to gas pipelines to use them only for hydrogen. We are not aware of any existing studies on the reuse of petroleum pipelines and other chemicals for LOHC / MCH or ammonia (NH3) and would welcome research and insight into the specific potential.
A diverse pipeline model?
Existing and future pipelines can be grouped into three categories:
– Gas pipelines: conversion to transport gaseous hydrogen – mixtures of hydrogen or pure hydrogen.
– Oil pipelines: conversion to transport liquid organic hydrogen (LOHC) or methylcyclohexanes (MCH)
- Pipelines of chemicals (eg gasoline, propane, fuel oil and ethylene) conversion to transport liquid organic hydrogen (LOHC), methylcyclohexanes (MCH) or anhydrous or liquid ammonia.
Connections beyond pipelines
In remote areas with suitable and inexpensive land, Power to Hydrogen (P2H) facilities located near pipelines could power them and supply cities and industries. These could carry hydrogen in the form of gas, liquid ammonia or liquid organic hydrogen (LOHC).
The map below shows the location of the 3 main types of pipelines on the African continent, including some connections to Europe. We have included existing pipelines, planned future pipelines and those whose feasibility is under consideration.
With its extensive trans-African road network, Africa offers great business opportunities for the new and growing hydrogen technology sector. These are five feasible hydrogen routes along existing highways and trans-African business centers:
Interconnecting Africa with hydrogen
The African Hydrogen Partnership (AHP) initiative has received a lot of attention since the website went live four weeks ago.
Business leaders, economists, bankers and politicians are realizing the potential of hydrogen routes and are enthusiastic about the many benefits they could bring. We have been in talks with world-class companies, discussing other potential hydrogen routes in Africa. The roads we originally proposed in South and East Africa are not an exhaustive or definitive list: there is a lot of potential for more roads to be built. Take a look at the updated map below, showing other hydrogen routes spanning the African continent. They are found along existing trans-African highways and link established business centers.
The countries of North Africa in particular have extremely favorable solar radiation and wind conditions. The countries of West and Central Africa have vast untapped potential for hydropower. Low-cost green electricity will power electrolysis to produce low-cost green hydrogen. Harnessing this would also support and fuel the growth of existing industries. There are many proven and pre-existing ways to store and transport hydrogen. These include compressed and liquid hydrogen, liquid organic hydrogen transporters (LOHC), methylcyclohexanes (MCH) and ammonia (NH3).
The internal production, storage and trade of hydrogen in Africa could replace the trade and import of fossil fuels. With the additional benefits of creating new industries and therefore jobs, increasing economic strength (reducing trade deficits and strengthening trade balances) and protecting the environment, there are more compelling arguments. than ever to support and implement Africa’s hydrogen routes as soon as possible.
Decarbonization of maritime transport: Hydrogen and ammonia could hold the key
The latest hydrogen reports are interesting reading for those involved in Africa’s economic and industrial development. It is widely accepted that hydrogen fuels are necessary to meet future demand from the transport sector and to achieve decarbonization goals.
Sea routes are essential for transporting goods, energy and fuels to and from Africa between continents, but they are also heavily used for transport between the 38 coastal countries of Africa itself.
Large volume or large equipment sea transport between African countries can be faster and more cost effective than land transport. African cities and business centers are built around ports, forming Africa’s major hubs and metropolitan regions. Africa’s population is expected to double from around 1 billion to between 2 and 2.5 billion by 2050: the demand for freight and fuel transport will increase by the same huge factor.
Hydrogen fuels will fuel decarbonization by 2035
“The deployment of all currently known technologies could lead to almost complete decarbonization of maritime transport by 2035,” according to the recent report by the OECD think tank, the International Transport Forum. The report explains that CO2-free fuels such as ammonia, hydrogen (liquid) or liquid organic hydrogen (LOHC) carriers can play a major role in decarbonizing shipping.
Similar studies by DNV GL, the European Transport and Environment Federation, the International Chamber of Shipping (ICS) and the United Nations International Maritime Organization (UN IMO) also point out that ammonia and hydrogen (liquid) are essential fuels to achieve decarbonization goals. The European Transport and Environment Federation study concludes that a mix of alternative zero-emission technologies, including electric batteries, but in particular liquid hydrogen and ammonia, would cause the least additional stress on the energy system as a whole.
