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Still More Green Hypocrisy In The EU, This Time Hydrogen

Still More Green Hypocrisy In The EU, This Time Hydrogen

Authored by Mike Shedlock via MishTalk.com,

Let’s discuss the meaning of “Green” EU style.

Hooray More Green Energy!

The EU is cheering a new hydrogen project at a refinery in Germany. 

The plant will be built by Shell and ITM power and will be able to produce about 1,300 tonnes of hydrogen per year, which can be fully integrated into the refinery processes, such as for the desulphurisation of conventional fuels. It will be the world’s largest hydrogen electrolyser

Tudor Constantinescu, Principal Advisor, DG ENER at the European Commission stressed the the contribution of green hydrogen to the Energy Union objectives, saying: “Renewable electricity can support decarbonisation not only of the power sector, but, through sectoral integration also of other carbon intensive industries, such as refining. Green Hydrogen is a key enabler in this process, contributing to the Energy Union objectives both in terms of emissions reductions and increased renewables share.

Ten Times the Hydrogen, Ten Times the Cost?

Euractive has some interesting details of the undertaking, allegedly Set to Multiply Capacity tenfold by 2024.

The 10 MW electrolyser, while already Europe’s largest of its kind, is a pilot project for grander ambitions.

If the pilot works out well, the partnership around Shell wants to add another 100 MW of electrolysis capacity which would complete construction in 2024. That would then be the largest electrolyser in the world.

Yet the pilot project depended on financing by the FCH JU at a 50% rate, meaning that the business case for a project ten times larger without public funding would be questionable at best.

Whether those ambitions come to fruition will therefore depend on the carbon price and the amount of additional funding available, which could come from either the EU or Germany.

It is currently unclear whether the FCH JU will again step in and provide funding as it did for the pilot project, as the application review is ongoing, a source told EURACTIV.

European Hydrogen Greenwashing

Eurointelligence looked into the details, and found still more amusing details.

We noted a strange description of how it will work in a Euractiv article sponsored by the Fuel Cells and Hydrogen Joint Undertaking, a public-private partnership between the EU and the European hydrogen lobby. According to the article, the new plant will produce around 1300 tonnes of green hydrogen annually, provided sufficient amounts of renewable energy are available.

If they are not, the alternative will be to used natural gas to produce the hydrogen. And funnily enough, hydrogen produced by the new electrolyser will be used to refine petroleum at Chemicals Park Rheinland, Germany’s largest refinery.

We thought it was strange that Laschet would tout a renewable project given his backing for coal-fired power plants and general aversion to all things green. But we wonder now whether Refhyne will be green after all. 

We think it is plausible that the EU’s hydrogen development will wind up being dependent on Russian gas.

The EU’s Stunning Green Hypocrisy

With that revealed, let’s recap my previous report, The EU’s Stunning Green Hypocrisy, At Least Trump Was Honest About Targets

If you took Green targets seriously, you would have to reform the Common Agricultural Policy. But the EU failed to do precisely that when they had an opportunity last year. Instead, the EU resorts to cheating. 

The European Commission classifies investment in terms of 0%, 40% and 100% green content, and rounds up the numbers to the next higher target. So 1% becomes 40%. 41% becomes 100%.

When the mendacity of the EU’s climate policy becomes apparent, the centre will not only have lost the victims of the economic crisis, but an entire generation of young voters.

This is the thing with smoke and mirrors: when the smoke lifts, you see clearly.

Too Strict?!

The above snips were also courtesy of Eurointelligence. 

Here’s another amusing kicker: It also noted “the most recent set of [rounding up] guidelines, published in 2019, were deemed too strict by some member states and industry lobbyists.”

Yes indeed. Clearly there is a need to round 1% up to 49% and 50% up to 120% or whatever.

EU Tries to Convince Trading Partners Its Carbon Tax is Not a Tax

Finally, please consider EU Tries to Convince Trading Partners Its Carbon Tax is Not a Tax.

Recap

This new “Green” hydrogen project needs a 50% subsidy, likely depends on Russian natural gas, and will be used to refine oil.

This we call “Green”.

EU hypocrisy on Green Energy is endless.

*  *  *

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Tyler Durden
Sun, 07/11/2021 – 08:10

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