Enel prepares to produce green hydrogen

Italy鈥檚 Enel expects to be producing green hydrogen within a year, with likely sites for its first wind and solar farms with electrolysers seen in the US, Chile and Spain, said Antonio Cammisecra, the company鈥檚 head of global power generation.

Enel has a renewables development pipeline of about 40GW

Green hydrogen represents a 鈥渇antastic complement鈥 to electrification, allowing to accelerate decarbonisation in sectors where electrification is difficult, Cammisecra said in a press briefing.聽

The utility is scouting for projects 鈥 both in its 40GW renewable energy development pipeline and its vast fleet of operational wind and solar plants. While the company sees potential opportunities in all markets where it has a presence, Cammisecra believes its first green hydrogen production sites are likely to be in the United States, Chile and Spain.听听

Amid continuing research and development investments, he expects the cost of using electrolysers to produce hydrogen from renewable electricity will become 鈥渧ery competitive鈥 in the next few years.听听

He stressed that hydrogen must be produced from renewable energy to contribute to decarbonisation, adding: 鈥淎ny other form of hydrogen is just a trick.鈥澛犅

A market for hydrogen聽

These countries share characteristics such as strong renewable resources that are competitive with other generation sources, ample space and a market for hydrogen. For example, both miners in Chile and oil refiners in the US could use green hydrogen to clean up industrial processes, Cammisecra suggested.聽

The US, Chile and Spain also have regulatory frameworks that allow renewable energy producers significant opportunities to provide grid services, boosting the green hydrogen business case. 鈥淎n electrolyser can be easily turned on and shut down, so when coupled with a [variable] source source such as solar or wind we can dispatch power in a much more fruitful way that is useful to the grid,鈥澛 Cammisecra explained.

Although Enel鈥檚 hydrogen projects are still in the development phase, Cammisecra said the company can move quickly to produce green hydrogen, noting that it is relatively easy to add an electrolyser to a good wind or solar project.聽

He said he does not share the vision of the massive, gigawatt-scale green hydrogen projects that have been announced recently. 鈥淚t鈥檚 a market you have to open. We have to convince new customers why they might want to buy something that in the beginning could be more expensive,鈥 he said.聽

While the scale of green hydrogen projects will depend on both the market and technology developments, he envisages an 鈥渋deal setup鈥 with a renewable project of about 300-400MW combined with a 100MW electrolyser, 鈥渟o pretty much in line with what we do with batteries, where there鈥檚 a 20-25% ratio between storage and maximum capacity.鈥澛犅

Not diving into offshore

As Enel prepares to begin green hydrogen production, it is also developing projects for floating solar installations in the reservoirs of its hydroelectric plants and participating in tidal energy pilot projects.

It has not ventured into offshore wind, however, and Cammisecra reiterated Enel currently has no plans to do so.聽

In countries the company has been historically present, such as Italy and Spain, wind resources are simply better onshore. More than that, however, Cammisecra said the longer development period required for offshore projects means investors are more subject to regulatory and market changes than suits Enel.聽

Cammisecra stressed that the company is nonetheless a keen observer of offshore developments and 鈥渧ery curious about the technological interaction鈥 between onshore and offshore.

Indeed, he says the onshore and offshore divisions of turbine manufacturers do not share information enough.

Offshore and onshore 鈥渉ave so many things to learn from each other. Offshore should learn to become more cost-effective, much leaner than it is now,鈥 he said.

Onshore 鈥渟hould learn to improve reliability, which can dramatically reduce downtime and the cost of servicing.鈥