How the digitalization of hydrogen production will enable better and cleaner industries – H2 Green Steel.
H2 Green Steel champions the idea that digitalization is a massive driver to optimize large-scale production of green hydrogen, enabling cost-effective production of everything from green steel to ammonia and methanol.
Our CDO Olof Hernell and EVP Head of Business Unit Hydrogen Kajsa Ryttberg-Wallgren lead the development of our two optimization software and explained how the digitalization of green hydrogen production will move steel production into the future.
Still at the beginning of its development, the production of green hydrogen for industrial applications should be multiplied by four by 2050. The reason most industries have yet to embrace green hydrogen production technologies largely comes down to cost, as it has historically been far higher than other energy feedstocks, including hydrogen. gray and blue hydrogen.
Therefore, it is crucial to ensure accessibility to the most viable green hydrogen production methods, which in an industrial setup requires automation and digitization.
Olof hernelsays CDO.
Since there can be no measure of the quality of a hydrogen gas molecule, ultimate efficiency is the only goal.
“The price of production and the carbon emissions accumulated in the process is what matters.”
When establishing a green hydrogen plant, there are two main factors to consider: hydrogen production costs and total cost of ownership. According to Kajsa, there needs to be a holistic view of plant design and operation, to make everything as cost effective as possible.
“The total cost of ownership extends from the day you start designing the plant until you close it. We believe the only way to reduce costs is to combine the knowledge you accumulate over time with the implementation of data, using that data again and again to improve plant operations,” she says. .
When producing green hydrogen, electricity accounts for around 70% of the total cost. In most regions, the renewable energy needed to power electrolysis is highly intermittent, requiring advanced generation scheduling and storage management to ensure the next stage of the process is loaded with power at all times. , iron production.
That’s why H2 Green Steel has created hydrogen plant operations optimization software that will optimize hydrogen production at all times to keep the cost as low as possible.
“It’s about moving the industry forward in terms of producing large volumes of green hydrogen at the lowest possible cost and part of that is winning the software game.”
“Over the next few years, many new technologies will come to market and as we innovate at H2 Green Steel, we believe it is a good idea to protect our intellectual property so that we are not limited in our way of operation,” says Olof.
Kajsa Ryttberg-Wallgren adds:
It’s not just a fancy algorithm – the software we create will help us achieve the lowest cost of production, no matter what geography we operate in.
Optimizing production planning allows H2 Green Steel to plan electrolyser production on a very granular basis, presenting a key opportunity to add value to our local communities: the ability to feed excess energy back into the network.
“As a huge consumer of electricity, we will have the opportunity – and I would say the obligation – to help balance an increasingly intermittent grid,” says Olof.
To design a data-driven hydrogen plant where different electrolysis technologies are combined with different types of storage technologies, Olof and Kajsa, together with their teams, developed additional, more strategic software for optimizing the configuration of the hydrogen plant.
The goal is to build green hydrogen plants that will achieve the lowest possible cost level, also known as levelized cost of hydrogen (LCOH), which can also be used to measure the overall competitiveness of hydrogen.
“Once you’ve designed a factory poorly, you won’t have the lowest LCOH – even if you add an optimization system – so getting it right from the start is crucial,” Kajsa says, adding that the layout optimization software will allow H2 Green Steel to not only build factories in a modular fashion, making the design process faster and more efficient.
Based on the prerequisites of a specific region, the software will not only provide an LCOH with design layouts and technology choice for the hydrogen plant, but also where there is access to an abundance of renewable electricity, enabling H2 Green Steel to close the ideal green hydrogen production sites around the world.
“In simplified terms, we have created a database of all our learning accumulated over the past year and a half. Next, we added a model that allows the system to recommend the optimal configuration for us based on factors such as output requirements and power supply. Instead of spending six months on it, you could have a green hydrogen plant design concept ready in about two weeks,” she says.
Finally, what is your vision for the future from the point of view of green hydrogen?
“Our goal is to be the leader in large-scale green hydrogen production for industrial offtake. We need great collaboration across our value chain – from technical partnerships to customers – which requires a strong software backbone to drive profitability.
“We also need to work closely with the next generation of electrolyser companies to develop the technology to continually improve our efficiency.”
“Because we don’t just build a factory – we replicate the process over again, allowing us to be faster than anyone in conceptualization, factory design and engineering, in executing a project. hydrogen plant much faster than our competitors,” says Kajsa.
To support these digitization efforts and protect our intellectual property, H2 Green Steel has also filed two patent applications in the EU related to the optimization of the green hydrogen plant.
How the digitalization of hydrogen production will enable better and cleaner industries, September 1, 2022