Planning of infrastructure for bunkering African ports
Maritime vessels must be refueled in ports. To do this, industry will need to establish hydrogen and ammonia production in or near ports, or expand existing facilities to meet the growing demand for fuel for marine transportation. The same fuel infrastructure could be used to power all port activities, from container handlers, forklifts, cranes, emergency power, (bypass) locomotives and trucks used for land distribution.
Tangible progress towards the widespread adoption of hydrogen as a fuel
There is encouraging practical progress towards the adoption of hydrogen-based green fuels in maritime transport. The programs, including the HyLaw project, address new requirements for hydrogen legislation and procedures and the removal of legal and administrative barriers to the deployment of fuel cells and hydrogen applications in the maritime sector. .
Maritime transport solutions are also being developed to transport CO2-free fuels and energy between ports. Tanker transport of ammonia and oil between African countries and other continents is already widely used. Liquid hydrogen tankers are under development and should be available in the coming years. Using existing ships to transport LOHCs should be possible even sooner, as they have properties similar to oils.
Beyond cargo: decarbonizing passenger ships
In addition to the freight transport routes around Africa, there are also many ferry and cruise ship routes (not shown on the map below) that could be carbon-free. Several ferry projects in Norway, Scotland and California are in late stages of development. The experience gained from these could be applied to African ferry routes, including those between Europe and North Africa on the Mediterranean Sea, between Dar es Salaam and Zanzibar, or on the Great Lakes of ‘Africa
Mauritania has the advantage of being in the middle of two sub-regional groups, MENA in the North and ECOWAS in the South; which gives it an enviable strategic position of regional interconnection.
AFRICA-EUROPEAN UNION PARTNERSHIP
In 2020, a research report conducted – among others – by the European University Institute, outlines the ways and means of establishing, in terms of green hydrogen, an Energy Transition gateway in Africa and Europe.
In 2015, the Paris Climate Agreement and the United Nations Sustainable Development Goals (SDGs) propelled the world in fast-track mode towards achieving the Sustainable Development Goals. Three decades from now, the global energy landscape will be completely different from today. As living standards improve, there is a greater use of devices and services powered by a variety of energy sources.
Coupled with this diversity is a growing universal effort to achieve rapid decarbonization of the economy while ensuring that no one is left behind, as addressed in SDG 7. Attempt to achieve the goals of On-time decarbonisation means that, alongside the energy sector, the use of energy in the end-use sectors (transport, building and industry) must be included. We need to broaden the range of options used, including achieving a fully networked system ensuring security of energy supply and system flexibility, and active consumer engagement, which goes beyond the current sector approach. . In this way, an integrated approach evolves with an “intersectoral link” or “sector coupling”.
However, if the goals of the Paris Agreement are to be met, countries must raise their ambitions to ensure they are on the right track.
The launch of the European Green Deal is a step in this direction, with a focus not only on Europe, but also on external cooperation with neighboring regions. This presents new development opportunities for regions with high renewable energy potential, such as Africa.
The production and trade of green hydrogen – a versatile energy carrier – could become a significant opportunity for economic and social benefits for Africa to develop African society. It shows the potential to help Africa’s post-Covid-19 economic recovery in the short term and enable Africa and Europe to complete their respective transitions to clean energy in the long term.
Partnership: The EU aims to achieve its decarbonisation targets by 2050, with around 24% hydrogen (~ 2,250 TWh) in total energy demand. However, not all of the EU’s hydrogen demand can be met locally and therefore energy partnerships with regions abundant in renewable energy (RE) to source green hydrogen would be needed to meet the targets. decarbonisation of the EU.
Given the priority that the European Commission under the new EU Green Deal gives to cooperation with the African Union, the two continents stand ready to explore a mutually beneficial hydrogen ecosystem. This is also outlined in the European Hydrogen Strategy, which emphasizes the African Union as a partner to cooperate on research and innovation in regulatory policy, physical interconnections and technological development. .
Uses: Currently, most of the demand for hydrogen comes from the chemical industry to produce ammonia for fertilizers, followed by refining for hydrocracking and desulfurization of fuels. The hydrogen used can be replaced by green hydrogen. Future applications of green hydrogen could include its use to generate and store electricity and possibly serve as an alternative to diesel generators. In the transport sector, it can be used as a fuel for cars, heavy vehicles, aviation and navigation. It can be a source of heat for industry, especially in sectors that are difficult to tear down and electrify such as steel, cement, aluminum production and residential heating.
