Power-to-X Country Analyses

From sustainable energy to storable energy sources for a global energy transition

Power-to-X refers to processes in which electricity is converted into storable energy carriers. “Power” refers to the use of green electricity obtained from renewable energy sources, and “X” stands for the form of the energy produced, e.g. gas or liquid, or its intended product, e.g. ammonia. These energy carriers can not only be transported over long distances, but are also suitable for defossilizing various sectors that can only be operated to a limited extent or not at all with green electricity directly. Examples include shipping or aviation in the mobility sector, and steel and cement production in the industrial sector. In the medium term, the chemical industry will also rely on non-fossil raw materials.

Where Germany’s imports of hydrogen and Power-to-X products could come from

Researchers from the Fraunhofer Institute for Solar Energy Systems ISE have prepared a global analysis of regions that are suitable for hydrogen and Power-to-X production in connection with transport to Germany. The study examines the production and transport costs of the most important Power-to-X products up to the year 2030. A total of 39 regions in 12 countries preselected by H2Global were analyzed. The focus was on the analysis of the costs of generating electricity from renewable energy in these countries and the subsequent detailed planning and simulation-supported optimization of Power-to-X chains for the production of green hydrogen, ammonia, methanol, and kerosene. For the import scenarios, the long-distance transport of green energy carriers to Germany was considered via either seagoing vessels or hydrogen pipelines. A central prerequisite was the generation and use of exclusively renewables for the production of 100% green hydrogen.

Conclusions for optimal Power-to-X production:

• Location-based analyses of regions being considered for Power-to-X production are essential for reliable cost estimates. The complex interplay of wind and photovoltaic (PV) generation profiles, the topographical and infrastructural conditions, and also the administrative frameworks render site-specific analyses indispensable. General estimates for future Power-to-X regions that are based only on wind or photovoltaic potential and costs neglect these aspects.
• The total transportation distance for products can have a decisive influence but is not necessarily an exclusion criterion.
• Low electricity generation costs for wind and solar, connected with high full load hours, have a significant impact on the utilization of electrolysis and thus on the entire power-to-X chain.
• Locations with favorable combined conditions for wind and PV power generation can in many cases be more advantageous than locations with extremely good conditions for only wind or PV alone.
• Low capital costs have a high overall impact on production and supply costs.

One result of the study is the conclusion that Brazil, Colombia, and Australia offer particularly favorable conditions for the import of green ammonia, methanol, and kerosene out of the 12 countries preselected by H2Global. Gaseous green hydrogen could be imported from Southern Europe or North Africa, provided that pipelines will be available in time to transport it.

The analysis thus constitutes an important basis for bilateral agreements on the import of Power-to-X products and for the emerging global hydrogen market.