Germany’s core hydrogen network buildout key for efficient electrolysis location – report
Clean Energy Wire
Germany should quickly push ahead with the construction of its core hydrogen grid to ensure that hydrogen is produced in areas with sufficient water and renewable energy, a report by the German Institute for Economic Research (DIW) concluded. “A prerequisite for efficient site selection is that the hydrogen network is expanded as planned,” said report author Dana Kirchem.
Green hydrogen is produced using renewable electricity to split water molecules into oxygen and hydrogen, in a process known as electrolysis. The clean fuel can then be used in settings which are difficult to electrify directly, for example to produce low-carbon chemicals or in steel production. Today, by far the most hydrogen is derived from fossil gas (grey hydrogen), which leads to CO2 emissions. In addition to green hydrogen, more sustainable production of the fuel could also happen by using nuclear electricity for the electrolysis (pink hydrogen), or capturing and storing the carbon when using fossil gas (blue hydrogen).
“The better the hydrogen transport, the more electrolysis capacity can be established at sites with good electricity and water conditions,” the authors concluded. Should the transport of hydrogen be limited, however, green hydrogen production would need to happen close to consumption centres and thus potentially also in regions at risk of water stress.
Northern states in Germany are particularly well suited for green hydrogen production, as they boast significant onshore and offshore wind power capacity and have sufficient water availability, including seawater, according to the institute.
The authors concluded that, in 2030, water stress – when groundwater abstraction exceeds amounts considered sustainable, a phenomenon more likely as a result of increasing droughts – would not pose a problem for new domestic electrolysis capacity, but could influence the optimal location of plants. Water withdrawal costs play only a minor role, they added.
Hydrogen demand is expected to more than double by 2030, with Germany aiming to increase installed electrolysis capacity from around 170 megawatts (MW) today to ten gigawatts (GW) by the end of the decade. However, Germany is unlikely to be able to meet its hydrogen demand with domestic production, so a large share (50 to 70 percent) of the fuel will have to be imported. The hydrogen core grid is set to be completed by 2032.
