Brussels (Brussels Morning) The Brussels-based Hydrogen Council industry group notes that most of the upcoming hydrogen projects and related investments between now and 2030 are planned in Europe, Reuters reports.
The EU’s push to develop the hydrogen industry is part of the bloc’s plan to reach carbon neutrality by 2050. This includes the installation of 40 GW of electrolysers by the year 2030 in order to produce hydrogen using renewable power sources.
As much as 55% of the 228 hydrogen projects announced around the world are in Europe, according to the analysis, which was conducted by the Hydrogen Council in cooperation with McKinsey management consultancy.
Some projects to be powered by fossil fuels
Most projects are set to launch by 2030, with some to power hydrogen production with fossil fuels. If all the planned projects are implemented, global investments in the hydrogen industry is set to exceed US$ 300 billion by the end of the decade, the report claims.
While most of the funding has yet to be secured, the proposed investments in hydrogen would account for about 1.4% of global energy investments, with Europe accounting for approximately 45% of that total.
Hydrogen Council executive director Daryl Wilson noted that Europe is taking the lead because of investments in hydrogen supply chains and projects, augmented by its environmental protection policies.
He stressed that a “stable policy commitment environment allows the industry to have the confidence to act.”
Members of the Hydrogen Council, including China’s Sinopec oil and gas giant, Germany’s BMW automotive group, the US Microsoft tech giant and the Anglo-Dutch Shell oil and gas giant, had announced plans to increase hydrogen investments by 600% between 2019 and 2025.
The report warns that, in order to grow hydrogen production, investments in transportation and storage infrastructure are needed as well as significant investments in renewable energy to power production.
The Hydrogen Council estimates that hydrogen produced from renewable sources could reach cost parity with fossil fuels by 2028 in places where renewable power is affordable, such as the Middle East.