“There is no commercial case for green hydrogen yet”: Siemens Energy CEO

CEO Siemens Energy Talks about the challenges facing the green hydrogen sector and tells CNBC that there are “no commercial cases” at this time.

With comments made during discussions on CNBC Sustainable Future Forum On Tuesday, Christian Bruch outlined some areas where green hydrogen needs attention to gain momentum.

“We need to define the technology and the boundary conditions that make these cases commercially viable,” Bruch, who spoke with CNBC’s Steve Sedgwick.

“And, obviously, we need a cheap electricity environment, and in this regard we need abundant renewable energy available to do this,” he claimed, which wasn’t there yet. ..

Hydrogen can be produced in a variety of ways. One method involves using electrolysis in which an electric current divides water into oxygen and hydrogen.

If the electricity used in this process comes from a renewable energy source such as wind or solar, some call it green or renewable hydrogen.

Read more about clean energy from CNBC Pro

The potential for green hydrogen is exciting in some areas, but it is currently expensive to manufacture. That’s right National grid Gray hydrogen describes it as “the most common form of hydrogen production” today.

This gray hydrogen is “produced from natural gas or methane using steam methane reforming, but does not capture the greenhouse gases produced by the process.”

Bruch also emphasized the importance of building an industry to support the commercialization of green hydrogen.

He explained that technical systems and operational knowledge built over 10 to 15 years are important, which is common in the power industry.

“It’s all still coming to make it … a commercial system,” Bruch said. “So the biggest problem is [that] Under current boundary conditions, there are no commercial cases of green hydrogen yet. “

Another participant in the discussion on Tuesday was Marco Alverà, CEO of Italy’s energy infrastructure giant. Snam..

In particular, he talked about the importance of establishing a framework for promoting the development of more sustainable industries.

“We need detailed printing and policies to give or mandate incentives: gray to green, gas to hydrogen, coal to hydrogen,” he said. “And it happens very fast.”

Described by the International Energy Agency as a “multipurpose energy carrier,” hydrogen has a variety of uses and can be deployed in fields such as industry and transportation.

One of the most controversial areas in recent years is the use of hydrogen fuel cells in automobiles.

“For private and passenger cars, this is a very difficult use case,” said Bruch of Siemens Energy. “It’s not the first use case I go to.”

“I think it’s much more rational to talk about the use of hydrogen in either heavy-duty mobility or certain industrial applications,” he continued.

“We talk about green steel or green refining processes that are much more rational, much more CO2 effective, and provide a much more profitable cost environment to enable green hydrogen.”

“There is no commercial case for green hydrogen yet”: Siemens Energy CEO

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