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Home Home - Europe
green hydrogen

IEA Unveils Roadmap to Low-Emissions Hydrogen in Northwest Europe

Anela DoksoBy Anela Dokso17/04/20242 Mins Read
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Northwest Europe emerges as a frontrunner in low-emissions hydrogen development, spearheading targets and regulatory advancements.

However, a critical examination of the latest edition of the IEA’s Northwest European Hydrogen Monitor unveils both progress and challenges on the path to a sustainable hydrogen future.

The region comprising Austria, Belgium, Denmark, France, Germany, Luxemburg, the Netherlands, Norway, Switzerland, and the United Kingdom holds immense potential to scale up its low-emissions hydrogen market. With planned projects, Northwest Europe could contribute significantly to meeting its primary energy demand, producing approximately 7 million tonnes of low-emissions hydrogen annually by 2030.

Recent strides in advancing regulatory frameworks underscore the commitment of Northwest European countries to hydrogen development. Stronger regulations provide a foundation for fostering a conducive environment for hydrogen projects.

Despite promising projections, most low-emissions hydrogen projects in Northwest Europe remain in the nascent stages of development. Less than 4% of planned projects are operational or have secured final investment decisions, lagging behind counterparts in the United States and China.

The report underscores the urgent need for robust policy support to accelerate the transition towards low-emissions hydrogen. From research and development to production and consumption, policy makers must deploy comprehensive mechanisms to bolster the entire value chain.

Recent market dynamics, including cost escalations and inflation, pose significant challenges to the low-emissions hydrogen market. Achieving price competitiveness with fossil fuel-derived hydrogen remains a pressing concern, necessitating concerted efforts from stakeholders.

The Northwest European Hydrogen Monitor offers actionable recommendations for policy makers to navigate existing uncertainties. Addressing market challenges and enhancing subsidy schemes are pivotal steps towards realizing the region’s hydrogen aspirations.

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