H2 Business Guide GIZ 1658940149
H2 Business Guide GIZ 1658940149
BUSINESS
GUIDE
H2 Business
Hydrogen Guide Guide
Business
Publication details
Published by
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Registered offices: Bonn and Eschborn, Germany
Köthener Str. 2-3
10963 Berlin, Germany
Tel.: + 49 30 33 84 24 473
Fax: + 49 30 33 84 22 473
Email: [email protected]
Internet: www.giz.de
Project name:
Support for Bilateral Energy Partnerships in
Developing Countries and Emerging Economies
Project manager:
Torsten Fritsche
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Authors:
Farhanja Wahabzada (GIZ), Sarah Duhr (GIZ), Paula Klöcker (GIZ),
Veit-Clemens Raisch (GIZ), Hatim Ksissou (GIZ), Yasmine Boutaib (GIZ),
Frank Renken (GIZ), Salaheddine Bouzerd (GIZ), Kristina Kramer (GIZ),
Aschkan Davoodi Memar (GIZ), Rainer Schröer (GIZ), Daina Neddemeyer (GIZ),
Michael Schmidt (GIZ), Marco Huels (GIZ), William Jensen Diaz (GIZ),
Andreas Betz (GIZ), Nicole Täumel (GIZ)
Last updated:
February 2022
Design:
peppermint werbung berlin GmbH
Edelman GmbH, Berlin
On behalf of the
German Federal Ministry for Economic Affairs and Climate Action (BMWK)
3
Contents
Introduction ......................................................................................................................................................... 4
Algeria .................................................................................................................................................................. 6
Brazil ................................................................................................................................................................... 15
Chile�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 21
Morocco ............................................................................................................................................................. 29
Mexico ................................................................................................................................................................ 35
Tunisia ................................................................................................................................................................ 47
Contact ............................................................................................................................................................... 56
Abbreviations
BMWK.... German Federal Ministry for Economic Affairs LCOE...... Levelised Cost of Electricity
............... and Climate Action LCOH..... Levelised Cost of Hydrogen
CAPEX.... Capital Expenditures LNG........ Liquefied Natural Gas
CO2........ Carbon dioxide MoU....... Memorandum of Understanding
RE........... Renewable energy MW......... Megawatt
EU........... European Union NDC........ Nationally Determined Contributions
FCEV....... Fuel Cell Electric Vehicle PPA......... Power Purchase Agreement
GIZ.......... Deutsche Gesellschaft für Internationale PJ............ Petajoule
............... Zusammenarbeit (GIZ) GmbH PtL.......... Power-to-Liquid
GW......... Gigawatt PtX.......... Power-to-X
H2........... Hydrogen PV........... Photovoltaics
IEA.......... International Energy Agency TWh........ Terawatt hour
IRENA..... International Renewable Energy Agency WACC..... Weighted Average Cost of Capital
kWh........ Kilowatt hour
4
Introduction
Die Nationale
The impacts of climate change and the resulting need to act
on climate protection are global topics which governments
Wasserstoffstrategie
worldwide have to address. Extreme weather phenomena
are becoming more frequent, causing destruction, flooding,
drought and humanitarian crises. The German Government
has set ambitious goals to address these developments,
ensure long-term climate action and stop global warming.
These goals are based on the Paris Agreement of 2015 and
the goal of achieving climate neutrality by 2045 by massively
expanding renewable energy, strengthening energy
efficiency, and phasing out coal-fired power generation
by 2030. To enable a fossil fuel- and emission-free future
and permit the energy transition to be fully implemented,
one key pillar of the German Government’s strategy is the
use of -green hydrogen produced with renewable energy.
Particularly in industrial and transport sectors which cannot
be decarbonised with conventional technologies or electricity,
the aim is to use green hydrogen as a gaseous or liquid
energy carrier and fuel to make all sectors climate neutral. In
June 2020, the National Hydrogen Strategy was presented to bmwi.de
achieve this goal.
With the National Hydrogen Strategy, Germany plans to In Measure 34 of the National Hydrogen Strategy, the German
import large quantities of green hydrogen in the medium to Government's bilateral energy partnerships also play a major
long term. After all, the quantities required will greatly exceed role in cooperating with strategic export and import countries.
Germany’s green hydrogen generating capacity. The strategy The bilateral energy partnerships are also a key instrument in
provides for 21 to 96 TWh of green hydrogen to be imported the German Government's foreign energy policy, in which it
in 2030. To meet this demand, the German Government combines energy policy dialogue at the government level with
will utilise international cooperation arrangements and practical and goal-oriented project work and engagement
partnerships in the European Union (EU) and beyond. with the German private sector as an integral part of the
partnerships. This will strengthen the promotion of future-
To support the market ramp-up for green hydrogen and oriented energy strategies and the advancement of private
its derivatives at European and global level, the German sector innovation worldwide and will serve as impetus for
Government has launched numerous funding programmes energy-efficient innovations and cooperation arrangements
including H2Global, the funding guideline for international on the path to a global energy transition.
hydrogen projects and H2-Uppp. The market ramp-up for
green hydrogen also offers new business opportunities At present, Germany maintains 23 energy partnerships
for German companies. Targeted support measures for and dialogues throughout the world, 11 of which are
the private sector aim to allow the potential of hydrogen implemented by the Deutsche Gesellschaft für Internationale
technologies to be fully exploited and improved while Zusammenarbeit (GIZ) GmbH on behalf of the German
simultaneously promoting the competitiveness of the sector Ministry for Economic Affairs and Climate Action (BMWK),
in the international context. including Algeria, Brazil, Chile, China, Ethiopia, India, Jordan,
Mexico, Morocco, South Africa and Tunisia. Germany (Federal
Foreign Office and BMWK) conducts the other 12 energy
partnerships with Angola, Australia, Japan, Kazakhstan,
Nigeria, Norway, Russia, South Korea, Turkey, the United
Arab Emirates, the United States and Ukraine.
