Europe's hydrogen industry: mapped

A Pivotal Moment in Hydrogen’s Evolution

July 2024 has marked a significant milestone for the hydrogen industry, with seven major projects around the world achieving Final Investment Decision (FID) status. These projects underscore a growing confidence in hydrogen as a critical component of the global energy transition. However, as we celebrate these developments, it’s also crucial to address the broader conversation about hydrogen’s role. Hydrogen is a powerful tool—but like any tool, it’s not the answer to every problem.

The Power of Seven: Projects Reaching FID in July 2024

These seven projects represent a critical step forward, each contributing to the global hydrogen economy’s growth. Yet, they also remind us of the importance of strategic deployment—focusing on areas where hydrogen can deliver the most impact.

Sector-Specific Insights: Where Hydrogen Truly Shines

1. Chemical Industrysome text
   • Shell, Germany: Shell’s investment in integrating hydrogen technology at its new chemicals facility highlights hydrogen’s irreplaceable role in decarbonising the chemical sector. In processes where hydrogen is fundamental—such as ammonia and methanol production—there’s simply no substitute. The industry’s reliance on approximately 97 million tonnes of fossil hydrogen annually makes it a prime candidate for green hydrogen solutions.
   • BP, Castellon Refinery, Spain: BP’s decision to implement a green hydrogen production facility at its Castellon refinery in Spain underscores the growing shift towards cleaner chemical processes. This project is a clear example of hydrogen’s potential in reducing the carbon footprint of heavy industries.
   • Yara, Paraguay: Yara’s commitment to offtake 100% of the green hydrogen-based fertilisers from ATOME’s 145 MW project in Paraguay further demonstrates the essential role hydrogen plays in agriculture and chemical manufacturing. These sectors cannot achieve deep decarbonisation without green hydrogen.
2. Industrial Applicationssome text
   • Siemens Energy and EWE, Germany: The installation of a 280 MW electrolysis system by Siemens Energy for EWE in Germany highlights how hydrogen is transforming industrial processes. While hydrogen’s application in industries is crucial, it’s important to recognise that it’s not a one-size-fits-all solution. Strategic application is key, particularly where electrification isn’t feasible or sufficient.
3. Transportsome text
   • bp Aberdeen Hydrogen Energy Limited, UK: In the transportation sector, hydrogen has a clear role, especially in hard-to-electrify segments like heavy-duty vehicles. The establishment of a renewable hydrogen facility in Aberdeen by bp is a step in the right direction, targeting the specific needs of the transport sector in Scotland and beyond.
   • Virya Energy, HyoffGreen, and Messer Group, Belgium: The 25 MW renewable hydrogen production plant set to be developed in Zeebrugge, Belgium, is another example of hydrogen’s versatile applications. While hydrogen can play a crucial role in transport, it’s essential to focus on sectors where it offers distinct advantages over other energy sources.
4. Energy Integration and Renewable Linkagessome text
   • TotalEnergies and RWE, Netherlands: The collaboration between TotalEnergies and RWE in the Netherlands, which links a wind farm with a 350 MW electrolyser project, showcases an ideal use of hydrogen. By directly connecting renewable energy sources to hydrogen production, this project illustrates a sustainable approach that maximises efficiency and impact.

A Global Perspective on Hydrogen’s Growth

The geographic spread of these projects—from Europe to South America (with the USA conspicuously absent)—illustrates hydrogen’s global appeal. Yet, it also highlights the need for a focused approach:

• Europe: Leading the way with projects in Germany, Spain, the UK, the Netherlands, and Belgium, Europe is demonstrating how hydrogen can be integrated into existing industrial and energy frameworks. However, this integration must be strategic, targeting sectors where hydrogen provides the greatest value.
• South America: The Paraguay project emphasises the potential for hydrogen to support agricultural and chemical sectors in emerging markets, reinforcing the idea that hydrogen’s role should be tailored to specific regional needs.

Rationalising the Hydrogen Hype: Focused Applications for Maximum Impact

While the seven FID projects in July are a cause for celebration, they also serve as a reminder that hydrogen’s potential is maximised when applied thoughtfully. The industry must move beyond the hype and focus on where hydrogen can be most effective.

