Siemens Gamesa has outlined an ambitious plan to deliver cost-competitive green hydrogen by 2030 from onshore wind and by 2035 from offshore wind.
The wind turbine manufacturing giant released a white paper on Wednesday, calling for a joined-up approach to encouraging both market demand and scaling production, highlighting four key requirements to deliver low-cost green hydrogen within the next decade.
It said that up to 6,000 GW of new installed renewable energy capacity is needed by 2050, up from 2,800 GW today to generate the expected demand of 500m tonnes, according to the Hydrogen Council.
A cost-effective demand-side market for green hydrogen needs to be set up to drive down the costs of equipment, infrastructure and day-to-day operating costs. The paper also called for the development of the supply chain and build out of the right infrastructure in terms of logistics, storage and distribution.
Andreas Nauen, Siemens Gamesa CEO, said: “When it comes to green hydrogen, we need to act now. It took three decades for wind and solar to reach grid parity with fossil fuels, and we cannot afford to wait that long for green hydrogen to reach price parity with fossil-based hydrogen.
“Wind will play a powerful role in accelerating the production of green hydrogen, which is vital to decarbonizing our economy. Therefore, to unlock the potential of green hydrogen, we need to drive down costs quickly. To do this, we need a consensus between industry, policymakers and investors to rapidly develop the demand-side market, build the supply chain and roll out the necessary infrastructure.”