Green hydrogen and its derivatives

To ensure our industry is prepared for a sustainable future, renewable energies, green hydrogen, and its derivatives, such as ammonia and methanol, are indispensable. In Germany alone, up to 130 terawatt-hours of green hydrogen will be required annually by 2030, which is more than twice the current demand. However, the critical questions are: Where will all this hydrogen originate, and how will it be transported to its required destinations?

In July 2023, the German government addressed these questions and outlined targets and measures for the production, transportation, and utilization of hydrogen and its derivatives in its updated hydrogen strategy. This is a positive development for Germany as a business destination and for thyssenkrupp. As one of the largest prospective industrial consumers of green hydrogen in Germany and simultaneously the world's leading manufacturer of water electrolyzes and facilities for producing derivatives like ammonia and methanol, the group will gain advantages from this political initiative.

The national hydrogen strategy 2020 and 2023

The primary objective of the previous hydrogen strategy, introduced in 2020, was to ensure a reliable supply of green hydrogen for Germany. This gas is regarded as a beacon of hope for the energy transition because it can be utilized across numerous industries and, unlike fossil fuels, does not emit climate-damaging CO₂. Particularly when produced sustainably, using renewable energies as the basis, it can make a substantial contribution to reducing CO₂ emissions, ideally even reducing them to zero.

Three years after the initial release of the national hydrogen strategy, the German government has revised it. The rationale behind this update is that, in addition to green hydrogen, its derivatives like green ammonia and green methanol will play an increasingly significant role in the future and therefore require corresponding promotion. Examining the various applications of these green chemicals underscores their potential to positively impact our climate.

The potential of green hydrogen and its derivatives

Green hydrogen is poised to revolutionize the steel industry, replacing coal, which is still in use in traditional steel production today. In the future, green hydrogen will take its place. In what are referred to as direct reduction facilities, iron ore will be transformed into sponge iron with the aid of hydrogen and subsequently converted into liquid pig iron in electric melting units powered by renewable energy. Steel production can then proceed through the conventional process steps. This innovative technology will enable thyssenkrupp Steel to reduce its annual CO₂ emissions by an impressive 3.5 million metric tons.

However, this is just the beginning of the story. In the chemical industry, green hydrogen can also serve as a primary ingredient in the production of green methanol and ammonia. These substances, in turn, become essential raw materials for various products, including clothing, plastics, medicines, and even synthetic kerosene for aviation fuels. Consequently, green chemicals have the potential to enhance the sustainability of multiple industries simultaneously.

There's just one caveat: At present, there is an insufficient supply of green hydrogen, green electricity, or the necessary production facilities. Once thyssenkrupp's steel mill in Duisburg transitions to direct reduction, it will require more hydrogen in just two hours than could fit into the Oberhausen gasometer. To put this into perspective, it's equivalent to four times the annual electricity consumption of Hamburg or the combined output of 3,700 offshore wind turbines.

Therefore, for the successful realization of the green transformation and to ensure an adequate supply of hydrogen and green electricity for future production, a comprehensive infrastructure must be established, spanning Germany, the EU, and the global stage.

Strategically towards green transformation

This is where the national hydrogen strategy comes into play: It aims to establish an electrolysis capacity of at least ten gigawatts in Germany by 2030. However, according to experts, this capacity will only be able to meet up to 50 percent of the required hydrogen demand. As part of its revised strategy, the German government has thus set the goal of ensuring the availability of hydrogen and its derivatives through imports from partner countries.

Particularly promising as hydrogen producers are countries in the global south, such as New Zealand, Australia, Chile, Namibia, and South Africa, along with Norway. These nations boast favorable conditions for generating renewable energy through photovoltaics and wind power. To transport hydrogen to Europe and Germany, it must first be converted into ammonia due to its challenging transport properties and then shipped to its destination via pipelines.

To achieve this, the government has made the decision to create an infrastructure. By 2028, more than 1,800 kilometers of hydrogen pipelines are set to be expanded throughout Germany, with an additional 4,500 kilometers planned for Europe. Through this expansion, all major production, import, and storage centers will be connected to relevant customers by 2030.

thyssenkrupp as pioneer for green hydrogen and its derivatives

H2Giga, H2Mare, and TransHyDE  are three such infrastructure projects in which the German government, together with representatives from research and industry, is setting up Germany's future energy supply with green hydrogen. Many thyssenkrupp companies are also involved in the green transformation.

First and foremost, thyssenkrupp Uhde and thyssenkrupp nucera. The two companies combine over 100 years of experience in the construction of ammonia and electrolysis plants. This makes thyssenkrupp the only group in the world able to offer the entire hydrogen value chain from water electrolysis through ammonia production and storage to ammonia cracking - the conversion of ammonia back to hydrogen. And this on an industrial scale! Already today, thyssenkrupp nucera's 20 MW standard electrolysis modules can be scaled up to a multi-gigawatt scale. A single module produces around 3,100 tons of hydrogen per year.

But other areas of the group are also driving the green transformation with their products. For example, thyssenkrupp rothe erde supplies key components for wind turbines and photovoltaic plants with its slewing bearings, and thyssenkrupp Steel enables the loss-free transport of green electricity with its powercore® electrical steel.

The revision of the national hydrogen strategy paves the way for technologies, processes, and components along the entire value chain of the energy transition. But it also requires commitment. Our experts will continue to contribute their technological expertise - in national lighthouse projects and projects for our customers! Read more in our stories.