The European Commission (EC) has detailed its hydrogen strategy and appointed the European Clean Hydrogen Alliance to implement it. The alliance was announced in March 2020 as part of the commission's new industrial strategy for Europe. Clean hydrogen can be used as a feedstock, a fuel or an energy carrier and storage.
"The new hydrogen economy can be a growth engine to help overcome the economic damage caused by COVID-19. In developing and deploying a clean hydrogen value chain, Europe will become a global frontrunner and retain its leadership in clean tech," said Executive Vice-President for the Green Deal, Frans Timmermans.
What's also significant is that the commission has defined renewable hydrogen or clean hydrogen as one that's produced electrolyser technology powered by renewable energy sources. That means, it resisted the gas industry's lobby to include natural gas combined with carbon capture and storage as clean hydrogen sources. A group of several energy players and renewable lobby organizations, including SolarPower Europe and Wind Europe, had exactly asked for this in a letter on July 3: "The upcoming EU Hydrogen Strategy must build on our flourishing renewables industry to develop a robust and competitive EU electrolyser industry. Together, the renewables, storage and electrolyser industries can be the bedrock of Europe's energy sector employing millions of Europeans by 2050. But investors need clear guidance and visibility. The EU renewable hydrogen success story can only be achieved by enacting a clear commitment towards renewable hydrogen as the only 'Clean hydrogen'".
Implementation of the goals set out in this strategy could lead to up to 120 GW of solar and wind energy production capacity in the region to power electrolysers. The main features of this strategy are:
Currently, the commission counts 280 companies active in the production and supply chain of electrolysers with more than 1 GW of such projects in the pipeline. To reach 40 GW electrolyser capacity by 2030, it calls for a coordinated effort with the European Clean Hydrogen Alliance, member states and front-runner regions.
While the alliance includes the key players of the gas industry, the European Commission said it is open to all public and private entities that are into renewable or low-carbon hydrogen.
The detailed Hydrogen Strategy as released by the commission can be accessed on its website.
The European Green Deal aims for the continent to becoce carbon neutral by 2050 and the hydrogen strategy is considered an important part to ensure a decarbonized integrated energy system. However, the European Commission has not ruled out fossil fuel based hydrogen production and is actually relying on CCS, an unproven and very costly technology, for which several EU demonstration projects failed to get off the ground in the last decade. Aurelie Beauvais, Policy Director of SolarPower Europe said, "Renewables are already the most efficient and cost-effective power generation sources in Europe, with leading technologies and applications developed and implemented across the continent. Now, it is important to complement the efficiency of renewables in directly electrifying final energy uses with renewable-based hydrogen, that provides the missing piece to facilitate the complete decarbonisation of Europe's energy consumption." SolarPower Europe and Wind Europe together with Akuo Energy, BayWa r.e., EDP, Enel, Iberdrola, MHI Vestas, SolarPower Europe, Ørsted, