RFNBO Hydrogen

Hydrogen & its Derivates

The molecule Hydrogen as a clean energy carrier plays an important role in making the Europe’s heavy and chemical industries more sustainable, in achieving global climate goals. That is why companies, national governments and the European Union are investing many billions over the next decade in developing the hydrogen economy and building a hydrogen and derivatives transport infrastructure.

The greatest potential of hydrogen is seen in de-carbonization, as a substitute for traditional fossil energy sources, and in decarbonising hard to abate sectors and its use in innovative metal-making and chemical processes, both as an energy carrier and especially as a chemical element. Depending on its source, hydrogen has different colours in its name. It is often popularly called ‘green hydrogen’, obtained exclusively from renewable energy sources (associated with the colour green). However, the regulatory framework has a more stringent definition, compliance with which is crucial, and features incentives to economically stimulate the hydrogen market renaissance.

Towards Final Investment Decision

With today’s volatile energy, emission certificates and material prices developing, various possible applications are being investigated under high pressure and the demand for renewable electricity and low-carbon hydrogen and its individual marginal costs are being determined. The cornerstone of these initiatives/projects is to establish a solid business case, in which all key influencing parameters such as regulatory, market incentive mechanism, government approval, support welfare, plant construction approval, project risks, stakeholder relations and other boundary conditions are included. The complexity of this questioning, taking the threshold of the ‘Final Investment Decision’, for many projects in the development phase is given challenge.

Implementation

In project implementation phase, besides the well-considered selection of electrolysis technology and supplier and possibly the technology licence required for the associated synthesis plant, is the facilitation of production under a varying renewable electricity profile. Some 50 suppliers spread around the world are currently building new Giga electrolyser production capacities to enable the construction and operation of large-scale water electrolysis plants. With genuine industrial operating experience over longer operating times, development towards offshore hydrogen production can then be unlocked.

Business Models

At present, predicted sales volumes and potential incremental costs still show a wide variation with hydrogen strategies and political ambitions. At CARNEADES, we see the complexity and opportunities in the new hydrogen business models:

• Different market participants from different first sectors have to work together
• In the current phase, national or even multi-national funding and its activation plays a central role.
• Consideration of the individual location conditions (e.g. proximity to the hydrogen core network, existing industrial and port sites, power distribution networks, and of course flexible hydrogen ready power plants in the planning/construction phase.
• Importing the various hydrogen derivatives from regions with high potential for solar and/or wind power renewable water and for renewable hydrocarbons with the carbon element from a certified cycle.
• Hydrogen production at sea offers the potential to more easily transport large amounts of energy.
• And certainly, the emergence of decentralised local hydrogen hubs (Hydrogen Valleys), especially where the hydrogen gas grid cannot or will not be available.

Experience & assignments

With our extensive international experience in the energy industry and process plant implementation, we have a detailed understanding of project, commercial and engineering management best practices. In addition, our specialists are available to carrying out non-routine special project tasks as part of the value chain and ensuring the project objectives.

At CARNEADES, we serve and advise projects and their stakeholders during all phases of the project life cycle through:

• Feasibility and conceptual studies
• Front end engineering design and early procurement
• Procurement, subcontracting, fabrication, and installation
• Project closing activities
• Regular and extended guarantee phase

We are also pleased to assist you in your initiatives, special project tasks and project review with our experience and a fresh eye approach, setting up and operating Special Purpose Vehicles (SPV), the application for funding or in the commercial, technical, and legal assessment of your hydrogen project.