Document QkVy7vgM27L7Y13O31QEmBpvE

The importance of fluoropolymers across the hydrogen value chain 12.12.2022 - FPP4EU Collaboration Platform Workshop 2 Hydrogen Europe Introduction 430+ Members We encompass the entire value chain of the hydrogen ecosystem: from production, distribution to end uses, including Industry, EU regions & H2 National Associations. 40+Employees 120k+ Followers on Social Media Follow us on: Hydrogen will provide a myriad of benefits in transition to Net Zero Industry Feedstock (ammonia, petrochemical) Heat Decarbonizing "hard to abate" industrial sectors Industrial processes (steel) Increased RES deployment Energy Making a net-zero energy system possible Aviation Transport No transport mode left behind No compromise (range, refuel time) No consumer segments left behind (fleets, long-distance travelers) Land transport Maritime H2ero for Net Zero Renewable energy imports System integration and balancing including seasonal storage Circular economy Energy security and affordability European industrial leadership and jobs Societal Ensuring prosperity Reducing waste The Backbone of Hydrogen Europe: Our Working Groups Buildings Infrastructure Industry Energy Production Skills Mobility The Per- and polyfluorinated alkyl substances (PFAS) Ad Hoc Group Regional Pillar Funding & Finance Carbon market reform Ad Hoc Group Cars and Vans Subgroup Aviation Subgroup Water and Transport Subgroup Heavy-duty & NonRoad Vehicles Subgroup Hydrogen, front & centre to the EU's climate & energy security ambitions REPowerEU: 20MtH2= 10Mt EU + 10Mt non-EU EC calls upon Council and EP to align the sub-targets for renewable fuels in RED II 75 % for industry (an increase from 50%) Estimated demand by 2030: 8.4 mt (excluding refineries) 3.6 mt for industrial heat (x4 ) 3.2 mt in chemicals (x2.5) 1.5 mt in steelmaking (switch 30% steel production to hydrogen-based DRI-EAF) Source: Modelling using PRIMES RED targets: from 5.6 to 9mt by 2030 5% for transport (an increase from 2.6%) Estimated demand by 2030: 6.4 mt (including in refineries) (x3) Increase the share of zero-emission vehicles Adopt proposals on Alternative fuels Adopt a legislative package on greening freight transport by 2023 Hydrogen, front & centre to the EU's climate & energy security ambitions 1. Realising all planned projects would result in 139 GW of PtH by 2030 2. Quasi all EU countries have - or are working on - their hydrogen strategy Capacity (MW) # of projects Cumulative operational and planned PtH projects in Europe by the year 200,000 2023 - 2040 in MW and # of projects 900 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 800 700 RepowerEU production target1 138,917 600 500 400 300 200 100 0 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2040 N/A Published Draft In preparation No strategy Last update: 31/08/2022 Total Projects Notes: Individual phases with separate FIDs are counted as separate projects 1. Translating 10 Mt of European renewable hydrogen production into installed electrolysis capacity depends on utilization and efficiency assumptions. For PtH projects connected to the electricity grid, an electrolyser capacity factor of 68% was assumed. Country-specific utilisation factors for different electricity sources have been used to calculate expected production for directly connected projects. The values can be underestimated as they do not consider increasing electrolysis efficiency up to 2030, increasing renewable generation utilisation up to 2030, and oversizing renewables directly connected to electrolysers, which are expected to constitute almost 62% of the current planned capacity by 2030. Source: Hydrogen Europe What are PFAS used for in the H2 and fuel cell industry SOEC AEM Electrolyser ALK PEMWE Fuel cell module PEMFC DMFC AFC PAFC MCFC SOFC PTFE, TFE, ECTFE, Fluoroelastomers 1 H2 production 2 H2 transLpioqrute, fdaicsttiroibnu&tiogna,siafnicdatsitoonr)age (incl. 3 H2 end-uses PTFE, TFE, ECTFE, Fluoroelastomers PFA, ETFE, PTFE, PEEK Gas grids PEMFC & SOFC: PTFE, PFSA, PFA, ETFE, FEPM, FFKM, FKM PTFE, PFSA, PEEK, TFE, ECTFE, Fluoroelastomers H2 ICE: FKM, PTFE PTFE, FEPM, FFKM, ETFE, PFA, FKM, Fluoroelastomers Supply chain visualisation PTFE ETFE, PTFE, PFA, Fluoroelastomers, TFE, ECTFE, Shipping PFTE, Road transport EKM, PTFE, PFSA, FEPM, FFKM, ETFE PTFE, PFSA, ETFE, FEPM, FFKM PTFE, PFSA, ETFE, PFA, PVDF, FEPM, FFKM, PFSA