The particular case of Africa: Many joint Europe-Africa projects are underway, for example Germany and
Morocco has announced the development of power-to-x green hydrogen projects, while companies such as Enertrag in Germany aims to deploy 20 fuel cell buses using green hydrogen and Tiger Power in Belgium is rolling out. place of hybrid solar-hydrogen mini-grids in Uganda.
Demand: IRENA and the Hydrogen Council estimate that the share of hydrogen in total global final energy consumption by 2050 will be in the range of 6-18%. The increasing role of renewables, in particular variable renewables, in the electricity sector provides an opportunity to use excess electricity from renewables to produce green hydrogen through electrolysis, c that is, the power-to-x (P2X) channel.
Sector coupling via P2X pathways allows not only direct applications of hydrogen, but also applications in the production of synthetic fuels, such as ammonia, methane, methanol, etc., which can be used in d ‘other end-use sectors. The P2X demand potential for 2050 is estimated at 20,000 TWh, resulting in 8,000 GW of P2X capacity.
The special case of Africa: In addition to meeting the global demand for green hydrogen, the continent could benefit from early adoption of hydrogen for various applications in all end-use sectors. It could take advantage of the lack of legacy production technologies in Africa and set up large-scale renewable energies to produce green hydrogen and harness the potential of RE (~ 1,590,000 TWh / year) on the continent.
A recent initiative launched by the German Federal Ministry of Education and Research (BMBF) and African partners in the sub-Saharan region (SADC and ECOWAS countries) called H2 Atlas-Africa aims to explore the potential of production of green hydrogen from the enormous renewable energy sources in the sub-regions.
Besides the socio-economic benefits such as jobs (300-700 for every 1 GWe P2X), tax revenue, reduced emissions, etc., green hydrogen could help address SDG7 challenges indirectly short term, first by increasing the rate of electrification in green hydrogen producing regions and second by acting as an alternative fuel to replace diesel generators and conventional cooking options. In the very long term, decentralized communities based on green hydrogen could be explored. However, at this time, this option is not yet cost competitive.
Technology: Currently, the most established method of producing green hydrogen is electrolysis. This process uses an electrolyser, a device that divides water into hydrogen and oxygen with the help of electricity. According to the Hydrogen Council, the fall in the cost of renewable energies and the growth in electrolysis capacity (55 times by 2025) are stimulating investments in the production of green hydrogen.
The special case of Africa: Water, a key resource in the production of green hydrogen, is a critical consideration for Africa. For every liter of water, one cubic meter of hydrogen can be produced. Since water is not available in abundance in all regions of Africa, this allows for a synergy (energy-water link) with desalination initiatives, with green hydrogen plants serving as anchor takers for desalination plants.
Cost: According to IRENA, the current cost of producing hydrogen (gray) ranges from 1.5 to 2.5 USD / kg. In contrast, the cost of producing green hydrogen ranges from 2.5 to 7 USD / kg. However, in the best-case scenario for wind power coupled with a low-cost electrolyzer, green hydrogen competes with gray hydrogen at around $ 1.5 / kg. In about 3.5 years, estimates show that green hydrogen produced using solar and wind power will range from $ 1 to $ 2 / kg. As the scale of production increases from MW to GW, costs are expected to decrease further.
The particular case of Africa: Taking the example of Morocco, a recent study revealed that the cost of producing green hydrogen based on the prices of renewable electricity in 2019 at 80% electrolyser efficiency with a CAPEX of 347 USD / kW is approximately 1.16 USD / kg.
Transportation: In small quantities, hydrogen can be transported through existing pipelines and stored in salt caves to meet seasonal changes in demand. It can also be made into synthetic fuels like ammonia and shipped like LNG.
As illustrated in the example below, depending on the location of the exporting country, the share of transport costs in the total price is relatively low.
The special case of Africa: If green hydrogen is transported from North Africa to Europe via a dedicated pipeline, the transport cost would be around 0.22 USD / kg. In addition, a local green hydrogen economy can be built along existing infrastructure routes of roads, railways and seaports for use within and between regions. In the mapping carried out by the African Hydrogen Partnership, six potential landing zones have been identified, namely Morocco, Egypt, Nigeria-Ghana, Ethiopia-Djibouti, Tanzania-Rwanda-Kenya and South Africa.
GREEN HYDROGEN: Production and export from the MENA region to Europe
The MENA region is blessed with some of the best solar and wind resources in the world, enabling a high combined capacity factor for solar PV and wind, which is crucial to achieving very low prices for producing green hydrogen. A regional partnership between Europe and the MENA region offers an obvious win-win situation: the production of green hydrogen in the MENA region will support local industrial and socio-economic development with many new jobs.
