Green Hydrogen Export Opportunity for South AfricaWebinar hosted by EE Business Intelligence and EU Delegation to South Africa, 9 February 2021
Dr. Tobias Bischof-Niemz
Head of Division: New Energy Solutions, ENERTRAG AG
Dr Tobias Bischof-Niemz
Professional Background
• 2017 – today: Head of Division: New Energy Solutions at ENERTRAG and Director at ENERTRAG South Africa, leading market entry into new geographies; commercialising new business models around green hydrogen
• 2014 – 2017: Head of Energy Department at the South African Council for Scientific and Industrial Research, established and led the national integrated energy research centre with today 90 staff members
• 2012 – 2014: Chief Engineer at Eskom, developed South Africa’s energy master plan (IRP)
• 2007 – 2012: Senior Consultant at The Boston Consulting Group, Berlin and Frankfurt, developed strategies for European utilities and equipment manufacturers related to the energy transition
Education
• Master of Public Administration (MPA) on energy and renewables policies from Columbia University, New York
• Mechanical Engineering at Technical University of Darmstadt and UC Berkeley, Dr.-Ing. and Dipl.-Ing. degrees
3
About ENERTRAG
Hydrogen as the Missing Link in the Energy System
Green Hydrogen: Beneficiation of South African Wind and Sun
ENERTRAG is an Innovative Renewables Utility
4
Commercial 100% green hydrogen
production since 2011
ENERTRAG in 2020
• 1,600 MW renewables implemented
• €2 billion debt / equity raised
• 750 MW wind on balance sheet
• 6,000 MW renewables in Germany, France, ZA in remote control
• 2 TWh annual electricity production/sales
• €300 million revenues from electricity sales and project business
• >700 employees in Germany, France, Poland, ZA, Vietnam, Ghana
Operational: ENERTRAG‘s wind-hydrogen plant in Germany
Production: 50 t of green hydrogen p.a.
In operation since 2011
1 hour north of Berlin
6
Sod turning on 21 April 2009(with Chancellor Angela Merkel)
Electrolyser (0.5 MW)
Biogas plant
Enercon E-82
Hydrogen storage (1 t)
Gas-grid feed-in of H2
ENERTRAG’s Toyota Mirai and Hyundai Nexo (hydrogen fuel-cell electric), in day-to-day use
Cement plant in Germany: pilot plant under development
Cement plant emits > 1 million tons of CO2 per year (25% from biogenic origin)
Pilot plant to capture 1-2% of the CO2 to produce 5,000 t/a of fuels (closed CO2 loop) and chemicals (CO2 permanently trapped) – COD in 2024/25
Project submitted by ENERTRAG-led industry consortium for EU Green Deal funding
7
Biogenic CO2
Cycle 1Fuel-related
Emissions (25%)
SustainableAviation Fuel (25%)
Cycle 2Process-related Emissions (75%)
Biomass
CO2
Cement plant
CO22,000 t/a of green
hydrogen from20 MW electrolyser
Reverse water-gas shift + Fischer-
Tropsch Reactors
CO2
Clinker CO2
e.g. naphtha, leading to permanent capture of CO2
Chemicals (75%)
Regional green electricity
30 MW wind30 MW solar PV
ENERTRAG in South Africa
Proudly South African team, highly skilled and motivated (http://enertrag.co.za/)
8
Offices in Gauteng and Cape Town
Ca. 20 permanent staff today, growing
> 2 GW pipeline of wind and solar PV
Innovation projects around hybrid wind/solar and hydrogen underdevelopment
10
About ENERTRAG
Hydrogen as the Missing Link in the Energy System
Green Hydrogen: Beneficiation of South African Wind and Sun
Solar, Wind and Hydrogen = Future Energy System
Efficiency
Electricity Direct Use
BatteryGreen
Hydrogen
NH3
Green Ammonia
Green Kerosene
Path Efficiency
Carbon free
H2
CxHy
Primary Energy
Bulk (80-90%)
Energy Carrier
End-Use Sector
Carbon-neutral(depending on source of C)
H2Electro-lysers
8
Steel FertilizerIndustry
Heating
Transport
Total global hydrogen demand by 2050: 500-600 million t/a
Tradeable products alone require 320 Mt/a of green hydrogen globally
Green Ammonia
Sustainable Aviation Fuel
H2 + N2 = NH3
H2 + C = Kerosene
Fertiliser
Shipping Fuel
Aviation Fuel
Green Steel H2 + Fe2O3 = Fe + H2O Green Steel
Global demand: 400 million t/a H2 demand: 100 million t/a
Global demand: 170 million t/a H2 demand: 30 million t/a
Global demand: 500 million t/a H2 demand: 90 million t/a
Global demand: 2 000 million tons/a H2 demand: 100 million t/a
