Green hydrogen goes big in EU

Norwegian and German governments have, within a week apart, adopted state-level hydrogen strategies, several days after each had already earmarked funds to push this emerging industry forward within their latest packages to strengthen their national economies.

Meanwhile, 93 companies – including offshore energy players – have expressed their readiness “to invest massively into the use of hydrogen” in a letter sent to the European Commission, which announced a Clean Hydrogen Alliance in March and invited input on a EU-level hydrogen strategy in May.

German government has put money on the table to give a boost to the future development of (green) hydrogen projects within an economic stimulus package worth € 130 billion, announced on 6 June.

Aiming to secure jobs and get the economy up and running again during and after the so called corona-crisis, Germany will support an increased use of hydrogen energy, as well as back other “future technologies” such as quantum computing and artificial intelligence, with € 50 billion from the recovery package.

Norwegian government introduced economic and green restructuring measures on 29 May, with the restructuring package significantly strengthening the country’s future use of “green” hydrogen and other forms of green energy.

The government proposed to allocate NOK 2 billion (€ 184 million) to the Climate and Energy Fund to support green technology development in areas such as hydrogen, battery technology, offshore wind and green shipping. Norway will also pour NOK 120 million (€ 11 million) into the Norwegian Research Council’s ENERGIX programme to promote innovation and green restructuring in Norwegian business and industry.

On 3 June, Norwegian Minister for Petroleum and Energy, Tina Bru, and Minister for Climate and Environment Sveinung Rotevatn presented the national hydrogen strategy.

The strategy concentrates on the development and use of hydrogen produced with no or low emissions, such as with renewable electricity, through water electrolysis, or from natural gas with carbon capture and storage.

A strategic priority for Norwegian government is the development and implementation of hydrogen projects where Norway, Norwegian businesses and technology clusters are involved.

Germany’s hydrogen strategy, adopted on 10 June, saw the Federal government pledging € 9 billion with the funding generally focused on green hydrogen.

The strategy, which was previously expected to be in place in May, is based on an open technology approach. Of the € 9 billion, € 7 billion will be used for the promotion of hydrogen technologies in Germany and € 2 billion for international hydrogen partnerships.

Germany will support private investments in the economical and sustainable production, transport and use of hydrogen, particularly those incorporating renewable energy projects with the aim of replacing “grey” hydrogen in fuel production with green hydrogen.

“[In] the long run, only hydrogen that is based on 100% renewable energy is good for the climate. This also means that a ‘Yes!’ to hydrogen is also a ‘Yes!’ to wind energy. We need additional green power to be able to produce green hydrogen”, said Svenja Schulze, Federal Minister for the Environment, Nature Conservation and Nuclear Safety.

“This is why we must and will consistently expand the use of renewables. Green hydrogen gives us an opportunity to link up climate action and a sustainable industrial sector that offers future-proof and resilient jobs”.

The European Commission announced the forming of a Clean Hydrogen Alliance upon introducing the new European Industrial Strategy on 10 March. The purpose of the alliance is to bring investors together with governmental, institutional and industrial partners on hydrogen-related projects and targets.

A couple of months later, the Commission opened a consultation period for an EU hydrogen strategy, which will be oriented on the use of clean hydrogen.

The strategy, planned to be adopted this year, aims to primarily look at ways for mainstreaming renewable energy-powered hydrogen production.

According to the EU Commission, the Union-level strategy will help reduce the carbon emissions and achieve EU’s goal of being climate-neutral by 2050, as well as contribute to the recovery from COVID-19’s economic impact.

“With an increasing number of Member States that have already adopted, or are in the process of adopting, national hydrogen strategies as well as industry initiatives such as the ‘2×40 GW renewable hydrogen’ ambition, there is a pressing need to develop a European approach”, the roadmap document for the strategy states.

“An EU strategy avoids the risk of uncoordinated action, which could lead to market fragmentation and reduce the benefits of switching to renewable hydrogen. Together with a targeted Clean Hydrogen Alliance it will allow promoting the competitive position of the EU industry and preserving its current technology leadership position, through inter alia focused support to research and innovation”.

On 2 June, 93 members of the Hydrogen Europe association sent a letter to the Commission, supporting the creation of the Clean Hydrogen Alliance and confirming their willingness to invest in the use of the technology.

“We are ready to invest massively into the use of hydrogen! With a technological maturity that enables immediate commercial deployments in many fields, we are at a turning point and we are ready to deliver on massive emission reductions, contributing already to 2030 EU climate and energy targets”, the letter states.

The letter was signed, among others, by CEOs of companies doing business in the offshore oil & gas and renewable energy sectors, including BP, Engie, Vattenfall, EMEC, EDF, and Port of Rotterdam.

The signatories stated that this period, with the ongoing corona-crisis, is a crucial moment for Europe and for the hydrogen industry.

“We fully understand that the existing historical momentum reinforces the need for an instrument to steer the political process and bring the industry together with all relevant stakeholders. We strongly believe that a Clean Hydrogen Alliance would be an ideal institutional approach to manage this process and we are ready to commit and offer our contribution and active participation”.