Considerations for Converting Industrial Plants to Hydrogen Supply

Keywords: Hydrogen Supply, Industrial Plants, Process Automation, Digital Twin

Summary

Industries around the work are working to meet climate targets, improve energy security, and decarbonize value chains. Green hydrogen is becoming a key solution where direct electrification has its limits as it can stabilize energy grids by providing clean power on demand when renewable sources are unavailable. Generated by electrolysis from renewable electricity, green hydrogen is one of the least carbon intensive technologies for producing hydrogen. Converting an industrial plant to a hydrogen supply involves several preliminary and practical considerations, including infrastructure assessment, site selection, technology choice, and the use of digital methods for optimization.

ARC recently spoke with Philipp Glaser, Head of Hydrogen Business at Siemens, to discuss these points in detail. This ARC View summarizes the results of our discussion.

Preliminary Considerations

ARC: In the context of green hydrogen, what are the preliminary considerations for converting an industrial plant to a hydrogen supply?

Philipp Glaser, Siemens: Converting an industrial plant to a hydrogen supply involves several preliminary considerations. First, an infrastructure assessment is crucial to evaluate the existing infrastructure and determine necessary upgrades or modifications to handle hydrogen safely. Safety measures must be implemented to address hydrogen's unique properties, such as its flammability and potential for leakage. Additionally, a cost-benefit analysis is essential to assess the financial feasibility of the conversion, including potential funding sources and incentives. Environmental impact should also be considered, aiming for sustainable and eco-friendly practices.

ARC: What about site selection and technology choice?

Philipp Glaser: Site selection and co-location are important. Choosing a site with access to renewable energy sources, such as wind or solar, and considering co-locating with power-generating plants can help bridge dips in solar or wind energy. When it comes to technology choice, deciding between electrolysis and biomass gasification is key. Electrolysis, which uses renewable electricity to split water, is more common for green hydrogen.

Practical Considerations

ARC: Let's discuss the practical considerations for converting an industrial plant to a hydrogen supply. What are the main topics to consider?

Philipp Glaser: The primary method of green hydrogen production is water electrolysis through renewable energy. Optimizing the efficiency of water electrolysis is crucial to maximize hydrogen production and minimize energy consumption. Various storage methods, such as compressed gas, liquid hydrogen, and material-based storage, need to be evaluated and optimized for safety, capacity, and performance. Infrastructure development is also important to handle the production, storage, and distribution of hydrogen safely and efficiently.

ARC: How can data-driven operations and optimization software support the green hydrogen economy?

Philipp Glaser: Data-driven operations are essential, as electricity accounts for about 70 percent of total hydrogen production costs. Implementing forecasting tools for renewable resource availability and production planning can support the deployment of the green hydrogen economy. Additionally, utilizing software to optimize storage capacity and electrolyzer operation can enhance efficiency and reduce costs.

Optimizing Hydrogen Production Using Digital Methods

ARC: How can digital methods optimize hydrogen production?

Philipp Glaser: Digital plants for hydrogen generation refer to the application of digital technologies, such as the Internet of Things (IoT), big data, and artificial intelligence (AI), in the production of hydrogen. These technologies enable the monitoring, control, and optimization of the operation of electrolyzers and other key elements of the hydrogen ecosystem. Large data processing at all stages of energy generation or hydrogen fuel production is crucial. This data should be analyzed, processed, and structured for subsequent storage.

ARC: What are the benefits of using digital technologies in hydrogen production? 

Philip Glaser: The digitalization of hydrogen generation is crucial for unlocking its full potential as a sustainable energy carrier and ensuring its long-term viability. Digital technologies can optimize every step of the hydrogen value chain—from production and storage to distribution and end use—by leveraging advanced data analytics, artificial intelligence (AI), and machine learning. These tools enable real-time monitoring and predictive maintenance, reducing operational costs and downtime while increasing efficiency.

One of the most impactful benefits of digitalization is enhanced forecasting. Big data and AI can provide precise, dynamic insights into energy supply and demand, especially when integrated with variable renewable energy sources like wind and solar. Accurate forecasting enables better alignment of hydrogen production with renewable power availability, minimizing energy waste and maximizing cost-efficiency. This is essential for hydrogen to play a reliable role in the broader energy system.

Moreover, digital tools can accelerate innovation and streamline complex decision-making processes in hydrogen projects. By simulating various scenarios and optimizing concept selection, companies can cut time-to-market and improve capital investment decisions by up to 30 percent. This agility is especially important in a rapidly evolving energy landscape where technological and market conditions change quickly.

ARC: Can digital methods be used in the future to use the electrolyzer for control power in the power grid, like conventional power plants?

Philip Glaser: Yes, digital methods can and will be increasingly used in the future to operate electrolyzers (like PEM or alkaline types) as flexible assets for providing control power (also known as ancillary services) in the power grid, much like conventional power plants. You have to consider that digital technologies play a vital role in enabling electrolyzers to function as flexible assets for providing control power to the grid, akin to conventional power plants. Through real-time monitoring and control, electrolyzers can adjust their operations swiftly to balance grid frequency, making them ideal for delivering primary and secondary control reserves.

Advanced systems such as AI, IoT, and smart algorithms help integrate electrolyzers into smart grids, allowing automated responses to price signals and grid congestion. Moreover, by using machine learning and big data, operators can forecast renewable energy generation and grid demands more accurately, scheduling electrolyzers for hydrogen production and flexibility services. Additionally, networking electrolyzers into virtual power plants creates a unified resource capable of offering grid-balancing services effectively on energy markets.

Conclusion

Converting an industrial plant to a hydrogen supply is a key step in a holistic decarbonization strategy for industrial plants. The process requires careful consideration and preparation in advance, including a series of preliminary and practical considerations ranging from infrastructure assessment, site selection, and technology choice, to the use of digital methods for optimization.