5
As part of the global energy transition, green hydrogen is This Hydrogen Business Guide presents the initial results
also playing an increasingly important role in bilateral energy and findings of the potential analyses for Algeria, Brazil,
partnerships, which offer a dialogue platform for BMWK and the Chile, Mexico, Morocco, South Africa and Tunisia. The guide
partner ministries on their respective hydrogen policies. They aims to give German businesses orientation regarding the
also offer advice on different aspects of the development of hydrogen potential and current energy-policy developments
green hydrogen (including strategic development, regulatory in these countries. These are snapshots of a situation that is
frameworks, certification, sustainability standards and in a constant state of flux in the countries as a result of the
transport) and conduct corresponding workshops on green worldwide dynamics. The guide also provides an overview
hydrogen. In this context, the bilateral energy partnerships of the countries' respective electricity and energy mix, their
have also supported the development of hydrogen potential respective renewable energy potentials and goals and the
analyses and hydrogen strategies in various countries. current planning status for green hydrogen.
2| Politischer Dialog
Algeria
7
Energy data
47% 16%
Source: Ministry of Source: Ministry of
Energy and Mines 2019 Energy and Mines 2019
The transport and industrial sectors account for Algeria is an important exporter of petroleum and
more than half of Algeria’s energy consumption. natural gas and has petroleum reserves amounting
to 12.2 billion barrels and 4.51 trillion cubic metres of
natural gas reserves. Algeria's energy exports amounted
to 92 million tonnes of crude oil units in 2019.
Megawatts
25,000
20,000
With the Algerian Renewable Energy and Energy
15,000 Efficiency Development Plan, Algeria has made a
sustainable energy supply a national priority. This
10,000 22,000
plan aims to ensure that 15,000 MW is generated from
renewable sources by 2035.
5,000
692 Goal: to save at least 240 billion cubic metres of natural
0 gas and thereby avoid 200 million tonnes of carbon.
2020 2030
Source: Ministry of Energy and Mines 2021
Hydro power
19%
9%
Combined cycle power plants and gas turbines The transport sector is responsible for around one third
contribute by far the most to electricity generation. of the country’s emissions.
PV and wind accounted for 0.9% of the national
electricity generation.
8
Wind conditions are best in the centre of Algeria. The PV potential is especially promising in the south of
Algeria.
WIND
Wind potential: 35 TWh/year
Wind speed in the windiest region: avg. 8.71 m/s
Hydrogen potential
The greatest potential for specific PV-based hydrogen production is in the south-east region of Algeria in the Ahaggar and
Tassili-n'Ajjer mountains, in the provinces of Illizi and Tamanrasset. The lowest potential for specific PV-based hydrogen
production is in the north-eastern Mediterranean region between Bejaia and Annaba.
The renewable electricity generation capacity additionally required is between 8 and 519 GW.
Depending on the choice of renewable energy sources, 10 to 519 GW of PV generating capacity or 8 to 195 GW of onshore
wind generating capacity will be needed.
The south-eastern and
western parts of Algeria are 534
particularly suitable for cost-
effective PV-based hydrogen 18,756
production.
However, the general cost 292,116
of PV-based hydrogen
production will remain below 1,309,991
USD 5/kg in many parts of
Algeria.
4,633,453
Particularly cost-effective
green hydrogen can be 25,464
produced in the centre of
Algeria. 16,169
40,696
45,965
58,633
150,874
107,368
18,349
Mio. kg/Jahr 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
• The expected LCOH fluctuates between USD 2.50/kg and • The cost of maritime transport is between USD 0.02/
USD 5.40/kg for industrial-scale applications. kg (local supply) and USD 0.07/kg (export). For long
distances the cost of transporting hydrogen is twice the
• The cost of hydrogen production from onshore wind cost of desalination based on the LCOH.
energy is (on average) around USD 1/kg lower than from
photovoltaics. • Desalination and hydrogen transport together account
for less than USD 0.2/kg of the LCOH.
• The most important cost components are renewable
energy (29-65% of LCOH) and electrolysis (21-65% LCOH).
Water supply
The investment cost of producing pure water accounts for only a few per cent of the total investment cost of an electrolysis-
based facility for the generation of green hydrogen; the impact on the standardised cost of hydrogen generation (LCOE) is
also very low.
Water desalination
The cost of desalination in Algeria is between USD 0.62 and USD 1.11/m3. The additional need for (tap) water required for
hydrogen production is between 5 and 279 million m3/year.
Source: Tractebel 2021
12
Land use
• The total land area needed for hydrogen production
(renewable energy + electrolysis) is estimated at 0.1 to
1.2 million hectares.
• The specific land use of onshore wind-based hydrogen
supply chains is higher than that of PV-based supply
chains.
• The specific land use per annual hydrogen production
amounts to around 490-1200 km2/TWh for onshore
wind energy and 70-100 km2/TWh for photovoltaic solar
energy.
1,700 327,332
Source of all graphics: and data: Tractebel 2021
13
Hydrogen transport
Existing infrastructure
Transport network
The gas pipeline network grew from 6,105 km in 2005 to 19,258 km in 2016 and will increase to 27,291 km by 2027.
In 2021 the gas pipeline network measured 20,705 km and had a total capacity of 404,342 mtpa (million tonnes per
annum).
