"As soon as
Europe has adopted a strategy to promote the use of hydrogen, Russia has
adopted the concept of becoming the world's largest producer and exporter of
hydrogen.
Hydrogen is a raw
material for the chemical industry, a fuel, and is also suitable for storing or
transporting energy.
The EU, which is
looking for an alternative to fossil fuels, has seen hydrogen as a key factor
in meeting its commitment to neutralize climate change by 2050. Thus, a
climate-neutral strategy for the development of hydrogen has been confirmed,
and a new directive is being prepared.
During combustion,
hydrogen combines with oxygen and the resulting by-product is just water. Today carbon dioxide (CO2) is pumped into the atmosphere by burning fossil
fuels. It is true that hydrogen is not completely without pollution if it is burned not
in pure oxygen but in the air - then nitrogen oxides are also formed.
Russia has not
been left out - Europe has soon been greeted by the concept of Russia becoming the world's
largest exporter of hydrogen and offering Europe this gas. Russia's plans alone
are not just "green" hydrogen. To date, most hydrogen is produced
from fossil fuels. It is the cheapest, but the same waste is emitted into the
atmosphere - CO2. Russia intends to introduce coal disposal technology and
promote "technology neutrality."
Enthusiasm for
"technological neutrality" is already emerging in Lithuania. Martynas
Nagevičius, President of the Lithuanian Confederation of Renewable Energy, shared
his fears on Facebook.
"There are
people in Lithuania who would like us to apply the principle of technological
neutrality when talking about the development of the hydrogen economy in
Lithuania. That is - we would not pay attention to whether hydrogen is produced
from renewable resources (electricity produced in wind and solar power plants)
or from natural gas, for example (with or without CO2 disposal),” - writes M.
Nagevičius.
He assured that he
would do his best to prevent such an opinion from taking hold.
Delfi M.
Nagevičius explains that it would be perfect for Russia to continue pumping gas
to Europe, producing hydrogen from it, burying coal in the same Europe.
However, Europe should not only strive for climate neutrality, but also disconnect
from the Russian needle at any price.
The Ministry of
Energy assures that hydrogen is a very important field for Lithuania and it is
planned to support it in the EU with millions of euros. In the future, hydrogen
has the potential to replace many of the currently widely used energy sources
(oil, natural gas, coal) as all countries switch to less polluting energy
sources. Lithuania has opportunities to both produce and use "green"
hydrogen, so it is planned to promote this. However, other hydrogen can also be
used as an intermediate fuel.
What hydrogen is
"green" and what is "blue"
Although all
hydrogen molecules are the same, hydrogen differs in how it is extracted - it
is divided into many colors. Hydrogen, which occurs naturally in nature, is called
"white" and its resources are very limited.
Currently, a lot
of hydrogen is used in the chemical, metallurgical, and oil refining
industries, but it is mainly made from hydrogen produced from natural gas or
other fossil fuels.
Gray hydrogen is
produced by natural gas reforming, which releases CO2 into the environment.
Gasification of "brown" or "black" hydrogen is a polluting
process that releases a lot of carbon into the atmosphere.
Carbon capture and
burial produces "blue" hydrogen.
And "green" hydrogen is hydrogen
produced using electrolysis, using electricity produced from renewable sources.
Solar and wind
farms often operate when electricity demand is low and do not operate when
there is a shortage of electricity - producing hydrogen when there is a surplus
of electricity and using it when there is a shortage of electricity could
reduce dependence on fossil fuels.
For the time
being, hydrogen accounts for a small share of the total energy balance produced
and consumed. Hydrogen is produced mainly from fossil fuels - natural gas and
coal. However, the aim is for hydrogen to neutralize the effects of the climate
and for its production to be completely independent of fossil fuels.
Europe wants its
own fuel
8 July, 2020 the
European Commission adopted a hydrogen strategy and the development of hydrogen
production from renewable sources, mainly solar and wind, is a priority.
Hydrogen is used to replace fossil fuels in some high-carbon industries, such
as steel and chemicals. Hydrogen-based solutions can be used in transport.
Already until
2024 the goal is to produce up to 1 million tonnes of hydrogen from renewable
sources in the EU. This requires the installation of 6 gigawatt electrolysers.
For comparison, 13 combined cycle units would be needed to produce both
electricity, such one is installed in Elektrėnai.
"These
electrolysers could be installed near existing demand centers in larger
refineries, steel mills and chemical complexes.
