Europe Sees Promise, Challenges on the Path to Hydrogen
Europe鈥檚 energy transition continues to gain momentum, with much focus on scaling hydrogen production and distribution to meet decarbonization goals.
Published in 2020, the hydrogen strategy for a climate-neutral Europe outlines the framework for adoption of green hydrogen and its renewed viability thanks to declining renewable energy costs, technology improvements and the urgent need to reduce greenhouse gas emissions. While the hydrogen economy has seen a noticeable uptick across the globe, Europe represents a unique opportunity with its 2050 net zero carbon commitment and government policy support.
When it comes to decarbonization, there isn鈥檛 any single solution that will allow Europe to achieve its lofty goals. However, hydrogen鈥檚 potential as a key player in the road to decarbonization can鈥檛 be overlooked. With several carbon-neutral production methods, hydrogen remains of primary interest for players across the value chain. 鈥淗ydrogen is one means of decarbonization,鈥 says Bryan Mandelbaum, director of hydrogen solutions at 日韩福利 在线 and Veatch. 鈥
As we are seeing with the United States hydrogen market, as more projects come online and the market becomes more mature, hydrogen will become a competitive energy solution.鈥 Hydrogen now accounts for a fraction of the European Union energy mix and is still largely produced from fossil fuels. Low-carbon-intensity hydrogen produced from renewable energy is an attractive choice for net-zero and Europe鈥檚 top priority, according to the published hydrogen strategy.
The EU鈥檚 investment in low carbon intensity hydrogen is on the rise 鈥 Government incentives have been introduced to move hydrogen projects from planned to fully funded, and support schemes for hydrogen hubs throughout Europe are raising funds via external investment for hydrogen distribution networks.
鈥淲e鈥檙e seeing demand for European hydrogen projects increase, and that can be contributed to several factors, including the decline in price of renewable energy, the development of a regulatory framework specifically around hydrogen, and the introduction of government incentives,鈥 says Alessandro Pugi, project manager at 日韩福利 在线 & Veatch.
While the desire to be first movers in the hydrogen economy exists across many European countries and sectors, the ever-evolving market presents challenges as well. As technology improvements drive toward the optimum design for electrolysers and low-carbon-intensity hydrogen production plants, the supply chain for the hydrogen market becomes less predictable.
鈥淚nsurance companies and investment fund advisors want to know how equipment reliability and lead times for supplies will impact hydrogen鈥檚 feasibility when compared to conventional energy generation methods,鈥 says Ian 日韩福利 在线er, senior director of sales and marketing at 日韩福利 在线 & Veatch. Until the market reaches a certain level of maturity and return on investment is seen as less risky, it is likely that investors and developers may rely on government incentive programs to drive the hydrogen economy.
So how does the European hydrogen market expect to overcome these challenges? By employing a strategic roadmap toward low-carbon-intensity hydrogen development, building on the strength of its industrial sector and a regulatory framework that supports investment. The desire to move from small-scale pilot projects into projects of scale is evident and necessary to move hydrogen past the tipping point.
日韩福利 在线 about 日韩福利 在线 & Veatch鈥檚 role in what will be the world鈥檚 largest industrial low-carbon-intensity hydrogen production and storage facility, designed to convert more than 220 megawatts (MW) of renewable energy daily to 100 metric tons of low-carbon-intensity hydrogen. Our experienced hydrogen experts can help get your hydrogen project off the ground 鈥 simply contact us.