Interview on the topic: Green hydrogen with Dr.-Ing. Simon Pichlmaier Head of the ‘Hydrogen and Synthetic Energy Carriers’ division at the Research Centre for Energy Economics (FfE)
Is everything in the green zone?
He is well known in grey and blue. Few know him in turquoise, yellow or pink. But many of us associate hydrogen with the colour green. That is probably the best-known, but certainly the most sought-after colour. SOLUTIONS spoke with Dr.-Ing. Simon Pichlmaier about the challenges and opportunities for industry.
What role does green hydrogen play in the energy transition?
Dr.-Ing. Simon Pichlmaier: ‘Hydrogen is already being used in considerable quantities in Germany, mainly in the chemical industry such as petrochemicals, or in the production of methanol and ammonia. At present, this is grey hydrogen, which is based on natural gas. In the future, it is intended that this will be “green”, meaning produced primarily without CO₂ emissions and based on renewable energies.
Hydrogen is well suited as a storage medium for electricity.
If we have a surplus of renewable energy in the system, it can be temporarily stored as hydrogen. Then, during periods when there is little renewable electricity available, this hydrogen can be used.
That’s the electricity perspective. From the gas perspective, hydrogen is especially important as a decarbonisation solution for energy users, meaning the reduction or avoidance of carbon dioxide emissions – for example, in industrial applications or in aviation and shipping.
What advantages does hydrogen offer compared to other renewable energies?
Dr.-Ing. Simon Pichlmaier: ‘Compared to electricity from renewables, hydrogen has two key advantages: it is easier to store and transport in large quantities. Batteries are suitable for storage over a relatively short period. However, if energy is to be stored seasonally, for example from summer
for use in winter, it makes more sense to do this in the form of molecules. In this respect, hydrogen is definitely a good option. Transportability is also an important factor; a pipeline can carry much more energy than a power line.’
Let's also talk about the disadvantages.
Dr.-Ing. Simon Pichlmaier: ‘Hydrogen will always be more expensive compared to gas. Of course, rising CO₂ prices are now narrowing this gap, but even in the future, the use of hydrogen is likely to remain more expensive than the use of natural gas. From a purely economic perspective, there will be no switch.The core network, that is, the future hydrogen ‘motorways’ – at least in Germany – is well advanced in its planning.
However, it must be said that many companies will not be located directly on the core network. Essentially, it is still unclear what will be connected outside the core network. As soon as hydrogen can no longer be transported by pipeline and instead would have to be moved by trailer, it would become more expensive again.’
How do you see the future of the hydrogen economy in the coming years?
Dr.-Ing. Simon Pichlmaier: ‘In 2018, 2020 and certainly even in 2022, we were still in a hype phase. Very low prices were being touted, with a resounding YES to switching to hydrogen. Shortly afterwards, reality hit, as many of the announced projects failed and were abandoned due to the lack of viable business cases. Right now, in my view, we are entering an extremely sensible and, indeed, natural phase of consolidation.
It is certain that some of the projects currently in planning will not go ahead. We will also see that significantly fewer applications will ultimately use hydrogen than we originally thought. Its use in refineries currently appears to be the most promising.
When it comes to hydrogen-based kerosene (Sustainable Aviation Fuel, SAF), but also in the chemicals and steel industries, there will be no way around hydrogen in the long term. We'll see the first hydrogen applications once the core network is in place. There will certainly be far fewer projects than many had hoped, but in return, these will be the projects that have a sound concept for both production and off-take.’
What steps should companies take to prepare for the hydrogen economy?
Dr.-Ing. Simon Pichlmaier: ‘The most important thing is for companies to engage with the topic. Whether to adopt hydrogen in future is ultimately a business decision, and in particular an economic one. There are some worthwhile training opportunities, such as the course for hydrogen application specialists offered by the Chamber of Industry and Commerce
(IHK). This provides a comprehensive overview, covering the hydrogen market, the technology behind it, safety issues and economic questions. I believe that’s quite a good starting point. In the end, it is also important to talk to local gas network operators to understand their plans.’
Dr.-Ing. Simon Pichlmaier says:
’The most important thing is for companies to engage with the topic.’
Dr.-Ing. Simon Pichlmaier,
Research Centre for Energy Economics (FfE)
About Dr.-Ing. Simon Pichlmaier
When the electrical engineer joined the FfE in 2016, he initially focused on the transport sector. He also wrote his dissertation on transport scenarios. Through various research projects, he came to the topic of e-fuels in 2018 before devoting himself to hydrogen five years ago. Since 2022, Dr Simon Pichlmaier has been head of the ‘Hydrogen and Synthetic Energy Sources’ department at the FfE. Among other things, he leads the Trans4ReaL project, which deals with transfer research from real-world laboratories of the energy transition – with a focus on hydrogen, of course.
In addition to traditional, systems analysis research, the focus is on practical implementation. The expert publishes studies, articles and specialist papers and is a regular speaker at specialist conferences.
What is FfE?
FfE stands for Forschungsstelle für Energiewirtschaft (Research Centre for Energy Economics), based in Munich. The institute offers scientifically sound advice and conducts research into solutions for the energy transition.
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