October 13, 2022 • Paul Rodden • Season: 2022 • Episode: 155
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Welcome to The Hydrogen Podcast!
In episode 155, Cepsa has a big hydrogen announcement for hydrogen development and transportation in Europe. And American Airlines dips its toes into hydrogen. All this on today’s hydrogen podcast.
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Paul Rodden
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Transcript:
Cepsa has a big hydrogen announcement for hydrogen development and transportation in Europe. And American Airlines dips its toes into hydrogen. All this on today’s hydrogen podcast.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where is capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters who recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden, and welcome to the hydrogen podcast.
In a press release on October 11, Cepsa, and the Port of Rotterdam join up to create the first green hydrogen corridor between the north and south of Europe. This venture will ensure a green hydrogen supply chain between two of Europe’s main ports Rotterdam and Algeciras as agreed in the Memorandum of Understanding signed by both parties. Cepsa plans to export hydrogen produced at at San Roque Energy Park near the Bay of Algeciras through hydrogen carriers such as ammonia or methanol to the Port of Rotterdam. Rotterdam is the most important energy port in Europe handling 13% of European energy demand while the port of Algeciras is first in Spain, fourth in Europe, and an important trade route between Europe and Asia with the Dutch government support and as part of Rotterdam’s Energy Transition Plans, the Port Authority and many private companies active in the port area are developing the necessary infrastructure and facilities for the import of green hydrogen and its distribution in the NorthWest Europe connecting large industrial centers in the Netherlands, Belgium and Germany by means of hydrogen pipelines.
Cepsa is the main energy company and I’ll just Cirrus close to Gibraltar. This supply of green fuels will help to decarbonize industry and maritime transport in the Bay of Algeciras and Rotterdam and to support the European Union’s repower EU strategy, which seeks to guarantee Europe’s Energy Independence and Security and stimulate the production of clean energy. The trade lane is expected to be operational by 2027. Cepsa also intends to develop a similar supply chain from its La Rábida Energy Park in Huelva and a quote from Maarten Wetselaar CEO of Cepsa. This agreement is an example of the important collaborations necessary to bring about the energy transition in Europe and to ensure secure and independent energy supply. Cepsa will continue to explore further partnerships in which they can accelerate positive motion and the rollout of green hydrogen and biofuels across the continent. Under its positive motion strategy steps that aspires to lead green hydrogen production in Spain and Portugal by 2030. With a production capacity of two gigawatts, half the current target set by the Spanish government and to become a major player in Europe to generate the renewable energy necessary for its production.
Cepsa will develop a portfolio of seven gigawatts of renewable wind and solar projects alongside working hand in hand with other renewable energy producers in Andalusia to promote the integration of these new plants into the electricity system, such as energy parks in Andalusia have access to the most competitive renewable electricity in Europe, along with well developed industrial infrastructure and direct sea access, presenting optimal conditions for the development of large scale competitive green hydrogen projects. This advantaged green molecule supply base will support the competitiveness and decarbonisation of local industry and formed the basis for a significant energy export opportunity, while positioning Spanish ports at the forefront of the supply of green fuels for the maritime sector. Allard Castelein, CEO of Port Rotterdam authority says NorthWest Europe uses far more energy than income produce in a sustainable way.
We are therefore setting up multiple trade lines for green hydrogen together with exporting countries and private businesses all over the world. We expect that in 2050, some 20 million tonnes of hydrogen will flow through the port, which only 2 million tonnes will be produced locally, southern Spain with its abundant space, sun, wind and ports is a logical location to produce green hydrogen for both local use and export setting up this trade line between Algeciras and Rotterdam is a substantial contribution to Europe’s ambition to reduce co2 emissions, as well as increase Europe’s energy independence and stimulate their economies. Hydrogen is one of the priorities and Rotterdam’s energy transition plans with port of Rotterdam. working on setting up the infrastructure and facilities for facilitating hydrogen flows by CO developing a number of large projects with its port community members and connected industrial areas in northwest Europe, and collaboration with exporting countries and the cluster of companies operating at the port. It can supply Northwestern Europe with 4.6 million tonnes annually by 2030, yielding 46 million tons of co2 reduction. Okay, so a very large announcement, and a very large step forward for Spain to become one of the biggest producers of green hydrogen in Europe.
Now, when I originally read this announcement, I was curious as to why the line would go straight to Denmark and not straight to Germany, where the bulk of the hydrogen would probably be used. But by referencing the European backbone plan, it looks like none of the pipelines would go directly to Germany and instead will go directly to Denmark. Either way, this is going to be a massive undertaking and a lot of work that will need to get done by 2030. Next, in a press release on October 10, American Airlines announces its strategic equity investment and Universal Hydrogen company, a company building a green hydrogen distribution and logistics network for aviation.
The investment supports Americans science based targets to reduce greenhouse gas emissions by 2035. And ultimately, its commitment to achieve net zero greenhouse gas emissions by 2050. This investment makes American the first US airline to make two direct investments focused on the development of both hydrogen electric propulsion technology and the future of hydrogen distribution logistics. Universal hydrogen fuel distribution network uses modular hydrogen capsules that are handled like cargo, eliminating the need for new fueling infrastructure at airports, and speeding up fuel loading operations. Universal hydrogen anticipates starting hydrogen deliveries for regional aircraft in 2025, with plans to expand its services to larger single aisle aircraft, the first for auxiliary power in the late 2020s and then as a primary fuel by the mid 2030s.
Because these segments represent two thirds of aviation emissions, and with green hydrogen being a true zero carbon fuel, these advances put aviation on a path to meet Paris Agreement emissions targets. In a quote from Americans chief financial officer Derek Kerr, this technology has the potential to be a game changer on the industry’s path to zero emission flight. As the world’s largest airline, American has responsibility to exercise leadership and making aviation sustainable. He says that their investment in universal hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for their industry. American joins Airbus ventures, GE Aviation, and Toyota ventures, as well as several major hydrogen producers and aircraft lessors as strategic investors in universal hydrogen. And in a quote from Paul Eremenko, co founder and CEO of universal hydrogen, he says, together with our investors, we are putting together the end to end value chain to make hydrogen aviation, a near term commercial reality.
This move by American is a strong signal that customers want a true zero emissions solution for passenger aviation and are willing to back tangible pragmatic steps to get there quickly. Okay, so another airline to get on the hydrogen bandwagon. This time, it’s the biggest airline in the world. Now, does this mean we’ll be flying in hydrogen powered jumbo jets? In the next 20 years? No, probably not. This industry is highly regulated. So for this press release, to say that hydrogen is going to be a primary fuel by the mid 2030s is an impressively fast timeline. And one last piece of information to share. I’m sure many listeners out there plan to be at the Reuters hydrogen North America conference this week, I will be moderating the 10 to 1040 panel, discussing hydrogen storage and transportation. And I would love it, if any of you in attendance would stop by and listen and bring your best questions for the panel. They’re an impressive group of experts. And I can’t wait to hear what they have to say. I’m sure you will, too.
All right. That’s it for me, everyone. If you have a second, I would really appreciate it. If you could leave a good review on whatever platform it is that you listen to Apple podcast, Spotify, Google, whatever it is, that would be a tremendous help to the show. And as always, if you ever have any feedback, you’re welcome to email me directly at info@thehydrogenpodcast.com. And as always, take care Stay safe Talk to you later.
Hey, this is Paul. I hope you liked this podcast. If you did and want to hear more, I’d appreciate it if you would either subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much appreciate it. Have a great day.
