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Hydrogen production costs in China are one-third of those in Europe

October 27, 2023


Abstract : Marco Alverà, co-Founder of Zhero and co-Founder and CEO of TES, raised concerns about cost to avoid dependence on a single source of energy, even during the production of an essential energy provider on the path towards decarbonization.

MILAN, Oct. 27 (Class Editori) -- "The hydrogen market must operate without subsidies to overcome its challenges. To achieve this, the cost of electrolyzers must be reduced. This is critical for Europe to compete with China, where electrolyzers currently cost 300 euros per kilowatts. In contrast, electrolyzers in Europe cost 1,000 euros per kilowatt. Successful implementation will require Government intervention as intermediaries through procurement operations".

Marco Alverà, co-Founder of Zhero and co-Founder and CEO of TES, emphasized at the Agici-Fichtner Green Hydrogen Observatory's Annual Workshop titled "Hydrogen: from bet to pillar of decarbonization. A change of pace is needed," that signing large contracts for centralized purchase of electrolyzers is crucial to obtain favorable prices and make our country more competitive.

"The technology for constructing large factories already exists and is currently in use in China. It is imperative that we utilize it to reduce costs, otherwise, we would end up spending billions in subsidies that would ultimately benefit only China," he explained.

The Agici-Fichtner study indicated that while hydrogen technologies are widespread, they have limited application in a scale model. The study provides insight on electrolyzer technologies, identifying alkaline and proton exchange membrane (PEM) electrolyzers as the most efficient.

According to Observatory forecasts, scaling up production of PEM electrolyzers could potentially cut their costs in half by 2030, reducing them from 800 euros to 400 euros per kilowatt. Focus on hydrogen transport modes: a comparative analysis conducted by the Observatory revealed that pipelines (hydrogen pipelines) are the best choice for transporting large volumes over long distances. For smaller volumes, trailers are the most effective solution.

"Green hydrogen has become a key component of the EU's decarbonization plan, which has led to it becoming a top priority for operators and countries," Stefano Clerici, Managing Director of Agici, said. "The energy production model is currently undergoing a paradigm shift, and multiple nations have responded by clearly defining their role in the global hydrogen landscape. However, Italy is currently falling behind in this regard. Also considering the region's circumstances, we believe that Italy can establish itself as a molecule producer in the short term and a transit hub between the Mediterranean and Northern Europe in the medium to long term," he concluded.

"Regarding project implementation, no technological issues are anticipated, however, acquiring the necessary skills for optimal implementation is crucial," Massimo Andreoni, Head of Management Consulting at Fichtner, stated. "The ecosystem of stakeholders, including producers, consumers, and logistics operators, along with the technical supply chain, present a complex landscape that demands skills that are not yet fully available in today's market. Today's focus on 'closed' systems, which are self-sufficient, should not distract from the strategic goal of developing infrastructure for the entire hydrogen supply chain".

(Source:Class Editori)

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Keyword: hydrogen production

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