More hydrogen, less CO2

Alpacem Cement, which years ago set a goal to become one of the first carbon-neutral cement plants with minimal environmental impact by 2035, sees hydrogen technologies as one of the strategies to achieve this ambition. Green hydrogen, produced from renewable energy sources, offers a sustainable solution to decarbonise production processes and freight transport.

“In the next four years, we will introduce green hydrogen production via water electrolysis. In the initial phase, this hydrogen will primarily fuel trucks delivering cement to customers. To support this, we established Slovenia’s first green hydrogen filling station in Anhovo in 2021, which we plan to upgrade further in the coming years,” the company explained.

Alpacem Cement is the only Slovenian cement plant participating in the regional North Adriatic Hydrogen Valley (NAHV) partnership, which is developing hydrogen infrastructure across the region. The partnership includes companies and government representatives from Slovenia, Croatia, and the Italian region of Friuli Venezia Giulia. As part of the European hydrogen ecosystem, NAHV represents a significant opportunity for regional development.

“Hydrogen is a valuable resource that enables companies to establish low-carbon production processes while reducing energy costs. Digitalisation is also a crucial component for realising a hydrogen economy,” says Aleksander Gerbec, the founder of Ecubes, a company that pioneered the hydrogen valley concept and has supported its development from the outset. According to Gerbec, global scientific consensus affirms that renewable and low-carbon hydrogen can drive economic and societal progress, enabling a sustainable transition while combating climate change.

“Currently, the development of the hydrogen ecosystem faces several challenges, two of which stand out: first, effective communication among all stakeholders across the value chain to ensure coordinated efforts, and second, overcoming technological hurdles, such as long-distance hydrogen transport, to bring down costs,” Gerbec notes. Renewable hydrogen, he adds, remains expensive due to the structure of the hydrogen valley, which connects 17 pilot projects that complement one another. However, these efforts are paving the way for abundant, affordable clean hydrogen in the North Adriatic region.

“In addition to higher purchase costs, operational expenses are elevated because our current hydrogen production costs range from €10 to €20 per kilogram. To achieve cost parity with diesel trucks at the operational level, production costs would need to drop to around €6 per kilogram, based on current fossil fuel prices.”

Thanks to substantial investments in infrastructure, Gerbec says the North Adriatic is emerging as a major European hub for hydrogen innovation and an attractive destination for young talent committed to addressing global climate and resource crises. This progress is enabling the creation of a transnational hydrogen ecosystem, supported by the EU’s regulatory framework.

Hydrogen tech remains expensive

For Slovenian businesses to adopt hydrogen technologies more widely, Alpacem Cement emphasises the need for additional financial incentives and co-financing of initial investments in hydrogen infrastructure and operational costs.

“At present, hydrogen use is not yet competitive with conventional, well-established fossil fuel-based solutions. A hydrogen fuel cell truck, for example, costs four times more than a conventional diesel truck used for cement delivery. Operational costs are also significantly higher,” the company explains.

How the state can help

Alpacem Cement advocates for targeted funding programmes specifically designed to support the adoption of hydrogen technologies. “On general funding calls for energy efficiency and emissions reduction projects, hydrogen technologies often struggle to compete with more established solutions, especially when assessed on cost-effectiveness,” the company notes. 

They also highlight the challenge of obtaining permits for infrastructure, which can hinder access to funding. “Practice shows that investors can only finalise project financing and commit to implementation after successfully securing subsidies. Relaxing these requirements could make a significant difference,” they suggest. 

The adoption of hydrogen technologies is just one aspect of Alpacem’s green transition. Alongside hydrogen, the company is incorporating alternative fuels, solar power plants, waste heat recovery for electricity production, and alternative raw materials. In the second phase of its green transition, Alpacem plans to capture CO2 and either store it or repurpose it when feasible. Combined, these initiatives could reduce Slovenia’s total CO2 emissions by approximately 5%, the company concludes.