Hydrogenics Corporation, a leading developer and manufacturer of hydrogen generation and hydrogen-based power modules, has announced it has been awarded a one megawatt hydrogen energy storage system to be deployed in the City of Hamburg, Germany.

Hydrogenics’ energy storage application will employ advanced proton exchange membrane (“PEM”) technology for production of the hydrogen, using excess power generated from renewable energy in the region, primarily wind.

This “Power-to-Gas” facility will be run by E.ON, a global provider of innovative energy services and an existing customer of Hydrogenics. In the core of the system will be the world’s largest single PEM electrolyser stack, which will serve as the building block for future multi-megawatt applications.

“This is another exciting milestone both for Hydrogenics and the energy storage industry in general,” said Daryl Wilson, President and CEO of Hydrogenics. “Sites such as this E.ON facility will allow Germany to more efficiently use the large amount of renewable energy generated from wind and solar power, which can fluctuate dramatically due to environmental conditions. Hydrogen-based energy storage systems can absorb surplus energy as needed, return power when required, alleviate grid instability, and improve overall utility performance.”

“In addition, the hydrogen produced can be stored in large quantities over long periods of time within the country’s natural gas infrastructure. Using our technology, Hamburg will have the most advanced Power-to-Gas facility in the world and the largest PEM electrolysis installation producing hydrogen. We are pleased to be working once again with E.ON on this groundbreaking project, having just delivered our first energy storage equipment to them in December, 2012.”

Construction of the plant, backed by a consortium of German companies and scientific organisations, is expected to begin during the second quarter of 2013. Funding has been provided by Germany’s National Innovation Program (NIP) for hydrogen and fuel cell technology, under the auspices of the country’s Federal Ministry of Transport, Buildings and Urban Affairs in coordination with the National Organisation for Hydrogen and Fuel Cell Technology (NOW).

E.ON is the holding company of the world’s largest investor-owned electric utility service provider, based in Dusseldorf, North Rhine-Westphalia, Germany. It operates in over 30 countries and serves over 26 million customers.