The transition to clean energy sources today is the driver of the transformation of energy systems in many countries of the world. The development of hydrogen energy, in this regard, is a fairly new trend. What is the reason for development of this industry? What are the prospects for development of hydrogen energy? Ainur Tumysheva, Investment Director of Hyrasia Energy, answers these and other questions of our journalist.

 - Ainur, let's start, perhaps, with the answer to the question, who is the main consumer of "green" hydrogen?

 - In addition to the well-known hydrogen engines, hydrogen can be used in a wide variety of industrial sectors, especially where large amounts of energy resources are required. The "grey" hydrogen, which is produced from natural gas, has been used in production for more than 100 years, but this type is not considered environmentally friendly. Therefore, today we are betting on a type of fuel that has the least impact on the environment. Hydrogen itself, among other things, can be used as a component and catalyst in the production of ammonia, the production of methanol, and various chemicals. Hydrogen is also used to purify oil, metals, in the production of fertilizers and food products.

The main consumers of "green" hydrogen are, first of all, industrial sectors that require a large amount of energy or clean fuel alternatives. The scope of its application is very wide.

 For example, in oil refining, hydrogen is used in various processes at refineries, such as desulfurization and hydrocracking, to produce cleaner fuels with lower emissions.

 In ammonia production, green hydrogen is a key ingredient that is used mainly for the production of fertilizers. Ammonia can also serve as a potential carbon-free fuel for ships.

The steel industry uses hydrogen in its production processes, mainly for direct reduction of iron ore and removal of impurities in production. In the chemical industry, hydrogen is an important raw material for various chemical processes, including the production of methanol, ammonia and other synthetic materials.

In the production of electricity, hydrogen can be used as fuel in gas turbines or fuel cells to generate electricity with minimal greenhouse gas emissions. Power plants can use hydrogen both in pure form and in a mixture with natural gas.

Green hydrogen can also be used in fuel cell vehicles as a clean alternative to internal combustion engines. Hydrogen engines offer zero-emission transportation because the only byproduct of using hydrogen in fuel cells is water vapor.

 In addition, hydrogen can be stored and used as a medium of excess renewable energy, which allows it to be converted back into electricity if necessary.

 - The European Union has set itself big goals for the widespread use of "green" hydrogen by 2030. What volume of consumption is projected in the near future? What is the reason for the growing interest in "green" hydrogen?

 - The publication of REPowerEU plan in May 2022 demonstrates the hydrogen strategy of the European Commission aimed at further strengthening European ambitions for green hydrogen as an important energy carrier. The working paper (SWD/2022/230) accompanying this plan sets out a specific concept of a "hydrogen accelerator" to expand the use of green hydrogen in various industries and methods for decarbonizing the EU energy system. The goal is to independently produce 10 million tons by 2030 and import 10 million tons of “green” hydrogen to the EU.

The growing interest in "green" hydrogen arises from several factors. Firstly, there is a growing awareness of climate problems. With climate change and increasing greenhouse gas emissions, more and more people and organizations are realizing the need to switch to clean, low-carbon energy sources. "Green" hydrogen does not emit carbon dioxide during its production or use, which makes it a promising solution for reducing greenhouse gas emissions and achieving climate goals.

Secondly, the technologies of "green" hydrogen are developing. Advances in electrolysis technology, as well as economies of scale, will reduce the cost of producing “green” hydrogen. This will increase its competitiveness in the future compared to traditional fossil fuels and will contribute to its wider adoption.

 Thirdly, there is an expansion of the use of "green" hydrogen. Hydrogen is a universal energy carrier that can be used in various industries, such as energy, transport, chemical industry, etc. It can serve as an energy carrier to store and transport renewable energy, as well as provide a clean alternative to fossil fuels in many sectors.

And the fourth is support from Governments and international organizations. Many countries, including Kazakhstan, as well as international organizations, recognize the importance of developing "green" hydrogen and are taking measures to stimulate its production and use.

 - SVEVIND company together with the Government of the Republic of Kazakhstan announced the construction of one of the world's largest plants for the production of "green" hydrogen in Kazakhstan in the Mangystau region. For what reasons was the western region of our country chosen for this project?

 - When choosing a site for the project, we paid attention to several factors. One of the most important is renewable energy resources: the region has significant renewable energy potential, especially in the form of wind and solar resources. During the study of the World Atlas of Winds, it turned out that the wind speed and density in the Mangystau region is one of the strongest on the continent. The cost of producing “green” hydrogen strongly depends on the cost of producing alternative energy. Thus, access to renewable energy sources makes the production of the final product in the Mangystau region competitive in the market.

The next factor is access to water resources. It is no secret that “green” hydrogen is produced by electrolysis of water. Therefore, the presence of a certain amount of H2O is critically important for the project. Mangystau region benefits from proximity to water resources, including the Caspian Sea.

