Green Hydrogen: What’s all the hype?

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November2020
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Related Content

▪ Hydrogen in the Electricity Value Chain

▪ The Promise of Seasonal Storage

▪ Heading for Hydrogen

▪ Hydrogen as an Energy Carrier

▪ Hydrogen – Decarbonizing Heat

▪ DNV GL’s role in Hydrogen

3 DNV GL © November 2020

Featured DNV GL Speakers

Jason Goodhand Magnus Killingland Miguel Sierra

Global Storage Segment Leader Principal Consultant Senior Energy Storage Consultant
Emerging Energy Technologies

4 DNV GL © November 2020

Featured Guest Speaker

Raluca Leordeanu
Vice President
Business Development
Nel Hydrogen

5 DNV GL © November 2020

Agenda

01 Introduction

02 Global hydrogen market overview

03 Economics, key drivers, and recent developments

04 Use cases from Nel Hydrogen

05 Q&A

6 DNV GL © November 2020

Green Hydrogen 101

Jason Goodhand
Global Storage Segment Leader
DNV GL

7 DNV GL © November 2020

Hydrogen 101: Production

▪ Hydrogen gas is created primarily by reforming fossil fuels

Electrolysis
Grey Hydrogen

8 DNV GL © November 2020

Hydrogen 101: Uses
Internal Electrocatalytic Reaction
Production Combustion Combustion (like a battery)

Feedstock Direct Mechanical DC

Heat Energy Power

'Fuel Cell'

9 DNV GL © November 2020

Hydrogen Value Chain
DNV GL is positioned to cover the whole hydrogen value chain

Focus Areas Production Transport, Distribution and Storage Utilization

CO2
ENERGY

OIL & GAS

+ -

MARITIME

DNV GL offers a wide range of both technical and business advisory services and, with broad expertise across
the energy and maritime industries, we are in a unique position to cover the whole hydrogen value chain.

10 DNV GL ©
When will the grid actually see hydrogen?
Key findings from our “Hydrogen in the electricity value chain” position paper

Download the full report here

11 DNV GL ©
Economics – Attractive Use Cases

▪ Hydrogen use is driven by its low-carbon

value and in some cases could be more
competitive than conventional options
▪ Existing market is based on chemical
feedstocks
▪ Transportation is attractive over long haul
heavy; and uncompetitive for urban
passenger vehicles.
▪ Added value to fleet vehicles where
fuelling infrastructure is centralised/high
duty cycle

Source: Hydrogen Council - 2020

Commercial in confidence

12 DNV GL © 2 March 2020

Hydrogen production by source – DNV GL Energy Transition Outlook

▪ Hydrogen production from both gas reforming

with CCS and electrolysis.
▪ Both pathways can deliver hydrogen with
almost zero carbon footprint.

▪ Hydrogen as an energy carrier covers 4.6%

of world final energy demand in 2050
▪ Regional variations, in Europe close to 15%.
▪ 16 EJ hydrogen produced today, as industry
feedstock, from gas, coal and oil.

13 DNV GL ©
European Commission Hydrogen Strategy - July 8th 2020

‘Next Generation EU’

Covid relief will inject
750BEUR into economic
recovery. Hydrogen will
be prioritised and funded
via the EU Green Deal

Also the creation of the

‘EU Hydrogen Council’ Install: Integrate: At Scale:
6GW +40GW Self Scaling

Commercial in confidence

14 DNV GL © 2 March 2020

Global Market Overview and Recent
Developments

Magnus Killingland
Principal Consultant
Emerging Energy Technologies
DNV GL

15 DNV GL © November 2020

Some say hype,
but hydrogen has a foundation…

16 DNV GL ©
Many reasons for the great attention lately, some call it a hype…
…but it has a great foundation

Technology development is fast!

Costs
from learning bring costs down, also for
variable renewable energy as input

Ambitious strategies New taxonomies

and updated targets in several you cannot get investors,
countries and regions if it is not green, enough!

