Hydrogen in Hawaii, Europe's Funding Gap, and Germany’s $127M Hydrogen Hub Explained

Today on The Hydrogen Podcast, we explore three critical stories shaping hydrogen’s future:

🌴 Hawaii's Hydrogen Pilot with Liquid Carriers
A new collaboration between Hawaii Gas and Ayrton Energy is testing liquid organic hydrogen carriers (LOHC) to safely store and transport hydrogen at ambient conditions. We break down how this tech could bypass high-pressure tanks and enable hydrogen integration into Hawaii’s 2045 renewable energy goals—despite high local electricity costs.

🇪🇺 IEA Warns of Hydrogen Project Delays in Northwest Europe
At the World Hydrogen Summit, the IEA revealed that only 6% of hydrogen projects in Northwest Europe are moving forward. We analyze the grid integration, storage bottlenecks, and investment shortfalls—and what must change to turn Europe's ambitious targets into real-world deployments.

🇩🇪 Germany’s Lubmin Hydrogen Hub Gets $127M EU Grant
Deutsche ReGas secures EU funding for a 200 MW electrolyzer plant in Lubmin, with plans to scale to 500 MW. Learn how this project fits into Germany’s industrial hydrogen goals, the economic hurdles of offshore wind-based electrolysis, and why regional competition could slow its impact.

📊 What You’ll Learn:
 – How LOHC tech could solve hydrogen transport bottlenecks
 – Why Europe’s hydrogen market faces a “reality check” despite strong policy support
 – The risks and rewards of Germany’s expanding hydrogen infrastructure
 – Global takeaways for policy, investment, and technical scalability

🎧 Subscribe for weekly hydrogen insights from the front lines of the energy transition.

📩 Reach out anytime at info@thehydrogenpodcast.com
 👍 Like, comment & share to help grow the hydrogen conversation!

#HydrogenPodcast #GreenHydrogen #HydrogenEconomy #HydrogenStorage #LOHC #Electrolyzers #HydrogenInfrastructure #HawaiiEnergy #IEA #HydrogenProjectsEurope #GermanyHydrogenHub #CleanEnergyTransition #RenewableHydrogen #HydrogenNews

Transcript

Today, I will analyze three recent articles that highlight these dynamics: a pilot project in Hawaii to harness hydrogen for clean energy, a report on implementation challenges for hydrogen projects in Northwest Europe, and EU funding for a hydrogen hub in Lubmin, Germany. All of this on todays Hydrogen Podcast

Overview: A Yahoo News article from May 21, 2025, titled “Hawaii Launches Pilot Project to Harness Hydrogen Energy,” details a collaboration between Hawaii Gas and Ayrton Energy to advance hydrogen as a clean fuel for the islands. The pilot project explores a novel technology for storing and transporting hydrogen safely, aiming to integrate hydrogen into Hawaii’s energy mix to reduce reliance on hydrocarbons and support the state’s goal of 100% renewable energy by 2045.

Technical Aspects: The pilot project focuses on a proprietary technology developed by Ayrton Energy for storing and transporting hydrogen in a liquid organic hydrogen carrier (LOHC). LOHCs bind hydrogen to a liquid organic compound, enabling safe storage and transport at ambient conditions, unlike compressed hydrogen, which requires high-pressure tanks (350–700 bar) or cryogenic systems (-253°C). The process involves hydrogenation, where hydrogen is chemically bonded to the carrier, and dehydrogenation, where it is released for use, typically requiring catalysts and temperatures of 150–300°C. This technology offers advantages in safety and logistics, as LOHCs can leverage existing fuel infrastructure, such as pipelines and tankers. The project aims to produce hydrogen via electrolysis powered by Hawaii’s abundant renewable resources, including solar and geothermal, which account for 30% of the state’s electricity. Technical challenges include optimizing the efficiency of hydrogenation and dehydrogenation processes, which can lose 20–30% of energy input, and scaling production to meet demand. The pilot’s small scale—likely producing less than 1 ton of hydrogen daily—limits immediate impact but serves as a proof-of-concept for larger applications.

Economic Aspects: The economic feasibility of the Hawaii pilot hinges on reducing hydrogen production and storage costs. Electrolysis-based hydrogen costs $4–$6 per kilogram, driven by electricity prices ($50–$100 per megawatt-hour in Hawaii, among the highest in the U.S.) and electrolyzer capital costs ($1,000–$2,000 per kilowatt). The LOHC technology adds costs for carrier materials and dehydrogenation infrastructure, estimated at $0.50–$1 per kilogram of hydrogen. The project’s budget, though undisclosed, likely includes subsidies from Hawaii’s state energy programs, which have allocated $50 million annually for clean energy initiatives. Hawaii Gas aims to integrate hydrogen into its gas distribution network, potentially offsetting the 1.5 million metric tons of carbon emissions from the state’s hydrocarbon-based energy. However, high electricity costs and limited economies of scale challenge cost-competitiveness. The project’s success depends on demonstrating LOHC’s viability for broader adoption, potentially reducing transport costs by 20–30% compared to compressed hydrogen. Long-term, Hawaii’s renewable energy surplus could lower hydrogen costs to $3 per kilogram by 2035, but initial investments, likely exceeding $10 million for the pilot, face risks without sustained policy support.

