EIB to fund full supply chain hydrogen bus project

The European Investment Bank (EIB) is planning to lend €19mn to Norwegian hydrogen specialist Nel to fund the development in Denmark of large-scale production and distribution of green hydrogen to a Danish fleet of at least 200 hydrogen fuel-cell electric buses.

The EIB loan will cover more than half the estimated €37mn cost of the project that will see Oslo-based Nel work with Shell, which operates a refinery in Fredericia, in south-east Jutland, writes Keith Nuthall. Shell will supply electricity to the project, ultimately receiving and processing one third of the hydrogen produced by Nel under the scheme. The hydrogen will be made at an electrolyser to be built next to the refinery on land leased from Shell and at an existing chemical plant.

The project also involves Nel creating a hydrogen distribution network, comprising certified trailers (equipped with appropriate tanks containing compressed gaseous hydrogen) to transport two thirds of the hydrogen to bus depots in Denmark. The hydrogen will fuel buses across the country using stationary hydrogen refuelling stations and ancillary equipment. Nel plans to create up to 5 tonnes of storage capacity at a hydrogen logistics centre next to the refinery, integrating the electrolyser.

Nel plans to use renewable energy sources to produce its hydrogen, says the EIB, and the company will also buy green certificates equivalent to any energy consumption it uses in association with this project. The hydrogen-fuelled buses are expected to cover 15mn km in distance, replacing end-of-life diesel buses that would otherwise emit 21,100 t CO₂e/y. Moreover, the green hydrogen provided to the Shell refinery is expected to reduce its carbon emissions by 4.5 kt CO₂e/y.  

Hydrogen bus being trialled in Poland – an environment-friendly system that will be more common in Denmark, thanks to this EIB-funded scheme
Photo: Travelarz