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Hydrogen Pipeline System Is
Starting To Take Shape In Europe
By Rystad
Energy
April
4th, 2023
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Rystad: Over 4,300 kilometers
already exists for hydrogen transportation with over 90% located in
Europe and North America.
- Globally,
Europe is at the forefront of efforts to produce and import green
hydrogen.
- The
construction of new dedicated hydrogen pipelines will be
complemented with repurposing of existing gas networks.
New hydrogen infrastructure is starting to materialize as the world
seeks to accelerate its path to net zero. There are very few shortcuts
to a sustainable future and simply switching existing oil and gas
infrastructure to hydrogen is not always viable. At the heart of this
challenge is physics, hydrogen has a high gravimetric energy density
and a low volumetric energy density. This means that among options,
hydrogen pipelines will be far better than vessels at moving hydrogen
over short to medium range distances. Today,
over 4,300 kilometers already exists for hydrogen transportation with
over 90% located in Europe and North America. Rystad Energy estimates
that there are about 91 planned pipeline projects in the world,
totaling 30,300 kilometers and due to come online by around 2035.
In cases where hydrogen will be shipped (as hydrogen or its
derivatives), it will eventually be distributed on land using hydrogen
pipelines, which makes transport via pipelines a critical
transportation mode for the gas. Hydrogen pipelines are already used
to supply industrial hubs (at petrochemical plants for example). As
supply scales up and moves from areas with abundant and renewable
energy to demand centers, long transmission lines will be a necessity
and these pipelines would require larger diameters and higher pressure
for cost effectiveness and consequently higher steel grades
Globally, Europe is at the forefront of efforts to produce and import
green hydrogen and its attention is now turning to building the
necessary infrastructure to get it to demand centers. According to
Rystad Energy research, Spain, France, and Germany are among the
countries committed or considering cross border pipelines to
facilitate energy flows, while the UK with its extensive gas grid
finds itself in a fantastic position to switch from natural
gas to
hydrogen.
Related: The Clean Energy Subsidy Dispute That Could Define Europe's
Future
The steady increase in pipeline projects for hydrogen is an early sign
that the energy transition is gathering pace. Europe, with its
extensive gas grid is well placed to make the jump. Switching
infrastructure from gas to hydrogen is possible and cost effective.
But the greatest barrier is not financial, but the physical properties
of hydrogen itself which differ substantially from oil and gas. Says
Lein Mann Bergsmark, senior analyst, hydrogen.
Europe’s hydrogen pipeline network will knit the region together
Hydrogen is a key pillar in the EU’s decarbonization as laid out in
its hydrogen strategy in 2020, and its deployment received a boost
with the ‘Fit for 55’ package. It also plays a central role in the
REPowerEU Plan to phase out Russian fossil fuel imports – which aims
to produce 10 million tonnes of renewable hydrogen by 2030 and import
another 10 Mt in the same time frame. Considering proposed green
hydrogen projects in the EU, we are currently at 7.9 Mt of local
supply with startup by 2030 (or only 2.1 Mt from target), with nearby
supply amounting to 1 Mt in the rest of Europe – primarily UK and
Norway – and another 1 Mt in the Middle East. Additionally, 3.4 Mt of
proposed projects are in Africa, which could supply the largest
amounts of hydrogen to Europe – by ship or pipeline. To plan for the
distribution of these within the bloc, the European hydrogen backbone
(EHB) initiative, which is a group of 31 European gas transmission
system operators (TSOs), has published a vision paper for the future
hydrogen pipeline infrastructure. This is based on national analysis
of availability of existing natural gas infrastructure, future natural
gas market developments, and future hydrogen market developments.
According to the EHB’s 2030 hydrogen infrastructure map, a total
length of ~28,000 km in 2030 and 53,000 km by 2040 is envisioned in
the 28 European countries involved. Currently, dedicated hydrogen
pipelines that will be available by 2030 amount to 23,365 km, which is
83% of 2030 target. Rollout of hydrogen pipelines in Europe would be
gradual and the project start of transmission or distribution
pipelines will depend on the demand.
France, Spain, and Germany
Europe is taking the lead globally with pipelines planned on and
offshore. The recently announced H2Med Barcelona-Marseille subsea
hydrogen pipeline is budgeted to cost around $2.1 billion for a
stretch of 450 km and it was recently announced that it will be
extended to Germany too. Four grid operators – Spain’s Enagas,
Portugal’s REN, and French pair GRT and Terega – are currently
conducting technical studies, potential pipeline layouts and cost
assessments. Germany’s first offshore hydrogen pipeline project,
AquaDuctus, will transport green hydrogen from offshore wind
installations in the North Sea to Germany. The pipeline stretches over
400 km and according to one of its project partners, RWE, is said to
be the most cost-effective option for transporting large volumes of
energy over distances of more than 400 kilometers, compared to
transporting power from a High Voltage Direct Current (HVDC)
transmission system. For this reason, the option to transport power
onshore using power cables is excluded.
