Hydrogen energy is the new priority in battling the pressing issues of climate change. China Hydrogen Energy Alliance predicts that this industrial development will result in a hydrogen energy market demand of 35 million tons by 2030 and that hydrogen energy will be 10% of the total energy supply in China by 2050. Shandong Province launched on June 18th 2020 the guidelines for the upcoming 10 years regarding the medium- and long-term development of the hydrogen industry. In this article we elaborate on the tactical choice for Shandong Province, discuss the goals of the development plan and look at the opportunities this upcoming industry can have for you.

Why Shandong?

Shandong Province (山东省) lies on the east coast of China. With a population of around 102 million and a coverage of 157 square kilometres of land, it is the 3^rd largest economic powerhouse in China. Only the Jiangsu Province and the Guangdong Province trump the Shandong Province. Knowing the facts, there are three arguments that the Shandong Province published the hydrogen plan.

Shandong Province has a solid foundation for green hydrogen production. With the largest installed capacity of photovoltaic power, the 4^th largest installed capacity of wind power in China, and 5.7 million kilowatts of nuclear power, Shandong has the foundation to produce green hydrogen in the future utilizing these new and green energy systems.

Shandong Province is one of the frontrunners in China in terms of chemical, metallurgical and energy industries. Originating from the rich petroleum and coal reserves, and decades of large-scale mining and investment in petro-and coal-chemical facilities, Shandong holds a unique advantage in producing hydrogen as a by-product of fossil-powered industries. This so-called grey hydrogen is produced around 2.6 million tons annually in the Shandong Province, resulting in an opportunity for large-scale utilization with comparably low costs and maintaining high quality.

Shandong has deep collaboration with research institutes and leading universities across the country. More than 50 enterprises and research institutes in Shandong have been involved in the hydrogen industry and combine powers to make significant progress in aspects such as key materials, core components of fuel cells (FCs), system integration, high-end and efficient energy storage and more.

Goals

The plan argues to establish Shandong in the leader position in hydrogen development. Aspects under this denominator are constructing hydrogen and Fuel Cells (FC) demonstration zones by strengthening innovation and research, accelerating hydrogen applications and demonstrations, improving the manufacturing on the equipment level, as well as building and maintaining the industrial chain and ecology. This plan consists out of three stages.

Opportunities

The Rijksdienst voor Ondernemend Nederlands (RVO) argues that there are opportunities on this market for companies and research institutes who “have developed advanced technologies and/or products for the hydrogen industry”. To carry out a joint venture in Shandong, strong R&D and innovation capabilities can be helpful. While Shandong has the competitive advantages in the production of grey hydrogen from their industrial activities, large-scale mining and coal and petroleum reserves, the main flow of innovation and R&D, is found in external institutions outside the province and even outside the country. Resulting in heavy dependence on these institutes. However, and obvious from their reliance, Shandong is openly welcoming new international parties, starting fruitful cooperation’s, and welcoming hydrogen talents. Shandong Province will keep focussing on strengthening their relation, cooperation and exchange with international organisations such as International Hydrogen Energy Association and the International Hydrogen Energy Commission. Further, Shandong enterprises will be encouraged to set up R&D platforms and create joint ventures (JV’s) abroad to facilitate cooperation. To maintain Shandong’s position in the case of the hydrogen industry, Shandong proposes to formulate standards for the hydrogen industry chain with the assistance of thorough cooperation with foreign standard organisations.

RVO argues about the major technical bottlenecks in the hydrogen industry. Acting upon these can enhance the Shandong hydrogen chain/systems and guarantee your place in the industry. Examples are hydrogen storage and materials for fuel cell vehicles (FV’s), fuel cell (FC) oil-free air compressor and/or hydrogen pump, transportation equipment, high-efficient production & storage & transportation of liquid hydrogen and pipeline transportation. Recommended sectors to adhere to are FC technology and application to commercial vehicles and equipment, green hydrogen technology utilizing solar, wind and nuclear energy in Shandong. To read all the bottlenecks and recommended sectoral perspectives, we kindly request to visit RVO.nl

For more information about personal advice regarding international business advice, tax situations or consolidation (in China), Global Connect Admin B.V. can assist you with these challenges due to the rich experience and framework of connections.

Source

https://www.rvo.nl/sites/default/files/2020/08/Report-on-Shandong-Hydrogen-Industry.pdf

Photo by Jeff Kubina

A lot has changed since the 1800s, where during the industrial revolution, humanity produced carbon dioxide (CO2) and other gasses that could harm the climate. The main difference is that these effects used to be mainly local, not global as they are now. However, humanity needing energy sources to survive has not changed in these 200 years. How do we combat global warming? We could stop using electricity and gas altogether, but that is most unlikely. The solution to our problem is using green energy: Now is the time to invest in Hydrogen!