The big players are playing with green H2

Grey hydrogen players are
getting involved in green and blue hydrogen

17 DNV GL ©
The Energy Transition Outlook in Europe – pointers to the future
Drivers for more hydrogen, also connected to vRES

▪ Policies and European hydrogen strategy –

vRES will enable hydrogen
– The European hydrogen strategy was launched
this summer
– Gas demand in Europe in 2050 mainly covered by
gas from renewable sources

▪ More vRES will drive up the value of energy-

storage and increase push for solutions like
batteries and power-to-x

▪ Hydrogen is a main tool to decarbonize

hard-to-abate sectors.

18 DNV GL © Sources: DNV GL ETO2020, EU Hydrogen strategy, EU strategy for energy system integration
More than 20 countries have ambitious green hydrogen strategies

Norway China
Strategy 2020, with new 1 million FCEVs
Canada UK
roadmap expected Q1 2021 by 2030, offshore wind to
Draft strategy soon to 28M£ funding for H2.
hydrogen plans
be published, hydrogen Part of 90M£ low-
fuel as key reach net carbon package.
zero greenhouse gas A H2 strategy expected Germany
emissions by 2050 later this year Hydrogen plan, 9B€ in Japan
funding, targets 2GW by 2025, establish commercial supply
5GW by 2030. chains for 300 kt H2/yr by
2030 (820 t H2/day)
USA Netherlands
H2 program plan Government H2- France
Nov 2020: increase strategy released in Proposal is 7GW by 2030.
from 10 to 41 MMT/year June. Target of 500MW South Korea
by 2050, Biden’s climate electrolysis by 2025, Projected a national
plan goal is a Green- 4GW beyond that. demand of 5.26 Mt H2/yr by
Grey price match by Portugal 2040 (14.4 kt H2/day)
2030 Proposed 7B€ in
EU H2 investment. EOI call
6 GW of renewable attracted 74 respondents
hydrogen electrolysers (16B€); 30 were advanced
in the EU by 2024.
2x40 GW by 2030(!)
Australia
370 MAUD from national
strategy (ARENA), 70MAUD for
projects in June 2020 call.

19 DNV GL © Sources: National Energy Agencies, USDOE, BMWI (Germany), China,

The industry is evolving and working hard to contribute

EU: 1 GW
pipeline
+ 1 GW
per year
= 40 GW
in 2030 ?
EU: 280 companies
are active in the production and supply chain of electrolysers

20 DNV GL © Source: EU Hydrogen strategy

https://ec.europa.eu/energy/sites/ener/files/hydrogen_strategy.pdf
Definition of a minimum capacity of hydrogen infrastructure

8%
2% 5%

6%

3%
15%

21 DNV GL ©
Production capacity, filling stations and investments for hydrogen
infrastructure in Norway

Investments for a minimum production of hydrogen

- Hydrogen as a real alternative

- Available in all counties
- Adequate infrastructure to select
hydrogen vehicles
- Regional 2025 and National 2030
scenario Tonnes / day

- Co-location with port and industry

hydrogen demand
- Power grid integration costs
- Zero emissions targets to be
achieved in 2050 with hydrogen

22 DNV GL ©
Regional story – Towards the hydrogen economy
The Energy Transition Outlook in Europe – with existing policies

23 DNV GL ©
A clean molecule is needed

24 DNV GL ©
The low carbon hydrogen ecosystem

Hydrogen has a increased potential

CO2 & carbon Carbon
EOR
storage Chemical and biological
Hard to abate – H2 most needed Fossil gas transformation
Plastics
Biogas

Direct use
CCS

SMR
CO2 use
Food and
beverage
Re-electrification Black carbon
H2 Steel and
Green
producer metals
power Electrolysis /reformer H2 for chemical Further
synthesis industries Cement
HRS

Base Chemicals
H2 for
Mobility Chemical
methanol
Fuel cells synthesis industry
Ammonia
Rail
Agriculture
Fertilizer
Road Heating
Petrochemical
Heavy Marine Aviation
industry
duty
Synthetic fuels Refining biocrudes
for drop-in

25 DNV GL © HRS: Hydrogen refueling station

New projects and roll out plans for a
critical mass for infrastructure

26 DNV GL ©
A lot is happening on many levels

• The figure shows a possible European hydrogen backbone

in 2040 with:
• existing and new pipelines for hydrogen transport,
• potential for storage (salt caverns or aquifers),
• industrial clusters for hydrogen off-take.