Europe’s zero-emission objective by 2050 becoming a national law in all countries, potential buyers are already aligned: among others, the steel and heavy transport industries are assessing where to source in the medium and long term. term in large quantities of market mechanisms.
The MENA region is in the midst of a historic shift in the role and position as a potentially dominant player in the vast, energy-rich desert region. In recent years, “green molecules” have been integrated into the strategy of leading organizations such as ACWA Power, NEOM, Siemens or Masen, alongside “green electrons” to accelerate the transition to a low carbon economy in the world. Arab.
Global initiatives focused on regional market developments, such as Dii Desert Energy / Desertec 3.0, have therefore been extended, in this case by the MENA Hydrogen Alliance. Green hydrogen holds the promise of improved and sustainable prosperity and stability in the region through the creation of a strong market with local jobs and industries associated with the energy transition.
The MENA region has the potential to become a powerhouse for green hydrogen, primarily for regional companies, but also for global markets. The opportunities will therefore far outweigh the risks. We believe that careful consideration of some environmental challenges such as land and water use, and more importantly, the green and emission-free color of hydrogen will ensure very positive development. Emerging green molecules can be compared to the success story of RE over the past decade, perhaps even in an accelerated fashion.
The world is facing a historic crisis in the oil and gas industry. However, the good news is that green hydrogen will reward leadership in this industry. While Morocco has already pushed for the development of a green hydrogen economy, Oman is beginning to recognize the potential. Its neighbor KSA / NEOM announced the world’s largest green hydrogen / ammonia project in July 2020.
This is a joint venture between Air Products, Acwa Power and NEOM for a $ 5 billion production facility at NEOM powered by renewable energy for the production and export of green hydrogen to global markets .
Indeed, Air Products, in collaboration with ACWA Power and NEOM, announced in July 2020 the signing of an agreement for a $ 5 billion global hydrogen-based green ammonia production facility powered by by renewable energies. The project, which will be owned equally by the three partners, will be located at NEOM, a new model of sustainable living located in the northwest of the Kingdom of Saudi Arabia, and will produce green ammonia for export to markets. global.
The joint venture project is NEOM’s first partnership with leading international and national renewable energy partners and will form the cornerstone of its strategy to become a major player in the global hydrogen market. It is based on proven world-class technology and will include the innovative integration of more than four gigawatts of renewable energy from solar, wind and storage power; production of 650 tonnes of hydrogen per day by electrolysis using thyssenkrupp technology; nitrogen production by air separation using Air Products technology; and the production of 1.2 million tonnes per year of green ammonia using Haldor Topsoe technology. The project is expected to be commissioned in 2025.
Air Products will be the exclusive purchaser of the green ammonia and intends to transport it around the world to dissociate itself from it to produce green hydrogen for the transportation market.
The United Arab Emirates had also started a small demonstration project. Indeed, on May 21, 2021, His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of the Supreme Energy Council of Dubai and Chairman of the High Committee of Expo 2020 Dubai, inaugurated the Green Hydrogen project at the Mohammed solar park. bin Rashid Al Maktoum in Dubai, marking yet another achievement for the Emirate as a leader in the field of renewable energies. The project, carried out in collaboration with Dubai Electricity and Water Authority (DEWA), Expo 2020 Dubai and Siemens Energy, is the first green hydrogen production site powered by solar energy in the Middle East and South Africa. North.
Dr. Christian Bruch, President and CEO of Siemens Energy said at the time “This historic green hydrogen project underlines the importance of partnership to promote new innovative clean energy solutions and fight against existential threat posed by global climate change. As the first industrial-scale site capable of producing green hydrogen in the Middle East and North Africa, this is an important step in the energy transformation. ”
However, the path to a global green hydrogen market does not only depend on the evolution of technical and economic factors – hydrogen source, handling, transport, overall cost / kg – but also political choices throughout. the value chain. From each alternative, 16 winners and losers will emerge and reshuffle the balance of power by creating new dependencies between states. Countries with very cheap solar and wind sources may well become global hubs for the production, storage and transport of green molecules, and arbitrage between other markets, somewhat similar to LNG.
