Sustainability LIVE: Net Zero – Siemens Energy Keynote
As the energy sector races towards net zero, Thomas Neuenhahn, Director of Net Zero at Siemens Energy, took to the stage at Sustainability LIVE: Net Zero to outline the role of dispatchable power in the energy transition.
His presentation explored the technologies enabling net zero, why Europe may favour hydrogen over carbon capture and the future of hydrogen infrastructure and power generation.
Understanding dispatchable power and its role in net zero
Thomas opened by introducing the concept of dispatchable power – energy sources that can be turned on or off as needed to balance supply and demand.
In an ideal world, electricity would flow directly from renewable sources such as wind or solar. However, as these sources are intermittent, energy storage solutions and backup power plants become critical.
“If there's no wind or sun, you might choose a battery,” he explained. “But after a few hours, that battery is empty, so you need long-term storage.”
Currently, gas and steam turbines provide dispatchable power, primarily using natural gas.
However, to meet net zero targets, Siemens Energy is preparing for a future where these turbines run on hydrogen. Thomas outlined a vision in which hydrogen, produced using renewable energy, becomes the centrepiece of a fully decarbonised energy system.
He also highlighted the concept of ‘sector coupling’, in which the excess heat generated from hydrogen production is repurposed for district heating or industrial processes, ensuring energy efficiency is maximised.
Hydrogen vs carbon capture: A European perspective
One of the key debates in energy transition is whether to prioritise hydrogen or carbon capture technologies for power generation. Thomas presented a cost comparison, explaining that the economics of these options depend largely on how often a power plant operates.
“If a power plant operates for many hours a year, carbon capture can make sense,” he said.
“But as we move to a renewable-based system where power plants only run occasionally, hydrogen becomes the more viable option.” This shift is supported by forecasts from the UK government, which suggest that in the future, gas-fired power stations will run for fewer than 1,000 hours per year.
While acknowledging that both hydrogen and carbon capture have roles to play, Thomas suggested that Europe's push for renewables and its high natural gas prices make hydrogen the more likely solution for the region.
“There’s no right or wrong – it depends on the local conditions,” he noted, pointing out that access to affordable hydrogen and carbon capture infrastructure will also be key factors in determining which approach prevails.
Scaling up hydrogen production and infrastructure
The success of hydrogen as a clean energy source depends on its availability and cost.
Thomas presented a timeline showing how hydrogen production has scaled up over the past 15 years, with electrolysis projects growing from small pilot schemes to gigawatt-scale developments.
He highlighted Siemens Energy’s involvement in projects such as a 200-megawatt electrolyser in France, capable of producing four tonnes of hydrogen annually.
However, bringing hydrogen costs down remains a challenge.
“The key is reaching price parity,” Thomas explained. “We need the cost of hydrogen to match or beat that of natural gas.”
He pointed to projections showing that green hydrogen costs will continue to fall as the technology matures, mirroring the cost reductions seen in wind and solar power.
Initiatives such as the European Hydrogen Bank’s double auction scheme – where hydrogen buyers and producers are matched with subsidies – are already helping to accelerate this cost reduction.
Thomas also addressed concerns about hydrogen transportation, highlighting the development of a ‘hydrogen backbone’ across Europe.
This network of repurposed natural gas pipelines will allow hydrogen to be transported efficiently across the continent.
“One hydrogen pipeline can transport as much energy as eight high-voltage power lines,” he noted, underscoring the infrastructure’s potential to facilitate large-scale hydrogen deployment.
The future of hydrogen-powered energy systems
Looking ahead, Thomas shared a vision of how power plants will evolve to incorporate hydrogen. Future facilities will integrate renewable energy sources, hydrogen production, storage and backup power generation into a single, flexible system.
He also outlined Siemens Energy’s efforts to develop fully autonomous power plants.
As power stations shift to operating only during periods of low renewable supply, maintaining on-site staff 24/7 will become impractical. Instead, Thomas described a transition towards remote-controlled and AI-optimised power plants.
“We’re moving towards power plants that can operate autonomously, adjusting their output based on market demand and grid conditions,” he explained.
In response to audience questions, Thomas acknowledged that the transition to hydrogen has been slower than some expected but remained optimistic.
“We are scaling up exponentially,” he said. “The challenge is de-risking projects to bring costs down. But we’ve seen this before – wind and solar power were expensive at first too.”
The path to net zero
Thomas’s presentation provided a compelling roadmap for how dispatchable power, and particularly hydrogen, can support the energy transition.
He stressed the need for government support, infrastructure development and continued investment in hydrogen technology to reach net zero goals.
His key message was clear – while challenges remain, the momentum behind hydrogen is growing. As technology advances and costs come down, dispatchable hydrogen power will play a crucial role in the future energy system.
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