Hydrogen prices are set to fall dramatically if enough surplus solar and wind energy can be utilised in the gas’s production, according to a new study which says hydrogen could even become cheaper than natural gas.
A major dilemma for European electricity providers and grid operators is how best to integrate intermittent renewables into the current system. Clean power often goes to waste because of inflexibility and insufficient storage options.
Electricity interconnectors are expensive projects that often have a political dimension to them and battery technologies are still not at a point where they can be rolled out on a large scale.
But one option that has been touted as a solution is the so-called power-to-gas process that uses energy to create hydrogen from water through electrolysis. The resulting gas can then be more easily stored and used to a certain extent in existing infrastructure and new vehicle technologies.
A new report by Berlin-based analysts Energy Brainpool has revealed that the mass production of electrolysers would form part of the puzzle and that the technology has “high potential for further cost reductions”, based on reduced maintenance costs and increased efficiency.