Europe’s green hydrogen ecosystem faces five main obstacles

According to the Renewable Hydrogen Coalition, there are five impediments preventing the development of a green hydrogen ecosystem in Europe, practically all of them are related to the expansion of renewable energy (RHC).

The formation of value chains, talents, regulations, and fair competition are some examples of ones.

Permissions for renewable energy projects that generate green hydrogen are at the top of the list. The EU is pressing member states to adopt “renewables go-to-areas” in an effort to reduce permits to one year for wind and solar projects, which traditionally take six to nine years in European nations.

Second, Europe must engage in building robust value chains for hydrogen producers in order to learn from the supply-chain disruption that the Covid-19 outbreak created in the renewables industry.

The development of skills for both the hydrogen industry and the renewable energy sector requires further investment. According to analysts, the renewables sector has to hire and train one million people by 2030 in order to fulfill the worldwide net-zero goals because it can take up to 15 years to become proficient in key areas in the renewables sector.

The absence of a strong regulatory framework, which the sector urgently needs, is a fourth impediment. The business community is currently pushing for a new delegated act that would require developers to demonstrate that they have procured renewable energy from new projects on a monthly basis.

The industry also needs fair terms for Chinese and other non-EU manufacturers who will compete with European firms along the green hydrogen supply chain.