The European Commission has underscored the critical need for expanding hydrogen infrastructure to meet greenhouse gas (GHG) reduction objectives by 2040.
The report emphasizes that achieving the targets set by the 2020 EU Hydrogen Strategy, which aims for 10 million tonnes (Mt) of hydrogen production, and the 20 Mt target by 2030 under the REPowerEU initiative, will depend on developing a robust domestic and international hydrogen infrastructure network.
The report states that hydrogen infrastructure is essential for facilitating cross-sectoral decarbonization at a lower cost. A study using METIS, a modeling software employed by the European Commission, indicates that a combined power grid and hydrogen grid infrastructure could save up to €330 billion compared to isolated approaches over the 2030-2050 timeframe. This integrated system is expected to provide the necessary flexibility to accommodate a power system increasingly dominated by electrification and variable renewable energy sources.
Investment in hydrogen infrastructure remains modest compared to electricity grids. The Grids Action Plan estimates €584 billion in electricity grid investments required by 2030, while the European Commission anticipates investment needs of €28-38 billion for internal hydrogen pipelines and €6-11 billion for storage solutions to transport about 20 Mt of renewable hydrogen.
The report also highlights the importance of producing hydrogen near generation sources rather than converting electricity to hydrogen at demand sites. Research from the U.S. Department of Energy suggests that “the cost of electrical transmission per delivered MWh can be up to eight times higher than for hydrogen pipelines,” particularly over long distances.
An integrated hydrogen backbone, consisting of a network of pipelines and storage sites, is identified as a key enabler for optimizing costs and protecting the competitiveness of energy-intensive industries in Europe. The report anticipates that this backbone could grow to over 50,000 km by 2040, with approximately 60% of this infrastructure being repurposed from existing natural gas pipelines.
Furthermore, importing hydrogen and its derivatives is deemed necessary for maintaining competitiveness in European industry and achieving long-term decarbonization goals. The EU is projected not to produce sufficient clean hydrogen domestically to meet its 2050 demand, necessitating imports from regions with abundant clean energy resources.
The report concludes that underground hydrogen storage will play a critical role in supporting energy-intensive industries and complementing variable renewable energy sources. Hydrogen storage solutions, particularly in salt caverns, are emerging as economically viable alternatives to fossil thermal flexibility.
