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Sustainability

Digital levers for enhancing and accelerating the development of low-carbon hydrogen

Download whitepaper11 MB pdf

Delivering greater value from your low-carbon hydrogen assets by using better asset information to improve investment decisions and operations.

The low-carbon hydrogen economy has made significant progress in recent years, with demand projected to grow massively to 38 Mt by 2030.

However, major challenges stand in the way of widespread deployment, with only a fraction of announced projects currently in the final investment decision (FID) or construction phase.[1] This is primarily a budget issue: the production cost of low-carbon hydrogen ranges from €6-9/kg versus €1.5-3/kg for hydrogen from natural gas reforming.[2] The steep levelized cost of hydrogen (LCOH) for low-carbon hydrogen produced via electrolysis is caused by several factors, including power costs, equipment costs, and operational expenses.

Fortunately, a growing number of projects are advancing into the early stages of development, with asset developers actively seeking ways to mitigate costs. Digitalization is emerging as a key strategy to support these developers and the wider low-carbon hydrogen ecosystem.

Siemens and Capgemini have analyzed digital solutions and identified specific levers to lower LCOH. This approach, designed to assist project developers, operators, and asset managers, addresses challenges across various stages of a low-carbon hydrogen project.

The approach encompasses:

  • Enhancing design and construction efficiency through digital simulations and 3D computer-aided design (CAD)
  • Streamlining operations with real-time data and digital maintenance, improving productivity and asset reliability
  • Ensuring traceability of carbon content for regulatory compliance
  • Optimizing asset portfolio management, integrating new assets with existing ones, and informing investment decisions with simulation tools.

The collaboration aims to drive the hydrogen economy forward, supporting the development of sustainable fuels and decarbonization across various sectors. In our joint white paper, we delve into the digital levers that can reduce the LCOH, focusing on hydrogen production – particularly in the context of electrolysis.

Read the full paper to discover how to leverage the opportunities of low-carbon hydrogen production.

[1] https://www.iea.org/reports/global-hydrogen-review-2023/executive-summary (accessed on 21/06/2024)

[2] https://hydrogencouncil.com/wp-content/uploads/2023/12/Hydrogen-Insights-Dec-2023-Update.pdf#:~:text=URL%3A%20https%3A%2F%2Fhydrogencouncil.com%2Fwp (accessed on 21/06/2024)

Further reading

Capgemini Research Institute

Low-carbon hydrogen: A path to a greener future
Report

Reducing low-carbon hydrogen investment and operating costs

Meet our experts

Florent Andrillon

Group Climate Tech leader
Florent leads clean tech business development with all sustainability teams across the Group. He has more than 20 years of experience in the energy and utilities sector, helping clients to achieve their sustainability goals and transition to a low-carbon economy. He has a strong focus on the energy, resources, and clean tech market, as well as on sustainability, climate, and energy transition issues. He leverages Capgemini’s capabilities and its external partners to deliver innovative and impactful solutions.

Anne-Lise Miglietti

Managing Consultant, Sustainable Futures
Anne-Lise manages projects related to sustainability, energy transition, clean tech & innovation. She mainly works for energy and industrial players, notably contributing to the development of industrial projects to reach sustainability goals and estimating related impacts. She created a hydrogen community within Capgemini France, to accelerate the convergence of solutions, leveraging engineering, digital and consulting skills.

Jeremy Cure

Hydrogen Global Offer Owner
Jeremy Cure coordinates the activities related to Hydrogen across Capgemini Engineering. He has more than 10 years of experience in the hydrogen field, developing hydrogen technology assets and helping clients to overcome their challenges in terms of Hydrogen development. He has a strong focus on the technologies and engineering related to the entire Hydrogen value chain. He is the owner of the global hydrogen offer to promote Capgemini engineering services and support our clients to achieve their technological hydrogen development goals.

Dr. Oliver Hegen

Head of Hydrogen, Capgemini Engineering German
In his role, Oliver supports customers at national and international level in their hydrogen transformation. He develops strategic visions and uses his expertise to coordinate projects along the entire hydrogen value chain to pave the way for a more sustainable future. Oliver is convinced that intelligent solutions are the key to a rapid hydrogen market ramp-up.