In a recent statement, Miguel Stilwell, the CEO of Portugal’s main utility EDP, criticized the European Union’s ambitious targets for green hydrogen production by 2030, deeming them inflated and unrealistic. Stilwell cited regulatory uncertainty and slow progress in the sector as major hurdles to achieving these goals.
The European Union aims to produce 10 million tonnes of green hydrogen, generated using renewable energy sources, and import an additional 10 million tonnes by 2030. However, the current production capacity through electrolysis, the primary method for producing renewable hydrogen, stands at less than 300,000 tonnes.
To meet the EU’s targets, substantial investments would be required to expand Europe’s limited fleet of electrolysers and establish 150 to 210 gigawatts (GW) of new renewable energy capacity to power them. This presents a significant challenge considering the current scale of deployment.
During a conference hosted by Expresso newspaper, Stilwell expressed skepticism about the feasibility of achieving these goals by 2030, emphasizing the time required for scaling up this emerging technology. He highlighted that many expectations surrounding hydrogen were inflated, and numerous targets lacked realism.
Stilwell stated, “We are observing 100-megawatt (MW) projects that might become operational by 2026 or 2027, but we are still far from gigawatt-scale projects.”
One of the primary obstacles hindering the widespread adoption of electrolysis, the key technology for renewable hydrogen production, is its limited competitiveness compared to fossil fuel alternatives like natural gas. This factor has impeded its technological advancements and market development.
Moreover, Stilwell pointed out that the absence of clear financing rules and other crucial regulations necessary for accelerating technological progress have created uncertainty within the industry.
However, despite the challenges, Stilwell acknowledged that EDP remains committed to investing in green hydrogen. The company has initiated a pilot project in Brazil and, in collaboration with Portugal’s oil and gas firm, Galp Energia, plans to launch a hydrogen plant in Sines, located in the southern region of Lisbon.
Last week, Portugal revised its 2030 targets for installed electrolyser capacity to produce green hydrogen, increasing the goal to 5.5 GW.
The development of green hydrogen as a viable and sustainable energy solution is a complex task that requires significant technological advancements, supportive regulations, and substantial investments. While the European Union’s targets for green hydrogen production by 2030 may seem ambitious, industry leaders like Miguel Stilwell of EDP caution against inflated expectations and stress the need for a realistic timeline to scale up the technology.
It is clear that there are various challenges to overcome, including the competitiveness of electrolysis compared to fossil fuel alternatives, regulatory uncertainties, and the need for substantial investments. However, the commitment and investments from companies like EDP demonstrate a growing dedication to advancing green hydrogen technologies and exploring its potential in various sectors.
