“Underground Hydrogen Storage is safe and beneficial to the future energy system”

24 September, 2024

Emmanuel Kermarrec, Director of Geosciences and Solution Mining at Storengy, provides deep insight into one of the most promising and crucial challenges of the energy future: underground hydrogen storage. Storengy, the leading European operator of natural gas storage facilities, positions itself as a key player in innovative solutions to produce and store carbon-free energy, such as hydrogen.

With a distinguished career in the organization since 2001, Emmanuel leads a highly specialized team, focusing his efforts on developing renewable innovative solutions, establishing gold-standard global partnerships, and ensuring customer satisfaction. In this interview, he details the possibilities and challenges of this technology, emphasizing its importance in Europe’s energy transition.

Emmanuel Kermarrec, Director of Geosciences and Solution Mining at Storengy

 

  • Which are the possibilities of storage of hydrogen?

There are several possibilities to store pure hydrogen. The choice depends on the quantity required. Surface tanks can store hundreds of kilograms of hydrogen under pressure, while underground gas storage can store thousands of tonnes of hydrogen. By 2050, 270 Twh of H2 storage shall be required, necessitating large and numerous underground storage facilities.

There are several possibilities to store pure hydrogen. The choice depends on the quantity required

Regarding porous reservoirs such as aquifers or depleted fields, the possibilities for storing hydrogen are still at the R&D level. Indeed hydrogen may chemically or bacterially react with the reservoir materials, potentially leading to the formation of  H2S or in situ methanisation instead of retaining hydrogen as a molecule. Feasibility must be assessed on a case-by-case basis, likely requiring pilot tests for each targeted porous reservoir.

Regarding salt caverns, there are currently four underground salt cavern storages in the world that store large quantities of hydrogen. Thus, storing hydrogen in a salt cavern is then already feasible.

Last underground hydrogen storages are often compared with batteries. Today the biggest battery plant in the world stores the equivalent of 40 tonnes of hydrogen, which is tiny compared to the capacity of a underground hydrogen storage.

  • What challenges does the storage of hydrogen in salt caverns pose?

Today the challenges are both financial and technical. Financially, the circumstances prevent storage operators from making investment decisions, as the viability of hydrogen storage business cases and regulations remain uncertain. Technically, operators must still demonstrate that underground hydrogen storage is safe and beneficial to the future energy system.

The value of underground gas storage today is linked to supply security, the system value (infrastructure sizing optimization), and the arbitrage value (trading).

However, underground hydrogen storage will also carry an environmental value (using base load hydrogen instead of fossil fuels) and a kick-start value (enabling the deployment of RES and balancing their intermittencies).

There are currently four underground salt cavern storages in the world that store large quantities of hydrogen

Arbitrage, environmental and kick-start values require high asset flexibility. Demonstrating this high flexibility remains to be proven.

  • What projects at the European level are being undertaken to analyze the behavior of salt caverns with this mode of operation? And of Storengy in particular?

Several companies are running pilot projects, either in salt caverns and some in porous reservoirs. Storengy has decided to launch two pilot projects.

The first, called HyPSTER, aims to demonstrate the integrity of wells and equipment facing high-frequency cycling of hydrogen. It will also provide some key insights into the hydrogen composition withdrawn from a cavern.

The second, called FrHyGe, in which Enagás is also participating, will involve real cycling of several tonnes of hydrogen at moderate flow. It shall help to improve the construction and process knowledge with hydrogen. As no pipe is connected yet, the tests will be somewhat limited.

FrHyGe, a project in which Enagás is also participating, will involve real cycling of several tonnes of hydrogen at moderate flow

Today, Storengy is pushing for industrial-level projects in the UK and Germany where regulation and government support seem more appropriate for such CAPEX-intensive projects.

  • Is Europe well positioned in this area to respond to future hydrogen demand?

For 2030, we need 45 TWh of storage capacity in Europe by 2030 to comply with REPower EU ambition. There is a 36 TWh hydrogen storage gap in the EU. Today, underground hydrogen storage development times are long (5-10 years), and urgent action is needed. H2eart for Europe proposes the following actions to be taken for successful hydrogen storage development until 2030 and beyond:

Policy:

  • Develop long-term clarity on preferred tariff methodology (e.g. transition between nTPA to rTPA by 2032).
  • Incorporate underground hydrogen storage across network plans for hydrogen, gas, and electricity.
  • Streamline permitting processes (short-term) & grant UHS projects priority status (long-term). »
  • Discuss and decide EU-wide hydrogen purity standards to provide investment security for purification-related infrastructure.

Economics:

  • Develop a toolbox on EU-level from which Member States can construct underground hydrogen storage financial support mechanisms.
  • Design & implement financial support on Member State level to bridge the gap between developing & developed market (e.g. CfD, MRF).
  • Grant financial support for underground hydrogen storage from EU funds.

Implementations:

  • Conduct site-specific screening process to determine suitability for underground hydrogen storage.
  • Leverage lessons learned from pilot projects to simplify and standardise permitting procedures in a bottom-up approach.
  • Provide coordination for nation-wide market consultation processes & Open Seasons.