In its recent report, The Belfer Center, assesses the renewable hydrogen potential of countries taking into account three parameters and classifies them into categories of key players according to their availability of resources (wind, solar, water) and the quality of their infrastructure to produce, transport and distribute hydrogen. The report underscores the position of Morocco and Australia as potential export champions as they are rich in water and renewable energy resources and have the clear capacity to deploy the required infrastructure.
Along with Morocco and Australia, MENA countries in general and Gulf countries in particular could also become the main key players in the transition. Indeed, even if most of the Gulf countries are already planning to switch from a fossil economy to a green economy through various government plans, too few projects are seeing the light of day, and plans could be bolder and faster in some countries. . In the event that the major oil and gas producers do not accept big changes in this historic energy sector crisis, their relevance and stability could be at stake.
In the Eastern Mediterranean, Cyprus and Greece could be the potential winners, if not for production, but for the transit of hydrogen. Indeed, the agreement on the East-Med pipeline signed in January 2020 between Israel, Cyprus and Greece 20 could reduce the role of Turkey and the CIS countries and, for example, place the southern Mediterranean countries higher. on the energy power scale.
Green hydrogen: Morocco and Portugal sign a declaration of cooperation
In addition to its historic partnership with Germany through the PAREME joint venture supported by KfW, Morocco and Portugal have recently signed a declaration of cooperation on green hydrogen in order to set up the necessary bases to develop the partnership in this clean energy sector between the economic actors of the two countries.
Both sides recognize the strategic opportunity represented by the decarbonization of the economy and the transition to green energy as mobilizing factors and catalysts for sustainable development.
Morocco has undertaken several actions to start the development of hydrogen on a good basis, by laying the groundwork to succeed in this new challenge, in particular through the establishment of the National Hydrogen Commission in 2019 and a series of research and development projects as well as the preparation of the hydrogen production roadmap.
Among the actions undertaken in this area are also the creation of the national research and development platform, in this case the “Green A2A” center, the involvement of scientific research through the Institute for Solar Energy and Energy Research. news (IRESEN) and Mohammed VI Polytechnic University who are working together to develop basic research on green hydrogen.
“The Moroccan Agency for Sustainable Energy (MASEN), for its part, is piloting a benchmark project on hybridization.”
NOOR II multi-site solar program:
In addition, Morocco has just launched in 2021 through Masen its Noor PV II multi-site solar program, with a capacity of 400 MW.
It should also be noted that the European information portal “EU Political Report” highlighted the achievements of Morocco in terms of renewable energies and clean innovation, stressing that the Kingdom has just been ranked 5th on the scale. world by the index “The Green Future Index” 2021 developed by the Massachusetts Institute of Technology (MIT). This index establishes the ranking of 76 countries and territories moving towards a green future by reducing their carbon emissions, by developing clean energies , by innovating in green sectors and preserving their environment.
OPPORTUNITIES: the costs of green hydrogen, local value chain and social stability
According to Bloomberg New Energy Finance (BNEF), green hydrogen for large projects now costs between $ 2.5 and $ 4.5 per kg. The IEA estimates the price of gray H2 production at $ 1-1.80 / kg and blue hydrogen at $ 1.40-2.40 per kg 36 (note that these estimates predated the decline in gas prices in March / April 2020, so today’s prices are likely to be significantly lower due to gas price sensitivity).
Based on an assumed electricity cost of 2 cents USD per kWh and an assumed plant capacity factor of 60%, about half of the cost of producing hydrogen is the cost of electricity. , while a third comes from CAPEX and less than a fifth from OPEX for the electrolyser installation. As for CAPEX, a significant reduction in costs is expected over the next few years. A sufficient capacity factor of better> 50% is an important factor in the business case. With a high combined capacity factor of solar and wind generation and among the lowest LCoEs in the world, the MENA region can today potentially produce one kg of green hydrogen at less than $ 2 per kg.
NEOM’s mega-project for green ammonia aims to produce green hydrogen at around US $ 1.5 per kg, once it is operational in 2025 (for details, see Annex III). A flexibly designed facility to convert hydrogen to ammonia via the Haber-Bosch process can help reduce capital expenditure for storage facilities. This bold and pioneering project announced in July 2020 may well be seen as a catalyst for more green hydrogen projects, not only regionally but globally. This shows that the MENA region may well become a global leader in green hydrogen production costs, after a series of record global prices for wind and solar in recent years.