And last, but not least, is the strategic location of the region, providing access to both the domestic and international markets. Mangystau has access to transport routes, such as seaports and terminals, pipelines, railways, which are key points for the export of goods. Access to the Caspian Sea opens the way for the export of goods via the Trans-Caspian Transport route.

- An important factor for development of hydrogen energy is access to water resources. Kazakhstan is limited in water resources, and the Caspian Sea is a closed reservoir – a drainless lake. In addition, environmentalists are sounding the alarm that the Caspian Sea is getting shallow. In your opinion, will the launch of a hydrogen production plant aggravate the process of reducing the water resources of the Caspian Sea?

- We are conducting a multi-year assessment of our project's environmental impact, not only on the flora and fauna of the Caspian Sea, on nearby territories, as well as on those territories where solar panels and wind turbines will be installed. All this is done according to the highest European ESG standards.

If we talk about the required volume of water, now we are working on detailing the technical process. Currently, we are studying various technologies, especially in the field of cooling equipment, for their technical, economic and environmental suitability for the production of green hydrogen in the Mangystau region. Depending on the results and the chosen technology, the final water demand can be calculated more accurately. Our current calculations show that the water intake of the project has an impact of less than 0.15 millimeters per year on the level of the Caspian Sea. Despite this, we are working on further reduction of this indicator.

From our point of view, it is also important to consider that the environmental benefits outweigh the disadvantages. For example, if we compare the classic ammonia production with the Hyrasia one green approach, we will save about 20 million tons of CO2 per year. In addition, environmental toxins and other greenhouse gases are not released. These savings have an impact not only regionally, but also globally.

 - One of the urgent problems for hydrogen energy is its transportation. Taking into account the remoteness of Kazakhstan from Europe, how is it planned to carry out transportation, while ensuring safety for personnel and the environment?

 "You're right. The transportation of hydrogen, especially over long distances, is indeed a big issue for the hydrogen industry. Ensuring the safety of personnel and the environment is of paramount importance when transporting hydrogen. In general, there are several possibilities for transporting “green” hydrogen from the Mangystau region to foreign countries.

One of the most common ways of transporting hydrogen is the use of special pipelines. Existing gas pipelines can potentially be repurposed for the transportation of hydrogen, taking into account certain modifications due to the different properties of hydrogen.

Hydrogen can be liquefied by cooling it to very low temperatures, which reduces its volume during transportation and facilitates storage and handling. Liquefied hydrogen can be transported in cryogenic tanks or specialized containers.

 Our studied option for today is the conversion of hydrogen into ammonia, which is easier to transport and which has a developed global transport infrastructure. Ammonia can be produced using hydrogen and nitrogen, and then transported using existing specialized ammonia tanks.

 We are conducting an analysis on this issue together with DB Engineering & Consulting GmbH with the integration of international standards and safety rules for the entire supply chain. This includes complying with industry standards and regulations, implementing safety management systems, and conducting a thorough risk assessment at every stage of the supply chain.

 - One of the parameters for production of "green" hydrogen is the use of renewable energy sources for its production. How is it planned to solve this problem? Will the introduction of large RES capacities affect the imbalances in the energy system of the Republic of Kazakhstan? Is it planned to use the adjusting capacity (storage or maneuvering capacity) to align the schedule of renewable energy stations?

 - As part of our project, it is planned to build several thousand wind farms and install a large number of solar panels. I mentioned earlier that the total capacity will be about 40 GW.

 Our project will operate entirely on autonomous power transmission. We will not connect to the energy system of the Mangystau region. A fully autonomous infrastructure will be built. The generated electricity will be supplied via its own ultra-high voltage high-voltage transmission lines with a maximum capacity of 750 kilovolts. All the energy produced will be supplied to the production of green hydrogen.

 As for the storage capacity, it is worth noting that the electrolysis capacity at our project will be about 20 GW, and the rest of the generated energy will be used for auxiliary processes such as ammonia synthesis and electrical losses.

 The combination of wind and solar energy and their distribution at different locations will ensure balanced electricity production.

Currently, we are developing a storage concept that ensures stable and safe operation, as well as a minimum cost of production (BESS (battery electric storage system) = a battery electric storage system will be part of this solution).

 In addition, the correct arrangement of wind turbines and solar panels will make it possible to balance the generated electricity. Now we have already installed a number of weather masts, with the help of which we will choose the most optimal location of future wind and solar stations.

 - The President has repeatedly set the task of developing local content for the renewable energy sector. The production of solar modules is being launched in the country, transformers, cable products, metal structures are being produced. Given the large capacities for construction of renewable energy stations for the SVEVIND project, are there plans to use local equipment and components and involve local companies at the design and construction stage of the stations? How will this process be built?

 - The use of local equipment and components, as well as the involvement of local companies in such a large-scale project, of course, can have a number of advantages that should be taken into account.