FKM PTFE, FKM, FFKM Turbines, burners & boilers: PTFE, FKM Why are PFAS relevant for the H2 industry: PEM fuel cell example Membrane - PFSA ionomers: perfluorinated copolymers that carry sulfonic acid groups (SO3H); most commonly reinforced by PTFE (therefore, fluoropolymers) it separates protons and electrons and provides the proton conductivity (thereby producing electric current) while separating the reactants: hydrogen and air (oxygen), in the case of a fuel cell - Examples: Nafion; 3M ionomer, Solvay Aquivion ionomer... - In PEM FC and EL, DMFC, chloralkali EL... Figure 2: Schematic representation of a fuel cell's Membrane Electrode Assembly (MEA) Gas Diffusion Layers (GDL) - These consists of carbon fibre paper or felt. The GDL substrate currently contains PTFE. It is used as hydrophobic agent and - depending on the GDL type - also as binder. Microporous layers (MPL) - GDL are often equipped with an additional layer at the interface to the electrode, an MPL, made of PTFE due to its hydrophobic properties It equalizes the GDL surface and, therefore, prevents damage of the membrane and improves electrical and thermal contact between GDL and the electrode. Some typical sealing materials, such as gaskets, in fuel cells, as well as in equipment in the distribution network (regulator membranes, meters, etc.) Source: Umicore's website What is the potential for alternatives and research? Material properties of perfluorinated polymers are unique and technically impossible to replace in the near future. Restrictions on fluoropolymers (including PFSA ionomers and PTFE) would render several critical applications from water electrolysis, fuel cells, to H2 transport technologies unfeasible, or would dramatically reduce their service life and increase the probability of malfunction. Performance of alternative such as hydrocarbon membranes, is still very low because they suffer from reduced thermal and chemical stability and extremely short durability, lasting only dozens of hours against lifetime requirements (at the very least) of >25,000 hours. There is a potential for research in fluoride-free materials (e.g. Hydrocarbon membranes...), but they need to take the same KPIs of today's technologies as a benchmark. If the ban were to enter into force before any alternative is proven to be ready, it would result in a significant timeline inconsistency with the H2 Strategy's and climate goals for 2030. Socio-economic impacts of a ban Due to 1) essentiality of fluoropolymers for the H2 value chain and 2) the absence of alternatives.... a precipitous PFAS ban without granting any derogation for applications in the hydrogen sector would have destructive effects on the industry, jeopardising... 2030 30-billion worth of investment in a decade (only including electrolysers & fuel cells), up to 200k direct jobs and over 260k indirect jobs within 10 years, and 2030 climate target (-55% GHG + renewable H2 targets in industry & transport) and phasing out Russian gas (REPowerEU) 2050 A market with a potential value of 820 billion... ...employing 5.4 million workers by the middle of the century, and The EU's climate-neutrality target, energy security, strong industrial base. Key messages from the hydrogen industry 1 The proper functioning of electrolysers, fuel cells and other technologies across the H2 value chain rests on the essential use of fluoropolymers (often classified as a PFAS category). 2 No alternative to fluoropolymers today comes close to the same KPIs in the H2 sector - research can play a role but no fluorine-free breakthrough is foreseen in the near future. 3 Environmental and human health risks of fluoropolymers (considered by OECD as `polymers of low concern') are extremely limited across the hydrogen value chain (both in terms of environmental and human exposure; also B2B products). 4 Best practices and incentivisation can and should be set up to both limit emissions and foster recovery of materials at EoL to a maximum (and inherent economic incentive to recover PGM + fluorine). 5 Not exempting the use of fluoropolymers in the H2 sector would threaten the whole European hydrogen industry and its global competitiveness, as well as jeopardise the achievement of the EU's climate, energy security, and industrial objectives. Thank You Av. de la Toison d'Or 56-60 Brussels / Belgium secretatariat@hydrogeneurope.eu hydrogeneurope.eu