Europe’s Hydrogen Installed Capacity Is Expected To Skyrocket in 2023

In recent years, hydrogen has emerged as a promising alternative to traditional fossil fuels, as it can be produced from renewable sources and emits only water vapor when burned. Europe is at the forefront of this transition to a hydrogen-based economy, with plans to increase its installed capacity by a staggering 800% in 2023. This ambitious target is part of the EU’s broader strategy to achieve net-zero carbon emissions by 2050 and marks a significant milestone in the region’s transition to a more sustainable energy system. In this article, we’ll delve deeper into the details of Europe’s hydrogen plans and explore what this could mean for the future of the energy industry.

Europe’s energy transition plans

As Europe strives to achieve its ambitious energy transition targets and decarbonize its economy, hydrogen is emerging as a key solution. Hydrogen is a versatile energy carrier that can be produced from renewable energy sources, such as wind and solar power, and used as a clean fuel for transportation, industry, and power generation. Europe’s hydrogen ambitions are skyrocketing, and the European Union has outlined a comprehensive plan to make hydrogen a central part of its energy system.

The EU plan aims to install at least 40 gigawatts of hydrogen electrolyzers within the EU by 2030, which could produce 10 million tonnes of renewable hydrogen per year, and up to 40 million tonnes by 2050. This ambitious target is part of the EU’s broader goal to become climate neutral by mid-century, and hydrogen is seen as a must-have technology to achieve this objective.

The European Commission has recognized hydrogen’s potential to decarbonize the energy system and reduce CO2 emissions in hard-to-abate sectors, such as heavy-duty transport and industry. The Commission has proposed a hydrogen strategy that outlines the steps needed to scale up the production and use of clean hydrogen in Europe. The strategy focuses on three key areas: making hydrogen production from renewable electricity cost-competitive, developing a hydrogen infrastructure across Europe, and creating a hydrogen market.

To achieve these goals, the EU plans to provide state aid to support the development of a hydrogen value chain, from production to consumption, and to create a regulatory framework that incentivizes the use of clean hydrogen. European companies such as ThyssenKrupp are investing in hydrogen technologies, and the European Investment Bank has committed to investing billions of euros in hydrogen projects.

Hydrogen could also help Europe reduce its dependence on fossil fuels, such as Russian gas, and create a competitive advantage in the global hydrogen market. The EU plans to use interconnectors to transport hydrogen across Europe and create a European hydrogen market.

Hydrogen in Europe in 2022

In 2022, the use of hydrogen as an energy source continued to skyrocket in Europe as part of the continent’s energy transition. The European Commission’s ambitious plan to decarbonize the energy system by 2030 has put hydrogen at the forefront of Europe’s energy ambitions, especially green hydrogen produced from renewable sources.

European companies have been investing heavily in hydrogen technologies, and the installed capacity of hydrogen projects across Europe is expected to increase significantly in the coming years. The EU’s hydrogen plans aim to produce 10 million tonnes of renewable hydrogen within the EU by 2030, which will require massive investment in hydrogen infrastructure and electrolyzers to produce green hydrogen.

According to a new consultancy report, the EU’s hydrogen ambitions could create a hydrogen economy worth up to €2.5 trillion by 2050, creating a competitive advantage for European companies in the global hydrogen market. This would also contribute to the continent’s goal of becoming climate neutral by mid-century.

To achieve this goal, policymakers have been providing state aid to support the development of critical infrastructure and to help bring down production costs. However, the hydrogen industry still faces significant challenges, including high costs, the need for technological development, and the fact that hydrogen currently competes with fossil fuels such as natural gas.

Despite these challenges, the EU’s hydrogen industry has been making significant progress. European investment in renewable energy projects is increasing, and the development of interconnectors to transport renewable electricity across Europe is accelerating. Furthermore, the EU has formed a Hydrogen Alliance to promote the use of hydrogen as a low-carbon energy source and to coordinate research and development efforts.

Jorgo Chatzimarkakis, the secretary-general of the dustry group Hydrogen Europe, has said that Europe could produce 40 GW of low-emissions, renewable power by using renewable electricity to make hydrogen. This could reduce emissions by 150 million tonnes and create millions of jobs across the EU.

The development of the hydrogen economy in Europe is a crucial aspect of the continent’s plan to decarbonize the energy system and become climate neutral by mid-century. The value chain of hydrogen production, storage, transportation, and use is a critical infrastructure for Europe’s energy system, and it is expected to continue to grow and evolve over the coming decades.

Hydrogen in the UK

In the UK, there is growing interest in hydrogen as a clean and sustainable energy source, with numerous initiatives and projects underway to explore its potential.

One of the primary drivers of the UK’s interest in hydrogen is the country’s commitment to achieving net-zero carbon emissions by 2050. Hydrogen is seen as a key part of the solution to reducing carbon emissions in industries such as transportation, heating, and manufacturing, where electrification may not be feasible or cost-effective.

The UK government has outlined an ambitious plan to develop a thriving hydrogen economy, with a target of producing 5 GW of low-carbon hydrogen by 2030. This will involve a range of initiatives, including supporting the development of hydrogen production facilities, investing in research and development, and creating a market for hydrogen products.

One of the key challenges in developing a hydrogen economy is building the necessary infrastructure. This includes the production, storage, and distribution of hydrogen, as well as the development of hydrogen-powered vehicles and heating systems. To address these challenges, the UK government has committed to investing £240 million in hydrogen infrastructure over the next four years, including funding for the development of hydrogen refueling stations and the conversion of natural gas pipelines for hydrogen use.

There are already a number of hydrogen projects underway in the UK, including the HyNet project, which aims to develop a low-carbon hydrogen production and distribution network in the North West of England. There are also plans for hydrogen-powered trains and buses, and the development of hydrogen fuel cell technology for heating and power generation.