The French electricity system leads the way for green hydrogen production in Europe but its grid is “not ready” for major electrolyser projects.
That was the message from Elias Frei, Director of the Hydrogen Technologies Division, Fraunhofer ISE, at the Hydrogen Technology Expo in Hamburg on Wednesday (21 October).
Comparing conditions, Frei pointed towards German end-users tapping electrolysers located in France to capitalise on the country’s grid costs.
“There’s a reason the 70MW electrolyser that provides hydrogen for the steel plant [operated by Saarstahl] in Saarland sits in France – because it’s more competitive and cheaper to invest there,” he said.
His sentiment was shared by fellow panellist Rokas van Iperen, Program Director Electrolyser Stage Engineering, Bosch, who said transporting energy in the form of hydrogen could bypass “grid congestion where the electricity grid is a bottleneck.”
It reflects recent findings from Hydrogen Europe’s Clean H2 Monitor report, which identified significant variations in grid fees across Europe. This positioned France at the low end, with its fees calculated as adding just €0.10/kg ($0.11) to hydrogen production costs.
The disparity would seem relatively minimal, with German fees positioning it as the second cheapest country for additional production fees at only €0.20/kg ($0.26).
With France and Germany sitting at the cheap end of the scale, Frei’s assertions raise questions of production costs beyond the two countries.
However, the comments come as Germany mulls removing grid fee exemptions for electrolyser projects, which could drive up hydrogen production costs.
Despite those challenges, Germany continues to lead Europe’s electrolyser build out.
Hydrogen Europe’s Report said that of the bloc’s 3.7GW construction pipeline, Germany holds 1.3 GW.
