Thang, Et Al. - Hybrid Renewable Energy System Featuring Pem Green Hydrogen in Regions With High Solar and Wind Density
Thang, Et Al. - Hybrid Renewable Energy System Featuring Pem Green Hydrogen in Regions With High Solar and Wind Density
Hybrid Renewable Energy System Featuring Pem Green Hydrogen In Regions With
                            High Solar And Wind Density
    Chau Hong Thang, Van Lang University (VLU), Viet Nam; Pham Minh Tung, Van Lang University (VLU), Viet Nam;
    Nguyen Vu Minh Thy, Van Lang University (VLU), Viet Nam; Vo Quang Hung, Van Lang University (VLU), Viet Nam
Supporting Lecturer: Thi Thanh Hien Ho ([email protected]).
Key Messages
•    Green hydrogen enables the imminent future of clean and sustainable energy in developing nations thanks to
     advances in technologies, expansion in solar and wind power, and its low carbon footprint.
•    Cost efficiency plays a crucial role in facilitating the widespread adoption of green hydrogen on large scales.
•    The successful implementation of pilot projects would lay the foundation for the production, storage, and utilization
     of green hydrogen.
•    The green hydrogen development path should initiate with the chemical feedstock industry, followed by heavy-
     duty and long-range transportation, and ultimately in the power sector.
•    For developing nations, the roadmap starts with an initial focus on grey (blue) hydrogen, with the goal of evolving
     into hydrogen export hubs by the late 2030s. This transformation will be supported by a three-phase policy
     framework aimed at enhancing the competitiveness of green hydrogen. The role of international collaboration,
     facilitated by the UN and developed countries, is crucial.
Our continued dependence on finite fossil fuels,                 buses, trucks, and even trains, offering extended ranges
including coal, oil, and natural gas, not only exhausts          and faster refueling compared to traditional batteries.
these limited natural resources but also emits                   In the industrial sector, they offer backup or off-grid
substantial greenhouse gases (GHG), exacerbating                 power solutions5, and their use in remote or isolated
global warming. The relentless progression of climate            communities6 highlights their potential in regions
change, primarily driven by extensive fossil fuel                facing challenges in energy importation. The purpose of
combustion, emphasizes the urgent need for a                     this brief is to outline recommendations for effectively
transition to renewable energy source worldwide,                 integrating and expanding PEM green hydrogen
including in developing countries. However, the                  technology in regions with high potential for solar and
                                                                 wind energy, focusing on sustainable energy
intermittent nature of renewables, particularly solar
                                                                 development in developing countries.
and wind energy, presents significant challenges to
global power grid stability and reliability, resulting in        Figure 1.
fluctuations in energy generation. This inconsistency
necessitates effective energy storage solutions to
ensure a consistent power supply and optimize the
seamless integration of renewables into the energy mix.
Green hydrogen technology, particularly employing
Proton Exchange Membrane (PEM) fuel cells, emerges
as a viable solution to address these challenges, even in
developing nations.
Green hydrogen, produced using renewable sources,
can be efficiently stored and converted back into
electricity when needed using PEM fuel cells, which
operate in reverse during electrolysis, splitting water
into oxygen and hydrogen2. This dual functionality
offers a solution to the critical challenge of intermittent
energy supply. Beyond their primary role in converting           Data source: modified from Yodwong et al. (2020)1
hydrogen into electricity for power generation3, green
hydrogen fuel cells provide versatile storage solutions
with a wide range of applications1. For example, in
transportation4, green hydrogen fuel cells can power
   Science-Policy Brief for the Multistakeholder Forum on Science, Technology and Innovation for the SDGs, May 2024
Finally, the financial aspects associated with green           produce 50 tons of hydrogen annually, which powers
hydrogen production are formidable, primarily due to           local schools' heating systems, a 75-kW fuel cell unit in
the intricate nature of scaling up with PEM                    Kirkwall for harbor and ferries, and a refueling station
electrolyzers, which involve high capital costs and            for fuel cell vans. This initiative has reduced the need to
reliance on expensive materials such as platinum,              curtail wind turbine operations, which previously lost
iridium oxide, and gold or platinum-coated titanium23.         over 30% of potential annual output27.
