EDP creates units to exploit green hydrogen and energy storage
With the creation of these two business units for green hydrogen and storage EDP reinforces the leadership in the energy transition.
The EDP Group has strengthened its commitment to decarbonization by launching two units that will exploit the potential of green hydrogen and energy storage systems. The H2 Business Unit (H2BU) will be the Group's new arm for the development of green hydrogen projects, while the dedicated storage unit, built in EDPR NA, will aim to achieve a storage capacity of 1 GW within five years.
The green hydrogen market represents one of the growth axes for EDP, the result of not only the decarbonization objectives, but also of the cost reduction that has been achieved and is expected to achieve competitiveness over the course of this decade. As a leader in the energy transition, EDP efficiently and dynamically supports the decarbonization of all sectors of the economy.
With the creation of the new business unit, EDP aims to strengthen the integration of green hydrogen into the Group's portfolio in a strategic and cross-cutting way and promote investment in renewable. H2BU will be led by Ana Quelhas, director of Energy Planning of the EDP Group.
H2BU will focus its opportunity development efforts for green hydrogen in promising sectors such as the industries of steel, chemistry, refineries and cements, as well as long-haul heavy transports. Priority markets will be the United States and Europe, leveraging the existing renewable and active pipeline and complementing the decarbonization solutions that the Group offers to its customers.
New unit to aggregate energy storage projects
In strengthening its crucial role in the energy transition, EDP Renováveis (EDPR) has created a new business unit dedicated to the development of energy storage technologies. This unit, which will be associated with EDPR's operation in the United States, will focus on the analysis of storage technology, and is another step in EDP's commitment to innovation in clean energy generation.
The creation of this unit comes to give shape to EDP's plan in the United States, called "Re-charge," which aims to achieve 1 GW in energy storage projects by 2026.
For EDP CEO, Miguel Stilwell de Andrade, "the creation of these business units reinforces EDP's leadership in the energy transition. The growing penetration of renewable energy sources increasingly requires integration with storage systems, such as batteries, to provide the necessary flexibility to the electrical system and thus enhance the growth of renewable energy sources themselves. In addition, the combination of renewable energy sources in electricity generation with the electrification of consumption, will be the most cost-effective way for decarbonization for most of the final energy uses. But if we want to meet the goals of carbon neutrality, we will need to use other energy vectors, such as green hydrogen, to respond to sectors where electricity is not a technically viable or economically attractive option. "
Strengthening ambition on an already walked upon path
In the case of both green hydrogen and energy storage, the EDP Group has undertaken several initiatives that have served to gain knowledge and test the potential of these clean energy solutions.
In the case of hydrogen, EDP has a pilot project in the Ribatejo Central, the partnership in H2Sines and a collaboration with Alenquer City Council, among other entities. At an international level, EDP is developing the Behyond project, a partnership between Portugal and Norway to study the feasibility of offshore hydrogen production, and is also involved in creating an European hydrogen market with European Alliance Clean.
Also in energy storage, EDPR's commitment to this technology is clear. In 2018, the company opened a pioneering facility for the storage of wind power in batteries of the Cobadin wind farm, in Romania. As early as 2019, EDPR launched a battery system associated with a solar park, also in Romania, and also announced the development of the solar project Sonrisa, in the state of California, corresponding to a PPA of 200 MW and an energy storage capacity of 40MW.