Unlocking Green Hydrogen's Potential: Leveraging Diverse Renewable Energy Portfolios
Key Ideas
  • Combining diverse renewable energy sources and locations can lead to cost savings in green hydrogen production.
  • The European Commission's Renewables Energy Directive sets requirements for green hydrogen production, emphasizing additionality, proximity, and temporal matching.
  • Technological and locational diversification is beneficial for green hydrogen production under hourly matching requirements.
  • Realistic cost scenarios and pricing for green hydrogen need to be accepted as the industry aims for substantial production capacity growth.
A recent study by EWI researcher Jun.-Prof. Dr. Oliver Runhau highlights the significance of combining diverse renewable energy sources and locations to maximize the potential of green hydrogen production. The research indicates that a varied portfolio of renewable energy generators can result in smoother electricity generation profiles, aiding in compliance with stringent regulatory standards at reduced costs. By analyzing scenarios within Germany, the study demonstrates potential cost savings ranging from 3-21% through the adoption of nationwide portfolios. The European Commission's Renewables Energy Directive (RED II) outlines key requirements for labeling hydrogen as 'green', emphasizing the necessity for production from dedicated renewable capacities, proximity between electrolyzers and renewable energy sources, and temporal matching between electricity and hydrogen production. The study suggests that a diversified portfolio of renewable energy units can lower the levelized cost of hydrogen (LCOH) under hourly matching criteria. The research stresses the economic advantages for both investors and policymakers in embracing technological and locational diversification for efficient green hydrogen production. As the EU targets substantial green hydrogen production capacity growth, it becomes crucial to reevaluate cost projections. Leiuwe Burger from Air Products urges the industry to adopt more realistic pricing expectations as the sector expands. This study offers valuable insights for stakeholders aiming to optimize green hydrogen production while aligning with regulatory standards and cost-efficiency goals.
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