Barcelona — European energy groups Iberdrola from Spain, Orsted from Denmark and Snam from Italy have joined a green hydrogen project that aims to develop up to 25 GW of worldwide renewables-based hydrogen production and halve the current production costs to below $2/kg by 2026, they announced Dec. 8.
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The seven founding partners of the Green Hydrogen Catapult initiative also include Saudi Arabia's ACWA Power, CWP Renewables and Yara, who together intend to target an acceleration in the scale and production of green hydrogen in order to transform the world's most carbon-intensive industries, including power generation, chemicals, steelmaking and shipping.
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"Recent analysis suggests a $2-per-kilogram price represents a potential tipping point that will make green hydrogen and its derivative fuels the energy source of choice across multiple sectors -- including steel and fertilizer production, power generation and long-range shipping -- where ample near-term demand exists in Europe and elsewhere," the group said.
The Green Hydrogen Catapult target will require investment of roughly $110 billion and deliver more than 120,000 jobs, according to the groups.
Companies in this initiative will work toward the target by developing project capacity, supporting the design of specific tools to solve early market challenges, and sponsoring targeted collaboration to accelerate access to clean air, creation of green jobs, supply chain resilience and economic growth using green hydrogen.
"We believe the collective ingenuity and entrepreneurship of the private sector can deliver green hydrogen at less than $2 per kilogram within four years," Paddy Padmanathan, CEO of ACWA Power, said.
The project will also test the development of green ammonia, a derivative of green hydrogen to displace fossil fuels in thermal power generation, greatly decreasing the emissions intensity of existing energy infrastructure.
Spain's Iberdrola is already involved in a series of green ammonia projects, with the first 20 MW electrolyser already are under construction in association with Spanish fertilizer producer Fertiberia.