Hydrogen is not the answer for everything, everywhere. The industry’s challenge is to concentrate efforts on sectors where hydrogen is not just useful but indispensable. The chemical industry, heavy industry, and certain segments of transportation are prime examples. In these areas, hydrogen can provide solutions that no other technology currently offers.

Supercritical’s Role: Innovating for a Targeted Hydrogen Future

At Supercritical, we recognise the need for a focused approach. Our technology is designed to make green hydrogen economically viable in the sectors that need it most. By reducing production costs by upto 40%, we are helping to bridge the gap to price parity, ensuring that hydrogen can compete where it matters.

Our mission is clear: to drive innovation in hydrogen technology where it can have the greatest impact, supporting a sustainable and economically sensible energy transition.

A Clear Path Forward

The FID announcements of July 2024 mark a significant step forward in the hydrogen journey. But as we move forward, it’s essential to keep our focus sharp. Hydrogen’s future lies in targeted, impactful applications. By concentrating on sectors where hydrogen can deliver the most value, we can ensure that it plays a pivotal role in the global energy transition.

At Supercritical, we are committed to leading this charge, ensuring that hydrogen’s role in our energy future is both economical and strategically sound. As we continue to push the boundaries of what’s possible with hydrogen, let’s remember that ambition must be balanced with pragmatism. The July 2024 projects provide a blueprint for how hydrogen can be successfully integrated into the global energy mix—when used wisely and where it’s needed most. Together, let’s build a hydrogen economy that is sustainable and profit-making.

Co-Authored: Supercritical and HLK

The collaborative relationship between Supercritical Solutions and HLK demonstrates how valuable it can be for an early stage company and its advisor to form a genuine partnership, enabling a company to build an IP strategy that directly supports its business strategy, maximising the potential for IP to support commercial goals. 

Commercial focus

Established in 2020 during the height of the pandemic, Supercritical Solutions is a deep tech scale-up company spun out of Deep Science Ventures with a vision to make green hydrogen production at a lower cost than fossil hydrogen. Supercritical’s ultra-efficient electrolysis technology is designed to produce green hydrogen at high pressure, removing any need for downstream pressurisation while enabling a continuous and membrane-less design, circumventing many of the problems and inefficiencies associated with electrolysis of water. 

Co-founder and CTO Mike Russ explains that the company has always had a commercial focus instilled into it. “Deep Science Ventures creates companies to solve problems. A lot of companies that spin out of university research have innovative ideas but are looking for a problem to solve. We knew from day one there would be demand for our technology.”

The Supercritical team was formed by Gaël Gobaille-Shaw of Deep Science Ventures, who had spotted the market opportunity and built a team of co-founders, including CTO Mike Russ, CEO Matt Bird and CPO Luke Tan. 

Putting together the right team and blend of expertise is essential for a start-up looking to grow and attract investment. Russ’ advice to other start-ups is to look at the management team as representing three sides of a triangle: “You need your management team to have governance, commercial and technical expertise. If you don’t have all three, you have an incomplete triangle and an incomplete management team”.  Supercritical also recognised that they would need to bring in external expertise at an early stage too, and as a deep tech innovator, recognised that Intellectual Property (IP) advice would be key to support the business strategy. 

Building an IP strategy to reflect the commercial focus

Supercritical evaluated a number of IP advisors early on, and selected HLK, based on its experience of protecting IP and deep technical expertise.  George Tebbutt is a Partner at HLK, working closely with colleague Michael Ford to support Supercritical.  “We’ve worked with Supercritical from the outset. We’ve been able to get to know the business in-depth, and help them with an IP strategy that matches both the technical and commercial trajectories for the company.” 

Deep tech scale-ups like Supercritical are often conducting cutting edge research and development while simultaneously navigating an evolving roadmap to commercialisation.   This means that a good IP strategy looks beyond a current research focus or snapshot of the technology, and instead takes a more complete view of the projected technical roadmap, helping to identify and protect the developments which are going to underpin the USP of the company and protect its value. The close relationship between HLK and Supercritical has been a great example of this working in practice.  Tebbutt explains: “We’ve worked alongside the business as different iterations of product designs and processes have been tested and improved upon, helping us to spot the innovations which really enable and underpin the technology, and adapt the IP strategy accordingly.”  Specialist attorneys at HLK – from engineering to electrochemistry and materials – have been closely involved with Supercritical’s trials and simulations, leveraging data to support IP protection.   Supercritical now has a growing portfolio of patent applications (some unpublished), with new families capturing significant advances in the underlying technology.