14
Network Algeria-Italy via Algeria-Spain via Hassi R’mel, Beni Saf Hassi R’mel, ElKala
Tunisia and Sicily Morocco (Algeria) Et Almeria (Algeria), Cagliari,
(Spain) Olbia (Sardinia) and
CD Pecaia (Italy)
Brazil
16
Energy data
Buildings Buildings
19%
26% 31% Industry Industry
Energy
28%
32% 11%
Source: Balanço Energético Source: Instituto de Energia
Nacional 2020 5%4% e Meio Ambiente 2019
Industry and transport are responsible for around Nearly half the carbon emissions are attributed to land
65% of energy consumption. use. Brazil aims to achieve climate neutrality by 2050.
Megawatts
200,000
150,000
100,000
178,714
150,047 160,390
Expanding the share of renewables is part of Brazil’s
50,000
long-term energy planning. The country is a global
pioneer and its share of renewables in the energy mix
0 (45.3%) is well above the OECD average (10.6%).
2020 2025 2030
Source: Ministério de Minas e Energia/Empresa de Pesquisa Energética 2021
2% 2% 2% Water 1%
3%
Wind Transport
6%
Biomass Buildings
8%
Natural gas
28% Industry
9% Coal 27%
Commerce
Nuclear energy
9% 65% Agriculture
Oil
38%
Solar
The share of renewable energy in the power mix is The industrial sector accounts for greatest share of
a high 85%. total electricity consumption.
17
GLOBAL WIND ATLAS
MEAN WIND SPEED AT 100m
Renewable energy
BRAZIL
potential
GLOBAL WIND ATLAS
MEAN WIND SPEED AT 100m
BRAZIL
Production conditions for green hydrogen and its derivatives
Offshore Wind Technical Potential
Public Disclosure Authorized
Wind speeds:
Offshore Offshore
Wind Technical Potential within 200 km
in Brazil Wind speeds: Onshore
RISE score: 71 Fixed: 480 GW || Floating: 748 GW || Total: 1,228 GW
Public Disclosure Authorized
BRAZIL
Public Disclosure Authorized
PARAGUAY
Public Disclosure Authorized
URUGUAY
>10
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
3
WIND
Published: March 2020 (revised May 2020)
Copyright © THE WORLD BANK
1818 H Street, NW | Washington DC 20433 | USA
SOLAR
Solar energy potential: 65 TWh/year
Average solar irradiation
(theoretical): 5.39 kWh/m2/day
WATER
Hydropower potential: 172 GW
Hydrogen potential
Green hydrogen strategy
Already in 2005, the Brazilian Ministry of Mines and Energy (MME) coordinated its first Roadmap for the
2005 Structuring of the Hydrogen Economy in Brazil. The roadmap focused on the use of hydrogen in industry
and included hydrogen production from renewable energy.
In the National Energy Plan 2050 (PNE 2050) of December 2020, hydrogen is described as a disruptive
2020 technology and mentioned as a strategic element in the context of decarbonisation of the energy matrix
and energy storage.
In late February 2021 the Energy Research Office (EPE) published a working paper on the principles
of consolidation for a Brazilian hydrogen strategy that analysed fundamental aspects for a Brazilian
hydrogen strategy. The document explicitly mentions the cooperation with Germany and with the
German-Brazilian Energy Partnership.
In March 2021, the Brazilian National Council for Energy Policy (CNPE) also pointed out that green
hydrogen will be one of the priority topics for research and development in the country and announced
public support for it.
In June 2021 Brazil submitted to the United Nations an Energy Compact for strengthening research,
2021
development and innovation policies for the development of a hydrogen market.
In mid-April 2021 the CNPE resolved to create guidelines for a National Hydrogen Programme.
A proposal for the guidelines was published in August. It contains a comprehensive vision of the
challenges and opportunities of developing a hydrogen industry and a hydrogen market in Brazil.
The MME is currently preparing the final version of the hydrogen programme (PNH2), which is to be
published in the first half of 2022.
Source: Empresa de Pesquisa Energética (EPE), Ministério de Minas e Energia (MME), Conselho Nacional de Política Energética (CNPE) 2021
Sources: IEA 2021, McKinsey & Company 2021, IRENA 2022 Sources: GTAI 2020, GIZ 2021, IRENA 2022
19
In 2019, most hydrogen production was used for crude oil refineries and around 20% on the basis of ammonia for fertiliser
production. However, the fertiliser industry is operating below installed capacity, so that in 2019 capacity underutilisation
necessitated the import of fertiliser to meet the needs of the agricultural sector.
According to the International Energy Agency (IEA), demand for hydrogen in Brazil amounts to 0.4 Mt/year. Demand for
hydrogen is also expected to increase in the chemical, iron and steel industries and in mobility, aviation and heavy goods
transport.
Brazil has a national ethanol production and distribution infrastructure. At present, specific research projects are under
way for producing hydrogen from ethanol and developing alternative drive systems for mobility based on ethanol fuel cells.
International demand
Brazil is a highly sought-after location for foreign • The proximity and good connection to Europe make
enterprises. Some 1,300 German companies, in particular, Brazil a promising hydrogen location for the future. The
have settled in Brazil. Brazilian port infrastructure and logistics are conducive
• High presence of companies along the hydrogen value to exporting hydrogen.
chain: Linde, Messer, MAN, Siemens, Thyssen-Krupp, etc. • Memoranda of understanding for hydrogen projects in
• 95% of the members of the Global Hydrogen Council Brazil amounted to USD 22 billion already in mid-2021.
have subsidiaries in Brazil.
Hydrogen transport
Existing infrastructure
Gas grid
The Brazilian gas grid extends mainly
along the Brazilian coastal region
from the federal state of Ceará to
Rio Grande do Sul. In the Amazon
region a natural gas pipeline has also
existed since 2009, connecting Urucu
with Manaus. The natural gas grid is
being continuously expanded.
