Axpo halts green hydrogen project in Switzerland in face of local opposition – S&P.
Axpo has halted project planning for a 2.5-MW renewable hydrogen production facility at its Eglisau-Glattfelden hydropower plant in Switzerland, following a successful appeal against the development by three private citizens, the company said.
The facility would have produced around 350 mt/year of hydrogen by electrolysis for the road transport sector, displacing over 1.5 million liters/year of diesel, the company said. It could have been expanded to 5-MW to meet demand as it grows, the company added.
Guy Bühler, Axpo Head of Hydrogen said in the statement.
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We are very sorry that we will not be able to contribute more to decarbonization in Switzerland.
“In order for us to move forward in Switzerland, everyone must be willing to make compromises.”
The setback highlights barriers facing the deployment of renewable hydrogen projects in Europe, beyond the immediate larger challenges of a stable regulatory environment, market structure and access to sufficient renewable energy.
Three private citizens were successful in their appeals against the town of Glattfelden and the Canton of Zurich’s building department over the construction of the plant, Axpo said.
The planned hydrogen production facility required construction of a replacement power plant building that lay outside the current building zone. The company required an exemption permit for the planned construction, which was approved by the authorities, Axpo said. This was overturned by the Appeals Court.
The company said that many decarbonization and energy transition projects in Switzerland were dependent on exemption permits, and “their realization requires a willingness to compromise on the part of companies, authorities and local residents.”
It called on lawmakers to establish framework conditions to enable project development and investment in the sector.
The company plans to continue developing other projects in Switzerland, it said.
Platts, part of S&P Global Commodity Insights, assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur21.31/kg ($20.67/kg) Oct. 7 (Netherlands, including capex), based on month-ahead power prices.
Projects with access to dedicated renewable power generation are able to achieve significantly lower production costs, according to developers.
Highlights:
- Appeal overturns electrolyzer planning permit
- 2.5-MW electrolysis plant from hydropower shelved
- Project would have produced 350 mt/year hydrogen
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Axpo halts green hydrogen project in Switzerland in face of local opposition, September 10, 2022
