The Netherlands and Germany stand to gain the most from the industry’s transition to green hydrogen. This is the conclusion of a study conducted by the Centre for European Policy (CEP) that looks at the geographical potential offered by the European hydrogen economy.

“Due to their industrial structures, the Netherlands and the neighboring German state of North Rhine-Westphalia make for perfect hydrogen consumers. Both places also provide the highest potential in Europe for future offshore farms whose wind energy can be utilized to make hydrogen due to the neighboring North Sea “André Wolf, the study’s author, said to a German editorial network.

The North Sea riparians have a strong chance of becoming the EU’s joint hydrogen center because production and use should be as close to one another as possible for a quick market ramp-up, according to the CEP expert. The scientist cautions, “France and Italy, with the commercial hubs around Milan and Turin as well as around Paris, must be careful not to lose contact with hydrogen.”

Wolf, though, believes that excessive regulation poses a risk. Therefore, too tight supra-regional infrastructure constraints could impede the route to profitability. Wolf consequently urges the EU to make strategic use of the required public resources. The initiatives that are still being funded through multiple channels right now need to be better spatially coordinated and oriented in a more consistent manner. The framework for the growth of a cross-border transportation infrastructure should be established concurrently.

Green hydrogen, or hydrogen created through electrolysis utilizing renewable energy sources, is recognized as a key factor in the energy transition and has the potential to take the place of fossil fuels like gas, coal, or oil as a fuel or raw material.