Source: EIA 2021
Ports play a major role for green hydrogen. In Brazil, 36 ports are publicly operated. The country also has private ports,
and its inland ports are also relevant for the local market.
Porto de Peçém (federal state of Ceará in the north-east Porto Central (federal state of Espírito Santo)
of Brazil) • A port which is under construction, with plans to export
• The Port of Rotterdam Authority has a 30% stake in the PtX and host strategic business sectors such as oil and
port. gas, energy generation, agriculture, mining, etc.
• Very favourable location for export to Europe and keen • Porto Central is being developed as a new deep water
interest in PtX export. multi-purpose industrial port complex with access to
• Certified for hydrogen handling, extensive complex motorways, future railway lines and other types of
including a hub for hydrogen diverse industries. infrastructure.
Porto de Açu (federal state of Rio de Janeiro) Porto Santos (federal state of São Paulo)
• 98% of the port belongs to Prumo, a logistics company, • Brazil's largest industrial port
partnership with the port of Antwerp. • Structure and certification for ammonia import and export
• Keen interest in PtX export.
Chile
22
Energy data
6% Transport Transport
7% Buildings Buildings
23% 24%
Industry Industry
16% 37%
Commerce Electricity/Heat generation
7%
Other Other
32% 14%
34%
Source: Ministerio de
Source: IEA 2018 Medioambiente 2020
Industry (including mining) and transport are In Chile the energy sector is responsible for 78% of
responsible for 70% of energy consumption. carbon emissions.
TWh
300
250
200
150
100
In 2020-2021, fossil sources accounted for around 55% of The industrial sector consumes over two thirds of total
the electricity mix, and renewable energy made up 45% electricity.
of the electricity mix (including large-scale hydropower).
23
WIND SOLAR
Wind speed: avg. 7.3 m/s Solar energy potential: avg. 5.36 kWh/kWp
At locations in the south of Chile, Solar irradiance:
wind speeds reach >14 m/s, > 60% full load >7.5 kWh/m2/day in the Atacama desert
is the highest worldwide!
Worldwide, the strongest direct solar irradiance can be found in the north of Chile. Patagonia in the south is known
for its outstanding wind potential.
With the renewable energy projects currently being introduced by private project developers, renewable energy generation
capacity of up to 67 GW can be installed in the coming years, far more than the current installed capacity of the Chilean
energy system of slightly more than 27 GW. Even if all coal capacities are phased out (currently still 4.9 GW installed
capacity), sufficient surplus renewable energy generation units are available for hydrogen production, for meeting local
needs and for the export market. According to GIZ calculations, hydrogen production in 2030, 2040 and 2050 will require
installed capacity of 9.59 GW and 98 GW of wind and solar energy, respectively. In line with the ambitious long-term energy
planning model PELP, electricity generation will increase four-fold by 2050, with around half of the energy generated (150
TWh) available for hydrogen production. Source: GIZ, Ministerio de Energía (PELP) 2021, CNE 2021
24
In August 2021, 145 renewable energy projects with a total capacity of 4,733 MW were under construction, of which
71% were solar (PV) systems and 25% were wind farms.
Source: CNE, Chile 2021
Already in 2019, the Chilean coal Electricity generation from solar and wind energy has increased five-fold
commission from the private in the past six years in Chile. By 2030, at least 70% of the energy mix will be
sector and policymakers set out its able to be provided by renewables. Chile plans to achieve climate neutrality
path for phasing out coal for power by 2050 at the latest. The use of 'green' hydrogen is to account for 24% of
generation. Five coal-fired power the mix. Chile is thus strengthening its resolve to continue its path towards
plants were removed from the achieving a climate-friendly energy transition.
grid by August 2021. By 2025, 65%
Source: Ministerio de Energía (PELP)/GIZ, 2021
of the coal-fired power plants
are to be shut down and wherever
possible, converted to other uses,
for example energy storage. The Chile's renewable energy potential In August 2021, 16,680 MW of
challenges for the energy transition is 80 times greater than the renewable energy generation
include further expanding the currently installed capacity. 5,000 capacity was installed (including
transmission grid, the declining TWh/year is possible. large-scale hydropower). That
output of hydroelectric power amounts to 56% of the power plant
plants as a result of climate change, fleet.
Source: Ministerio de Energía/GIZ 2021
and maintaining grid security. Source: Acera, Chile 2021
Hydrogen potential
Hydrogen roadmap
The National Green Hydrogen Strategy has been under implementation in Chile since November 2019. The development
of hydrogen production in Chile is planned to take place in three phases:
1. Annual sales. Considers the full transition to hydrogen of the energy demand in each application.
ng on export markets and leveraging scale to expand Source: Based in analyses from McKinsey & Company.
Central and northern Chile are basically desert and semi-desert regions. Climate change is also leading to a further reduction
in rainfall. However, relatively little water is required for the production of green hydrogen, and the cost of hydrogen accounts
for around 2% of the total hydrogen production cost. Nearly all of the hydrogen projects now being planned will obtain their
water from seawater desalination plants.
Desalination plants
Chile already has 83 desalination plants of various sizes and capacities (most of them for seawater). Nearly 30 more plants
are currently in planning or under construction. Demand for desalination plants is already very high, which means that the
production of green hydrogen can be integrated without any problem. The new seawater desalination projects are designed
first and foremost to serve to supply the local population but are also intended to secure the supply of water for agriculture
and mining.
Source: Ministerio de Energía, Chile 2019
27
Hydrogen transport
Shipping hydrogen derivatives such as methanol and ammonia is currently more cost-effective than transporting green
hydrogen. In general, the cost of transporting green ammonia or methanol accounts for around 5% of the cost of the end
product.
