The EU increases its commitment to the gas of the future: 3,000 million to buy green hydrogen

It is the smallest molecule in nature and its green version lives up to that size: you have to look almost with a magnifying glass where green hydrogen is generated in Europe. His presence is, to this day, anecdotal in the energy universe. And yet, this week the president of the European Commission, Ursula von der Leyen, assured: “Hydrogen can change the rules of the game for Europe.” The objective of Brussels is to get from the niche that we have now to a massive market. On Tuesday, the creation of a European Hydrogen Bank was announced. Endowed with 3,000 million euros, it will serve to build this new dimension. That money would give to acquire 10 million tons of this fuel of renewable origin. Problem: There is practically no green hydrogen production in the EU. That is precisely what you want to change. “It’s a type of problem: what comes first, the chicken or the egg? Everyone wants to make green hydrogen. There are many interested companies, but in the end you need someone to buy it from you. There are some projects that don’t come out for this reason “, explains Eugenio Trillo, director of the Lean Hydrogen consultancy. “What the European bank does is marry production with consumption.” This push is fundamental, according to this expert, so that more projects arise and what are known as ‘economies of scale’ are generated: greater production, lower cost. Who buys this green hydrogen from me? The difference, as always, is in the price. The economy already makes heavy use of hydrogen in its industrial processes. The difference is that to get that H2 molecule, it is contaminated. That is why it is called ‘grey hydrogen’. The green version is the one that achieves the same result, but with renewable sources. Companies pay for the gray version of hydrogen one euro 1 euro per kilo. But we already know that it pollutes. The green one, let’s say organic, costs three or four euros per kilo. It needs a photovoltaic or wind power plant to produce. “The Hydrogen Bank will absorb that difference of two euros. The company will continue to pay 1 euro per kilo but it will be green hydrogen. The producer will receive 3 euros per kilo,” explains Trillo. This mechanism — a kind of subsidy that was also announced in the US — will make projects linked to the industry more attractive. “It is easy to find a place for green hydrogen in industrial and chemical plants where there is very large consumption of this molecule,” says this expert. Iberdrola’s project with Fertiberia in Puertollano (Ciudad Real) is an example of this type of alliance. Right now it is the largest plant in Europe. A solar plant near the industry generates enough electricity to produce green hydrogen, which is then used to make CO2-free fertilizers. It is expected that with the creation of the bank this type of projects will multiply. The scale of the facilities and the development of more technology will allow prices to be reduced until the gray version is equal to the green version. We have already seen this reduction in prices in other renewable energies: the costs of photovoltaics have been reduced by 90% in a decade. What else can it be used for? Hydrogen has many more applications: it is also a fuel itself. It can replace gasoline and diesel. “Hydrogen deployment is expected to be very important in transport: trains, buses, exchanges… Above all, in long-distance mobility because it allows greater autonomy,” explains María Concepción Paz Penín, director of Cintecx at the University of Vigo. In the city of Barcelona there are already eight hydrogen-powered buses and it is expected that there will be up to 60 in the coming years. It can replace natural gas in industry. “In many companies, thermal consumption is very high and almost all of it is based on gas. With the crisis we are experiencing, it is an urgent need to join forces. Hydrogen is an opportunity,” says Martin Ibarra, head of the Navarra Government energy transition. The complement of renewablesHydrogen is a very abundant molecule but it does not travel alone. In order to separate him from his partner, a power source is needed. The wind energy that may be left over on a very windy day, instead of losing it, can be used to isolate hydrogen from water (H2O). Stay with the H2 and release the oxygen into the atmosphere. The gas can be stored to either be injected into the national grid or saved for when it is necessary to generate electricity. “Promoting hydrogen is promoting renewables. It makes no sense without an associated wind or photovoltaic plant,” argues Trillo. This is where one of Spain’s strengths lies: we already have many renewables and the goal is for 70% of electricity to be generated from green sources by 2030. We are going to have the capacity to produce all the hydrogen that we will need and we will have plenty Investors and the European Commission itself predict that we will become a major exporting country. One in five projects worldwide choose Spain. Great news for SpainThe @European Commission today announced the creation of a European Hydrogen Bank 🇪🇺 and 3 billion investment🇪🇸 We are a global leader in renewables and the main European investor in green hydrogenThis was recently recognized by @vonderleyen ⬇️ pic.twitter .com/RpI8KIXG9c— Ecological Transition and Demographic Challenge (@mitecogob) September 14, 2022