Overview: A Yahoo News article from May 22, 2025, titled “Green Hydrogen Faces Reality Check in Europe,” cites a report from the International Energy Agency (IEA) presented at the World Hydrogen Summit 2025 in Rotterdam. The report reveals that only 6% of announced hydrogen projects in Northwest Europe are being implemented, despite the region’s 40% share of European hydrogen demand and significant renewable energy potential in the North Sea. The article highlights a disconnect between ambitious targets and practical deployment.

Technical Aspects: The IEA’s Northwest European Hydrogen Monitor 2025 focuses on hydrogen produced via electrolysis with renewable energy, targeting applications in industry, transport, and power. Electrolysis systems, primarily PEM and alkaline, require 50–60 kWh per kilogram of hydrogen, with efficiencies of 60–70%. Northwest Europe’s renewable energy potential, particularly offshore wind in the North Sea (projected to reach 200 GW by 2030), supports large-scale electrolysis, but only 6% of announced projects—equating to less than 1 GW of electrolyzer capacity—have reached final investment decisions. Technical barriers include grid integration, as intermittent renewable energy requires advanced energy management systems, and hydrogen storage, which often relies on high-pressure or cryogenic systems. Carbon storage, critical for low-carbon hydrogen applications, faces technical hurdles in scaling underground storage facilities, with current European capacity at 10 million tons annually compared to a needed 50 million by 2030. These challenges delay project timelines and increase technical complexity.

Economic Aspects: The low implementation rate reflects economic constraints, including high production costs and insufficient demand. Electrolytic hydrogen costs $4–$6 per kilogram, compared to $1–$2 per kilogram for hydrogen from natural gas reforming. The IEA notes that Northwest Europe’s hydrogen projects require $50–$100 billion in investment by 2030 to meet targets, but only $3 billion has been committed. The upcoming European Hydrogen Bank auction, with a €1 billion budget, aims to subsidize production but covers only a fraction of needed funding. High capital costs for electrolyzers ($1,000–$2,000 per kilowatt) and infrastructure, such as pipelines costing $1–$2 million per kilometer, deter investors. Demand uncertainty, particularly in industries like steel and chemicals, further slows progress, as end-users hesitate to commit without cost-competitive supply. Policy incentives, including EU carbon pricing and contracts for difference, could reduce costs by 20–30%, but regulatory delays and inconsistent national policies increase financial risks. The article underscores the need for coordinated investment to bridge the gap between ambition and reality.

Overview: A Reuters article from May 21, 2025, titled “Deutsche ReGas Gets EU Funding for Lubmin Hydrogen Project,” reports that Deutsche ReGas, a German LNG terminal operator, has secured €112 million ($127 million) in EU grants for a planned hydrogen hub in Lubmin. The project includes a 200 MW electrolyzer plant by 2026, expanding to 500 MW by 2028, to produce hydrogen for industrial and energy applications.

Technical Aspects: The Lubmin hydrogen hub will utilize PEM electrolyzers to produce hydrogen via electrolysis, powered by renewable energy, likely from offshore wind in the Baltic Sea. The 200 MW plant will produce approximately 40 tons of hydrogen daily, requiring 10–12 GWh of electricity based on 50–60 kWh per kilogram. The second phase, expanding to 500 MW, will increase output to 100 tons daily. Technical challenges include integrating electrolyzers with fluctuating wind power, necessitating energy storage or grid balancing systems to ensure stable operation. Hydrogen will be stored and distributed via pipelines or high-pressure tanks, requiring infrastructure compatible with existing LNG facilities at Mukran. The project also plans to leverage carbon capture and storage (CCS), potentially utilizing North Sea storage sites, to produce low-carbon hydrogen for industries like steel and chemicals. Ensuring system efficiency and minimizing energy losses during electrolysis and hydrogen transport are critical for scalability.

Economic Aspects: The €112 million EU grant covers a portion of the estimated $200–$300 million capital cost for the 200 MW plant, with total costs for both phases potentially reaching $600 million. Electrolyzer costs ($1,000–$2,000 per kilowatt) and infrastructure development, including pipelines and storage, drive expenses. Hydrogen production costs are projected at $4–$5 per kilogram, with potential reductions to $3 per kilogram by 2028 if renewable electricity prices fall to $20–$30 per megawatt-hour. The project aims to reduce carbon emissions by 100,000–200,000 tons annually, supporting EU decarbonization goals, but its economic viability depends on demand from local industries and integration with Germany’s planned hydrogen pipeline network, which carries a proposed €25 per kilowatt-hour annual fee. Competition from the nearby Mukran LNG terminal, operating at 5% capacity, highlights regional infrastructure challenges, as hydrogen projects must compete for funding and grid access. EU subsidies and Germany’s carbon pricing could offset 30–40% of costs, but investor confidence hinges on long-term policy stability and market demand.

Alright, that’s it for me, everyone.  If you have a second, I would really appreciate it if you could leave a good review on whatever platform you listen to. Apple podcasts, Spotify, Google, YouTube, etc. That would be a tremendous help to the show. And as always if you ever have any feedback, you are welcome to email me directly at info@thehydrogepodcast.com. So until next time, keep your eyes up and honor one another.