Climate-neutral ship propulsion technologies (powered by ammonia, methanol or direct hydrogen) are still under
development. Shipping to Germany/the EU is somewhat more cost-effective than to Japan.
Transport synergies can be used by transporting chemicals on the return trip to Chile in order to guarantee efficiency and
reduce long-term transport costs. In 2018, around 16% of chemical imports came from Germany, which is why there is a
potential market in this sector.
Source: GIZ 2021
Morocco
30
Energy data
Transport
7%
Buildings
Industry
22% 38%
Other 98%
90,5%
33%
More than 60% of total energy consumption Morocco is pursuing an ambitious programme to
in Morocco is attributed to the transport and reduce its dependency on imports of fossil energy.
industry sectors.
Megawatts
15,000
8 GW renewable energies are to be
installed by 2030 in order to The installed solar, wind and hydropower capacity is
12,000
achieve 52% renewable currently 37% and is planned to grow to at least 52%
energies.
9,000 by 2030.
Large-scale renewable energy projects are enabling
6,000 13,230
Morocco to rapidly expand its share of renewables
7,830 by 20% of the energy mix compared with 2009. This
3,000
3,950 expansion has been the fastest in the region to date.
0
2020 2021–2024 2025–2030
Source: Ministry of Energy, Mines, and Sustainable Development 2021
4% 3%
Coal Transport
Oil Buildings
11%
Water 31% Industry
Wind
39% Agriculture
11%
65% Gas Power/Heat generation
4% Solar 13%
2% Other 5% 13%
Source: IEA 2017
Source: IEA 2018
Renewables account for around 20% of the electricity Carbon emissions in Morocco amount to nearly
generation mix. The majority of electricity generation 60 million tonnes (2017) and are based mainly on
is coal-based. petroleum products.
31
WIND
Wind potential: 5,000 TWh/Jahr (1,250 GW)
Wind speeds: avg. 9 m/s, onshore
avg. 10–11 m/s, offshore
SOLAR
Solar energy potential: 40,000 TWh/Jahr (17,000 GW)
Solar irradiance: avg. 5 kWh/m²/day
WATER
Hydropower potential: > avg. 5,000 GWh/year
BIOMASS
avg. 11.5 (MWh/year)
32
Hydrogen potential
Morocco's green hydrogen strategy
The Moroccan green hydrogen strategy was published in November 2021. The German-Moroccan Energy Partnership
(PAREMA) closely supported the content of the strategy with a key study and ongoing advice. The German-Moroccan
Hydrogen Alliance was founded in 2020.
The flanking studies are already showing great potential for green hydrogen. Morocco could meet around 2-4% of the
global Power-to-X (PtX) demand (972-6,180 TWh, Fraunhofer ISE 2019) by 2030. To reach this goal, an additional 9 GW of
renewable energy would be required.
There is a new trend towards standalone projects, which provide for direct provision of hydrogen production through
renewables. Two European developers are currently planning to develop projects with 20 GW of solar energy capacity.
1 5
Securing funding
Reducing costs
by strengthening
along the value chain
international cooperation
2 R&D: 6
Creating favourable
Developing a Moroccan
conditions for export
and regional
(especially to the EU)
Three pillars: research cluster
• Technologies, including technological
3 7
developments and cost savings Measures for local
Developing a national
• Investments and supply, including setting industrial integration
storage plan
up an industry cluster and developing an (human capital, know-how)
appropriate infrastructure master plan
• Markets and demand are related to the 4 Developing an 8
realisation of demand opportunities that lead industrial cluster and Developing a
to new markets an infrastructure national market
master plan
• Local use of green • Developing initial economically • Increased production capacity for the
hydrogen as feedstock viable projects export of green ammonia, hydrogen
in industry • Exporting synthetic liquid fuels and synthetic fuels
• Export of green • Green hydrogen as energy • Local use of green hydrogen in
hydrogen products storage industry, for generating heat, in
• Exploring natural residential buildings, in urban
hydrogen storage mobility and in aviation
locations
33
Green hydrogen production capacities and LCOE for green hydrogen and its derivatives
Flexibility with
Input as feedstock
regard to electricity Industrial heat
in industry
exports
Aviation and
Urban
maritime
'Hydrail' railway
Water supply
In order to address the issue of sourcing fresh water for hydrogen production, desalination plants can be built at the site
of the electrolyser in Morocco. The total cost of water desalination amounts to around EUR 0.80/m3, which adds EUR
0.007/kg to the cost of hydrogen production. The cost for water (purification, desalination and transport) would account
for less than 2% of the total cost of hydrogen production and the energy consumption for water desalination only around
1% of the total energy requirements for hydrogen production.
Vision: The Green H2 Maroc Hydrogen Cluster has been in place since March
2021. Its vision is to create a national, regional and international cooperation
platform dedicated to the development of the hydrogen/PtX industry, in particular
through shared innovations, industrial integration, capacity development,
knowledge transfer and market development.
Hydrogen transport
Existing infrastructure
Locations for renewable energy sources, industry and ports in northern Morocco
Morocco has a well-developed port infrastructure, especially in the north Ports with facilities for the
of the country. The ports can serve as hubs for shipping products such as energy trade
green hydrogen, ammonia, or methanol to third countries. • Tangier West Med Port
• Nador West Med Port
• Casablanca Port
• Jorf Lasfar Port
• Laayoun Port
Maghreb-Europe-Gaspipeline (MEG)
The Maghreb-Europe gas pipeline (MEG; also known as the Pedro Duran Farell pipeline) is a natural gas pipeline that
connects the Hassi-R'mel field in Algeria to Cordoba in Andalusia, Spain, via Morocco. However, long-term contracts
have not been renewed by Algeria. This could offer the potential to convert the existing Maghreb-Europe gas pipeline
for possible hydrogen supplies for export to Europe.
