Policy support for green hydrogen to become viable in 2022

Delta-EE, a research and consulting firm, believes that policy support for green hydrogen will become economically viable in 2022.

There are 115 clean hydrogen projects in Delta-database EE’s with a combined electrolyser capacity of 2,138MW that are expected to be operational in 2022 and 2023, according to the organization’s report.

However, in Europe and the UK, only about a third (794 MW) of these projects have been approved for final investment or have received public funding. As a result, the majority of people are reliant on clear legislative direction and financial incentives from their home countries.

UK incentives like the Hydrogen Business Model and the broader Net Zero Hydrogen Fund are expected to launch in early 2022 and 2023, while the UK Hydrogen Strategy aims to implement regulatory frameworks by the early 2020s. In the UK.

RED II delegated act and Hydrogen and Decarbonised Gas Package in the EU are expected to be key policy drivers in the EU. According to Delta-EE, a flurry of activity could begin in 2022 if the necessary policy environment is in place.

A policy environment must be created to allow these projects to come to fruition, as Delta-pipeline EE’s shows there will be over 6GW of announced projects by the end of 2024.

The changing landscape of green hydrogen demand is another important finding from Delta-hydrogen EE’s research. From around 9,900 metric tons per year in 2021 to more than 620,000 metric tons per year in 2026, Europe’s total demand for green hydrogen is expected to soar.

For the first time, industrial demand outstripped transportation demand in 2021. Delta-EE predicts that the industrial sector will account for nearly two-thirds of the demand for green hydrogen by 2026.

Final investment decisions or public funding for 15 industrial projects linked to 894MW of electrolyser capacity are currently pending.