I Think There Are Interesting Opportunities Here In The Middle East Region For Manufacturing Capability, Says Resilient Group’s Mr. Wietse Ter Veld

Q:  Green hydrogen is not a very new concept but is a promising disruption in the renewable energy factor replacing fossil fuels, considering it could dramatically reduce emissions from industries. But the core cause for concern is the costs relating to green hydrogen. Would this be a challenge, five years from now or do you see alternatives coming up where we can reduce the cost factor for green hydrogen?

A: Currently, green hydrogen is really an evolving market given that the individual technologies have been around for quite some time. But as there's a new ecosystem to be build, one in which all the pieces come together and integrate, we have quite a way to go. We need to replace the existing fossil fuel value chain with a clean value chain, where hydrogen will play an important role. So, by scaling up by improving efficiency, learning by doing, and applying experience from the oil and gas sector and other industries, we will be able to bring down this cost.

Q:  Is there a way of knowing how long it would take to bring down this factor altogether?

A: Several economists and engineers have embarked on drawing a curve down. And then specifically for electrolysis where numbers of electrolysis plants currently cost somewhere between 1000 to 1500 euros or US dollars per megawatt of capacity will come down by half or even less than that. Manufacturers in China already claim to be way down that curve. So, it seems indeed achievable and possible. We at Resilient Hydrogen are working every day to improve efficiencies and synergies at the integrated project level. It's not only the plant required for electrolysis, but the cost of power is also a significant component to the overall cost of the green hydrogen production value chain. There are gains to be made there as well.

Q:  Since there's so much of a buzz around the word sustainability and there are a lot of players right now in this entire forum, do you believe that the goalpost somewhere has shifted from sustainability to plain competition, which may probably be unhealthy in the long run?

A: Maybe two decades ago, sustainable energy was a lofty goal and not so much a commercial goal. As time went on, technology improved, solar parks on- and offshore wind farms, scaled up and reached an economic tipping point. Some competition already went into that whole process. Renewable Energy Sources now compete successfully with fossil energy sources as well amongst renewable sources itself.

And because of the different aspects of different ways to store energy, transport energy, to use renewable energy, I think it's a good thing that different kinds of technologies or value chains are evolving from the smorgasbord of different options. By and large, I think the competition will enable us, to pick and choose the best options and this competition will just help us to get there to get to a better proposition.

Q: At Resilient, you talk about the hydrogen economy. And that's a very interesting concept. How does this work to serve the bigger picture of sustainability? And how do you ensure this seamless process of accelerating energy transformation? Since you need some support and contribution from the government and you're working in sync with a lot of external players as well, are there any potential glitches and challenges concerning the hydrogen economy?

A: The challenges are across the board for all types of hydrogen projects, whether you're in the Middle East, Europe, or somewhere else. Different stakeholders, and governments, provide the framework and the rules of engagement through legislation and upcoming technology. One example to have a voice in that process is to be a member of the European hydrogen Alliance, where we can interact with policymakers with other peer hydrogen developers, technology developers, etc. So that's one way.

There will be glitches along the way, not everything is smooth sailing. There is an existing infrastructure of fossil fuels, which kind of needs to be repurposed and sometimes torn down, and that cannot be done in one go. This is the energy transition where the existing energy supply will be taken over by a new energy supplies and needs. Any change goes with hiccups and it’s the same for the energy transition, and green hydrogen. That said, climate change is affecting us all, sticking to the status quo in my mind is not an option.

Q: How do you find the potential in the Middle East in building on this prospect of bringing green hydrogen and making it a part of the entire circuit? Which country in the Middle East do you think would go forward and probably lead the way, especially when it comes to hydrogen?

A: I think the UAE, Oman, and Saudi Arabia are some examples where tangible projects move forward, not only in projects being developed but also in the interest of the larger stakeholder community or from governments, off-takers, from companies who would use green hydrogen as an alternative to other fuels.

Also in the larger region, maybe in North Africa, Egypt, and Morocco, in particular are doing a good job in getting on board and moving forward with the energy transition. Moreover, in the Middle East, there are opportunities not only for the development of projects but also for manufacturing of materials and equipment needed for these projects.

Once you have a lot of energy available from solar or from wind, you want to store and transfer that energy to do so a significant amount of infrastructure and equipment is required. And I think there are interesting opportunities here in this region for developing the technology and manufacturing capability to provide these needs.

Q:  The UN's green hydrogen catapult is working towards bringing the cost of green hydrogen down and obviously announced that it's almost doubling its goal for green electrolysis to 45 gigawatts, hopefully by 2027. Now, do you believe this can be a reality?  And when it comes to the Middle East regions, how do you think this change would impact them?

A: From mid-2022 to 2027, 45 gigawatt is an aggressive target. There's a lot to be done to get there, it can be done if everything aligns. But I think there are huge challenges to reach this target. Once the manufacturing capacity are realized we really can ramp up quickly. And again, it's not just the capacity of manufacturing but being able to finance and develop such projects. There's also the transition of existing infrastructure of fossil fuels which need to be transitioned to low emission or zero-emission technologies. So, I think that there is whole scale of topics that needs to be addressed, this will take some time to pan out. But then again, I think if we transport ourselves 10 years from now, and look back in the mirror, I think we will say wow, that went fast!

Q: Tell us a little bit about yourself, and your hobbies, and you've got a very wonderful and powerful code on your five. And we want to know, what's your favorite code as well?

A:  I grew up in the Netherlands, in the countryside, surrounded by nature, forests and birds, and I was intrigued by nature.  When I was a little boy, I wanted to become a biologist or a forest ranger. But working in the technical field and travelling the world took the better of me, and I joined the oil patch, which is kind of the opposite of being a biologist. So, I worked on challenging projects in different parts of the world, and I ended up in Houston, at a Technology and manufacturing Center working on subsea projects and pushing the technical boundaries.

Alas, the career in oil and gas came to an end and returned with my family to the Netherlands. And within weeks, I was asked to help with a green hydrogen pilot project. I did not know anything about green hydrogen, so I immersed myself in it. Quickly it became apparent that I could use the skills, the technologies, and the way of working from oil and gas for the hydrogen project. It was a relatively small project at one-megawatt, capacity, and that's how I got into Green Hydrogen.

 I guess the circle is round. My early interest in nature, acquiring skills from the oil and gas industry, and now applying these skills to develop green hydrogen projects at Resilient Hydrogen.  I am a realist and an optimist. There will be many challenges to reach a low carbon society. If it was easy, it would have been done a long time ago, but I want to be part of the solution and overcome the challenges to reach a low carbon society.