Soladvent

Solution Statement

Soladvent has played a two-step role: 

First, to bring together 30 value chain players (upstream, midstream, downstream, finance) from September 2020 to design HyDeal Ambition as an industry platform (technical and financial modeling, legal structuring…) 

Second, from July 2021 to establish joint ventures between a selection of these players in fully integrated HyDeal green hydrogen hubs: 

The first of these hub joint ventures will be made public in September 2021, bringing together a renewable energy company, a gas infrastructure operator and a steelmaking giant, with the official support of the Spanish government, aiming at the delivery of 200,000 tons of green hydrogen (from solar) at 1.5 €/kg from 2025 to decarbonize a major industrial complex in Northern Spain.

Challenge Statement

The key challenge is to bring together a fully integrated group of players (hydrogen production, transmission & storage, industrial use, debt & equity financing) at scale with a bankable business model (which necessitates market pricing and counterparty risk management). 

Government support is essential for renewable generation permitting, transmission and storage regulation and financial facilitation of downstream investments (DRI in steelmaking or conversion of coal-fired power plants to hydrogen CCGTs). Scaling up electrolyzer manufacturing to 10+ GW/year ASAP is also a must.

Energy Compact Description and Indicators

  • Scale and political support (local, national and international) are conditions sine qua non to reach fossil fuel parity (1.5 €/kg) and bankability without which no large-scale investment decision can be made.
  • Construction of at least  5 giga factories of electrolyzers, 7,700 km of hydrogen pipelines and 124 Mm3 of underground storage by 2030
  • Production capacity of 95 GW of solar power generation and 67 GW of electrolyzers by 2030

The capital cost of the hydrogen generation plant and Fuel Cell system is very high making P2P & energy storage solution unviable.  For the overall system to become viable, ramping up of manufacturing capability and setting up of manufacturing facilities in India needs to be incentivized. The overall round-trip efficiency also needs to be improved by way of technical improvements to reduce the requirement of renewable power