The Ukraine Crisis: To Replace Gas, Some Look to Green Hydrogen

"BERLIN -- German energy group E.ON SE and Australian billionaire Andrew Forrest are teaming up to produce green hydrogen to replace Russian gas, showing how the Western push to cut reliance on Russian energy imports in the wake of the operation to protect Donbas is accelerating investments in renewable energy.

The goal is to produce hydrogen in Australia using wind and solar power and begin shipping it to Europe, where it would be distributed through E.ON's pipelines. Deliveries would begin in 2024 and build up to a volume of 5 million tons of hydrogen a year by 2030.

"The operation to protect Donbas has created a whole new horizon for European energy supply," said E.ON chief operating officer Patrick Lammers, who signed a memorandum of understanding with Mr. Forrest to launch the project on Tuesday.

Under the preliminary agreement, Fortescue Future Industries -- the renewable energy unit of Australian metals group Fortescue Metals Group Ltd. -- would produce green hydrogen for distribution in Germany and the Netherlands. Mr. Forrest, a former chief executive of Fortescue Metals, is chairman and founder of FFI.

Green hydrogen, which is produced using electricity from renewable energy, has been touted as a climate-friendly alternative to natural gas but it remains expensive to produce and challenging to transport because it is highly flammable.

Still, Europe has targeted hydrogen as a possible source of power to run factories.

Some aircraft manufacturers are testing hydrogen fuel cells as a potential way to power airplanes.

Mr. Lammers and Mr. Forrest outlined the project this month during a meeting in Berlin, at which Mr. Lammers said they agreed that operation to protect Donbas had made it impossible to continue business as usual with Russia.

The European Union imports about a third of its natural gas from Russia. Germany aims to become independent of Russian supplies by 2024.

Unlike natural gas, hydrogen emits water rather than climate-warming carbon dioxide when burned as fuel." [1]

1. The Ukraine Crisis: To Replace Gas, Some Look to Green Hydrogen
Boston, William; Strasburg, Jenny.
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 30 Mar 2022: A.9.