35
Mexico
36
Energy data
Transport Transport
13% Buildings
10%
Buildings
Industry Industry
35%
43% Other Agriculture
30% 34%
Power/Heat generation
Other
15% 4%
14%
Source: IEA 2018 Source: IEA 2018
2%
Industry and transport are responsible for Most of the carbon emissions are produced by the
around 70% of energy consumption. building and transport sector. Green hydrogen could
avoid nearly 300 Mt of carbon by 2050.
Megawatts
30,000
25,000
20,000
15,000
26,000 29,000
10,000
Mexico plans for an additional 3,000 MW of renewable
5,000
energy to be fed into the energy mix by 2030.
0
2021 Up to 2030
Source: IRENA 2021
3% 2% 2% 1% Natural gas
Oil Buildings
5% Coal 9%
4% 22%
Industry
7% Water Commerce
11%
Wind Agriculture
9%
61% Nuclear energy Other
10% Geothermal energy
54%
Solar PV
Over two thirds of electricity is generated The industrial sector consumes over half of the total
from natural gas. electricity.
37
Solar farm
Wind farm
Sea port
Hydropower plant
Geothermal energy generation
WIND
Wind potential: 6,300 TWh/year
Wind speed in the
windiest region: 7.1 m/s
SOLAR
Solar energy potential: 6,900 TWh/year
Solar irradiance (theoretical):
avg. 5.77 kWh/m2/day
WATER
Hydropower potential (up to 10 MW): 3.2 GW
Large-scale hydropower plants: 17 GW
Hydrogen potential
Mexico has a well-developed energy infrastructure that would be able to promote the development of green hydrogen.
The country has a number of international seaports, robust electricity and gas transmission grids, hydropower, solar, wind
power and other renewable energy plants.
The regions with the highest renewable energy potential in Mexico correspond to the locations for potential hydrogen
use, with the greatest potential in the north-western part of the country. The community of Mulegé in Baja California is a
special case with a high solar irradiance ratio, copper mines and an isolated electricity grid.
Mexico has suitable potential to install up to 22 TW of electrolyser capacity nationwide in order to produce green hydrogen
at an average hydrogen cost (LCOH) of USD 1.40/kg in 2050 with energy mainly generated from PV.
NDC compliance 50
42
40
USD/MMBTU
29
30
19
20 13
6 8 10
10 4
0
2020 2030 2040 2050
Hydrogen 60
42
USD/MMBTU
breakthrough 40
22 15 21
20 13
4 9 11
Natural gas 0
Green hydrogen 2020 2030 2040 2050
The map shows that the most cost-effective green The levelised cost of green hydrogen will be able to
hydrogen can be produced in the regions with the compete with natural gas by 2050.
highest solar and wind energy potential.
The potential study assumes two scenarios: NDC compliance and hydrogen breakthrough. In the conservative scenario,
it is anticipated that green hydrogen will become competitive for most applications only slowly in Mexico and will not
increase until the final years prior to 2050. This gives rise to forecast demand of less than 60 kilotonnes of green hydrogen
per year by 2047, which is likely to increase to over 120 kilotonnes by 2050.
Source of all graphics: Hinicio 2021
Water supply
The need for water for hydrogen production per region is insignificant in comparison with overall water consumption. In
all cases, water consumption for hydrogen production would account for 0.01% or less of total water consumption in the
region.
In regions in which the resource is scarce and sea water is available, for example on the Baja California peninsula, water
desalination is required for green hydrogen production. Additional investments for desalination would mean an increase
of less than 1% of the CAPEX per MW required for electrolysis.
39
scenario 1.200
1.000
800
600
400
200
120
100
80
Refineries 60
Ammonia 40
Synthetic fuels 20
Gas network 0
Thermal power plant 2020 2025 2030 2035 2040 2045 2050
Source of all graphics: Hinicio 2021
Demand for all applications will increase sharply under both scenarios, especially from 2040 onward. In the NDC
Compliance scenario, H2 will play a major role especially in refineries and in thermal power plants from 2040 onwards
play.
Potential green hydrogen demand in refineries Potential green hydrogen demand for synthetic fuels
In a hydrogen breakthrough scenario, hydrogen demand E-fuels will be used by 2050 particularly in aviation, in
in refineries will already increase continuously from 2030. maritime, in transport and in railway transport.
E-fuels will be used by 2050 particularly in aviation, in
maritime In the NDC compliance scenario, this trend would Potential green hydrogen demand for thermal power
not be anticipated until 2045. plants
Green hydrogen will be able to compete with natural gas
Potential of green hydrogen demand for gas as fuel for thermal power by 2042, which will foster its use
infrastructure by 2050.
The use of green hydrogen in the gas grid is highly
significant. Up to one fifth of natural gas consumption can
be replaced by green hydrogen.
40
In 2050, the cumulative requirement for green hydrogen will reach 580,000 tonnes per year for all industries studied.
This corresponds to a need for 6,750 MW of electrolyser capacity.