Besides the cost of production, the cost of transport to international markets must be taken into account. In the case of eg. hydrogen will be transported to Europe, add US $ 2.00 per kg very coarse. However, this cost is more derived from the conversion (and vice versa for ammonia and LOHC), e.g. from hydrogen to ammonia, LOHC or liquefied, rather than the mere cost of transportation. Depending on geographic locations, type of transportation route and total distance, pipeline transportation is expected to be the winner, costing a fraction of that.
Indeed, existing pipelines could be reused / reused (eg with new compressors) from natural gas to hydrogen at limited costs. 13% of Europe’s gas imports come from already existing infrastructure under the Mediterranean Sea. Ammonia via the Haber Bosch process appears to be the choice for now. Other forms such as hydrogen liquefaction, the use of liquid organic hydrogen (LOHC) carriers or conversion to electric fuels are also being considered. We believe that the question of the right option and the right form of transport will be among the key issues to be resolved – with the creation of the right conditions in Europe for importing (legal and regulatory framework).
While all MENA countries could generate significant export revenues for the sale of green molecules in global markets, fossil fuel importers have an additional chance to cut their import bills much more than they do. ‘could have imagined it just a few years ago.
Local value chain
Besides the interest of green hydrogen in integrating more renewable energies into the electricity system, the variety of applications offers interesting possibilities to create local hydrogen economies. The successful concept of Hydrogen Valleys in Europe may well serve to transfer and test some of these ideas in the MENA region. On different parts of the value chain, there could be synergies with existing industries on the manufacturing side and create a significant amount of new jobs in future industries. Given the breadth of the value chain and applications, the potential for new jobs is certainly much higher than for all renewable technologies and could in the long run rival the number of jobs in the oil and gas industry. and help mitigate job losses in this industry, which will necessarily decline over time. As with RE 5-10 years ago, care needs to be taken to ensure that there is a level playing field to allow for business cases for local extraction as well (i.e. eliminating fuel subsidies fossils and underline the value of green hydrogen).
THE WAYS OF POWER-TO-X
The transition to the use of hydrogen to achieve decarbonization goals would involve meeting two challenges, on the one hand creating a demand for low carbon hydrogen and its products as indicated in the previous section and on the other hand switch to green hydrogen. The growing role of renewables, in particular variable renewables, in the electricity sector offers an opportunity to use surplus renewables to produce green hydrogen through electrolysis, i.e. the way power-to-x (P2X). In addition, P2X not only allows direct applications of hydrogen but also the production of synthetic fuels such as ammonia, methane and methanol which can be used in other sectors (transport and chemicals), replacing the use of conventional fossil fuels.
The figure below illustrates different energy supply routes such as hydrogen supply, supply of fuels producing methane and methanol, and supply of ammonia.
POWER-TO-X ROADMAP
In 2018, the World Energy Council had drawn up – in partnership with Frontier Economics – a report on the international aspects of a power-to-x roadmap, the success of which they base on three fundamental pillars: Technologies, Markets & Demands and Supplies & Investments.
HYDROGEN GEOPOLITICS
The opportunity for the MENA region to become a much closer partner to Europe is unique and the current framework could not be more favorable. Frans Timmermans made statements of support in speeches before taking on his current role: “In my dreams, I would partner with North Africa and we would help and store a huge capacity of solar energy in Africa and transform this energy into hydrogen and transporting hydrogen to other parts of the world and to Europe through the existing means we already have. (..) This is my dream of the energy of the future “.
In Europe alone, the hydrogen strategy plans to reach at least 6 GW of electrolysers by 2024 and 40 GW of electrolyser capacity by 2030. 2030, of which 7.5 GW of electrolyser capacity for the market domestic and 32.5 GW for export. The North Africa-Europe Hydrogen Manifesto predicts that the future final energy mix in Europe could have a 50% to 50% share of green electricity and green hydrogen for all sectors: industry, transport, commerce and households. By 2030, the European Commission estimates that 13 to 15 billion euros could be invested in electrolysers across the EU, in addition to 50 to 150 billion euros for a dedicated wind and solar capacity of 50 to 75 GW.
Trade in green molecules will benefit both regions: in Europe, it will help achieve decarbonisation goals, improve energy security and support technological leadership. In North Africa, it will boost economic development, boost exports, create green jobs and support social stability. With hydrogen potentially being the new oil, broad diversification of supply will of course always be imperative from a geopolitical point of view.
IS CLEAN AMMONIA THE NEXT GREAT HYDROGEN-BASED INNOVATION?
