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Doreen Collicott
The global hydrogen economy is growing despite global headwinds resulting from rising interest rates and constrained supply chains, according to an analysis of over 1,400 large hydrogen projects published today by the Hydrogen Council.
Alongside the vital climate benefits and cost-efficiency gains, a truly global hydrogen economy can provide meaningful contributions to the UN Sustainable Development Goals (SDGs) both in emerging markets and in developed countries, fostering just transition, boosting sustainable growth, and providing clean jobs.
The EU strategy on hydrogen (COM/2020/301) was adopted in 2020 and suggested policy action points in 5 areas: investment support; support production and demand; creating a hydrogen market and infrastructure; research and cooperation and international cooperation
Since, the Fit-for-55 package (July 2021) has put forward a number of legislative proposals that translate the European hydrogen strategy into concrete European hydrogen policy framework. This includes proposals to set targets for the uptake of renewable hydrogen in industry and transport by 2030. It also includes the Hydrogen and decarbonised gas market package (COM/2021/803 final and COM/2021/804 final), which puts forward proposals to support the creation of optimum and dedicated infrastructure for hydrogen, as well as an efficient hydrogen market.
Investment support has also been provided through the Important Projects of Common European Interest (IPCEIs) on hydrogen. The first IPCEI, called "IPCEI Hy2Tech", which includes 41 projects and was approved in July 2022, aims at developing innovative technologies for the hydrogen value chain to decarbonise industrial processes and the mobility sector, with a focus on end-users.
In September 2022, the Commission approved "IPCEI Hy2Use", which complements IPCEI Hy2Tech and which will support the construction of hydrogen-related infrastructure and the development of innovative and more sustainable technologies for the integration of hydrogen into the industrial sector. Finally, the Clean Hydrogen Partnership was established in November 2021 (taking over from FCH 2 JU) to support research and innovation in the hydrogen ecosystem.
With the publication of the REPowerEU plan in May 2022, the Commission complements the implementation of the EU hydrogen strategy to further increase the European ambitions for renewable hydrogen as an important energy carrier to move away from Russia's fossil fuel imports.
The focus of these actions is to accelerate the uptake of renewable hydrogen, ammonia and other derivatives in hard-to-decarbonise sectors, such as transport, and in energy-intensive industrial processes. Scaling up the development of hydrogen infrastructure and supporting hydrogen investments are also identified as key areas to support hydrogen uptake in the EU.
Within the hydrogen accelerator measures, the Commission has proposed to establish a global European hydrogen facility to create investment security and business opportunities for European and global renewable hydrogen production. President Von der Leyen announced a European Hydrogen Bank in her State of the Union speech in 2022 and the initiative was included in the Commission work programme for 2023.
The Communication on the European Hydrogen Bank (COM/2023/156), published on 16 March 2023, describes its concept, tasks and structure. The European Hydrogen Bank is a financing instrument run internally by Commission services. It is not designed to be a physical institution. The main objective of the facility is to unlock private investments in hydrogen value chains, both domestically and in third countries, by connecting renewable energy supply to EU demand and addressing the initial investment challenges. It will establish an initial market for renewable hydrogen, offering new growth opportunities and jobs. On 23 November 2023, a pilot auction (competitive bidding) was launched under the Innovation Fund, supporting the production of renewable hydrogen for European consumers. The terms and conditions for the pilot auction were published by the Commission on 30 August, allowing potential bidders to start preparing.
Furthermore, green hydrogen partnerships will facilitate the promotion of the import of renewable hydrogen from third countries and contribute to incentivising decarbonisation. Together, the European Hydrogen Bank and the green hydrogen partnerships aim at delivering a framework to ensure that partnerships established by the EU countries and the industry provide a level-playing field between EU production and third-country imports.
The Hydrogen Energy Network is an informal group of representatives from the energy ministries in EU countries that aims to help national energy authorities build on the opportunities offered by hydrogen as an energy carrier. It acts as an informal platform to share information on good practices, experience and the latest developments in hydrogen, and to work jointly on specific issues.