17
About ENERTRAG
Hydrogen as the Missing Link in the Energy System
Green Hydrogen: Beneficiation of South African Wind and Sun
€160 billion H2-based export potential for South Africa
Green Ammonia
Sustainable Aviation Fuel
H2 + N2 = NH3
H2 + C = Kerosene
Fertiliser
Shipping fuel
Aviation fuel
Global demand: 400 million tons/a (H2: 100)Value (green): 500 billion €/aSouth African market share: 10% 50 billion €/a export potential
Global demand: 170 million tons/a (H2: 30)Value (green): 80 billion €/aSouth African market share: 10% 8 billion €/a export potential
Global demand: 500 million tons/a (H2: 90)Value (green): 250 billion €/aSouth African market share: 10% 25 billion €/a export potential
Green Steel H2 + Fe2O3 = Fe + H2O Green steel
Global demand: 2 000 million tons/a (H2: 100)Value (green): 1 500 billion €/aSouth African market share: 5% 75 billion €/a export potential
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
SatMon
GW
ThuWedTue Fri Sun
Today: Actual load profile with simulated solar/wind supply
Electrical Load
Source: Eskom and CSIR data; ENERTRAG analysis
5 GW
5 GW
Solar PV
Residual Load
Wind
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
FriThuWed
GW
SatMon Tue Sun
IRP: Cost-optimised solar/wind mix for electrical load only
Electrical Load
50 GW
50 GW
Solar PV
Residual Load
Wind
Source: Eskom and CSIR data; ENERTRAG analysis
Curtailment
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
Mon
GW
ThuTue Wed SatFri Sun
Additional renewable electricity produces hydrogen
Electrical Load
80 GW
100 GW
Wind
Solar PV
Residual Load
H2 Production(high load factorfor electrolyser)
Direct-ElectricityHeat Production
Curtailment
Ely: 45 GW
South African domesticelectricitydemand
Source: Eskom and CSIR data; ENERTRAG analysis
-400
-350
-300
-250
-200
-150
-100
-50
0
50
SatMon
GW
ThuTue Wed Fri Sun
Beyond electricity: RSA as exporter of hydrogen-rich products
Electrical Load
300 GW
300 GW
H2 Production(high load factorfor electrolyser)
Direct-ElectricityHeat Production
Curtailment
Ely: 250 GW
South African domesticelectricity demand
Source: Eskom and CSIR data; ENERTRAG analysis
Green-H2-rich products requires > 0.5 million jobs in wind/solar alone
RSA electricity sector alone needs roughly 100 GW wind and 100 GW solar PV
That can increase to 300 GW each with green-hydrogen production and export of
• Green ammonia
• Green aviation fuel
• Green steel
Foundation for that export market and “beneficiationof South African wind/sun” can be laid now
Europe as offtaker?23
200
450
250
0
50
150
300
100
400
350
500
550
600
65013
20
49
20
23
Total windcapacity in GW
20
20
20
37
20
47
20
21
3
20
36
541
20
22
180
35
20
27
3
108
20
30
8
20
24
8
20
44
20
26
8
88
20
42
13
20
28
20
20
40
388
20
31
20
25
206
20
29
52
20
32
20
35
20
39
20
41
20
43
20
45
20
46
20
48
628
20
50
16
20
38
1236
128154
232
284310
336362
414
7
466492
515
564587
610
20
33
20
34
258
68
440
Potential capacity additions solar PV
Potential capacity additions wind
Wind/Solar PV• 300 GW + 300 GW by 2050• 12-14 GW of new wind and new solar PV p.a. in perpetuity
> 500 000 permanent jobs in wind/solar alone
25-30 million tons of green-hydrogen-based export
Renewables sector is an opportunity for RSA to re-industrialise
Speed of energy transition in RSA will not be driven by costs nor by technology: both boxes have long been ticked
Speed of energy transition will be driven by
1) our ability to address the structural change in the existing industrial regions and provide a meaningful future
2) our ability to re-industrialise on the back of a fully transformed renewables sector (goes beyond solar/wind)
Green Hydrogen (based on solar and wind) gives an opportunity to
• bring some of the benefits of the energy transition into the existing industrial regions (coal, cement, steel, old mining)
• create a competitive export article for South Africa re-industrialization
“Renewables sector” is broader than solar PV and wind electricity
25
Together „one energy ahead“!
26www.enertrag.com
Dr. Tobias Bischof-NiemzHead of Division: New Energy Solutions
ENERTRAG AGCell: +49 172 304 7749
Thank you for your attention! Questions?