Additionally, even in 2050, green hydrogen production
                                                               The BIG HIT project has significant environmental,
still carries a substantial financial burden, with
                                                               social, and economic impacts. It has created jobs,
renewable energy sources accounting for 30% to 40%
                                                               fostered the transition to renewable energy, and
of total costs, electrolyzers adding another 10% to 20%,
                                                               addressed public concerns about hydrogen safety
and financing costs of approximately 30%, thereby
                                                               without      major     negative    social     impacts27.
intensifying the challenge of achieving competitive
                                                               Environmentally, the project substantially reduces GHG,
levelized costs in the market24,25. Currently, green
                                                               with potential CO2 emission reductions of 58% in
hydrogen production costs are roughly twice as high as
                                                               electricity generation, 83% in heating, and 48% in
those of conventional gray hydrogen. However, it is
                                                               mobility, compared to traditional energy solutions 28.
projected that, due to decreasing costs of renewable
                                                               The project's business model also emphasizes the
energy and the use of more economical materials, the
                                                               importance of maximizing electrolyzer operation time
cost of green hydrogen produced through PEM
                                                               and selecting suitable Power Purchase Agreements
technology is expected to equal that of gray hydrogen by
                                                               (PPAs) to make renewable hydrogen economically
2030, estimated at around US$1.60 per kilogram, and
                                                               viable, which are crucial in lowering hydrogen
potentially reduce further to approximately US$1.00
                                                               production costs29.
per kilogram by 205026.
                                                               Figure 2.
Successful Case Study
The Orkney Islands, a collection of 20 populated islands
with an estimated population of 21,000, are recognized
as a renewable energy center with a total capacity of
approximately 66 MW. The actual production of
renewable energy in the Orkneys falls short of what
could potentially be generated, often surpassing the
local demand. Consequently, this leads to the
exportation of excess electricity to the mainland of
Scotland via subsea cables, mainly in summer when the
local demand decreases. Since 2013, the Orkneys have
consistently exported more electricity than they have          Data source: Source: Zhao & Nielsen (2018)27
used, signifying their role in the field of renewable
energy. The BIG HIT project, therefore, was initiated to       Outlook
efficiently utilize the Orkney Islands' abundant               The vision for green hydrogen's evolution, considering
renewable energy by converting excess renewable                the increasing rates of solar and wind energy, rising
power into green hydrogen.                                     hydrogen demand, technological progress, and
The BIG HIT project27, launched in 2016 in Scotland's          developing countries’ existing infrastructure status:
Orkney Islands, is a groundbreaking five-year initiative       Phase 2023-2030: with solar and wind energy already
to create a model hydrogen economy. Funded by the              constituting 12% of the world's power and expected to
FCH2JU, it involves 12 partners from six EU countries          reach one-third of global electricity production by
and aims to generate green hydrogen from wind, tidal,          203012, surplus renewable energy will be harnessed for
and solar energy. Orkney, with its abundant renewable          green hydrogen production. This phase sees green
energy and limited grid capacity, faces energy                 hydrogen being increasingly used in feedstock
curtailment issues. BIG HIT seeks to resolve this by           industries like refineries and steel manufacturing 30,
producing hydrogen using excess energy from                    sectors crucial for developing economies.
community-owned wind turbines on Shapinsay and
Eday, and tidal energy from EMEC sites. A 1.5 MW               Phase 2030-2040: the phase will witness the complete
proton-exchange membrane electrolyzer is used to               phasing out of grey hydrogen from the global hydrogen
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   Science-Policy Brief for the Multistakeholder Forum on Science, Technology and Innovation for the SDGs, May 2024
market, along with the continuous growth of green                          experts, academic institutions, and local
hydrogen. Solar and wind-based hydrogen will extend                        communities, to create a comprehensive and
its reach into the transportation sector, particularly in                  inclusive approach to hydrogen development.
heavy-duty and long-range vehicles. Developing nations              2. Implementing strong policies that directly impact the
endowed with abundant renewables may emerge as                         competitiveness of hydrogen
pivotal hydrogen export hubs31.
                                                                       •   Phase 2023-2030 (policies focus on intiating
Phase 2040-2050: renewable energy, expected to                             investments in infrastructure, pilot projects,
account for 90% of the world's power, will see solar and                   safety rules)
wind-based hydrogen leading the market12. This phase
                                                                               o   Craft policies that entice private
is particularly pertinent for developing countries, as it
                                                                                   investment and bolster renewable
promises enhanced energy accessibility in remote
                                                                                   energy projects through mechanisms
areas, including off-grid electricity generation, which is                         like PPAs, tariff systems, and funding
vital for regions with limited infrastructure.                                     that reward energy input, thus fast-
Conclusion                                                                         tracking the growth of essential
                                                                                   infrastructure and the share of solar and
PEM green hydrogen technology is key to a low-carbon                               wind in the energy sector32. In this
future and has the unique potential to harness abundant                            phase, pilot projects play a crucial role in
solar and wind resources in developing countries. While                            testing and demonstrating the viability
currently facing challenges in investment costs, safety,                           of green hydrogen production.
