Will Hydrogen Microgrids Really Go Green and Become the Next Big Thing?

April 1, 2025
Recent microgrid demonstration projects in Scotland, Germany, South Africa and southern California aim to prove the potential of green hydrogen microgrids to reliably power homes, communities and even farms.

Hydrogen microgrids are gaining the attention of utilities and others in the energy space and as a result, more and more demonstration projects are popping up around the world.

The technology has significant potential for two main reasons: First, hydrogen storage has a lower self-discharge rate than batteries, so it can hold large amounts of energy for extended periods of time. As a result, it can help mitigate the intermittent nature of renewable resources, such as wind and solar.

Second, no emissions are generated when hydrogen is produced by electrolyzers powered with wind or solar energy. The only byproducts are water and oxygen, making the technology enviably green.

Hydrogen 101

Hydrogen is the smallest element in the periodic table and is present in nearly every living thing, water being perhaps the most abundant source. To create hydrogen, an electrolyzer splits water into its base elements—hydrogen and oxygen.

The hydrogen is stored as either a liquid or a gas, with the energy converted into electricity when needed.

The energy source used in the electrolysis process determines how “clean” the hydrogen is. Green hydrogen uses zero-emissions renewable resources like wind and solar. Fossil fuels such as natural gas can be used to create hydrogen, however, they can produce significant emissions.

New H2 microgrid showcased this week in Germany

Several utilities and research organizations are testing different used cases for green hydrogen microgrids.

The Fraunhofer Institute for Machine Tools and Forming IWU (Fraunhofer IWU) is showcasing a hydrogen (H2)-powered microgrid this week at Hannover Messe, an annual industrial trade fair and conference in Hanover, Germany. The Reference Factory.H2 project is developing concepts to power sports centers and hospitals. 

The research institute’s HyGrid microgrid platform is a scalable plug-and-play solution that can provide anywhere from a few kilowatts to several hundred kW of power, making it ideal for hospitals, schools, businesses or remote areas, according to a statement from Fraunhofer IWU.

Fraunhofer IWU is also involved in the Hydrogen Tryout Areal (HyTrA) microgrid, launched in Cape Town, South Africa, in 2023. The HyTrA microgrid uses on-site solar to produce, store and convert hydrogen into electricity for Alu-Cab, a manufacturer of car roof tents and accessories.

The H2 microgrid provides a stable power supply for Alu-Cab, freeing it from the electricity supply challenges that plague the South African power grid. It was designed to last for a minimum of 10 years (60,000 operating hours for the customer).

Hydrogen microgrids for residential communities and utilities

In California, utility Southern California Gas (SoCalGas) is testing a residential H2 microgrid at its [H2] Innovation Experience. The 2,000 square-foot demonstration home aims to show how a renewable hydrogen microgrid can provide resilience and reliably power neighborhoods.

Pacific Gas and Electric (PG&E) is testing a green hydrogen microgrid at a northern California substation that is often impacted by wildfires. The hybrid system at the Calistoga Resiliency Center uses both hydrogen fuel cells and lithium-ion batteries to provide up to 48 hours of continuous energy.

In the UK, the HydroGlen hydrogen microgrid demonstration project aims to incorporate on-site wind and/or solar energy generation to show how farming communities can meet their energy needs with green hydrogen.

About the Author

Kathy Hitchens | Special Projects Editor

I work as a writer and special projects editor for Microgrid Knowledge. I have over 30 years of writing experience, working with a variety of companies in the renewable energy, electric vehicle and utility sector, as well as those in the entertainment, education, and financial industries. I have a BFA in Media Arts from the University of Arizona and a MBA from the University of Denver.

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