What role does green hydrogen play in making our economy climate neutral?

Esther Stahl: Green hydrogen will play a key role in making the economy climate neutral. Initially, however, the focus will primarily be on industry and transportation. Hydrogen will be used in particular where increased efficiency and/or electrification – e.g. in steel production or high-temperature processes – are not possible or where energy in the form of hydrogen or derivatives such as ammonia has to be stored over a longer period of time.

Sebastian Stießel: The latter is particularly important regarding the import of energy to Germany. According to the Federal Environment Agency, around 70 percent of our primary energy needs are currently covered by imports of various energy sources. And since natural gas and coal are to be replaced as fossil fuels by 2045, hydrogen will also play a key role here.

What challenges is the (German) hydrogen economy currently facing? And what does this mean for companies?

Sebastian Stießel: There are several challenges that need to be overcome on the way to a functioning hydrogen economy. However, these challenges are also associated with opportunities for the companies that are working on solutions, thereby opening new market potential and securing jobs in the long term.

Take the production and storage of green hydrogen: even though many technologies such as electrolysis or fuel cells are already known and are standard in the chemical industry, for example, there are many areas in need of development. Starting with the industrialization of the production of electrolysers and the dependence on precious metals in PEM electrolysis through to the conversion, transport and reconversion of derivatives such as ammonia, LOHC or methanol. This is a great opportunity for companies that develop materials or components for electrolysers and hydrogen storage technologies or even manufacture entire plants.

Esther Stahl: We took a closer look at this potential for the Ruhr metropolis as part of a study on the development of a hydrogen model region. Specifically, we analyzed which economic activities and companies have the potential to contribute to the hydrogen economy – through their own products or services. This naturally relates to the aforementioned production and use of hydrogen, e.g. in energy-intensive industries. However, there are many other products and services along the value chain that will be in demand in the future. These include the manufacture of plant components such as hydrogen-compatible fittings and seals, pumps and compressors, monitoring and maintenance work and the entire plant construction sector. Laboratory, engineering and measurement services are also of great importance. These services are often offered by small and medium-sized companies, so we see great opportunities for these companies in particular.

Green Hydrogen is one of the main areas of research at Fraunhofer UMSICHT. What is the current focus?

Esther Stahl: Our research into green hydrogen can be divided into three areas. Firstly, we are researching electrolyzers and fuel cells. In particular, this involves the design, development, characterization and construction of electrochemical reactors. Secondly, we deal with the chemical storage of hydrogen. Here we develop processes for the conversion and reconversion of hydrogen into storage media such as ammonia and methanol. Finally, we are also active in system and site evaluation. This means that we model and simulate process engineering systems - for example the synthesis of methanol– or analyze the optimal interaction between energy supply and consumption in district projects.

Sebastian Stießel: Perhaps a few current examples to make the whole thing more concrete. In the "Leuna 100" project, we are working on a market-ready and scalable production of green methanol for shipping and aviation – in a consortium with the climate tech start-up C1, Fraunhofer IWES, the DBI-Gastechnologisches Institut gGmbH Freiberg and the Technical University of Berlin. Our focus is on the development of a new type of CO₂ electrolysis to produce a synthesis gas from CO₂, water and electricity, which is then synthesized into methanol in downstream steps. And we are making good progress: the C1 methanol synthesis pilot plant was opened in November and our co-electrolysis plant is scheduled to go into operation at the beginning of 2025.

In the "HYINPORT" project, we are investigating – together with Duisburger Hafen AG and GKN Hydrogen – the storage of chemically bound hydrogen in the form of metal hydrides. If this storage approach proves to be a feasible alternative to storage as a pressurized gas or cryogenic liquid, we are planning to integrate a corresponding demonstration plant in the Duisburg port area in a follow-up project.

In addition, we recently completed the analysis of the HyExperts region of Wartburgkreis and Unstrut-Hainich. The aim was to analyze the regional potential and uncover possible synergy potential between local production and use of green hydrogen. To this end, we used our own modeling and evaluation tools, which enable us to carry out multi-critical location and stakeholder analyses.

What can cooperation with Fraunhofer UMSICHT in the field of Green Hydrogen look like?

Esther Stahl: We provide support in various development phases – from testing the initial feasibility of using hydrogen to the actual development of catalysts, electrolysis stacks and entire systems. This can take the form of a direct consultancy service or a publicly funded project, for example. We also develop transformation concepts for the climate-neutral energy supply of company and industrial sites. The use of hydrogen is always a considered dimension for the provision of high-temperature heat in particular, as well as with regard to the conversion of existing processes and the storage of energy.

Sebastian Stießel: Incidentally, the size of the company is irrelevant when working with us. We work with both large corporations and SMEs. In particular, business with SMEs from Germany, Europe and other parts of the world represents great potential for us. We are also happy to look at existing products and processes with our customers and provide support for a sustainable transformation.

Finally, a forecast: In which direction do you think the hydrogen economy will develop?

Sebastian Stießel:

In my view, energy storage must be given greater importance alongside electricity generation and its use. Also in the form of legal framework conditions and financial incentive systems. Both the short-term and long-term storage of energy must be viable business models for the future, i.e. operators of such systems must be financially rewarded for providing these storage options. The conversion of electrical energy into molecules such as hydrogen and its large-scale storage, for example in caverns, will be an important area.

Looking at Germany, it can be said that some sectors will be electrified and can therefore manage almost without green molecules. Others, on the other hand, will require energy carriers such as hydrogen or methanol. In my opinion, it is also certain that we will remain an energy importing country. Domestic production capacities – for example for green hydrogen – should definitely address important synergy effects such as power grid stabilization and long-term energy storage. In addition, the German hydrogen economy should also be well coordinated with an integrated carbon management strategy. In some industrial sectors, we will not be able to manage without carbon or hydrocarbons. Carbon and hydrogen must come from sustainable sources or processes in order to achieve national and international climate targets and leave a planet worth living on for future generations.

Esther Stahl: I fully agree with that! In NRW in particular, we have great opportunities to become one of these demand centers and to develop new applications and services along the hydrogen value chain that can also be used elsewhere. To do this, we need to start early and test hydrogen technologies and bring them into use.