• Note how several industrial clusters, storage opportunities

as well as pipeline connections are located near the
shoreline, making them a good fit for hydrogen produced
from offshore wind.

27 DNV GL © Sources: European H2 backbone initiative, IEA The Future of Hydrogen

Value chains with technology solutions for offshore wind to hydrogen

28 DNV GL ©
Backbone with pilot 50-100 MW electrolysers with on- and offshore wind

Eemshaven Nukleus – Public Hydrogen Grid Germany

29 DNV GL ©
Private and confidential
Costs and carbon footprint

30 DNV GL ©
Cost and carbon footprint comparison – the new benchmark for investments?
Levelized cost of hydrogen against carbon footprint

New EU Taxonomy? CERTIFHy EU Taxonomy

4.50

4.00

3.50

3.00
LCOH ($/kg H2)

2.50

2.00

1.50

1.00

0.50

0.00
-6.00 -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00

Carbon footprint (kg CO2/kg H2)

31 DNV GL ©
New frameworks are emerging – what is green regarding emissions?

5.8 kg CO2eq/kg H2 kg CO2eq/kg H2

2.2 kg CO2eq/kg H2

EU Taxonomy for sustainable CERTIFHy threshold EU Taxonomy for sustainable

finance for manufacturing of for low-carbon hydrogen finance for manufacturing of
taxonomy eligible hydrogen Set at 36.4 gCO2/MJ which taxonomy eligible hydrogen
electricity at or below 100 gCO2e/kWh equals 4.4 kgCO2 per kg H2. new proposal?

26 World electricity mix

kgCO2eq/kgH2 14 EU electricity mix
kgCO2eq/kgH2

The well-to-gate greenhouse gas emissions for the EU electricity mix are 14 kgCO2eq/kgH2 (based on 2018 EUROSTAT data, 252 t CO2eq/GWh), while the world’s average electricity mix would result in
32 DNV GL © 26 kgCO2eq/kgH2 (IEA, 2019). Well-to-gate greenhouse gas emissions of steam reforming of natural gas are 9 kgCO2eq/kgH2 (IEA, 2019). The well-to-gate greenhouse gas emissions of steam
reforming of natural gas with CCS with 90% capture is 1 kgCO2eq/kgH2, and 4 kgCO2eq/kgH2 with a capture rate of 56% (IEA, 2019)
Hydrogen Technologies

Miguel Sierra
Senior Energy Storage Consultant
DNV GL

33 DNV GL © November 2020

Demand for hydrogen as an energy carrier

34 DNV GL © November 2020

Hydrogen production by electrolysis

Alkaline electrolysis PEM electrolysis High Temperature electrolysis

H2 O2 H2 O2 H2 O2

OH- H+ O2-

• Mature • Compact • In development

• Long life time • No chemicals • Input is steam
• Non precious metals • High hydrogen purity • Can produce syngas
with steam and CO2
(H2 + CO)

35 DNV GL © November 2020

Hydrogen compression

Reciprocating Rotary Centrifugal

• High compression ratio • Rotation of gears, • High flow rates

• Available for small lobes, screws, vanes • Moderate compression
volume applications ratios
• Choice for pipelines

https://www.energy.gov/eere/fuelcells/gaseous-hydrogen-compression

36 DNV GL © November 2020

Hydrogen storage

Geological storage Storage tanks Metal Hydrides

• Pressure vessel:
• Salt caverns • In development
cylinders, tubes, tanks
• 50-150 bar • Low pressure (<10 bar)
• Typically steel
• Depleted oil and gas • Magnesium and others
• Composites for higher
fields • Heat input/output
pressures (mobility)