The Clean Hydrogen Partnership (2021-2027) is a joint public-private partnership supported by the Commission, through Horizon Europe. It builds upon the success of its predecessor, the Fuel Cells and Hydrogen Joint Undertaking and includes also the Hydrogen Valleys Platform, an EU led-initiative under Mission Innovation. On 1 March 2023, the Commission and key stakeholders signed a joint declaration on renewable hydrogen research and innovation, committing to step up and accelerate joint action in research, development, demonstration and deployment of Hydrogen Valleys.
The European Clean Hydrogen Alliance was launched alongside the EU hydrogen strategy in 2020 as part of the new industrial strategy for the EU. It brings together industry, national and local authorities, civil society and other stakeholders.
The Hydrogen Public Funding Compass is an online guide for stakeholders to identify public funding sources for hydrogen projects and it provides information on all the EU programmes and funds (2021-2027) that are relevant for the sector.
It takes more energy to produce hydrogen (by separating it from other elements in molecules) than hydrogen provides when it is converted to useful energy. However, hydrogen is useful as a fuel because it has a high energy content per unit of weight, which is why it is used as a rocket fuel and in fuel cells to produce electricity on some spacecraft. Hydrogen is not widely used as a fuel now, but it has the potential for greater use in the future.
Hydrogen (H2) is an alternative fuel that can be produced from diverse domestic resources. Although the market for hydrogen as a transportation fuel is in its infancy, government and industry are working toward clean, economical, and safe hydrogen production and distribution for widespread use in fuel cell electric vehicles (FCEVs). Light-duty FCEVs are now available in limited quantities to the consumer market in localized regions domestically and around the world. The market is also emerging for buses, material handling equipment (such as forklifts), ground support equipment, medium- and heavy-duty trucks, marine vessels, and stationary applications. For more information, see fuel properties and the Hydrogen Analysis Resource Center.
Hydrogen is abundant in our environment. It's stored in water (H2O), hydrocarbons (such as methane, CH4), and other organic matter. One challenge of using hydrogen as a fuel is efficiently extracting it from these compounds.
Although the production of hydrogen may generate emissions affecting air quality, depending on the source, an FCEV running on hydrogen emits only water vapor and warm air as exhaust and is considered a zero-emission vehicle. Major research and development efforts are aimed at making these vehicles and their infrastructure practical for widespread use. This has led to the rollout of light-duty vehicles to retail consumers, as well as the initial implementation of medium- and heavy-duty buses and trucks in California and fleet availability in northeastern states.
Hydrogen is considered an alternative fuel under the Energy Policy Act of 1992. The interest in hydrogen as an alternative transportation fuel stems from its ability to power fuel cells in zero-emission vehicles, its potential for domestic production, and the fuel cell electric vehicle's fast filling time and high efficiency. In fact, a fuel cell coupled with an electric motor is two to three times more efficient than an internal combustion engine running on gasoline. Hydrogen can also serve as fuel for internal combustion engines. However, unlike FCEVs, these produce tailpipe emissions and are less efficient. Learn more about fuel cells.
California is leading the nation in building hydrogen fueling stations for FCEVs. As of 2023, 52 retail hydrogen stations were open to the public in California, as well as one in Hawaii, and 45 more were in various stages of construction or planning in California. These stations are serving over 8,000 FCEVs. California continues to provide funding toward building hydrogen infrastructure through its Clean Transportation Program. The California Energy Commission is authorized to allocate up to $20 million per year through 2023 and is investing in an initial 100 public stations to support and encourage these zero-emission vehicles. In addition, retail stations are planned for some midwestern and northeastern states, with some of those already serving fleet customers.
Vehicle manufacturers are only offering FCEVs to consumers who live in regions where hydrogen stations exist. Non-retail stations in California and throughout the country also continue serving FCEV fleets, including buses. Multiple distribution centers are using hydrogen to fuel material-handling vehicles in their normal operations. In addition, several announcements have been made regarding the production of heavy-duty vehicles, such as line-haul trucks, that will require fueling stations with much higher capacities than existing light-duty stations. Find hydrogen fueling stations across the United States.
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