Achieving the EU’s long-term climate and energy goals and delivering on the Green Deal promise means carbon-free energy, increased energy system efficiency and deep decarbonization of industry, transport and buildings.
Achieving all of this will require both electrons and molecules, and more specifically: clean hydrogen (renewable, low-carbon hydrogen) on a large scale. Without this, the EU will not meet its decarbonisation targets. As such, clean hydrogen and hydrogen-based solutions are expected to play a systemic role in the transition to renewable sources by providing a mechanism to flexibly transfer energy between sectors, time and time. space, in order to meet demand.
The European Commission will very soon publish a dedicated hydrogen strategy that can serve as a basis for the industrial scale-up of clean hydrogen as a globally marketable product produced in geographic areas where energy renewable can be recovered inexpensively. However, hydrogen must be transported. Pipelines are a very interesting way to do this by connecting North Africa to Southern Europe and allowing inexpensive production in the sun-rich belt of the Middle East and North Africa, which supplies then immediate transport to EU markets.
However, not all destinations are connected through a pipeline. One solution would be to ship this first-class new product in its pure form after liquefaction. The first ships allowing this have just been inaugurated in Japan. Containers that can carry liquid hydrogen have also been successfully tested and could be used in existing maritime transport.
Further impetus and support for the development of the hydrogen economy could come in the form of ammonia. The idea of using ammonia (NH3) as a hydrogen carrier or as a direct replacement for gasoline has been discussed for over 80 years. However, with concerns about intensifying global warming and strong signals of practical hydrogen solutions on the horizon, it seems appropriate to revisit this carbon-free substance as a possible alternative fuel.
Its attractiveness is enhanced by the fact that ammonia is the only fuel that does not contain carbon. In addition, liquefied ammonia contains 53% more hydrogen than pressurized hydrogen gas in a tank of the same size.
Nowadays, ammonia is manufactured in gigantic quantities on every continent except Antarctica, with an annual production exceeding 180 million tonnes. A high volume of production is justified mainly by the needs of the agricultural industry. It has been estimated that about 40% of the world’s population owe their survival to foods fertilized with nitrogen from synthetically prepared ammonia. Growing consumer demand for ammonia has resulted in the development of an extensive distribution network, which includes pipelines, railways, barges, ships, highway trailers and storage depots.
The rise and importance of hydrogen and the growing discussions surrounding the development of a hydrogen economy have found another use for this chemical: ammonia can be used to transport hydrogen safely and efficient, especially in remote areas where delivery of pure hydrogen is either economically prohibitive or impossible.
Hydrogen Europe is actively monitoring the “second birth” in fuel-energy ammonia history. Until now, most proponents of ammonia energy called it “the energy of the future.” However, it seems the future already exists. Today, the shipbuilding industry is keenly looking for the possibility of powering high temperature fuel cell engines (devices that convert the chemical energy of a fuel into “green” electricity through a set of reactions. chemicals) with ammonia. Modern high temperature fuel cells with megawatt power output are ready to operate large ships efficiently and quietly.
At the same time, small-scale ammonia-powered fuel cells will soon be available for distributed power generation. GenCell Ltd, an Israeli company, is field testing several prototypes with encouraging results and aims to provide 5-10kW ammonia powered systems for 24/7 operation to its first customers in 2021. Ammonia to energy conversion technology fits perfectly into the hydrogen economy umbrella, offering clean energy users a wider range of benefits and choices.
Not far on the horizon is a new environmentally friendly ammonia synthesized from water and air. Ultimately, it will become a substitute for the famous but polluting Haber-Bosch process. The new succession of carbon-free roads will be developed and adopted in accordance with changing market and economic demands.
Clean ammonia made from clean hydrogen could in fact be an important additional asset in scaling up the hydrogen economy. Nitrogen is a chemical basis for this to happen is abundantly available and could thus contribute to another huge opportunity to decarbonise the energy system, mobility, especially shipping and industry. Some countries have discovered this mechanism and are already using it to fuel the fertilizer industry, one of the world’s largest consumers of hydrogen. Morocco is a good example where this is already happening to create value and build a strategic industry for the whole continent.
It will be an important task of the Clean Hydrogen Alliance, soon to be launched with the EU Hydrogen Strategy, to consider the development of the clean ammonia sector as a hydrogen-based process and include it in its activities. The Alliance is intended as a steering tool for the Next Generation EU recovery plan.
Clean ammonia could help successfully ramp up a strategic value chain that leads to a carbon-free economy.