37 DNV GL © November 2020

Hydrogen transport

- Tube trailers and gas cylinders for distribution, retail Short distances

- Blend with natural gas

Regional, National
- 100% Hydrogen: refurbish existing networks or new pipelines

- Ammonia (NH3) - Liquid hydrogen

International maritime
- Methanol (CH3OH) - Liquid Organic Hydrogen
trade
- LNG (CH4, methanation) Carriers (eg. Toluene)

38 DNV GL © November 2020

Example: Transport

Heat
Oxygen
Water

H2 H2 H2 H2
Renewable power
Compressor Storage
Electrolyzer Hydrogen Hydrogen
Refuelling Fuel Cell Bus
(50-60 kWh/kg H2) Station 400 km / 250 miles
40 kg / 90 lb H2

You will need approximately 2000 kWh to produce 40 kg of hydrogen (without compression costs), so

A 2 MW electrolyser running for 1 hour

and about 360 litres of water (stoichiometric)

39 DNV GL © November 2020

Example: Feedstock

Heat
Oxygen
Water

H2 H2 H2 Large ammonia
plants can require
Renewable power several 100 tn of
Compressor Storage
hydrogen per day
Electrolyzer Refineries
Ammonia plants
(50-60 kWh/kg H2) Steel plants

You will need approximately 50.000 kWh to produce 1 tn of hydrogen, so

A 50 MW electrolyser running for 1 hour

and about 9 m3 of water (stoichiometric)

40 DNV GL © November 2020

Nel Hydrogen
Raluca Leordeanu
Vice President Business Development
 THIS IS NEL

Nel: pure hydrogen player for 90 years

~400 Employees, Listed (NEL.OL)

PEM electrolysers Alkaline electrolysers Hydrogen refueling stations

Wallingford, USA Notodden/Herøya, Norway Herning, Denmark

Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: 50+

Production capacity: >50 MW/year Production capacity: Production capacity: 300 HRS/year
40 MW/year → 500 MW/year (~2 GW/year)
History: 23 years History: 16 years
History: 90 years

Technology Neutral, Nel offers what suits your project most from 10kW to 100+MW

42
 HISTORICAL CONTEXT

H2 production technology

COAL GASIFICATION

WATER ELECTROLYSIS
1800’s – 1920’s
GAS REFORMING
1920’s – 1960’s

1950’s – TODAY H2 ECONOMY?

2015 –

43
 WORLD’S LARGES T EV ER BU ILT ELECTROLYSIS PLANT

Green Ammonia (Rjukan, Norway - 1929-1988)

• 37,000Nm3/h - 79’850kg/day 167MW

• Green power directly from Hydroelectricity
• Developed for large scale ammonia production
• Running on constant flow

44
 LARGE SCALE

Largest electrolyser plant in operation

to date
• Company:
OCI Malaysia
• Industry:
Polysilicon
• Capacity:
2 500 Nm3/h + 3 000
Nm3/h
• Energy:
Total 25 MW
• Source:
Hydro Power

45
 HYDROGEN PRODUCTION

Hyundai trucks in Switzerland

Hydrospider: 1ST Nationwide 1,600 Hyundai FC Truck Network (Niedergösgen, Switzerland – 2020) • 2 MW PEM electrolyser as
part of new 30 MW
framework contract
represents phase 1 of the
60 – 80 MW
• MC400 Proton® PEM –
300T H2/year
• H2 Energy is working
together with partners to
establish a nation-wide
network of hydrogen
stations and hydrogen
supply chain in
Switzerland

