Green Hydrogen Systems cracked the code: This is how to produce low-cost, green hydrogen at any scale
Here, we continue our series of articles that introduce you to GreenLab’s P2X partners. Today we meet Green Hydrogen Systems, who are responsible for GreenLab’s hydrogen production. Green Hydrogen Systems started as an R&D company in 2007, but today they are a leading commercial player in the field of green hydrogen solutions. The secret lies in their modular, easily scalable electrolysers and in their ability to keep prices down.
No green transition without hydrogen
“If we want a green transition, there is no way around green hydrogen” – in the words of Green Hydrogen Systems CEO, Niels-Arne Baden, it is that simple. Hydrogen is the only substance that can successfully store all the electricity harvested from the wind and the sun. And because hydrogen is a chemical element found in all electro-fuels, we need a lot of it to convert the heavy transportation sector from fossil fuels to green ones. The challenge, then, is to offer hydrogen production in a way that is scalable. The market today is split between a demand for relatively small electrolysers and very big electrolysers. And this is where Green Hydrogen Systems has found its niche. They produce modular electrolysers that come as building blocks so they can supply customers with solutions that go from extra-small to extra-large – up to 40MW. And equally important: Green Hydrogen Systems’ electrolysers are the most efficient in the world when it comes to converting power into hydrogen. The result is the world’s lowest LCOH – that’s industry talk for Levelized Cost Of Hydrogen. Add to that an onsite production philosophy, and you have low OPEX as well as CAPEX.
Innovation and a strong commercial focus: A perfect GreenLab match
At GreenLab, the P2X project benefits from Green Hydrogen Systems’ modular approach because P2X production can start small and ramp up as more and more players are ready to use it. And the fact that the price is low benefits all the off-takers of the green hydrogen that Green Hydrogen Systems will produce – and the methanol they will produce in collaboration with REintegrate.
“GreenLab is a project that has had the right ambitions and vision from the beginning. We are actually taking theory and putting it into practice here – no one else is doing that in Denmark right now”, Niels-Arne Baden says. “And the way of working at GreenLab is completely unique – the whole concept of a joint innovation platform and the SymbiosisNet is like nothing I’ve seen before, all while keeping a commercial focus and making sure everything makes sense from a business perspective. The potential is huge and this model can change the approach to innovation and collaboration at a global scale.”
We need a national hydrogen strategy
Although Niels-Arne Baden has a solution that fits well with the ambitious goals for CO2-reduction in 2030, he is still waiting for a national hydrogen strategy to support his ambitious business plan. “The Danish taxation system is not designed for this type of green energy production”, he says. “Right now, we are going from one exemption to the next, but we need permanent rules and regulations to really build a business case. The tax system is preventing some great ideas from becoming reality – it’s really and shame and it keeps Denmark from taking on a leading position in the field of green hydrogen. We have been talking about the hydrogen economy for ages – right now the starts aligned to make it happen. The production, offtakers and general public is ready. So let’s go!”.
GHS starts producing green hydrogen at GreenLab in 2021.
Green Hydrogen Systems at GreenLab
Green Hydrogen Systems will deliver a 12 MW green hydrogen solution for GreenLab.
The electrolysers will produce hydrogen for two purposes:
- To combine with biogas and CO2 to produce clean methanol. This is in collaboration with Re:Integrate and comprises 10 MW of the 12 MW capacity
- To sell to off-takers in the heavy transport industry – this comprises 2 of the 12 MW capacity
