Green Hydrogen Production Plant to be Built in Odesa

by Roman Cheplyk
Wednesday, May 29, 2024
Green Hydrogen Production Plant

The company “Voden Ukrainy” and AB5 Consulting have secured a grant from the British government to implement the H2U project, focusing on the production of renewable hydrogen in Reni, Odesa region

The project, supported by the British Embassy in Kyiv through the InnovateUkraine competition, aims to revolutionize energy production in Ukraine by leveraging renewable sources to produce green hydrogen.

Project Details:

  • Hydrogen Production Plant:

    • The initial electrolysis capacity of the new plant will be 100 MW.
    • Expected production capacity: 7-8 thousand tons of hydrogen per year, approximately 400-750 tons per month.
    • Production cost: 1.5-2 liters of water and 4.5 kWh of electricity per cubic meter of hydrogen.
    • By-products: Oxygen (used in construction, medicine, agriculture) and methanol (a universal solvent for various industries).
  • Renewable Energy Sources:

    • Construction of solar power plants with a capacity of 120 MW.
    • Construction of wind power plants with a capacity of 80 MW.
    • These renewable sources will ensure a reliable power supply to the hydrogen production plant, capable of withstanding external interruptions.
  • Financial and Development Aspects:

    • The British Ministry of Foreign Affairs will finance 70% of the comprehensive feasibility study (FEA), with the remaining 30% covered by Voden Ukraine.
    • AB5 Consulting is responsible for developing the feasibility study document.
    • The feasibility study will pave the way for attracting external investments for the construction of the plant.
    • Estimated total investment: EUR 300-400 million, covering the plant, renewable energy sources, and infrastructure for transporting hydrogen to the EU.
    • Construction is expected to begin in two years after all necessary research and documentation are completed.

Market Competitiveness:

  • Cost Efficiency:

    • The production cost of hydrogen at the Reni plant is expected to be 5 euros per kg, potentially reducible to 4.5 euros under certain conditions.
    • This cost is significantly lower than in the EU, where hydrogen costs about 12 euros per kg and is predominantly "grey" hydrogen (produced from natural gas).
  • Competitive Edge:

    • Ukrainian green hydrogen is poised to compete effectively in the European market, particularly as a liquefied product for refueling vehicles.
    • Despite the higher production cost compared to grey hydrogen, advancements in production technology are expected to reduce the cost of green hydrogen over time.

The H2U project represents a significant step towards sustainable energy production in Ukraine, with the potential to establish the country as a key player in the European green hydrogen market. The integration of solar and wind power plants ensures a robust and reliable energy supply, while the financial support from the British government underscores the project's viability and importance.

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