Siemens Gamesa launched an industry whitepaper, Unlocking the Green Hydrogen Revolution, that outlines an ambitious plan to deliver cost-competitive green hydrogen by 2030 from onshore wind and by 2035 from offshore wind.
Siemens Gamesa called for a joined-up approach to encourage both market demand and scaling production, highlighting four key requirements to deliver low-cost green hydrogen within the next decade:
Increase drastically the capacity of renewables because the green hydrogen revolution relies on this. The world needs up to 6,000 GW of new installed renewable energy capacity by 2050, up from 2,800 GW today to generate the expected demand for hydrogen (500 million tonnes, according to the Hydrogen Council).
- Create a cost-effective demand-side market for green hydrogen to drive down the costs of equipment, infrastructure and day-to-day operating costs. Currently, the main operating cost for green hydrogen production is powering the electrolyzers, so a decrease in energy costs lowers the cost of the hydrogen and increases demand.
- Develop the supply chain as no one provider can own the entire production and distribution process. At the moment, initiatives are fragmented, and therefore costly, meaning renewable energy companies, electrolyzer manufacturers, network providers and water treatment specialists need to work together to build a resilient supply chain.
- Build the right infrastructure in terms of logistics, storage and distribution. There needs to be investment in hydrogen pipeline networks to unlock the potential of green hydrogen.
- Achieving carbon neutrality by 2050 is crucial to fight climate change and reduce our earth’s temperature. A net-zero future relies on mass-decarbonization, which is only possible through the deployment of carbon-neutral fuels.
In recent decades, renewables, and mainly wind energy, have played a key role in the transition to a greener world, but the vision of a carbon-free economy can only be achieved if hard-to-electrify sectors, such as heavy transport and heavy industry, transition to net-zero emissions. Green hydrogen generated from wind energy has the potential to be the long-awaited, climate-friendly solution for these industries but, for this to become a reality, it needs to be produced cost-effectively and at industrial scale soon
said Siemens.
Unlocking the potential of green hydrogen
According to the report, green hydrogen offers immense potential as we seek to decarbonize the global economy and address the climate emergency. Innovating in wind-to-hydrogen solutions, both onshore and offshore, further unlocks the potential of wind energy, hastening the journey towards net zero.
Furthermore, industry, governments and investors need to work together to build an environment where innovation is encouraged, where market demand is fostered and where collaboration between different players in the supply chain is incentivized.
In addition, Andreas Nauen, Siemens Gamesa CEO, believes that wind will play a powerful role in accelerating the production of green hydrogen. For this reason, to unlock the potential of green hydrogen, the industry must drive down costs quickly.
To do this, we need a consensus between industry, policymakers and investors to rapidly develop the demand-side market, build the supply chain and roll out the necessary infrastructure
EXPLORE MORE ON SIEMEN’S REPORT FOR GREEN HYDROGEN
