May 15, 2024 [Tank Storage]- Climate Impact Corporation (CIC) today announced a non-binding agreement with GE Vernova’s Power Conversion business (GE Vernova) to lay out their intentions to collaborate on a design for the possible future deployment of highly efficient green hydrogen production modules, with the objective of achieving a $2 per kg (€1.86 per kg) production price for green hydrogen. CIC will be assisted by engineering professional services firm, Worley.
GE Vernova and CIC intend to co-develop an off-grid modular green hydrogen production technology which could form the building blocks of CIC’s flagship $10 billion (€9.28 billion) Green Springs – a 10GW green hydrogen production project in Australia’s Northern Territory. CIC’s Green Springs project is expected to deploy an expected 2,150 modules which in aggregate will produce more than 500,000 tonnes of hydrogen annually when fully operational, worth an estimated $0.7 billion per year.
Each module comprises all the equipment and systems designed specifically for operation with off-grid intermittent renewable energy to produce low carbon-intensity hydrogen without connection to the electricity grid, town services or use of local water sources or desalinated water.
CIC Chairman, David Green, said the announcement was an exciting step and the potential collaboration with GE Vernova could help CIC with their target of achieving low carbon intensity hydrogen. ‘CIC are delighted to be working closely with GE Vernova, a leading expert on decarbonisation, in approaching this project,’ says Green.
This module design opens the way for a new wave of low-cost green hydrogen production opportunities in locations around the world where the best solar resources exist, typically in water stressed areas, without the need for expensive support infrastructure.
‘Green Springs will demonstrate that renewable, sustainable hydrogen can be delivered at scale, in arid environments without accessing local water sources or using desalination, and in a way that pushes production efficiency closer to achieving a cost-competitive $2 per kg price point,’ says Green. ‘Through this agreement with GE Vernova, they hope to redefine traditional hydrogen production to be of the lowest carbon intensity, produced in a wider range of environments, and at a competitive price.’
Executive director for Microgrids at GE Vernova’s Power Conversion business, Olivier Jamart, adds: ‘They need to look at new approaches to producing green hydrogen if they are to reach a USD$2 per kilogram production price. Disruptive innovation will be required to reach Green Springs’ target of USD$2 per kilogram price point. I am confident GE Vernova has the technology, experience, and track record to support CIC in their mission. GE Vernova’s broad expertise in AC and DC coupled power electronic systems, along with their Energy Management System experience in mission-critical industries, enables us to take a system design approach with a clear focus on efficiency, availability and maintainability.’
Development of Green Springs Balance of Plant phase is currently under way and it’s hoped that the significant interest in the project could present further opportunities to deploy modular green hydrogen in similar climates around the world and unlock generation capacity in the energy sector and private, energy-intensive businesses.
‘The opportunity for green hydrogen to play its role in global decarbonisation is significant, but government, business, and investors around the world are all grappling with the same question – how they can bring down the production cost of hydrogen without sacrificing the sustainability opportunities it offers?’ adds Green. ‘Equally, local communities are looking for socially responsible energy projects that consider and build around the local environment, rather than disregard it. This agreement, and the deployment of a modular approach at Green Springs, will demonstrate that flexible, scalable, environmentally-considerate, and cost-effective production are all simultaneously achievable.’
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