Winners of the hydrogen boom: pipelines, electrical engineering, wind/solar, and the climate

Trains, planes, trucks, storage tanks, steel or cement – green hydrogen will be used everywhere. The hydrogen industry is booming. Sales of 800 billion euros are forecast for the year 2050. Technology suppliers such as Bosch or Linde will benefit, as will regions in North Africa or South America. The use of hydrogen will enable industry to achieve carbon-neutral production.

Hydrogen business worth billions

The hydrogen economy is growing. The industry will generate over 800 billion euros in sales by 2050, according to analysts. And the companies will employ more than five million people in Europe. There is great potential for green hydrogen. Industry is already consuming gray hydrogen – especially in the chemical industry. Gray hydrogen is based on fossil energy sources. The first green hydrogen projects will emerge over the coming months. These projects will have an output up to 100 megawatts. By 2030, "only" the gray hydrogen will have been replaced. And new applications are being added: hydrogen trains, hydrogen for steel production, hydrogen in trucks, hydrogen as a kerosene substitute or hydrogen as a storage medium. Deloitte experts estimate that, by 2050, 42 percent of hydrogen demand will come from industry, and 36 percent from transportation.

The demand is great

European companies are investing in technologies, and are beneficiaries of developments thanks to their expertise in electrical engineering. Bosch, for example, relies on a solid oxide fuel cell. The fuel cell generates electricity and heat. The makers of the fuel cell talk about an output of 100 kilowatts. This is enough to cover the power requirements of a corresponding Edge data center or the averaged annual power consumption of the residents of an entire residential neighborhood. Depending on requirements and energy demand, it will be possible to scale up several of these systems in the future to form a decentralized energy supply system in the megawatt range. Other regions of the world are also investing. Thus, Europe is supplying the technology at the same time as being a consumer of the hydrogen. But an international perspective is called for. Europe is not self-sufficient when it comes to hydrogen.

Green hydrogen requires renewable energies

Offshore wind energy has an important role to play here. Norway or the UK could export surpluses. Chile and Argentina also have ideal wind conditions, and supply green ammonia or methanol. In the future, LNG terminals will also be able to handle ammonia with a manageable technical outlay. With hydrogen, things are more difficult. Pipelines will be used for safe transport. According to experts, transport via pipelines is economical over distances of 2,000 to 2,500 kilometers. Many pipelines could transport hydrogen, but only after some technical adaptations – upgrading of the pipes is crucial. That's why countries with lots of solar energy are coming into focus. Many North African countries in particular could benefit. Bernhard Lorentz, the Global Head of Climate and Sustainability at Deloitte, is convinced that a hydrogen pipeline from North Africa to Europe would be a game-changer, according to the Handelsblatt newspaper. Initial plans have already be made: The SoutH2 Corridor project is a 3,300 kilometer hydrogen pipeline connecting North Africa, Italy, Austria and Germany.

At HANNOVER MESSE, more than 500 companies from around the world will present their solutions and products for a climate-neutral hydrogen economy.