Concept Design Study reaffirms compressed hydrogen is an energy- efficient supply chain for regional Europe
Provaris Energy Ltd announced the completion of its Concept Design Study for bulk-scale hydrogen export and import compression facilities.
The findings of the Study reaffirmed the low energy use and low capital of Provaris’ compressed hydrogen supply chain for regional marine transport of hydrogen in gaseous form.
The Study, the fourth in a series of techno-economic studies developed by Provaris, was based on a 540MW capacity reservation export site, producing 10 tonnes of hydrogen per hour (equivalent to 87,000 tpa); with an intra-Europe shipping distance of 1,000 nautical miles using the H2Neo carrier to deliver gaseous hydrogen to the customer at 70 barg.
A leading original equipment manufacturer of high pressure compressor equipment (Compressor OEM) supported the preparation of this Study with the selection of optimal compression equipment to ensure the project's feasibility.
Key outcomes include: • Reconfirmed low energy use with only ~1.5 kWh per kg of hydrogen required for storage and loading compression (Export Terminal), and only 0.2 kWh/kg for unloading compression (Import Terminal). • Compression energy use represented only ~2.8% (15MW) of all power requirement for the export site, with the remaining 97.2% (525MW) available for hydrogen production (via electrolysis). • Concludes that compression has up to 5 times less energy use than required for ammonia synthesis (7.5 kWh/kg H2 or 65MW), leaving only 470MW available for electrolysers after ammonia synthesis. • Capital cost of compression facilities was €120 million, representing less than 7% of the total capex of the hydrogen supply chain. • Low energy use of compression, with little or no hydrogen losses, results in ~50% greater hydrogen volumes delivered to the customer when compared to ammonia supply. • Supported by the Study scope and outcomes, compression’s superior capital and energy efficiency could result in a ~20% lower delivered price at €6/kg compared to regional supply ammonia post cracking back to hydrogen at €7.4/kg (refer to Figure 2 below). • Europe’s recent H2Global and EU Hydrogen Bank auction results allocating €1.1 billion funding to green ammonia and hydrogen projects demonstrated a hydrogen supply cost range of €6-10/kg further highlighting the competitiveness of compression.
The results of the Study will be used as a basis to support and develop site specific compression facilities now underway for both export terminal feasibility studies for sites identified in Norway and the Nordics along with import site locations such as Port of Rotterdam as part of our collaboration with Global Energy Solutions. Development activities with Uniper also include the review of multiple import site locations where compression will be required.
All equipment selection and costs align with a level 3 project feasibility assessment, with the capital and operating costs, compression capacity (MW), and energy use (kWh) provided by a globally recognised Compressor OEM working with Provaris on the selection of high-pressure compressors for industrial gases, including hydrogen. All compressor equipment selected for the Study is compatible with hydrogen at scale and commercially available with no further research and development or certification to operate up to 250 barg. A summary of the Study report is provided in Appendix A which follows.
In 2024, there have been two distinct pilot subsidy programs for hydrogen in the European industry: • April 2024: EU Hydrogen Bank awarded a combined €720 million across 7 projects; set to produce a collective 158 ktpa of hydrogen by 2029. Portugal, Spain, Norway and Finland were the selected locations. Winning bids submitted to the auction suggest average levelized costs between €5.8/kg and €8.8/kg. A second €1.2 billion auction is planned for late 2024.
Provaris Energy Ltd is an Australian public company developing a portfolio of integrated green hydrogen projects for the regional trade of Asia and Europe, leveraging our innovative compressed hydrogen bulk storage and carrier. In August 2022 Provaris Norway AS was established to advance the development of regional hydrogen supply in Europe.
