Unlocking the potential of green hydrogen

By Frederic Godemel 20 Nov 24 Reading time: 3 mins

As the world decarbonises, the emergence of green hydrogen stands as a pivotal force in the energy transition landscape. Forecasts indicate that the green hydrogen market is poised to exceed $515.66 billion by 2037, experiencing a remarkable CAGR of 61% from 2025 to 2037, showcasing the immense potential and rapid growth of this sector. Green hydrogen is particularly crucial for ‘hard to abate’ industries, especially where other decarbonisation strategies and technologies prove less effective and more challenging to deploy. 

Green hydrogen, embedded within the Renewable Energy Directive II & RIII guidelines in Europe and the Inflation Reduction Act guidelines in the USA, is set to play an important role in shaping the future of fuels, particularly Sustainable Aviation Fuel (SAF). Substantial investments are already underway in Europe, with example initiatives such as the European Hydrogen Backbone (EHB), a multibillion-dollar endeavour focused on establishing a hydrogen pipeline network. 

Impact of renewable energy in green hydrogen production

Renewable power plays a central role in producing green hydrogen, acting as the new upstream for this lightweight molecule. However, the complexity of the green hydrogen production process mirrors that of oil refining, compounded by the intermittency and non-dispatchability of renewable power, and the challenges in transmitting and distributing it. To facilitate the transport of green hydrogen, coupling it with carriers such as ammonia and methanol becomes essential, which makes the integration of chemical process plants necessary.

Driving change through collaborations

Green hydrogen is a cornerstone for growth, and industries with a vested interest can hugely benefit from working together. Companies that can develop digital platforms such as Autogrid, ETAP, and AVEVA and products for power distribution, digital controllers, and AI, are uniquely positioned to be a key partner in major green hydrogen projects.  

Effectively, we’re finally seeing groundbreaking movements take place. In the first project of its kind, Shuimu Mintal, the hydrogen energy technology company, chose Schneider Electric as a partner to develop a digital twin of end-to-end power to H₂ to ammonia compound. This will optimise the entire process from green power to green hydrogen and green ammonia. This project represents the first fully integrated green hydrogen project, encompassing a 1.4GW onshore wind farm with 750MW of green hydrogen capacity and the world’s first variable ammonia plant.  

Project simulations curb failures

For such green hydrogen plants, electrical power becomes the driving factor of production and only a co-simulation platform simulating both power flows from generation to end use with the H₂ production process can help optimise the levelised cost of hydrogen (LCOH). This co-simulation also serves as a vehicle for optimising design complexities, capital, and operational expenditures. Furthermore, this integrated platform, or digital twin, identifies operational scenarios, aids in developing control strategies, and establishes safety controls at the early stages of the project, providing invaluable insights for the operation of a green hydrogen plant, and ultimately reducing project risks.

By unifying power and process sizing and optimisation through co-simulation platforms, companies can expect remarkable reductions in storage requirements and process optimisation. Additionally, we’re seeing partnerships with OEMs and research institutes, and the development of techno-commercial modelling tools significantly optimising the overall project economics of green hydrogen initiatives, ultimately amplifying the value chain for integrated power and process. 

From conception to execution

Projects that use tools to obtain a comprehensive view of the integrated power and process through the digital twin can draw maximum benefits from its capabilities. With a focus on driving significant reductions in capital expenditure and operational expenditure while enhancing yields and reliability, it is also important to work with experts who can actively support companies in the conceptual and design phases of green hydrogen projects, collaborating with research institutes on advanced hydrogen technologies, and partnering with electrolyser OEMs to explore various technological avenues.

As the green hydrogen landscape continues to evolve, stakeholders need to be dedicated to driving sustainable and innovative solutions, collaborating with industry partners, and pioneering advancements in the energy transition journey. 

Frederic Godemel / Guest writer

Frederic Godemel is the EVP for Power Systems and Services at Schneider Electric.