27.10.2021 – 14:30
In the context of the energy transition, everyone is talking about hydrogen. It makes it possible to reduce CO2 emissions in industry and transport. However, the production of green hydrogen is still considered costly. A new study by Kearney in collaboration with Uniper shows that green hydrogen, imported as green ammonia, can be competitive by 2025 – provided certain framework conditions are met.
“The hydrogen strategy of the federal government anticipates a green hydrogen demand that cannot be met with local renewable energy sources according to the current state of planning. Therefore, the key question is where and in what form the green hydrogen will come to Germany”, says Sumit Mitra, partner at Kearney and expert in optimizing value chains.
According to the study, the use of ammonia, which is mainly used today as a raw material for fertilizers, is crucial as a transport medium for hydrogen from regions with cheap green electricity. Dr. Axel Wietfeld, CEO Uniper Hydrogen, says: “The demand for hydrogen will increase in all consumption sectors. That is why we will have to import a large part of our hydrogen in order to be able to meet our future needs. We need imported quantities and here we have to use a variety of options open to technology . Ammonia is an energy carrier that can be transported relatively easily and inexpensively and that can decisively advance the hydrogen economy. ”
“Driven by the current development of CO2 prices, the import of green ammonia is already worthwhile today, which will contribute to the decarbonization of the fertilizer industry and at the same time enable investments to be made in the recovery of hydrogen from ammonia,” continues Mitra.
Although the recovery is energy-intensive, the study shows, on the one hand, that the ammonia route is more cost-effective than locally produced green hydrogen and, on the other hand, there is further potential for cost savings along the value chain. In addition, other transport routes such as liquefied hydrogen or so-called LOHC (Liquefied Organic Hydrogen Carrier) will not (yet) be available on a large scale in the next few years.
The authors of the study therefore assume that ammonia will prevail as a transport medium for hydrogen by 2025, partly due to the existing market and the established technology and infrastructure.
Read the full study here as a free one Download (English).
Uniper is an international energy company with around 12,000 employees in more than 40 countries. The company plans to become CO2 neutral in European power generation by 2035. With around 35 gigawatts of installed capacity, Uniper is one of the largest electricity producers in the world. Uniper’s core activities include power generation in Europe and Russia as well as global energy trading, as well as a broad gas portfolio that makes Uniper one of the leading gas companies in Europe. In 2020, Uniper turned over a gas volume of more than 220 bcm. Uniper is also a reliable partner for municipalities, municipal utilities and industrial companies in the planning and implementation of innovative, CO2-reducing solutions on their way to decarbonising their activities. As a pioneer in the field of hydrogen, Uniper is active around the world along the entire value chain and realizes projects to make hydrogen usable as the mainstay of energy supply.
The company is based in Düsseldorf and is currently the third largest listed German energy supply company. Together with its main shareholder Fortum, Uniper is also the third largest producer of CO2-free energy in Europe.
Director, Marketing & Communications DACH
A.T. Kearney GmbH
Phone: +49 175 2659 363
Original content by: Kearney, transmitted by news aktuell