There has been a paradigm shift taking place across the world when it comes to energy transition and adopting new future fuels for environmental protection or to mitigate the deteriorating climate change.

Moving from unsustainable fossil fuels to renewable energy sources is the only way to repair and protect our planet. Hydrogen represents a great opportunity in the transition to renewable energy. It is estimated that hydrogen production capacity may to reach 4.5 million tons per annum (mtpa) worldwide by the end of 2023.

More than 393 deals related to hydrogen were closed during 2022 and it is certainly showing an upward trend in the hydrogen market development, which is estimated to achieve over 71 mtpa capacity worldwide by 2030.

Worl’ld’s Largest Green Hydrogen Projects

NEOM Green Hydrogen Project, Saudi Arabia

The NEOM Green Hydrogen Project is the world’s largest utility-scale, commercially-based hydrogen facility powered entirely by renewable energy.

An equal joint venture between NEOM, Air Products, and ACWA Power, the project is based on proven, world-class technologies that will include the innovative integration of a combined capacity of around four gigawatts of renewable power from onshore solar, wind, and storage. The engineering, procurement, and construction (EPC) contract has been awarded to the Indian company Larsen & Toubro (L&T).

When commissioned in 2026, it will produce 600 tonnes per day of clean hydrogen by electrolysis using thyssenkrupp technology; production of nitrogen by air separation using Air Products technology.

NEOM Green Hydrogen Company (NGHC) announced the signing of facility agreements with local, regional, and international banks along with the execution of a commitment letter with the Saudi Industrial Development Fund (SIDF). The financing for the world’s largest green hydrogen production facility located in NEOM is structured with significant participation from SIDF and the National Infrastructure Fund (NIF). It has achieved a financial close on the world’s largest green hydrogen production facility at a total investment value of $8.4 billion.

NGHC’s mega-plant will integrate up to 4GW of solar and wind energy to produce up to 1.2 million tonnes of green ammonia translating to up to 600 tonnes per day of carbon-free hydrogen. Once the plant at NEOM is operational by 2026, 100% of the green hydrogen produced will be available for global export, in the form of ammonia, through an exclusive long-term agreement with Air Products.

Sinopec’s Ordos Green Hydrogen Project, China

One of the world’s biggest projects using solar and wind power to produce hydrogen started construction in Ordos, Inner Mongolia autonomous region. It is being built by Sinopec Star Co, a wholly owned subsidiary of China Petrochemical Corp, or Sinopec – the world’s largest refiner by volume and the country’s biggest geothermal developer.

The operation of the project consists mainly of five areas: wind and solar power generation, power transmissions and transformations, hydrogen production by electrolysis of water, hydrogen storage and hydrogen transmissions, according to the company.

The installed design capacity for wind and solar power generation will be 450 megawatts and 270 MW, respectively.

The production capacity of hydrogen through electrolyzed water is 30,000 metric tons per year and the hydrogen storage capacity is 288,000 standard cubic meters.

The total investment of the project is about 5.7 billion yuan ($848.21 million)

When put into production, the project is expected to reduce carbon dioxide emissions by the equivalent of 1.43 million tons per year, contribute nearly 600 million yuan to local GDP per year and generate tax revenue of nearly 30 million yuan each year, according to the company.

According to the plans, the hydrogen and oxygen produced by the project will be transported by pipelines to the nearby Ordos coal deep processing demonstration project charged by ZTHC Energy Co, to replace part of the coal-to-hydrogen production.

It is expected to effectively promote the integrated development of the traditional synthetic materials chemicals industry and the hydrogen energy industry, as well as help expedite the clean and efficient use of coal.

The project is said to further explore the applications scenario of green hydrogen in the coal chemicals industry, the company said.

FFI ad TES green hydrogen project, Germany

Fortescue Future Industries (“FFI”) and Tree Energy Solutions (“TES”), both companies stacked with a very smart and far-seeing team, have agreed to develop the world’s largest green hydrogen integrated project “to help Europe mitigate its current energy and climate crisis and to bring green molecules to Europe.

The first phase of this partnership is to jointly develop and invest in the supply of 300,000 tonnes of green hydrogen with final locations being currently agreed. Final Investment Decision targeted for 2023.

FFI and TES have agreed to terms for FFI to make an equity investment of €30m to become a strategic shareholder in TES and to invest €100m for a significant stake in the construction of the TES import terminal in Wilhelmshaven, Germany.

Up to 2030 15 million tons of green hydrogen will be produced annually through renewable energy like solar, wind, and hydrogen.  In 2040 50 million tons of green hydrogen are planned.

Wilhelmshaven, Germany’s only deep sea port with a natural water depth in excess of 18 meters, will play an integral role in the development of green hydrogen in the country. FFI and TES have agreed, for example, that FFI will make an equity investment of €30 million to become a strategic shareholder in TES and to invest €100 for a significant stake in the construction of the TES import terminal in Wilhelmshaven.  First deliveries of green hydrogen into the TES terminal in Wilhelmshaven are expected to take place in 2026. In the first instance, however, the focus will be on improving the supply of natural gas, especially in lieu of the present virtual halt of gas supplies from Russia.

