High costs brake hydrogen imports - Germany faces challenges

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The TU Munich examines hydrogen supply from Africa. The focus is on high costs and import strategies for Germany.

Die TU München untersucht Wasserstoffversorgung aus Afrika. Hohe Kosten und Importstrategien für Deutschland stehen im Fokus.
The TU Munich examines hydrogen supply from Africa. The focus is on high costs and import strategies for Germany.

High costs brake hydrogen imports - Germany faces challenges

A current study under the direction of the TU Munich has examined the potential of hydrogen supply from Africa for Europe. The analysis comprises around 10,000 locations in Africa and comes to the conclusion that only 200 of these locations realistically come into question for effective hydrogen supply in Europe. A central problem lies in the high interest on the capital for hydrogen systems in African countries. While the Cost of Capital (COC) is between 4 % and 8 % in Europe, the study found an average COC of over 15 %, in extreme cases even over 26 %.

The price comparison with green hydrogen production in Rotterdam shows that the production costs in Africa would be significantly higher. Current forecasts have also questioned the presentation of the hydrogen requirement. Critics see the assessments as exaggerated and speak out to use hydrogen, especially in energy -intensive industrial processes to store green electricity surpluses.

import requirements and strategies in Germany

In view of the results of the study, the dependence of Germany is not to be overlooked on hydrogen imports. According to Thüga, Germany has to largely cover its hydrogen requirement through imports. Forecasts for 2030 speak of a hydrogen requirement between 40 and 170 terawatt hours (TWH), whereby 50 to 85 percent must be imported. A similar assessment is also expected for 2045.

In July, the Federal Government presented a comprehensive import strategy for hydrogen. This strategy stipulates that a large part of the hydrogen requirement must be covered by imports in the medium to long term. Federal Minister Robert Habeck emphasizes that a national demand of 95 to 130 TWH is expected to be hydrogen and derivatives by 2030, whereby between 50 and 70 % (45 to 90 TWh) is to be imported.

costs and supplier selection

The import prices vary depending on the type of hydrogen, with a median price of 6.3 ct/kWh for blue hydrogen and 9.8 ct/kWh for green hydrogen in 2030. By 2050, an increase in import prices to around 7.6 ct/kWh for green hydrogen is predicted. The end customer prices could be 13 ct/kWh for blue hydrogen and 17 ct/kWh for green hydrogen by 2035.

There are currently first auctions of the European Hydrogen Bank, in which the production costs for green hydrogen are between 13.3 ct/kWh and 34 ct/kWh. Denmark, Norway, the Netherlands, Spain, the United Kingdom and a Association of Morocco, Tunisia and Algeria were identified as preferred hydrogen suppliers. Spain in particular is emphasized as a potential supplier of hydrogen derivatives, such as ammonia, before 2030.

expansion of the import infrastructure

In order to cover the increasing hydrogen requirement, several pipeline -related import corridors are being planned. These include the North Sea corridor, the Iberian corridor, the Nordic-Baltic corridor and the southern rail through the Adriatic. The North Sea corridor is supposed to combine Norway, Denmark, the United Kingdom, Belgium and the Netherlands, while the Iberian corridor offers a potential of up to two megaton green hydrogen per year from Portugal, Spain and Morocco.

The Federal Government also pursues the parallel development of import infrastructures for pipeline and ship transports to ensure broad diversification of the sources of delivery. Cooperation with European partners and international actors are intensified in order to ensure sustainable and resilient energy supply. The aim is to establish a reliable supply of green, sustainable hydrogen in order to promote the decarbonization of the German economy and to comply with the climate targets. BMWK emphasizes the importance of a diversified product range, including molecular hydrogen and various derivatives.

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