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Go Green with GBO: Mitsubishi to build Europe’s largest green hydrogen to plug Russian gas

Cost, cost, and more expenses stand in the way of the green hydrogen industry's quick adoption

Mitsubishi is contributing USD 690 million to the construction of the largest green hydrogen plant in the world, which will be built in the Netherlands.

Compared to previous plant concepts, this one will be significantly larger. More significantly, it will assist in plugging some gaps in Europe’s energy independence strategy, where Russian gas has been managing to maintain a presence despite sanctions.

According to Nikkei Asia, the plant’s projected 80,000 tons annual capacity would be about thirty times higher than the largest facility now in use in the globe.

That is a huge amount of green hydrogen: 30 times larger! Hydrogen is a pervasive industrial input that appears in food systems, oil refining, metallurgy, pharmaceuticals, hygiene, and other items, but it mostly crosses CleanTechnica’s radar as a fuel for fuel cell electric vehicles.

Currently, the world economy primarily relies on hydrogen derived from natural gas. However, the rapidly declining cost of wind and solar energy has sparked interest in the subject of electrolysis, which uses electricity to force hydrogen out of water.

Perhaps thirty times the next largest operational plant’s production is a bit of an understatement. Hydrogen Insight noted the Kuqa electrolyser plant in Xinjiang, China, last summer, describing it as the largest facility of its kind globally.

Sinopec, a Chinese oil firm, is the company behind the 260-megawatt facility, which started producing 10,000 tons annually last summer and will eventually reach 20,000 tons when fully operational.

Around 80,000 tons is not 30 times larger than 20,000 tons, according to the math. There is a catch with the Kuqa facility, though. According to Hydrogen Insight’s research, the plant’s 52 electrolysers will receive 58% of their electricity from a recently constructed solar farm. The remaining 42%, however, seems to depend on electricity from the grid, suggesting the possibility of coal power plants.

It’s not particularly green if that doesn’t sound that way. Among those holding onto the term “green hydrogen” for electrolysers powered mostly by wind, solar, and other renewable energy sources is CleanTechnica.

For Sustainable Hydrogen, Use Only Renewable Energy

Under the joint venture of Mitsubishi with the Dutch company Eneco, Eneco Diamond Hydrogen is the organisation that oversees the new electrolyser facility. The 800-megawatt “Eneco Electrolyser” project’s primary goal is to decarbonise gas-dependent businesses that are challenging to directly electrify. Rather, green hydrogen is used, transported, and stored as electricity.

The idea is to run the electrolysers using a combination of solar and wind energy.

In a news release from Eneco last November, CEO As Tempelman stated, “Green hydrogen is a good and sustainable option, both as a raw material and as a fuel, when direct electrification is not possible.”

Eneco anticipates a market for it in the power generating sector in addition to its original application in industrial operations. Since solar and wind electricity are already available to run power plants, that may seem a little counterintuitive.

However, the theory behind green hydrogen is that it can be transported and stored, which would increase the electrical supply’s flexibility and resilience.

Who Will Cover This?

Cost, cost, and more expenses stand in the way of the green hydrogen industry’s quick adoption. To reach its 2030 target of USD 1.00 per kilogramme, the US Department of Energy currently uses a USD 5.00 per kilogramme rule of thumb. In stark contrast, the International Energy Agency estimates that the price of natural gas can reach as high as USD 1.70, depending on the area.

Although it is unclear when and if the Eneco Electrolyser can rival natural gas directly, the new facility’s location may be advantageous. The current Enecogen power plant in Europoort, Rotterdam, will house the new green hydrogen factory.

Wait before becoming too enthused. It’s not final, as Eneco was still filing its planning application as of November. Even so, if everything proceeds as planned, work is scheduled to start in 2026 and completion is anticipated in 2029.

The timer is about to go off. The “One Planet Plan” of Eneco establishes a climate-neutral target for the company and its clients for 2035.

Enoco adds, “Europe and the Netherlands have set targets for the production of green hydrogen.”

For instance, the Netherlands plans to boost its capacity for producing green hydrogen to 4 gigawatts by 2030.

Fixing Natural Gas Dependency

Russia’s homicidal rampage through Ukraine has prompted Europe to stop importing Russian natural gas. A series of sanctions has had mixed results.

In December 2023, Radio Free Europe reporter Elitsa Simeonova reported that “While some countries ‘have significantly decoupled from Russia when it comes to energy, others — such as Hungary, Slovakia, and Austria — are still dependent on Russian gas and are not ready to change for both political and economic reasons.”

Simeonova stated that removing Russia from the energy equation will be challenging in a split EU due to differing energy demands and relationships with the Kremlin. It also examined the politics and pipelines that have kept Russian gas flowing to Europe. Ironically, that includes a pipeline from Russia to Europe through Ukraine.

She also observes that LNG exports have surged while Russian pipeline supplies to the European Union have declined since the war. Simply said, Russian gas sanctions do not cover LNG.

Without EU sanctions, imports of Russian LNG, largely via tankers, rose 40% between January and July 2023 compared to prewar levels, Simeonova wrote, citing Global Witness.

On January 15, “Razom We Stand,” a Ukrainian renewable power organisation, highlighted the LNG loophole before the 2023 World Economic Forum in Davos, Switzerland.

Razom We Stand founder and director Svitlana Romanko said, “Sustainable peace in Ukraine and beyond hinges on a vital shift away from Russian oil and gas, steering towards a clean energy future.”

“Razom We Stand recommends prompt action, including a ban on Russian LNG imports in Europe and the collective severance of that reliance,” she said.

Romanko also suggested that Ukraine’s gas storage facility may mitigate a Russian LNG prohibition. Not always natural gas, at least not long-term. Ukraine aims to sell green hydrogen to Europe using its massive wind and solar resources after the war.

CleanTechnica discovered the Ukrainian renewable H2 project in the summer of 2022. It appeared to be on track last year to use the Russian gas transit corridor for green hydrogen.

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