The European Union is poised to undergo a significant transformation in its energy landscape, with hydrogen production set to soar to 10 million tonnes per year by the end of the decade.
This goal, as outlined by Matthieu Guesne, founder and CEO of Lhyfe, a renewable hydrogen production company, marks a pivotal moment in the continent’s journey towards decarbonization.
Guesne’s optimism stems from the EU’s recognition of the indispensable role that hydrogen plays in decarbonizing sectors that are otherwise challenging to transition to renewable energy sources. With legislative frameworks already in place, such as the regulation on renewable fuels of non-biological origin (RFNBO), Europe is paving the way for a clear and structured approach to hydrogen development.
However, questions loom over the extent of hydrogen imports, with the EU aiming to balance domestic production with imports to meet the projected demand of 20 million tonnes per year by 2030. While imports are anticipated from regions like Africa and South America, Guesne emphasizes the importance of prioritizing domestic production, leveraging Europe’s established regulatory frameworks and industrial capabilities.
One of the key strategies in Europe’s hydrogen roadmap is offshore production, particularly in the Baltic and North Seas. By harnessing wind resources and avoiding competition with electricity production, offshore hydrogen production presents a promising solution. The evolution of floating wind turbine technology further enhances the feasibility of offshore production, unlocking potential in new areas.
Moreover, advancements in water desalination technology offer a sustainable solution for the electrolysis process, ensuring efficient hydrogen production without compromising on resource sustainability.
On the demand side, Guesne remains optimistic, citing a growing interest in renewable hydrogen, especially in the wake of geopolitical uncertainties and rising gas prices. The emergence of hydrogen tenders, akin to those seen in the electricity and gas markets, signals a paradigm shift in industrial procurement practices, further driving the transition towards renewable energy solutions.
As Europe accelerates its hydrogen agenda, challenges remain, including infrastructure development, cost competitiveness, and geopolitical considerations. However, with concerted efforts from industry stakeholders, policymakers, and investors, Europe is poised to lead the global hydrogen revolution, ushering in a new era of sustainable energy and decarbonization.
