Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - HyLYZER (Industrial electrolyser for large-scale on-site renewable hydrogen production for manufacturing industry)

Teaser

Renewable energy sources (RES) not only decarbonize the economy through clean power production, it also enables the substitution of fossil fuels in mobility, reduces EU energy import dependence and increases security of supply. Moreover, it allows to cut back on highly...

Summary

Renewable energy sources (RES) not only decarbonize the economy through clean power production, it also enables the substitution of fossil fuels in mobility, reduces EU energy import dependence and increases security of supply. Moreover, it allows to cut back on highly dangerous air emissions such as NOx, SOx or particulates. The EU has also set a long-term goal of reducing GHG emissions by 80-95%, when compared to 1990 levels, by 2050. Mass implementation of RES is a firm decision that the EU has already made. However, RES large scale deployment, especially wind and solar generation, is hampered by its intrinsic variability, intermittency and unpredictability. Another handicap of RES is the large fluctuations in frequency, grid voltage and power flow that occur with the integration of these generators onto the grid. Power to H2 provides a suitable energy storage solution enabling the mass implementation of clean energy sources onto the grid. Simultaneously, it can benefit from discounts on the price of RES oversupply that otherwise will be curtailed to produce large quantities of low cost H2. These facts make power to H2 systems profitable even now and turns H2 into a solution sine qua non the world cannot achieve 2050 goals on GHG emissions reduction and the transition to a green economy.

Work performed

The FS confirms the great interest of the innovation in the industrial and mobility markets. The technical work packages will lead to the creation of the HyLYZER® 1000 pilot plant and a real dimension industrial plant with certified performance and zero emissions. The market analysis shows that the market size and growth for the green H2 industry in the coming years is relevant and justify the investment. Competitors have been studied and the barriers for market introduction have been identified and it has been established mechanisms to overcome them. The risks of the project was assessed and we concluded that the project does not imply high risks and these risks can be detected and managed. The patentability analysis concludes that the invention is well protected. Moreover, HyLYZER® 1000 does not interfere with the scope of the claims in the analysed documents and the innovation has still FTO.

Final results

The economic study confirms the economic feasibility of the project and provides very interesting indicators. The proposed project is profitable with sales in 2021-2025 of 622.3 MM€, EBITDA 60.01 MM€, IRR of 70.58%, ROI = 7.4 (5 years). The payoff period is only 2 years.

Website & more info

More info: https://www.hydrogenics.com/.