From Mike Russ’ perspective, the commercial strategy was reflected in the IP strategy from the first meeting with HLK.  “The discussion went beyond how our technology works, focussing on our objectives, and how IP could support Supercritical’s commercial position and value.   Was the company going to manufacture electrolysis equipment or operate installations, licence its technology to others, or seek an acquisition?  How do Supercritical’s investors view IP? Where will Supercritical fit in amongst the hydrogen market and related industries?”.  

Knowing the possible directions of the business helps to determine a suitable IP strategy.  The focus has been on developing and protecting the core enabling technology which is applicable independent of the particular industrial use case - so the company remains open to opportunities and growth throughout the sector. 

Leveraging IP to expand and diversify

Supercritical’s technology is already being evaluated for markets from whisky production to producing green ammonia for fertilisers and shipping. Russ explains that these diverse end uses leverage the same core technology.  “Our USP is improving the efficiency of chemical production. It’s not about what the chemicals are used for, but making the underlying production more environmentally friendly. When we started the business, the hydrogen industry produced as much carbon dioxide as the entire aviation industry – and only 4% of the hydrogen produced was green. There’s massive potential for us to improve that market. We’ve always focused on established markets like this, despite our technology also being applicable to emerging markets in the hydrogen economy, such as heavy transportation and industrial heating.” 

As the company grows and matures, new adaptations and uses of the core technology are being identified, and the IP strategy is evolving to reflect this.

From HLK’s perspective, the engagement with Supercritical has been a fantastic opportunity to support an IP-rich business working on hard science for positive change.  George Tebbutt summarises: “The highly collaborative approach with the team at Supercritical has been very rewarding – whether we’re diving deep into the technical research, pushing forward the IP strategy or joining investor meetings – our aim is to become an extension of their team, helping their IP become a huge asset that supports commercial goals and value”.

Luke laid down the challenge to the team to run the Ealing Half Marathon early in 2023, naturally it felt like a long time in the future. Being keen and new to running, the opportunity to take on my first half marathon was too tempting to pass up. There were no other takers at the time, and it was down to myself and Luke to carry the banner for the Supercritical team in our local borough of London.

Several months passed and I had barely trained, I had been doing my usual 5 to 10k runs in the evenings and weekends, but nothing more substantial. Safe to say my ‘training’ had not gone to plan. As we closed in on race day, Taza joined the team and it was now a three person race!

Taza and Luke were both aiming to finish the race in under two hours, and I had committed to simply just getting over the finish line. 

Race day was upon us, it was an early start to reach Ealing in time for 9am. The crowds were huge, and needless to say the nerves had set in.

The weather held out as we lined up on the start line, myself somewhere after the 2 hour pacers, Luke and Taza around the 1:50 marker. The race began with a loud shout of ‘have you got the Ealing feeling?’, and I for one was finding it hard to feel it due to my lack of preparation! 

The first 10k seemed to pass by with relative ease, some hill climbs but nothing too strenuous. This was comfortably within my prior experience, and from this point onward I was into the unknown.

A few km into the unknown, things were still good, my legs were working, I had had a gel and was soaking up the energy from the crowd. The route contained a few switch back areas and around km 13 I spotted Luke running towards me on the other side of the barrier, confirming he was indeed in front of me. The steep hill climbs in the following kms took their toll and by 16km, I had slowed down to a walking pace.

A cycle of walking and slow running continued until around 20 km, when it was clear I was on the home straight. 

At this point, I didn't care that the 2:20 pacers had passed me, I wasn’t bothered by my legs aching and the fact that I clearly had a blister on my toe was of no concern. All I wanted to do was finish.

The final corner was a turn into the park for the finish line, by this time I had closed in on the 2:20 pacers and had them in my sights. I wasn't going to let them defeat me, and used every last molecule of energy to burn them on the finish line, 2:19.

We met up, Taza at 1:50 and Luke at 1:55, it felt to me like a monumental achievement. 

A couple of hours of literal & psychological ups and downs akin to the rollercoaster that is innovation! Monday morning’s walk to the tube was a little sore, but hey, same again next year? 20% discount, go on then… I better get training.

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