ECOLOGICAL IMPLICATIONS
Electrolysis generally requires approx. 4 m³ / day (24 h) of purified water or 6 m³ / day of unpurified raw water for 1 MW of electrolysis. Typically, water supply options come from existing desalination, groundwater (not viable for public acceptance and scarcity), wastewater (according to manufacturers, generally possible, but likely more expensive to process than to produce newly desalinated water).
It is possible to use seawater directly without desalination, but this is only in the R&D stage today. Smaller reverse osmosis desalination plants flexibly close to the production site, provided that near the sea is in our opinion the most suitable and realistic route. Some overcapacity could even benefit local communities, which could be considered an important factor in socio-economic development. Note that the cost of water varies from less than 1% to a maximum of less than 2% (under unfavorable conditions with very expensive water) in the overall business case. Therefore, this is not a key factor from an economic point of view, but an important consideration for the choice of site and for green hydrogen, the energy for reverse osmosis plants must come from renewable sources. .
Besides water, other environmental implications need to be carefully considered, eg. typical land use challenges such as for solar and wind power generation projects (land use is a significant challenge, both from an environmental and social perspective, but given the vast uninhabited deserts, less of a problem than in other countries – however topography can be a limitation especially in Oman), challenges for new infrastructure like pipelines and in general the explosive nature of hydrogen as well as the effects dangerous green molecules such as ammonia or methanol. However, since eg. ammonia is already transported around the world today, there are well-established international health and safety standards.
The general issue of hydrogen production (all other than green colors) will also be mentioned. Specifically, the long-term implications of storing huge amounts of CO2 underground seem to be a point of sufficient emphasis in CCUS projects. In addition, the use of CO2 for enhanced oil recovery cannot be considered a viable storage medium, as a significant amount of CO2 is released again. Forms other than green hydrogen should also not be used as an excuse to delay the basic energy transition to emissions-free technologies.
GLOSSARY:
Gray hydrogen: Gray hydrogen is based on the use of fossil fuels. Gray hydrogen is produced primarily through the steam reforming of natural gas. Depending on the fossil raw material, its production requires emission of carbon dioxide.
Blue Hydrogen: Blue hydrogen is hydrogen that is produced using a carbon capture and storage (CCS) system. This means that the CO2 produced in the process of preventing hydrogen from entering the atmosphere, and therefore the production of hydrogen can be considered overall as carbon neutral.
Yellow hydrogen: It is obtained by electrolysis from electrical energy of mixed origin which could be of nuclear origin or from waste hydrogen. In addition, this could be via gasification of waste.
Hydrogen turquoise: Hydrogen turquoise is hydrogen produced by the thermal separation of methane (methane pyrolysis). This produces solid carbon rather than CO2. The prerequisites for the carbon neutral process are that the heat for the high temperature reactor is produced from renewable or carbon neutral energy sources and the permanent bond of carbon.
Green hydrogen: Unlike other colors, has a key role to play in the energy transition and can decarbonize sectors that are difficult to cut down. As an example with a large overall impact for the production of steel to replace coking coal in the direct reduction process; 8 it can be used in refineries as the main consumer of hydrogen to step by step replace gray by going green, in the mobility sector for longer-term solutions such as buses, trains or even fuel cell ships. Industrial heat applications can also play an important role. Longer-term applications may relate to sectors such as residential heating and cooling or power generation (to be mixed with gas in CCGTs or turbines running 100% on hydrogen). Today, about 55% of the hydrogen produced in the world is used for the synthesis of ammonia, 25% in refineries and about 10% for the production of methanol. The remaining applications worldwide represent only about 10% of global hydrogen production.11 It should be noted that about two-thirds of hydrogen is produced on-site for captive use, no transport is therefore required and no market or price transparency exists.
In addition, hydrogen now has a wide range of applications and green hydrogen could take over completely in the long term to support the decarbonization process.
Green hydrogen is produced through the electrolysis of water; the electricity used for electrolysis must come from renewable sources. Regardless of the electrolysis technology used, hydrogen production is zero carbon since all electricity used comes from renewable sources and is therefore zero carbon.
Downstream Products: Other products can be made from hydrogen (ammonia, methanol, methane, etc.). As long as these products are made using “green” hydrogen, the general term “Power-to-X” (PtX) is used. Depending on whether the downstream products are gaseous or liquid, the term “Power-to-Gas” (PtG) or “Power-to-Liquid” (PtL) is used.
