Jul 6, 2020
This document provides a comprehensive strategy for the EU's approach to hydrogen, emphasizing its role in achieving climate neutrality and outlining a roadmap for its adoption and integration into the European energy system.
Introduction & Importance of Hydrogen: Hydrogen is gaining significant attention globally due to its potential applications across various sectors, including industry, transport, power, and buildings. When used, hydrogen does not emit CO2 and offers a solution to decarbonize sectors where carbon reduction is challenging. However, current hydrogen production is still largely based on fossil fuels, contributing to significant CO2 emissions. For hydrogen to be effective in achieving climate neutrality, its production needs to be fully decarbonized.
Current State of Hydrogen: While hydrogen's potential has been recognized in the past, it hasn't been widely adopted. However, with the decline in renewable energy costs and the urgency to reduce greenhouse emissions, the interest in hydrogen is resurging. Investments in hydrogen are growing, with significant plans being announced regularly.
Hydrogen's Role in the European Green Deal: Hydrogen can bridge the gap in the EU's energy consumption that cannot be addressed by renewable electricity alone. It can serve as a storage medium for renewable energy, ensuring backup for seasonal variations. By 2050, hydrogen's share in Europe's energy mix is projected to grow from less than 2% to 13-14%.
Production Methods & Costs: Hydrogen can be produced in various ways, with different associated emissions and costs. Renewable hydrogen, produced using wind and solar energy, is the most compatible with the EU's climate goals. However, it's currently more expensive than fossil-based hydrogen. Costs for renewable hydrogen are expected to decrease with technological advancements and economies of scale.
EU's Roadmap for Hydrogen: The EU's strategic objective is to prioritize the development of renewable hydrogen. From 2020 to 2024, the goal is to install at least 6 GW of renewable hydrogen electrolysers in the EU, producing up to 1 million tonnes of renewable hydrogen. This phase will focus on scaling up electrolyser manufacturing and decarbonizing existing hydrogen production.
Investments & Infrastructure: Investments in hydrogen will foster sustainable growth and jobs, crucial for recovery from the COVID-19 crisis. The EU's recovery plan emphasizes clean hydrogen as a key area for the energy transition. Europe is competitive in clean hydrogen technologies and can benefit from its global development. Cumulative investments in renewable hydrogen in Europe could reach EUR 180-470 billion by 2050.
Conclusion: The EU recognizes the importance of a strategic approach to harnessing hydrogen's potential. Collaboration between public and private sectors, at European, national, and regional levels, is essential to build a dynamic hydrogen ecosystem in Europe.
This document provides a comprehensive strategy for the EU's approach to hydrogen, emphasizing its role in achieving climate neutrality and outlining a roadmap for its adoption and integration into the European energy system.
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