46
 FOSSIL-FREE S TEEL IN S WEDEN

Supplying electrolysers to HYBRIT

Supplying electrolysers to the currently most advanced fossil free steel project • Purchase order for 4.5 MW
alkaline electrolyser for use
in pilot plant for fossil free
steel production
• Hybrit Development AB
(HYBRIT) is a joint venture
owned equally by SSAB,
LKAB and Vattenfall
• The steel industry accounts
for 7% of global and 10% of
Swedish CO2-emissions
• Pilot plant will operate in
Luleå, Sweden from 2021 –
2024, with target of full-
scale implementation by
2035

47
 PRODUCTION AND FU ELING

Supporting hydrogen production and

fueling technology for Nikola
Received biggest purchase order for electrolysers in 2020
• Partnership with Nikola, global
leader in zero-emission
transportation and infrastructure
solutions
• Received purchase order of USD 30
million for >85 MW alkaline
electrolysers related to
development of world’s first 8
ton/day hydrogen fueling stations
• Electrolysers will primarily be
delivered from new electrolyser
mega-factory currently under
development in Norway
• Purchase order for associated
station equipment expected when
Nikola has firmed up exact station
locations

48
 GREEN HYDROGEN IN NORWAY

Signed letter of intent (LoI) with

Statkraft
Up to 50 MW electrolysis to support fossil free recycling steel production • Statkraft, the largest renewable
energy company in Europe partnered
up with Celsa Armeringsstål (Celsa), a
leading steel producer
• Facility in Mo I Rana which produces
reinforced steel from recycling of scrap
metal
• Current production: 700,000 tons/year
(equal to two Eiffel towers per week)
• By exchanging natural gas with
hydrogen, CO2-emissions can be
reduced by >60%

• Nel and Statkraft has entered into a

LoI for 40 – 50 MW of electrolyser
capacity
• EU funding application sent
• Norway unable to support - should
apply for IPCEI

49
 GREEN FERTILIZER IN S PAIN

Selected by Iberdrola as preferred

supplier for a 20 MW project
In final negotiations to deliver a 20 MW PEM electrolyser solution to Iberdrola • Iberdrola, one of the largest
electricity utilities in the world, has
together with a world-leading
fertilizer manufacturer Fertiberia
launched a project to establish the
largest green hydrogen plant in
Europe
• Project includes 100 MW
photovoltaic plant, a 20 MWh
battery and a 20 MW electrolyser
• Will use hydrogen to produce green
fertilizer commencing in 2021
• Nel in final negotiations to deliver a
20 MW PEM solution for the first
phase
• Contract award is subject to mutual
agreement on the final terms and
conditions, technical details, and
board approval

50
number one by nature
DNV GL Competence

Jason Goodhand
Global Storage Segment Leader
DNV GL

52 DNV GL © November 2020

Hydrogen expertise in DNV GL
We provide support across your entire project or product life cycle

Innovation Feasibility and Concept Secure Lifetime Extension and

Strategy R&D Design and Construction Operations
and Demos Selection Funding Decommissioning

Techno-economic Techno-economic
Strategy development Design verification (?)
feasibility studies feasibility studies

Roadmap services
Applied research and development,
including experimental setups
Business case development Owner’s or lender’s Asset repurposing assessment
engineer
System integration studies

Explosion experiments and research Location assessments

Initiate and coordinate joint industry Prepare the project information

Performance validation
projects and/or consortia memorandum

Technology qualification Subsidy analysis Process optimization

Recommended practice & H2 incident and accident

Support funding application(s)
standards development database (HIAD)

Re-use of existing assets for H2-

purposes

We provide independent Project and Program Management Services across the entire lifecycle of your project/asset

53 DNV GL © November 2020

Questions? Please contact us at
www.dnvgl.com/contact/storage

Jason Goodhand Miguel Sierra Magnus Killingland

Global Storage Segment Leader Senior Energy Storage Consultant Principal Consultant, Emerging Energy Technologies
Jason.Goodhand@dnvgl.com Miguel.Sierra@dnvgl.com Magnus.Killingland@dnvgl.com

www.dnvgl.com

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