Firstly, it can stimulate economic growth and development in the region by creating jobs and supporting local businesses.

Secondly, depending on the availability of local resources, purchasing equipment and components locally is often more cost-effective than importing them from abroad. Local suppliers can offer competitive prices and shorter deadlines, which reduces the overall cost of the project.

Thirdly, cooperation with local companies provides an opportunity for knowledge transfer and technology exchange. This allows local companies to acquire knowledge and experience in the hydrogen industry, contributing to the development of a skilled workforce.

Fourth, reliance on local suppliers reduces dependence on foreign sources and reduces the risks of disruptions in the global supply chain and potential logistical problems. This increases the sustainability of the project, ensuring a continuous and reliable supply of materials.

Fifth, local companies can provide ongoing support and maintenance, which allows them to respond more quickly to any operational problems.

And, of course, the use of local equipment and components can potentially reduce the carbon footprint associated with transportation and logistics. By minimizing the distance traveled to find materials, the project can achieve greater environmental sustainability and support the overall goals of green hydrogen production.

Taking into account all the above advantages, of course, I would like to involve local companies as much as possible. However, such decisions and conclusions can be made only after the completion of the design stages of the Hyrasia One project, i.e. Pre-FEED and FEED, scheduled for the end of 2024. It is also important to consider the availability of the necessary equipment, components and resources in the local market.

As a result of Pre-FEED and FEED, the basis of the design will be determined, the basic principles and concepts of procurement, construction, operation of renewable energy and industrial enterprises will be developed. At the Pre-FEED stage, the main parameters of processes and equipment will be determined, such as electrolysis, desalination of seawater, hydrogen storage, synthesis and storage of ammonia, heat recovery and cooling, heat storage and electricity generation, battery energy storage system, as well as wind turbine and photovoltaic energy production and transport.

In addition, the global scaling of the production of "green" hydrogen will require an increase in production capacity throughout the value chain. As part of the Pre-FEED, we are also exploring the possibilities of creating such production facilities and using the results obtained in negotiations with equipment suppliers.

As a result, by the end of 2024, a clear understanding of the necessary equipment, components and resources will be achieved for the implementation of the entire Hyrasia One project during the EPC phase.

At the same time, the procurement strategy will be developed taking into account the necessary materials and equipment, as well as taking into account the decisive factors. These include global production facilities and production areas, deadlines for order fulfillment, the competence of local suppliers, the availability of necessary materials and components.

But the Hyrasia One project requires not only high-tech equipment and components. It is important to note that the project requires a huge amount of construction materials. At the construction stage of the project, we really count on the local market and the availability of basic materials such as cement, concrete, steel structures, pipes, cables of all categories, electrical, control and measuring components, etc. To do this, we plan to involve local specialists. We hope for successful cooperation with local companies and manufacturers in the upcoming stages.

 - In conclusion, the last question: what value will the implementation of the project for the production of "green" hydrogen bring to the Republic of Kazakhstan?

 - As part of the project, about $50 billion will be invested in the economy of Kazakhstan. In addition to renewable energy facilities, a high-voltage power line, a plant for the production of hydrogen itself, water treatment and desalination facilities, the investor also undertakes the construction of all necessary infrastructure. Including highways, which will also be used by Kazakhstanis. Upon completion of road construction, the company will be ready to transfer part of the roads to the balance of local executive bodies.

 The production of "green" hydrogen can become a new and promising market, new jobs will be created, innovations and the development of new technologies will be stimulated.

 I would also like to note that we have preemptively addressed the issue of personnel training for our project, which will require a large number of technical specialists. As part of the visit of German Federal President Frank-Walter Steinmeier to Aktau, a capsule of the Kazakh-German Institute of Sustainable Engineering was laid. Representatives of German technical universities have already arrived in Kazakhstan, who will start training local specialists from September this year. Power engineers, geologists, surveyors, engineers and so on will be trained here. Some specialists will receive two diplomas at once within the framework of dual education – Kazakh and German.

 Our company will require a large number of specialists of various professions. For example, several thousand jobs will be created only as part of the construction of the project. Since the start of the work of the enterprise itself (electricity generation and hydrogen production), about 1800 permanent jobs will be created.

 As for the composition of workers, the main point, according to the plans of investors, it is planned to attract local workers, that is, Kazakhstanis. It is for this purpose that we are already creating a program to train local technical personnel. 90% of these 1,800 jobs will be Kazakhs. The same applies to the management staff – 90% will be citizens of the Republic.

 "Green" hydrogen is produced from renewable energy sources, so its production does not lead to the emission of carbon dioxide and other harmful substances. Hydrogen is a clean and efficient source of energy. Its use makes it possible to reduce dependence on fossil fuels and improve energy security.

- Thank you for the interview!