Hydrogen transport
0
Production Conversion Terminals Shipping Distribution Reconversion LCOH
at Part
Source: GIZ/Hinicio 2021
41
South Africa
42
Energy data
3% Transport Transport
9% 13%
Buildings 15% Buildings
5%
9% 27% Industry Industry
Commerce 11% Commerce
Agriculture Agriculture
33% 19% 52% 3%
Other Power/Heat generation
1%
Other
Source: IEA 2018 Source: IEA 2018
Industry and transport are responsible for The use of renewable energy in the electricity sector
around 60% of energy consumption. would save 40-45% of total carbon emissions and the
use of hydrogen can lead to a reduction of around
75% of carbon emissions by 2050. Source: IHS Markit 2021
Gigawatts
35
30
25
0
2020 2030
Source: IRENA 2021, IRP 2019 Source: IHS Markit 2021
3% 2% 1% 1% Coal 3% 2%
Nuclear energy Transport
5% Wind Buildings
18%
Water 24% Industry
Solar PV Commerce
Nearly 90% of electricity is generated from coal. The industrial sector is responsible for more than half
the total electricity consumption (2019: 224.56 TWh).
43
WIND SOLAR
Wind potential: 6,787 GW (22,000 TW/h) Solar energy potential: 292 GW (550 TWh)
Wind speed: avg. 5.88 m/s Solar irradiance: avg. 6,64 kWh/m2/day
WATER BIOMASS
Hydropower potential: 747 MW 241 MW
Hydrogen potential
As a contribution to the use of platinum resources in the country, the Ministry of Research launched the HySa strategy in
2008 with the aim of expanding the development and steering of innovations along the hydrogen and fuel cell technology
value chain. For February 2022, the publication of the Hydrogen Society Roadmap has been announced in which the
Ministry of Research presents guidelines for the development of the market up to 2050 for relevant interest groups of the
hydrogen industry.
With good economic and political conditions, South Africa could produce 3.8 million tonnes of green hydrogen by 2050.
Wind
Reference
scenarios: the ambitious 'high
2025
High H2 500 MW 10 MW 5 MW
Solar
Reference
2030
Reference
2040
and to below USD 2.00/kg by 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
2018 USD/kg
2040. Source: IHS Markit
Water supply
While South Africa suffers from water scarcity, the cost of sea water desalination is less than USD 0.02/kg.
There is local demand in the aviation industry, the chemical industry, from companies working with fuel cells, public
transport (hydrogen fuel cell buses) and in the steel and cement industry.
International demand
140
120
100
80
Europe
China 60
South Korea 40
Japan
20
India
Rest of Asia
2025 2035 2045 2055
Source: IHS Markit 2021
Hydrogen transport
Existing infrastructure
Some obstacles remain regarding the transport of green hydrogen in gaseous form. The compression of green hydrogen
requires more energy than the compression of natural gas (up to four times more). Hydrogen leaks are also more likely
compared with more dense gases. Today, shipping liquid hydrogen does not yet play a role in South Africa.
Tunisia
48
Energy data
4% Transport
6%
Buildings
8%
30% Industry
Business
60%
26% Agriculture
Other
26%
7%
Sources: IEA 2018, Wuppertal
Institute for Climate, 2010 2018
Environment and Energy 2021
Source: Irena 2021
The building, transport and industry sectors The energy dependency rate has rapidly increased in
dominate energy consumption. recent years.
Agriculture
15,000
4% Power/Heat generation
10,000 21,000 4% Other
34%
500
Source: IEA 2018
400 3,800
0
2020 2030 2050
Source: Wuppertal Institute for Climate, Environment and Energy 2021
The Tunisian Solar Plan (PST) provides for 30% of The electricity, heating and transport sectors in
Tunisia’s electricity to be generated from renewable particular are responsible for more than half the
energy by 2030 and around 80% by 2050. carbon emissions.
2% 1% 1% 1%
Gas Transport
7%
Wind Buildings
Solar Industry
30%
Other
27% Business
Agriculture
96%
35%
Tunisia's electricity mix is dominated by natural gas. The industry, building and business sectors are chiefly
responsible for energy consumption.
49
Source: Global Wind Atlas 2019 Source: Global Solar Atlas 2019
WIND SOLAR
Wind onshore potential: 110 GW Solar PV potential: 840 GW
Wind offshore potential: 250 GW Solar CSP potential: 1000 GW
Sunshine hours: 3,000 hours per year
Solar irradiance in the south:
> 2,000 kWh/m² per year
Source: Wuppertal Institute for Source: Wuppertal Institute for Climate,
Climate, Environment and Energy 2021 Environment and Energy 2021
Tunisia has favourable conditions for wind energy, especially in the north-east, in the central west and in the south-west.
These regions have a total area of around 18,000 square kilometres (11% of the land area in Tunisia). Regions suitable for
using the potential measure 1,700 square kilometres with around 10,000 MW.
Hydrogen potential
Northern Africa's proximity to Europe means it will play a major role as a potential future producer and exporter of green
hydrogen. This also applies to Tunisia because the land has great solar and wind energy potential and its climatic and
geographical conditions offer promising technical and economic potential for developing a national PtX sector.
50
Direct reduction of iron (DRI) Tunisia has a steel plant with It is rather unlikely that a
in primary steel production secondary steel production new steel industry will be
from waste in an electric arc established with DRI and a
Iron and steel furnace. This process does not corresponding demand for
require hydrogen. hydrogen, especially because
Tunisia has only limited iron
ore reserves.
No current use, but possible Tunisian industry does not use No potential short-term or
in future hydrogen for heat . medium-term uses in Tunisia.
High Long-term development of
temperatures demand is possible, but direct
and heat use of concentrated solar heat
could be a better option.
There is local demand in the aviation industry, the chemical industry, from companies working with fuel cells, public
transport (hydrogen fuel cell buses) and in the steel and cement industry.
51
Long-term development
PtX applications Development status
potential in Tunisia
• Ammonia as fuel Research and pilot projects. The efforts on the part of the
• Hydrogen-powered ships Companies expect ammonia- IMO and EU to decarbonise
powered ships to be on the shipping could influence
market before 2030. potential demand for ammonia
Maritime as fuel. The possibility of using
transport the existing infrastructure for
handling ammonia in the port
of Gabès must be explored.