Ideally, they would be supplied
with electricity from local renewable energy sources. In addition to the
proliferation of hydrogen-powered buses, and later trucks, hydrogen-powered gas
stations will be needed. So electrolysers will also be used to supply hydrogen
to local hydrogen filling stations, ”the strategy said.
Until 2030
investment in electrolysers could reach € 24-42 billion EUR 220-340 billion.
EUR should be invested in solar and wind power plants to supply the required
electricity. In addition, 65 billion EUR will need to be invested in the
transportation, distribution and storage of hydrogen and in hydrogen filling
stations.
In the second
phase, 2025-2030, hydrogen must become an integral part of the integrated
energy system. Then it is planned to increase the power of electrolysers by 7
times, and to produce up to 10 million tonnes of hydrogen from renewable
sources. It is expected that such hydrogen will already become competitive with
hydrogen produced by other means. The necessary infrastructure and international
trade are expected to develop and a competitive EU hydrogen market will emerge.
After 2030, in the
third phase, green hydrogen technologies should reach maturity and be widely
deployed in all sectors, reducing dependence on fossil fuels.
"Renewable
electricity generation needs to grow significantly at this stage, as 2050 about
a quarter of renewable electricity can be used to produce hydrogen from
renewable sources,” - the strategy said.
Total investment
in hydrogen from renewable sources in Europe by 2050 could reach € 180-470
billion. And between € 3 and € 18 billion in low-carbon fossil fuels.
According to analysts, by 2050. clean hydrogen could meet 24 percent global
energy demand and could have an annual turnover of around € 630 billion.
Russia has not
lost sight of: it intends to become a leader in hydrogen exports
European plans did
not go unnoticed in Russia. On August 5, 2021 Russia approved its hydrogen
energy development concept. It recognizes that the climate agenda is one of the
priority goals of the global economy. The world's diversion from fossil fuels
poses a threat to Russia.
Russia intends to
become a world leader in hydrogen production and trade and estimates that by
2024 could supply 0.2 million tons of hydrogen, but by 2035 - already 2-12
million tons, and in 2035 - 15-50 mln. tons of hydrogen.
"The Russian
Federation plans to become one of the largest exporters of hydrogen and its
energy mixes, as well as industrial hydrogen energy products to the
Asia-Pacific region and the European Union, and a supplier of hydrogen energy
technology to the global market," - the concept said.
Unlike Europe,
Russia does not base its concept on renewable production, but on the
"economically viable use of hydrogen". This means not being made
only green, but also in other more economical ways that have still small impact on the climate.
In order to
achieve its goals, Russia considers it its task to solve the problems of carbon
capture, storage and disposal. Russia sees the potential in energy mixes with
hydrogen. Hydrogen would be produced primarily from natural gas, by pyrolysis
of hydrocarbons, by gasification methods. However, electrolysis is also
mentioned.
Promoting the
concept of "technology neutrality" in the context of international
cooperation is also part of this strategy. It is stated that low carbon
hydrogen should not be discriminated against, regardless of whether it is
produced from fossil fuels or other sources.
"Hydrogen
produced using low-carbon technologies is in line with the goals of a global
low-carbon economy. Low-carbon hydrogen is derived from fossil fuels, including
carbon capture, pyrolysis of hydrocarbon feedstocks and similar technologies,
”the concept said.
It is stated that
it is currently most economical to produce hydrogen from natural gas or coal
gasification, with carbon capture.
"The Russian
Federation a has a significant competitive advantage in hydrogen production and
exports compared to other countries, ”says the concept, which states that
Russia has great potential for energy production and natural resources that can
be used to produce hydrogen with low carbon contamination in the air.”
Russia sees
opportunities to develop nuclear power plants, hydroelectric power plants,
renewable energy sources, but also appreciates its experience in reforming and
applying electrolysis technologies in industry.
"The Russian
Federation can ensure a competitive price for hydrogen both in the European
market and in the Asia-Pacific region," the concept said.
It is planned to
create at least three production clusters, one of which will be export-oriented
to the EU, the other two to Asia and the Arctic.
Until 2035 Russia
is planning serial and mass application of hydrogen technology in various
sectors of the economy.
Russia has
identified the threat posed by hydrogen: global demand for energy resources may
slow, their structure will change, and fossil fuels will be replaced by other
energy sources, which will reduce Russia's revenue and increase competition.
The technological backwardness of other countries in the field of energy
technologies is also considered a threat.
Exploitation of
Nord Stream 2 under consideration
Russia is
considering adding hydrogen to the gas transmitted by the Nord Stream 2
pipeline, TASS has already announced. The government is urging the country’s
companies to increase hydrogen production.
