Preserving the planet for future generations in an affordable way.
Renewables. Essential ingredient for clean hydrogen production
The cost of renewable energy – a primary input for clean hydrogen creation – has decreased materially, unlocking the opportunity for clean hydrogen to provide solutions across multiple industries that are facing mounting sustainability pressures.
Electrolysers. Turning electrons into molecules of hydrogen
Hydrogen. A great way of energy storage
The energy transition to renewable electricity requires large scale storage to balance volatile power generation meeting unsteady demand.
Hydrogen molecules are the only way to capture and store vast quantities of electrons – in particular if stored for days (Power-to-Power), in places where there is no available large hydroelectric capacities.
Energy is circulating the world
Today, conventional sources of energy (gas, oil, coal etc.) are unevenly distributed globally and energy demand differs greatly across geographies, which leads to energy carriers circulating the world a lot (close to 40% of final energy demand).
In the future, the same problem will occur for renewable electricity as this is also not available equitably across the globe. Energy will have to be transported from the southern to northern hemisphere and from offshore to onshore. Every vector available to do this will be hydrogen-rich (either in liquid form, or via Ammonia).
Comprehensive fuelling station coverage is a strategic goal to enable Power-to-Mobility for intensive and heavy transportation segments.
Fuelling station. Captive before commercial
As broad market demand is not there yet, commercial fuelling stations are a challenge from a risk and business case perspective.
Captive fuelling stations cover dedicated local & regional demand and often come with offtake agreements (take-or-pay), which are de-risking the revenue streams and giving confidence to investors.
H2-powered forklifts have reached mass market acceptability as one of the first H2 applications (more than 30.000 are up and running)
H2-Forklifts. Commercially competitive
H2 forklifts have reached mass market acceptability: in Q1 2020, more than 30% of all U.S. warehouse groceries were handled with H2-powered forklifts. The H2 forklifts market was valued at $1.07 Billion in 2019 and is projected to reach $5.25 Billion by 2027, growing at a compound annual growth rate of 15.92% from 2020 to 2027.
Heavy industries like the production of steel, ammonia, cement, etc. are hard-to-abate as it is not possible to decarbonize directly with the help of renewable electricity.
Clean hydrogen is the only realistic opportunity there is to do so with many of the largest industry players now assessing their options.
Power-to-Product. A glimmer of hope
Industrial hydrogen consumers will be required to move to low carbon solutions for their continuous processes. Incumbent industrial gas companies and other hydrogen suppliers invest, own & operate projects under long term offtake contracts (ToP).
These large-scale projects and systems will be key to establish the hydrogen industry and to keep bringing down the costs.
Hydrogen is in a leading position to fuel long haul and heavy-duty mobility by buses, trains or trucks.
Captive fleets and predictable routes allow for required investments
For long haul and heavy duty transport, Fuel Cell Electric Vehicles (FCEV) have a clear competitive advantage compared to battery-powered electric vehicles, as size and weight of the battery itself combined with longer charging times make operations inefficient.
Diesel powered trains can’t be easily electrified due to excessive infrastructure costs for thousands of kilometres of railway. H2 powered bus-, garbage truck- or taxi-fleets are ready to increase the quality of life in the cities they are operated. The reliable H2 demand de-risks investments in upstream production and midstream distribution via large sized fuelling stations. For truck-transport fuelling stations can be built at main junctions along predictable routes and in key logistics hubs, like ports and airports to solve the chicken-egg problem of the H2 mobility market.
Building heating and power at the horizon
More than a century ago domestic heating and cooking in the UK was done with ‘town gas’ – a mixture of hydrogen, carbon monoxide, and carbon dioxide. While changing to industrial gas for cost-reasons, in the future, we might return to hydrogen as a source of domestic energy in places where heat and power demand balance vary significantly during the years.
Decarbonizing domestic energy and the gas-grid
Depending on the country and the infrastructure in place, research suggests that 5 - 20% of the industrial gas grid could be blended green- hydrogen. While multiple Proof-of-Concepts have been conducted, blended hydrogen heating is not expected to reach mass market acceptability before 2030. Another decade will then be necessary to make the step to pure hydrogen heating.
Although it is a scenario quite far in the future, it is extremely attractive due to the large-scale demand that can bring down the costs of green-hydrogen rapidly through scale of supply.
FiveT. the only hydrogen pureplay fund
The only dedicated investment team making a living out of hydrogen with an extensive network to leverage. FiveT Hydrogen is backed by an established alternative asset manager, FiveT, with a 14-year investment track record, combining deep investment expertise with unparalleled knowledge of and access to the hydrogen market and its associated technologies. FiveT Hydrogen is an early mover in a nascent market using financial firepower and applying its technical expertise and network to identify the smartest investments – we want to deliver hydrogen energy infrastructure at scale and take market positions in terms of reputation and size.
“We are the investment catalyst for clean hydrogen, placing it at the heart of the global mission to address the climate crisis and accelerate the energy transition, while achieving superior risk-adjusted returns.”
Hydrogen distribution through well-known and new methods
For large volumes and long distance, in particular for refining and chemicals, pipelines are the cheapest way to go. High-Pressure Tube Trailers transport compressed hydrogen gas by truck, primarily for distances up to 250 km. Liquefied Hydrogen Tankers transport cooled hydrogen at a temperature where it becomes a liquid. Although the liquefaction process is more expensive, it enables hydrogen to be transported more efficiently over longer distances. Ammonia and other hydrogen-rich chemicals can form alternative transportation means.
Drivers of demand are accelerating. Renewables costs have fallen faster than projected
Policy makers are taking real action in their approach to hydrogen strategies. More than 30 governments around the world have adopted national hydrogen strategies as part of their climate plans. $70 billion of public funding has been pledged to accelerate hydrogen scale-up.
For the past 10 years, costs for renewables have decreased by up to 80%, making it the cheapest form of electricity (LCOE) worldwide.
As in Europe approximately 65% of production cost of green hydrogen will come from electricity, having access to steady supply of renewable electricity at reasonable costs is critical to achieve competitive prices of green hydrogen.
Electrolysis is a well-known technology already at scale
Production of clean hydrogen via electrolysis is inherently sustainable, without any harmful emissions across the lifecycle, with oxygen and hydrogen being the only emissions.
Today, mostly alkaline electrolysers. Operated steadily with constant stable electricity supply they produce hydrogen efficiently at scale.
PEM electrolysers on the other hand can regulate operations as electricity is available and are therefore able to capture very dynamic energy sources like wind and solar. They are durable and reliable and their systems can be modularly extended to large scale operations. The production costs of electrolyser stacks are falling rapidly as production volumes and facilities are reaching giga-factory-scale.
The main challenge is to identify and capture projects with certain key-characteristics and parameters that allow for high utilization with low electricity costs and a de-risked offtake through long-term take-or-pay contracts from viable clients.