The green light is given for the hydrogen “avenue” – The role of Greece –

Table of Contents

• 1 Catering
• 2 Interface
• 3 The Greek infrastructure
• 4 “Green” energy
• 5 Production and next steps
• 6 Here are two PAA (Past, Present, Affect) questions related to the provided text:

In its first 100 days, the new Commission will give priority to the infrastructures required to connect large-scale hydrogen production projects with the end users, i.e. industry, as announced a few days ago by its head, Mrs. Ursula von der Leyen.

In this favorable environment, Greece is preparing to become both a producer and an exporter of hydrogen (H2) by “building” a pipeline that will transport it from the south of the mainland to the border with Bulgaria, from where it will continue, through similar infrastructure developed by Bulgartransgaz, the “journey” to Germany, via Romania, Hungary, Slovakia and the Czech Republic.

Catering

The South-East European Hydrogen Corridor (SEEHyC – South-East European Hydrogen Corridor) that will start from our country will supply part of the huge needs of Germany’s heavy industry, for the decarbonization of which 427 TWh (terawatt hours) of hydrogen will be required in 2040 and 617 TWh in 2050. An additional 196 TWh in 2040 and 278 TWh in 2050 is estimated to be needed by the countries through which the pipeline will pass, together with Ukraine.

Interface

The Greek section of the hydrogen “corridor” (H2DRIA) is being developed by the National Natural Gas System Operator (DESFA) and as stated in “Vima” by the company’s Strategy and Development Director Michael Thomadakis, it aims to transport clean H2 mainly from the southern part of of Greece, up to the interconnection with Bulgaria, connecting producers with hydrogen supply points in Southern, Central and Northern Greece (mainly Corinth, Athens and Thessaloniki) and further to Bulgaria and Central Europe where potential hydrogen consumers are located.

According to him, the investment cost (Capex) for the “H2DRIA” project has been estimated at approximately 1 billion. euros while its operating expenses (Opex) are estimated at 26 million. euros per year. The completion horizon of the project is set at 2029, as well as its extension to Germany. As for the large project of the Greece-Germany pipeline of 3,129 kilometers, its cost is estimated at 6.91 billion. euros and its operating expenses to 189 million. euros per year.

The Greek infrastructure

It is noteworthy that the Greek hydrogen transport infrastructure, as well as the exclusive H2 pipeline of the Bulgarian operator, Bulgartransgaz, have been included in the first list of European projects of common interest (PCI/PMI), while at this time the inclusion of the remaining parts of project. Greece and Bulgaria are already “running” the first market assessment for the evaluation of the market, which is completed on the 30th of the month.

It calls for non-binding expressions of interest from potential hydrogen producers and consumers. In fact, DESFA intends to repeat every year a corresponding evaluation test, on the one hand, to verify the interest and, on the other hand, to give the “signal” to the market that the project is on track for implementation.

“Green” energy

Greece will be able to export, in the first phase, 20 TWh per year, which will be produced with cheap “green” energy from Renewable Energy Sources (RES), which is currently in excess and is being cut in order to ensure the stability of the country’s electricity system .

In a second phase, according to DESFA estimates, they are still attractive to supplement Greek H2 production, planned flows, either with direct imports of hydrogen via pipeline or ammonia by ships from Egypt and Middle Eastern countries or using part of the imports of “green” electricity from Egypt, through the Gregy interconnection (a third of the current that will be carried by the Greece- of Egypt is planned to be used for the production of hydrogen in our country).

Production and next steps

Energy security with the construction of common networks

The absorption of the quantities that will be produced or will pass through Greece is considered assured, given the enormous needs of Germany, which intends to… get on the hydrogen bandwagon to reach net-zero. After all, the hydrogen that will be imported into Europe with competing pipelines that are planned, such as Algeria (via Italy), Morocco (via Spain), Norway or with virtual pipelines e.g. via Chile (shipping ammonia) etc.

It is estimated that the EU will need the contribution of all available corridors to satisfy the total demand and ensure the necessary, for energy security, diversification of the hydrogen supply.

Regarding the Greek section of the pipeline to be built by DESFA, the next steps include the completion of a preliminary feasibility study to further investigate the technical and commercial parameters of the project, as well as the main challenges as well as the possible financing options for its construction hallway.

Also, the possibility of signing an intergovernmental agreement between the countries involved in the project is being explored, which would be a big asset in consultations with financial institutions.

In any case, according to Mr. Thomadakis, from a manufacturing point of view, a hydrogen pipeline is only 5% more expensive than a natural gas equivalent, while it does not have any technological difficulties. In parallel with the maturation of H2DRIA, DESFA is in discussions with the Italian competent authorities for the creation of a new PCI hydrogen project with a branch to the neighboring country.

The operation of the large “H2 highway” Greece – Germany will create synergies by connecting countries of the Balkans and Eastern Europe in a common hydrogen network, thus strengthening regional energy security. Also, by connecting potential hydrogen producers and consumers, the corridor will facilitate market access, cross-border trade and our region’s energy transition.

According to the estimates of the president of the European Commission, hydrogen investment in the EU by the end of 2024 will have increased by 140%, with Europe contributing almost a third of the global investment in electrolytes. As he mentioned, within a year final investment decisions were made for renewable hydrogen projects larger than two gigawatts.