Greece could produce up to 500MW of blue hydrogen by 2030, while the creation of a hydrogen index is set to attract trading interest, market participants said during an energy conference on 4 June.
To achieve the target the country needs to develop a hydrogen and battery storage framework by the end of the year and set a plan for attracting investment in carbon capture and storage (CCS) facilities, added participants from several Greek energy firms.
“The strategy should also encourage power, industry and maritime sectors towards blue hydrogen, which is produced by reforming natural gas and using CCS,” said one participant.
Participants also said Greece needs to develop:
– flexible gas-fired generation as the transitional fuel in the power mix
– multiple gas corridors and storage facilities (floating storage regasification unit or underground)
– incentives for hydrogen investment
HYDROGEN A LIQUID COMMODITY BY 2030
Hydrogen could become a liquid commodity by 2030 and the power exchange EnEx is committed to developing this market, said a member of the company in its presentation.
EnEx created a hydrogen working group and is looking to develop a hydrogen index together with the market.
“There is no price transparency for hydrogen yet. As the market grows transparent, freely available price information is likely to attract global trading interest. The hydrogen index will undergo constant change, but at the start it sould be based on contributions and price assessments and later based on a liquid spot market,” added the EnEx official.
GAS DEMAND TO GROW
Grid operator DESFA’s forecast model expects gas consumption in Greece to reach 6.1 billion cubic metres (bcm) by 2030 due to 1.4GW combined cycle gas turbines scheduled to come online and the national energy strategy backing a number of gas projects.
DESFA said Greek gas consumption for power generation is set to increase from 3.3bcm this year to 3.4bcm in 2025, as the country plans to phase out the majority of its coal-fired capacity by 2023. Generation from gas units covered 40% of the power demand between 30 May to 5 June, while renewables covered 25%, imports stood at 24%, hydro 8% and lignite with 3%, according to the weekly report from the power exchange EnEx.
The government should enhance the development of gas and hydrogen and place them at the heart of energy planning in the coming years, added a second participant.
Gas or hydrogen units could operate in addition to renewables, balancing the fluctuations in the Greek energy mix.