Europe – Europe’s pursuit of ambitious hydrogen targets faces a reality check, as a new study by Transport & Environment (T&E) warns against over-reliance on uncertain hydrogen imports.
The study, which analyzes six crucial export countries, reveals that a mere 1% of the planned green hydrogen production in these nations has secured financing, prompting concerns about Europe’s ability to meet its hydrogen goals.
The EU’s RePowerEU initiative, triggered by geopolitical tensions, envisions producing 20 million tonnes of renewable hydrogen by 2030, with half of this relying on imports. However, T&E’s study scrutinizes the readiness of key export countries—Norway, Chile, Egypt, Morocco, Namibia, and Oman—and raises significant doubts about their capacity to swiftly scale up hydrogen production and infrastructure.
Challenges by export countries
The study suggests that many of the countries earmarked for imports lack the necessary infrastructure and are not prepared for large-scale production.
Apart from Norway, the other five countries have limited renewable energy capacity. Oman, heavily reliant on fossil fuels, exemplifies the need for substantial investments in clean electricity generation to facilitate green hydrogen production and decarbonize local grids.
Hydrogen production demands significant water resources, and the study reveals that all countries, except Norway, will face severe water scarcity. Namibia, in particular, would need over ten times its projected 2030 electricity demands to meet hydrogen export plans.
Current infrastructure lacks the capacity to transport hydrogen over long distances, requiring years for hydrogen pipelines to be constructed. The study suggests that the only viable method for import is through e-fuels like e-ammonia and e-methanol, transported by ships.
Positive outlook
The study indicates that Europe could produce 6 to 7.5 million tonnes of renewable hydrogen domestically by 2030, potentially meeting the continent’s needs if strategic limitations on hydrogen and e-fuel supplies are implemented.
The study concludes with a positive outlook, suggesting the potential creation of 2 million jobs in hydrogen supply chains within the EU by 2030, based on already announced investments. As Europe navigates its hydrogen journey, the balance between domestic production and strategic imports will be pivotal in shaping a sustainable and resilient hydrogen ecosystem.
