Green Hydrogen Turns On

GREEN HYDROGEN TURNS ON

Even as the pace of new investment commitments for green hydrogen projects slowed towards the end of last year, a number of green hydrogen plants ramped up production. Some of these projects are small but still worth noting because they validate the technology, advance the learning curve, and contribute to a virtuous cycle of adoption. Examples over the past few months include:

Ovako (September) launched a 20MW electrolyzer, the largest currently operating in Sweden, to produce green hydrogen that will be used in a steel recycling plant.

Repsol (September) launched a 2.5MW electrolyzer at the Petronor Industrial Center in Biscay, Spain to produce hydrogen for use in its own refinery as well as local heavy-duty transport.

HIF Global (November) announced its first commercial shipment of 24,600 liters of green hydrogen based synthetic gasoline (“e-fuel”) from Chile to the UK for use in Porche’s Experience Centers and the Porsche Mobil 1 Super Cup.

Lhyfe (December) launched a wind-powered 5MW plant in Brittany. Hydrogen will primarily be supplied to fuel local buses and passenger ferries.

Lhyfe (December) launched another renewable PPA-powered 5MW plant in Occitanie, again with a primary intent of supplying hydrogen for local commercial transport.

Plug Power (January) launched operations of its months delayed 40MW liquid hydrogen plant in Georgia. Billed as the largest electrolytic liquid hydrogen plant in the US, the facility is operating at about 1/3rd of its 15 tons per day capacity with full capacity anticipated for late February.

Production will continue to come online in 2024 and much larger projects such as Delta Aces and NEOM are scheduled to begin operations in 2025/26. However, given the slowdown in 2023, a key question is whether the pace of new projects moving past final investment decision and into construction phase will pick up again. Encouragingly, FEED activity took a big jump in 2023 according to recent Hydrogen Council data.  Perhaps the combination of lower long-term rates, slowing inflation, publication of 45V rules and adoption of RED III in Europe, among other factors, will help more of those FEED projects get across the finish line as 2024 progresses.