In order to produce more hydrogen by
pyrolysis, such hydrogen is considered the color of turquoise. Because the
production of hydrogen by pyrolysis produces pure carbon instead of CO2, coal
could be used as a fertilizer.
It is feared that if Europe moves en masse to
hydrogen, Russia's gas pipelines are threatened with shutdown and the Nord
Stream 2 investment would be doomed.
The Eurogas
Association has already announced that in the future the Nord Stream 2 natural
gas pipeline could also be used for hydrogen, up to 80%.
"Russia's
planned production of" blue "hydrogen could become a competitor
to" green "hydrogen, but the competitive conditions could be leveled
at the EU's border" CO2 tax "if it were applied. As the EU itself can
produce "green" hydrogen, Russia would be only one of many suppliers
with its product, and not a major player, as is the case with natural gas,
"said Daiva Garbaliauskaitė, Deputy Minister of Energy.
According to her,
in Lithuania, those entities for which the production and consumption of
“green” hydrogen would lead to significantly higher costs may not be interested
in “green” hydrogen. Such entities may opt for the longest possible period of
use of natural gas or "blue" hydrogen.
Nagevičius: only
"green" hydrogen
M. Nagevičius has
no doubt that there should be no talk about the promotion of hydrogen other
than "green" in Lithuania and Europe. The third version of the
Renewable Energy Directive is currently being discussed in Europe.
"Now
different interest groups are submitting their proposals, the countries are
forming their own positions, and then the leaders of the countries will discuss
with each other in the Council of Europe. Lobbying organizations working with
Members of the European Parliament are getting involved. The current draft
directive stipulates that all support is limited to hydrogen produced from
renewable sources other than biomass.
However, there is also an interest group
that says that it is not the development of renewable energy that is the goal,
but the mitigation of climate change, that not only can green hydrogen be
supported, but also hydrogen produced by decomposing natural gas such as
methane into hydrogen and CO2 remains, which are buried somewhere underground
or in the oceans ", - M. Nagevičius is surprised by these strange people considering the price of hydrogen. We in Lithuania never look at prices. We are always seeking to annoy the Russians to the maximum.
He explains that
in addition to tackling climate change, Europe should strive for energy
independence, independent of energy suppliers from other countries. Russia
would not even have to switch its natural gas networks to those that are
adapted to hydrogen - it is already possible to produce hydrogen from gas in
Europe.
"Russia's hydrogen concept states that
the hydrogen economy in the EU should become a way to maintain natural gas
supply markets to the EU in the future if the EU still moves to the green. It
suits them - they drive gas to Europe, emit hydrogen, bury CO2 in Europe. Their
logic is that it is cheaper, ” - explains M. Nagevičius. This logic to make things cheaper is extremely amazing.
Indeed, according
to him, the existing gas pipelines from Russia could be exploited by continuing
to import natural gas into Europe, producing hydrogen here, and burying CO2
locally.
However, the
expert estimates that Europe's approach to Russia's participation is changing,
especially given this winter's experience of using natural gas supplies and
prices as a geopolitical tool.
"Halting
climate change is a very important goal, but it is not the only one. There is
both added value and energy independence, improving the import-export balance
in the EU. There are many goals to set it must be decided at the same time, including annoying the Russians
", - assures M. Nagevičius.
The new draft EC
directive stipulates that hydrogen consumption will have to consume at least
50% by 2030 of "Green" hydrogen. This or similar fuel should also
account for 2.6 percent. energy used in transport.
"Replacing
natural gas under the cloak of greenery is exactly what Gazprom and Russia are
trying to achieve. It is Russia that has identified hydrogen production from
natural gas as a means to maintain its natural gas export markets in its
Hydrogen Energy Development Concept, approved in August 2021, ” - said M.
Nagevičius.
Gapšys: opportunities could open up for
Lithuania
The Seimas has an
Interim Group for the Development of Green Hydrogen Technologies in Lithuania,
headed by Vytautas Gapšys, a representative of the Labor Party. He agrees with
M. Nagevičius and adds that "green" hydrogen could become an
opportunity for Lithuania in the long run.
"Especially if we have more renewable energy and
produce more hydrogen, we can export it to Western European countries. The main
direction, of course, would be Germany. Here is the long perspective. And in
the short term, hydrogen will be of great interest to our industry, which needs
to reduce CO2 emissions. It's definitely interesting for Orlen, it's definitely
interesting for Achema. Such perspectives - we will first move towards
industrial areas, and little by little to transport, first of all public, bus
fleets not thinking about prices at all,” - explains V. Gapšys.