efficiency, and skilled workforce, addressing these
issues is crucial for its significant role in various sectors                  o   Encourage policies that support green
like industry, transportation, and power. PEM green                                hydrogen production from renewable
hydrogen technology is especially suited for developing                            sources by introducing tax incentives
countries, as it can efficiently utilize their often                               and subsidies31,33, as well as investment
untapped solar and wind potentials. This not only                                  in research and development so as to
fosters economic growth but also aligns with the UN's                              improve efficiency, cut costs, and foster
SDGs - SDG 7 for affordable and clean energy, SDG 11 for                           innovation.
sustainable cities and communities, and SDG 13 for                             o   Strengthen regulations to ensure safety
climate action. Importantly, the technology contributes                            and environmental sustainability.
to a 'just' climate transition, ensuring that
advancements in green energy do not leave behind                       •   Phase 2030-2040 (policies focus on
developing regions, thus supporting global efforts                         strengthening sector integration, scaling up
towards equitable and sustainable development.                             projects, exporting hydrogen)
                                                                               o   Expand the scope of policies to include
Policy Recommendations                                                             broader sectors like transportation, and
1. Developing a comprehensive hydrogen industry                                    power generation.
   roadmap and strategy aimed at ensuring investment
                                                                               o   Establish regulatory frameworks that
   certainty for all involved stakeholders
                                                                                   favor green hydrogen, mandating its use
    •   Establishing a roadmap that begins with grey                               in certain sectors, setting minimum
        (or blue) hydrogen and transitions to green                                usage targets, or creating favorable
        hydrogen sources, leveraging existing pipelines                            conditions for renewable energy
        for safe and cost-effective blending31.                                    sources that feed into hydrogen
                                                                                   production30 .
    •   Formulate a comprehensive strategic plan that
        delineates specific, attainable objectives for                         o   Enhance public-private partnerships to
        hydrogen production, application, and the                                  scale up hydrogen projects.
        advancement of necessary infrastructure,                               o   Strategically implement policies that
        ensuring a cohesive approach for hydrogen                                  promote the export of hydrogen.
        deployment across diverse industry sectors.
                                                                       •   Phase 2040-2050 (policies focus on maturity
    •   Foster stakeholder collaboration by actively                       and global integration)
        engaging governments, businesses, industry
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   Science-Policy Brief for the Multistakeholder Forum on Science, Technology and Innovation for the SDGs, May 2024
   •   Enable technology transfer and capacity                  3. Ufa RA, Malkova YY, Bay YD, Kievets AV. Analysis of the
       building, sharing knowledge and expertise in                problem of optimal placement and capacity of the
                                                                   hydrogen energy storage system in the power system.
       green hydrogen production:
                                                                   International Journal of Hydrogen Energy. 2023/02/08/
           o   The UN, particularly through UNIDO,                 2023;48(12):4665-4675.
               could support developing countries in               doi:https://doi.org/10.1016/j.ijhydene.2022.10.221
               the green hydrogen sector by providing           4. Hren R, Vujanović A, Van Fan Y, Klemeš JJ, Krajnc D, Čuček
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                                                                   decarbonization of stationary power applications.
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               appropriate technologies for replication
               so as to bridge the technological gap            6. Hasan T, Emami K, Shah R, et al. A study on green
                                                                   hydrogen-based isolated microgrid. Energy Reports.
               with developing nations.
                                                                   2022/11/01/                            2022;8:259-267.
   •   Facilitate international investment and funding,            doi:https://doi.org/10.1016/j.egyr.2022.10.105
       drawing resources from global partners to                7. IEA. Global Hydrogen Review 2021. Policy ET; 2021.
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                                                                   906a-4429-abda-
           o   The UN could significantly enhance the              e9c507a62341/GlobalHydrogenReview2021.pdf
               green hydrogen sector in developing
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               partnerships and utilizing its extensive            Global Wind Power Tracker. Accessed December 06, 2023,
                                                                   https://globalenergymonitor.org/projects/
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               acting as mediators for technology               9. Shani N. 2023.
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Developed nations can enhance green hydrogen
                                                                    ort.pdf
projects in developing areas by offering direct financial
support and establishing bilateral or multilateral funds        11. BloombergNEF. Hydrogen – 10 Predictions for 2022.
dedicated to green hydrogen initiatives, encourge                   Accessed          December         06,          2023,
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                                                                    for-2022/
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Annex
Annex 1. List of Experts Consulted
                 Full name                               Title                            Affiliation
               Nadhilah Shani             ACE Senior Research Analyst          ASEAN Centre for Energy (ACE)
                  Darius Do                      Project Manager                         Indefol Solar
                  Duy Pham           Chief of Credit Acceptance – Corporate         A Bangkok based bank
                                                     Banking