What and where is Hydrogen?

DUJAT describes Hydrogen as a fashionable energy vector due to its potential to support the transition to a decarbonized energy system required to meet the Paris Agreement’s emission reduction goals.

If there is one country doing Hydrogen justice, it is Japan. While Europe is slowly but surely starting with the Hydrogen process, Japan already produces Hydrogen domestically. Hydrogen is made from natural gas and oil and provides energy for residential buildings, experimental power plants and fuel cell vehicles. To show that Japan is the Hydrogen Nation, the First Hydrogen Olympic Games are an inspiration to follow. Now you might wonder, if Japan already uses Hydrogen to provide for heat networks, how is Europe doing at this moment?

TopDutch

Sander Oosterhof, Director of Foreign Direct Investment and Business Development of NV NOM, explained why the northern province of the Netherlands, Groningen, has always been crucial for energy production. The TopDutch region collects interconnected, purpose-driven and people-powered ecosystems. These ecosystems are committed to finding green and digital solutions for global economic, social and ecological changes. In other words: investment in sustainable mobility with electrification, hydrogen technologies and new infrastructures.

According to Catrinus Jepma, Professor emeritus of the University of Groningen & Senior Advisor of the New Energy Coalition, the Netherlands may not be Hydrogen’s leader but the project-planning leader. Currently, the Netherlands and Europe thrive on oil, gas, wind and sun. GasUnie provides windmill parks in the North-Sea and extensive gas infrastructure. However, the gas and oil period is ending, and what if there is not enough sun and wind to produce sufficient energy? How do you store and transport excess energy? To start answering these questions, the Paris Agreement has set up goals for 2030 and 2050 to implement Hydrogen as efficiently as possible. By 2050 the EU aims to be climate-neutral with net-zero greenhouse gas emissions.

Europe’s Valley of Death

Europe needs to have a completely green system; this seems impossible, but 20 years ago, renewable energy was only 10%, whereas it is now 30%. Every 15 years, the goal is to improve renewable energy levels. This includes the transition from blue Hydrogen (natural gas to H2) to green Hydrogen (green gas to H2).

For Europe to move forward, governments need to get through the ‘valley of death.’ Many discussions surround renewable energy, which is not necessarily bad, but crucial decisions need to be made soon. Governments need to support industry investment initiatives in producing, transport, storing, and implementing Hydrogen. This support needs to line up with surrounding countries by, for example, launching a supporting research agenda.

The Dutch have their hands full with the Paris Agreement goals (as the Dutch would say, “Er is werk aan de winkel/There is still a lot to do”), but there are many opportunities. René Schutte, Hydrogen Program Manager of GasUnie, explained how the Netherlands has many options for current and future Hydrogen projects. He calls this the TopDutch call to action.

The Dutch (gas) infrastructure

GasUnie provides access to its system to the public. With the decrease of natural gas and the increase of green gas, CO2 needs to be reduced upfront. What the future holds can be seen in the image above:

The Hydrogen infrastructure adjoining the natural gas/biogas infrastructure
The increase in green gas production
The windmill parks providing power-to-gas
The storage and transport of CO2
The industry cluster and heat network interconnected with the points above

“I want to invest in Hydrogen projects. What does that look like?”

There is much scaling up to do to increase renewable energy. Current phased roll-outs are implemented with a programmatic approach. These roll-outs ask for a lot of cooperation and funding between governments and industries. Luckily the interest in this Hydrogen project grows. For example, at this moment, the New Energy Coalition is working on HEAVENN: a Hydrogen Valley. International roll-out programs like these are crucial for the continuous development of Hydrogen in Europe.

What now?

Future investments make sure that not only industries but the entire world can continue to grow. We need to continue to think critically about our innovation methods. What are our long-term goals; how do our actions of today impact our future? Are you wondering how the future of your company unfolds? We would love to talk to you about it. In case you and your company are considering investments in Hydrogen, do not hesitate to contact NV NOM, the University of Groningen and/or GasUnie. Let’s go global; let’s go TopDutch!

Sources:

DUJAT – NV NOM – University of Groningen – GasUnie – the Paris Agreement – Japanese Olympic Committee

Business Opportunities in Shandong Province’s Hydrogen Industry

Why Shandong?

Goals

Opportunities

The investment for the future: Hydrogen