As Switzerland adopts national hydrogen strategy, Axpo and partners launch new production plant

Switzerland’s Federal Council has adopted the national hydrogen strategy. It contains the Council’s mission statement and objectives for hydrogen and power-to-x (PtX) derivatives and proposes measures for developing the domestic hydrogen market and connecting it to the European market. The strategy was announced on December 13, 2024, the same day that Swiss renewable energy company Axpo and its partners Schätzle, EWA-Energie Uri and SGV Holding broke ground on the site of a new hydrogen production plant to be constructed by H2Uri, a company in which all four partners are shareholders.

As disclosed, the national strategy, which assumes low demand for hydrogen in Switzerland until the mid-2030s, was developed by an internal administrative support group, an external working group and in exchange with the gas industry and the cantons, and its basis is the report ‘Hydrogen. Overview and options for action for Switzerland,’ which the Federal Council adopted on November 15, 2023.

Hydrogen and power-to-x derivatives are said to be flexible energy sources that could contribute to a fossil-free energy supply by 2050, and reportedly, the strategy aims to create the necessary framework conditions for this. The prerequisite is that hydrogen from CO2-neutral production processes is used, the Council pointed out, adding that it should be used where it makes economic and ecological sense.

The Council further stated: “In addition to domestic production and storage, the connection to the European hydrogen transport network is to be ensured and imports are to be strengthened through international cooperation and partnerships. The hydrogen infrastructure is to be developed along the entire value chain (production, conversion, transport, storage and refueling infrastructure) and Switzerland is to be strengthened as a location for education and innovation through the development of the necessary technologies.”

As for the future demand, the hydrogen strategy assumes that for hydrogen and PtX derivatives in Switzerland, it will be rather low until the mid-2030s and can be met mainly through domestic production. Reportedly, domestic demand and the share of imports are expected to increase from 2035 onwards, but there are uncertainties regarding the trend in demand.

“Domestic hydrogen production and storage can be promoted for six years through measures in the Climate and Innovation Act (KlG). In addition, the UVEK and the Federal Department of Finance, with the involvement of the cantons and the owners of the transit gas pipeline, will examine the need for and possibilities of financially securing the transit gas pipeline for connection to the European hydrogen network by the end of 2025. At the same time, the need for the prospect of a promising business model should play a key role in the analysis of any financial security. The development of the Swiss hydrogen market will in future be reflected in the monitoring of the Energy Strategy 2050 and in the future energy perspectives of the UVEK,” the Council said.

It is worth mentioning that the cantons were recommended to develop their own hydrogen strategies, review their development plans and approval practices for possible bureaucratic hurdles, as well as to harmonize their legal framework. In addition, they were encouraged to work with the energy industry to strengthen training and further education in order to counteract the shortage of skilled workers.

Axpo and partners launch green hydrogen plant

As revealed, Axpo and its partners launched a new 2 MW plant. Reportedly, it will be located adjacent to the EWA-Energie Uri hydropower plant in Bürglen, which will supply it with green electricity. Axpo and partners aim to have the new facility up and running as early as next year. Annual production of up to 260 tonnes of green hydrogen is planned.

Guy Bühler, Axpo’s Head of Power Plants and Green Gases, commented: “Having already gained valuable experience with our green H2 plant in Domat/Ems, this project in Bürglen is a continuation of our strategy to play our part in the development of the hydrogen economy in Switzerland.”

According to Axpo, from 2026, the hydrogen from the plant will fuel SGV’s hydrogen passenger vessel ‘Saphir’ on Lake Lucerne, as well as other applications. Schätzle, which operates an Avia hydrogen refueling station in central Switzerland, will also purchase green hydrogen produced by the plant.

Stefan Schulthess, SGV’s Managing Director, remarked: “By converting the vessel to a hydrogen fuel cell system, we can significantly reduce our CO2 emissions. Plans for this are already well advanced.”

To note, Axpo is involved in multiple hydrogen projects and is said to rely on national and international partnerships to further develop its projects along the hydrogen value chain.