The Wilhelmshaven Terminal encompasses six shipping berths as well as ten tanks on land with a storage capacity of two million cubic meters, six of which will be available for TES.  A new pipeline will connect the terminal to certain points on the gas transmission network. The favorable location close to gas storage caverns in Ostfriesland is already being used for the Uniper-LNG-Terminals.

FFI joins a prestigious group of international partners that are strategic investors in TES, including E.ON, HSBC, UniCredit, and Zodiac Maritime.

Plug Power Green Hydrogen Plants, Finland

Plug Power Inc. plans to develop three green hydrogen production plants in Finland, resulting in the production of 850 tons per day (TPD) of green hydrogen, or 2.2 gigawatts (GW) of electrolyzer capacity, by the end of the decade with final investment decision (FID) by 2025/2026. Using Plug’s PEM electrolyzer and liquefaction technology, the green hydrogen produced at these sites will support the production of ammonia and green direct reduced iron (DRI), reduce dependence on fossil fuels, and materially support the decarbonization of Europe.

These projects are expected to represent some of the largest investments in the European market. Plug has initiated discussions with large financial investors and debt providers. Plug expects capital structure will include a majority of non-recourse debt, similar to other renewable asset financing. We are collaborating with financial partners to secure optimal capital solutions, and industrial partners to secure offtake commitments from creditworthy counterparties before these projects get to FID by the 2025/2026 timeframe.

Kokkola, Finland: This site is expected to generate 85TPD of liquid green hydrogen, and up to 700 kt of green ammonia per year, using 1GW of electrolyzers. The liquid green hydrogen will be produced for local use and for export to western Europe from the Port of Kokkola. Green ammonia will also be exported through the same port.

Kristinestad, Finland: The 1GW electrolyzer plant located close to a former coal plant will generate green hydrogen for green steel production (2.0 mt/y of DRI/HBI produced) exported from the port of Kristinestad.

Porvoo, Finland: This site will produce up to 100TPD by 2030. The hydrogen will be used for local mobility and exported through pipeline injection to Western Europe.

For the development of the ammonia plant, Plug is partnering with Hy2Gen, the global project developer of renewable hydrogen, ammonia and hydrogen-based e-fuels. Hy2gen is backed by Hy24, the largest global hydrogen infrastructure fund, by Mirova, a management company dedicated to sustainable investment, by CDPQ, a global investment group investing in the energy transition, by Technip Energies, a leading engineering and technology company for the energy transition, and Trafigura, a market leader in the global commodities industry. Plug will also collaborate with Hy2Gen on the development of hydrogen derivatives (e-fuels, methanol and ammonia) on other projects in the region, enabling industry and transport users to reduce their carbon footprint.

For the development of the DRI/HBI plant, a form of green reduced iron, Plug is partnering with GravitHy, an industrial company dedicated to decarbonizing the steel value chain and in which Plug was a founding partner alongside other large corporations (EIT InnoEnergy, Engie, Forvia, IDEC, Primetals). GravitHy is also developing a similar integrated site which will produce 2 million tonnes of DRI/HBI in the south of France.

Western Green Energy Hub (WGEH), Australia

The Western Green Energy Hub (WGEH) is one of the world’s largest green energy projects. InterContinental Energy intends to construct a 50 GW renewable energy hub in Western Australia dedicated to green hydrogen production by 2030. It will be approximately 50 GW and that will comprise 30 GW wind and 20 GW solar.

The project is a partnership between the Mirning Traditional Owners and global leaders in ultra-scale renewable energy.

An important ESG consideration for the project is a focus not just on environmental concerns but also ensuring respect for indigenous culture and participation of First Nations Peoples.  Intercontinental has partnered with Mirning Green Energy Limited as part of the WGEH consortium, ensuring that Mirning Traditional Owners will significantly benefit from the project.

The Western Green Energy Hub (WGEH) would stretch across 15,000 square kilometres and could produce up to 50 gigawatts of energy. The hub would produce 3.5 million tons of zero carbon green hydrogen, or 20 million tons of green ammonia each year, for both domestic consumption and export.

Based on the development of world-scale renewable power generation, Australian Renewable Energy Hub (AREH) intends to supply renewable power to local customers in the world’s largest mining region, as well as produce green hydrogen and green ammonia for the domestic Australian market and export to major international users. At full capacity, AREH will be able to produce approximately 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia per year.

Conclusion

Several countries are in the race toward a greener hydrogen future. It is predicted that the green hydrogen market will be led by Australia, the US, and Spain at the decade’s end, and will be followed by Canada, Chile, Egypt, Germany, India, Brazil, and Morocco.

Tags: Electrolyser Technology, FFI, Green Hydrogen Projects, NEOM, Plug Power, Renewable Energy, TES