Greece
The West Macedonia pipeline is a new natural gas pipeline that started
construction in Greece earlier this year. It was designed to be
capable to safely carry 100% hydrogen at a later stage at
high-pressure through high-strength steel pipelines with large
diameters. Greek gas transmission system operator DESFA will operate
this 163-km pipeline, which is part of the EHB initiative.
The construction of new dedicated hydrogen pipelines will be
complemented with repurposing of existing gas networks. According to
the EHB, 60% could be repurposed by 2040, while according to pipeline
projects in the works, this currently accounts for 40%.
New build pipelines will be needed but may face a range of hurdles
concerning traffic movements, construction management and
environmental protection, especially if it stretches long distances
and goes through residential areas. For example, Cadent’s new 125 km
HyNet North West pipeline in the UK could hinder the development of
the project. HyNet will produce, store, and distribute hydrogen, in
addition to capture and store carbon from industry in the Northwest.
The pipeline, which could be UK’s first 100% hydrogen pipeline at
scale, is set to distribute hydrogen produced at Stanlow Manufacturing
Complex to several industrial gas customers across the region.
However, the regulatory model for hydrogen pipelines in the country
hasn’t been agreed upon yet, and Warrington Council, one of the local
authorities on the pipeline’s route, claimed it would disrupt a local
housing development.
Repurposing of pipelines offers a compelling alternative from an
economic perspective, and can be fast-tracked too, compared with
laying down new pipelines. Europe has an extensive gas grid and
repurposing this for hydrogen as gas declines will breathe life into a
system that might otherwise have gone to rust. After modifications,
repurposed steel natural gas pipelines can accommodate 100% hydrogen
gas. However, when hydrogen is blended with gas, the percentage is
restricted to about 20% where its end-use purpose is direct or
indirect heating.
Repurposing natural gas
pipelines
Relevant studies estimate utilizing existing natural gas grids for
hydrogen transport is four times more cost-effective than constructing
new pipelines. There are only limited differences in operating
expenses between a hydrogen transmission network based on repurposed
natural gas pipelines and a hydrogen transmission network made up
entirely of new pipelines. Given that transportation is generally
heavier in terms of capital expenditure than operational costs, this
could also be a reason why there is limited difference in transporting
hydrogen instead of natural gas.
The feasibility of repurposing natural gas pipelines revolves around
overcoming technical concerns related to pipeline transmission, which
include hydrogen embrittlement of steel and weld, hydrogen permeation
and leakage. The ability of hydrogen to dissociate on metal surfaces,
dissolve into the metal lattice and to change the mechanical response
of the metal leads to hydrogen-assisted fatigue and fracture, a
process called hydrogen embrittlement, which poses a substantial
challenge to existing steel natural gas pipeline. The small molecules
of hydrogen can permeate the material resulting in leaks. To overcome
the challenges of transporting hydrogen, coating, sleeves, and casing
of material with adequate resistance to hydrogen embrittlement and
permeation can be used, but to date this has not been tested on a
commercial scale in transmission pipelines.
There is a strong potential for using reinforced thermoplastic pipes (RTP)
in distribution pipelines for hydrogen as RTP can be obtained in
lengths that are substantially longer than steel, and the installation
cost for RTP pipelines is around 20% cheaper than for steel pipelines.
In the UK, 62.5% of the existing gas distribution network has been
upgraded with polyethylene inserted into the iron pipe, and most of
these networks are considered for future hydrogen use. Due to safety
concerns, large parts of the distribution network of iron pipelines
will gradually be upgraded as part of the UK iron gas mains
replacement program and it is estimated that 90% of the legacy gas
distribution network will use polyethylene by 2032. This means that
serendipitously, the UK in a good position to fast-track distribution
of hydrogen by pipelines when and where that is needed.
Nevertheless, a recent study by Open Grid Europe together with the
university of Stuttgart, concluded that existing steel pipelines
installed in the German gas network are “hydrogen-ready” and can
already carry up to 100% hydrogen. They were found to “possess no
differences in terms of their basic suitability for transporting
hydrogen compared to natural gas”. This applies to all steel grades
used in gas pipelines over Germany and in some other parts of Europe.
As part of the research, samples of the types of steel used in German
pipelines were subjected to exhaustive measuring methods that, in
contrast to previous studies, considered additional variables such as
the influence of hydrogen pressure. However, discussions with pipe
manufacturers have shown that some of them find the study’s conclusion
optimistic. Hydrogen embrittlement may affect the pipes depending on
their metallurgical and mechanical properties and the current
condition of the pipe, after years in service. As a result, Rystad
Energy expects more variability in terms of existing pipeline
suitability to carry hydrogen. Even though this conclusion covers only
pipes, and not the compression, valves, or other components, at best,
gas pipelines can be made hydrogen-ready with relatively little effort
compared to what was previously thought.
By Rystad Energy
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
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