- Markus Krebber says to reporters that when you look long term, there is no way around hydrogen
- The excitement for green hydrogen potential in few quarters, but stays expensive for generation
- At present, the majority of hydrogen production relies on fossil fuels
Hydrogen is the Focus for Future
According to the CEO of German power provider RWE, hydrogen will play a critical role in the next years, particularly in industrial applications.
In an interview, Krebber asserted that hydrogen was to blame. Hydrogen is the only technology we now have that can decarbonize industries that cannot be electrified, such as steel, as well as some parts of the chemical industry.”
Hydrogen, dubbed a “versatile energy carrier” by the International Energy Agency, has a wide range of applications and can be used in a variety of industries.
It can be prepared in a multiple ways. Electrolysis is one of the techniques, comprising breaking water into hydrogen and oxygen with the help of an electric current.
Some call this process as renewable or green hydrogen if the electricity used in it derives from a renewable source like solar or wind.
While some people are excited about the possibilities of green hydrogen, it is still expensive to generate. At present, fossil fuels are used to produce the vital majority of hydrogen.
Krebber told reporters that developing a hydrogen economy would take time, but that his company wanted to — and would — play a part. He also stated that they must act quickly since they believe that wherever green hydrogen is available, it is a highly competitive location.
Plans for the Future
RWE’s goals for the next 10 years will be supported by a gross investment of 50 billion euros in its core business from among 2021 – 2030, as per to Krebber.
This would amount to “an average of 5 billion euro gross each year for offshore and onshore wind, solar, batteries, flexible power, and hydrogen,” according to the firm’s announcement on Monday.
Krebber told reporters, “Our development plan is fully funded.” He also stated that they will be able to finance it with our excellent operating cash flow. Then, to a degree, we farm down, which means we sell interests in our projects or collaborate with others.
The corporation aspires to reach 50 gigawatts of “green” installed net capacity by 2030, with adjusted earnings before interest, taxes, depreciation, and amortization of 5 billion euros. This is for its core business, which excludes nuclear and coal.
When considering the long term, existing technologies, and current costs, he believes that a fully green energy future will not be more expensive than the old fossil world.