Can hydrogen become a key European energy carrier?
With all the media attention correctly focused on the implications for Covid on our daily lives, there has been little room for coverage of how the EU plans to deliver its clean climate and energy strategies.
In December last year the EU published its Green Deal . The goal was to deliver a first step on the way to achieving decarbonisation by 2050. A first European climate law has been adopted and it sees renewables, hydrogen networks and energy storage as key aspects of innovation and integration between member states.
In March, the EU presented its New industrial strategy for Europe as according to the Commission ”Europe needs an industry that becomes greener and more digital while remaining competitive on the global stage”.
We will need a more strategic and wholistic approach to the ‘new’ renewable energy sector. Heating and mobility can no longer be overlooked. This demands a substantial increase in the amount of electricity required whilst continuing the electrical grid’s migration towards sustainable supplies. However, countries cannot achieve the necessary changes in infrastructure in isolation, better interconnectivity in Europe’s electricity systems to integrate more renewables as well as increasing security of electricity supply will be required. In addition, a new EU strategy on Smart Sector Integration, involving all energy carriers including clean hydrogen, will focus on efficient usage and interfacing.
So, hydrogen is a prime example of where the Commission think real added value can occur verses the status quo. Hydrogen activities across some of the larger funding streams will be coordinated under the new European Clean Hydrogen Alliance (CHA) which is expected to be launched in the summer. It brings together investors, governments, institutions and industrial partners. The Alliance will build on existing work identifying further technology needs, investment opportunities and regulatory barriers and enablers. It has the clear aim of retaining the co-ordination of the hydrogen sector across Europe from a Brussels perspective.
The three main pillars of the CHA are production, distribution and applications of hydrogen
However, without an effective budget the CHA will be toothless. Around the globe we see public funding support for hydrogen increasing rapidly. If Europe does not match this early deployment investment than it must be assumed that the benefits of transitioning our energy mix will be solely to our health rather than our wealth. Today we see China leading the investment in hydrogen – investing 8 times what the EU does currently on a per capita basis.
Bridging this investment public finance investment gap must be a key deliverable from the CHA – Europe does not need another round table discussion when others are already delivering.
The surge of environmental awareness in 2018/9 has translated to government intent. In some member states we are seeing national policies come forward which embrace the potential of hydrogen i.e. the Netherlands and Germany. The question is can hydrogen now find a solid platform on which to become a key mainstay of future national and international energy policy.
The leaked version of the EU Green Deal Recovery plan has a suite of initiatives:
- Doubling of innovation funding of the old FCH JU via the new CHA.
- A vision of RES acceleration with 15GW supported over the next 2 years – c. €10 billion.
- Use of the Innovation fund to kick start hydrogen over the next 2 years which equates to a further €2-4billion investment.
- A target of 1million tonnes of clean hydrogen to be supported out of the 8 million used by industry in the EU today.
- An annual €10 billion green infrastructure fund for renewables and hydrogen.
For once, the signs are all positive.
The EU have laid the groundwork, the intent is positive, industry must step up and, with all our combined continued efforts, hydrogen will finally deliver on its promise.
