H2Tech Market Data 2023 - 22

WESTERN EUROPE
For decades, Europe has been the leader in establishing
new directives and initiatives to promote cleaner transportation
fuels and power generation. Over the past few years,
the region had made significant strides to establish and
expand the use of H2
within the European Union's (EU's)
borders. This initiative was the result of the Paris Agreement
drafted at COP21 in 2016. The aim of the agreement-which
has been ratified by nearly 190 countries, representing nearly
97% of global emissions-is to reduce GHG emissions to
limit global warming to 1.5°C-2°C in this century.
To combat GHG emissions in the EU, the region has and
will continue to invest heavily in new H2
production and
infrastructure capacity. According to the European Commission
(EC), H2
is forecast to reduce Europe's GHG emissions
by at least 55% by 2030 and reach net-zero emissions
by 2050. Since H2
does not produce CO2
when used, it can
be an efficient feedstock for power generation and for use
in the industrial and transportation sectors to mitigate, and
eventually eliminate, carbon emissions. The EU intends to
create a vast H2
supply/value chain to help decarbonize
the EU's industrial, mobility and energy sectors to reach
net-zero goals by 2050.
According to the EC's H2
a phased approach for implementing H2
production to 2050. These phases include:
* Phase 1 (2020-2024): Install at least 6 GW of
renewable H2
1 MMtpy of renewable H2
electrolyzers to produce up to
. In May 2022, the EC
revised the plan under the name REPowerEU.
This plan was in response to Russia's war with the
Ukraine and to take the necessary steps to ensure
energy security for EU nations. The REPowerEU
initiative is targeting 10 MMtpy of domestically
produced renewable H2
H2 imports by 2030. The actions put forth in
the REPowerEU program require an additional
€210 B ($221 B) in investments by 2028. This phase
includes scaling up electrolyzer production and
capacity, the start of H2
transportation sector (e.g., H2 fueling stations) and
strategy, the EU will conduct
infrastructure and
moving H2 around the region, finalizing a regulatory
framework for the EU's H2
import contracts with various green H2
sector, and setting up
suppliers.
The region also intends to create a regulatory
body-the European Network of Network Operators
for Hydrogen (ENNOH)-to monitor H2
infrastructure, the movement of H2
logistics and
across borders,
work on interconnectors and establish technical
rules/specifications, among others.
* Phase 2 (2025-2030): Install at least 40 GW of
renewable H2
to 10 MMtpy of renewable H2
of clean H2
electrolyzer capacity to produce up
. Due to the scale-up
production, renewable energy costs are
forecast to decrease, making it a more affordable
option for use in industrial sectors (e.g., steel,
transportation and power).
* Phase 3 (2030-2050): Renewable H2
production
reaches maturity and can be deployed at a wide
scale throughout the EU. This phase envisions the
use of green H2
in nearly all sectors of the EU,
including aviation, shipping, and in industrial and
building applications.
According to the EC's H2
strategy report, EU investments
in electrolyzer capacity builds could range between
€24 B ($25 B) and €42 B ($44 B) by 2030. In addition,
increasing and connecting renewable power sources (i.e.,
solar and wind) to the region's electrolyzers for power generation
could cost €220 B-€340 B ($231 B-$358 B) within
the same timeframe. Another €65 B ($68 B) is needed to
enhance the EU's H2
transportation and storage systems.
Regardless of the capital costs, nearly all EU nations are
investing in new H2 infrastructure and production capacity
to fulfill the obligations set out in the Paris Agreement to
decarbonize the region by 2050.
The EU has also initiated several projects under the
and 10 MMtpy of renewable
category important projects of common European interest
(IPCEI). For example, more than $5 B in H2
being funded by 15 EU countries to create a H2 hub/value
chain. The IPCEI Hy2Tech project includes the development
of H2
generation technologies, H2
infrastructure builds for the
storage, production, transportation
and distribution. The EU's IPCEI projects are likely
to attract several billion more dollars in private funding.
projects are
9% Other
19% Germany
3% Sweden
3% Belgium
3% Austria
5% Denmark
4% Italy
17% UK
8% France
11% Spain
10% Netherlands
8% Norway
FIG. 11. Active H2 project market share by country.
Source GEI database.
FIG. 10. Europe's H2 project pipeline by sector.
Source: European Clean Hydrogen Alliance.
36% H2
production
12% Energy sector
6% Buildings
13% Transmission
and distribution
19% Mobility
14% Industrial
applications
Other investments include JVs to establish H2
fueling
infrastructure in various EU countries. For example, JET
H2 Energy, a JV between Phillips 66 and JET H2 Energy
Austria GmbH, plan to build 250 H2
Austria, Denmark and Germany by 2026.
refueling stations in
22
MARKET DATA 2023 | H2-Tech.com
H2 INITIATIVES AND INVESTMENTS GLOBALLY
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H2Tech Market Data 2023

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