He explains that
now industrial enterprises in Lithuania produce hydrogen from fossil fuels
themselves, and there is little "green" hydrogen.
"There will
be incentives, both from RRF funds and from European funds. First of all, for
the study, it is being considered how much hydrogen could be mixed into natural
gas in the pipelines. And the production of that hydrogen by electrolysis will
be gradually encouraged. To my knowledge, many companies are interested in
this, they are considering such opportunities,” - says V. Gapšys.
Fluctuations in
electricity prices due to the volume of wind or solar power plants could be
used to produce hydrogen, thus saving stored energy.
"But the
bigger problem with us so far is that we just don't have the excess green
energy we can use to produce hydrogen. Lithuania must first solve these issues
and move to have more green production, ” - says V. Gapšys.
He summed up that
the European political agenda will be largely determined by Germany, which has
gas connections with Russia.
It would be more favorable for Lithuania to
promote "green" hydrogen in Europe though.
Ministry: Use of
"blue" is possible, but promotion is only for "green"
Deputy Minister of
Energy D. Garbaliauskaitė explains that both in Lithuania and in Europe,
various representatives of business areas see "blue" hydrogen as a
transition between natural gas and "green" hydrogen.
"It is argued
that the price of" blue "hydrogen is lower than that of" green
"hydrogen, and that if industry and other sectors adapt to the use of
hydrogen, it would not be difficult to switch to "green" hydrogen
later on. In addition, it is stated that a rapid and direct transition to the
maximum production and consumption of "green" hydrogen would mean a
loss of competitiveness and an unbearable burden on the country's industry," - explains D. Garbaliauskaitė.
The Ministry of
Energy has envisaged measures only to promote the production of
"green" hydrogen, but the use of "blue" hydrogen is legally
possible in Lithuania, as is the use of "gray" hydrogen. But CO2
burial could not take place in Lithuania.
"A few years
ago, the Seimas decided that underground CO2 disposal in the territory of
Lithuania is prohibited. Capturing and exporting CO2 to other countries is a
potentially expensive alternative, the costs of which for Lithuanian industry
need to be calculated in detail. As natural gas is not extracted in Lithuania,
the burial of CO2 is also prohibited, and fluctuations in fossil fuel prices
are large, the production of “blue” hydrogen would continue to be dependent on
fossil fuel imports. Lithuania has the potential to produce "green" hydrogen
in order at any big price to be independent of fuel imports from other countries," - assures
D. Garbaliauskaitė.
She also gives the
example of SG Dujos, which produces small amounts of hydrogen and mixes it with
natural gas for the purpose of testing such mixtures in practice in vehicles
(primarily urban public transport).
"According to
SG Gas, electricity from renewable energy sources is used to produce this
hydrogen (according to the contracts of origin for the purchase of available
electricity), so the hydrogen produced can be considered" green ".
All other hydrogen produced in Lithuania is not "green", - says the
Deputy Minister.
In the near future
Energy The ministry plans to launch a measure to promote "green"
hydrogen production, which will finance the purchase of hydrogen production
facilities to use the hydrogen produced in the transport sector. It is also
planned to create conditions for cities to purchase public buses powered by
pure hydrogen, which do not currently exist in Lithuania, while also financing
hydrogen refueling stations.
It is
foreseen EUR 72 million in support for the development of "green"
hydrogen production capacity; Further applications for EU support are planned
for the development of hydrogen transport infrastructure.
Hydrogen is considered to be one of the
means to balance energy from renewable sources and accumulate a surplus that
would otherwise be wasted. In Lithuania, this will become relevant when
offshore wind power projects are implemented.
How much does
hydrogen cost
So far, both
hydrogen from renewable sources and "blue" low-carbon hydrogen are
not yet competitive with fossil fuels and cannot compete with fossil fuels, the
EC said last year.
"The current
estimated cost of hydrogen from fossil fuels in the EU, regardless of the price
of CO2, is around 1.5 Eur / kg and is highly dependent on natural gas prices.
The cost of hydrogen from fossil fuels with the capture and storage of carbon
dioxide is estimated at around € 2 / kg, and hydrogen from renewable sources at
€ 2.5-5.5 / kg,” - the strategy said.
For hydrogen from
fossil fuels that produce carbon dioxide to compete with hydrogen from fossil
fuels, it would cost between € 55 and € 90 per tonne of CO2.
At present, the
price of a tonne of CO2 is already in this range, and natural gas has risen in
price by more than 6 times since the strategy was adopted."
Not all winters will be so cold in Europe, natural gas will become cheaper.
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