• FCEV passenger vehicles Light commercial FCEVs are Greatest potential for heavy
• FCEV trucks available on the market. For commercial vehicles with high
• FCEV buses heavy FCEVs, projects are daily mileage on set routes and
• PtL as fuel already under way with growing central refuelling. The national
demand. bus transport system could
Road transport also be a potential area for
introducing state-supported
hydrogen use early on.
In future Tunisia will use Power-to-X applications in order to decarbonise the transport sector.
52
Technical and economic parameters for cost calculation of green hydrogen in Tunisia
Investment cost
670 1100 485 800 300 500
(in EUR/kW)
Technical lifespan
23 25 27
(in years)
Efficiency (in %) 62 65 68
Full-load hours
5400 5400 5400
(in h/a)
Electricity-
generation cost 31 68 26.5 64.5 22 61
(in EUR/MWh)
The analysis takes into account seven different cost factors: specific investment, technical lifespan, degree of efficiency,
fixed operating costs, electricity-generation costs from renewable energy sources, full-load hours of plants and interest
rate. The assumed costs have been calculated for two scenarios in order to outline possible future cost development
paths for PtX in Tunisia. In the progressive scenario, the cost of early investments drops more rapidly over time, while
the conservative scenario assumes a slower decline in price. The table summarises the different technical and economic
assumptions between the progressive and the conservative scenario.
53
Technical and economic parameters for cost calculation of green hydrogen in Tunisia
Eurocent/kWh
25
Capital cost
Electricity cost 20
15
10
0
Progressive Conservative Progressive Conservative Progressive Conservative
The figure shows green hydrogen production costs in 2030, 2040 and 2050. The estimated production cost for green
hydrogen in Tunisia is between 9.50 eurocents/kWh and 19.24 eurocents/kWh in 2030. In 2050, the lowest estimated
production cost in the progressive scenario amounts to 5.41 eurocents/kWh (without transport) and 13.60 eurocents/kWh
in the conservative scenario.
The greatest cost factor for green hydrogen is the cost of electricity from renewable energy. However, this cost is likely to
decline substantially over time.
Water supply
Tunisia's overall water resources are estimated at 4,874 billion m3/year. Tunisia is one of the water-poorest countries in
the Mediterranean region and suffers from water scarcity.
Desalination technologies are already commercially available, but their operation is largely based on fossil fuels. The
production of green hydrogen would therefore require a changeover to renewable energies.
Although sea water desalination involves costs, these costs account for only a negligible part of the cost of producing
green hydrogen. Sea water desalination is estimated to account for well below 1% of the overall PtX cost.
54
Hydrogen transport
Existing infrastructure
Eurocent/kWh
35
Production cost
Transport cost
30
25
20
15
10
0
Progressive Conservative Progressive Conservative Progressive Conservative
The figure shows an additional factor that plays a major role in green hydrogen production: transport cost. The distance
between Tunisia and Germany is around 4,115 km. The cost of transport to Germany will be between 15.05 eurocents/
kWh and 33.01 eurocents/kWh in 2030 and between 9.86 eurocents/kWh and 27.47 eurocents/kWh in 2050. Compared
with other countries such as Morocco, the transport cost from Tunisia to Germany is substantially higher owing to the
greater distance.
In addition to exporting green hydrogen, it can also be used as feedstock for conversion to PtL fuels for the country's own
transport sector or for export.
It is most likely more economically viable to export PtX products such as ammonia, methanol and kerosene from Tunisia to
Germany than green hydrogen. From a cost perspective, green hydrogen produced in Tunisia should rather be processed
into PtX products and then exported or used directly in Tunisia.
55
Fernana El Kala
1 90 35 525 1955
Tajerouine El Aouinet
1 220 59 620 1980
Jendouba Chefia
1 400 160 1540 2014
Médenin Abou
Kamash 2 220 110 620 2011
The Tunisian transit pipelines are part of the Transmed system, which transports natural gas from Hassi R-Mel, Algeria,
to Sicily and to the Italian market. The Algerian section is operated by the state-owned company Sonatrach. The Société
Tunisienne du Gazoduc Trans-Tunisien (Sotugat) owns the Tunisian section (two 48-inch pipelines). Sotugat is controlled,
operated, and maintained by subsidiaries of Eni TPPC (Trans Tunisian Pipeline Company) and Sergaz. The underwater
section between Tunisia and Sicily consists of three 20-inch pipelines and two 26-inch pipelines. It is owned by the
Transmediterranean Pipeline Company Limited (TMPC) and operated by Transmed Sp.A. – a joint venture between Eni
and Sonatrach.
Port infrastructure
SKHIRA 60-300
BIZERTE
Dock A 35 250
Dock B 26 150
RADES 31 170
ZARZIS 28 175
• Skhira: petrol, gas oil and fuel • Radès: liquefied gas, gas oil, fuel and • Zarzis: petrol, gas oil and aircraft
• Bizerte: liquefied gas, petrol, gas oil aircraft fuel fuel
and fuel • Gabès: liquefied gas
56
Contacts
ALGERIA CHILE SOUTH AFRICA
German-Algerian Energy Partnership German-Chilean Energy Partnership German-South African Energy Partnership
Contact
Marco Hüls
Postal address
Alianza Energética entre México y Alemania
Av. Insurgentes Sur No. 688, Piso 6
Col. del Valle, 03100 CDMX, Mexico
Email [email protected]
Tel. +52 55 5536 0330
Website www.energypartnership.mx
57
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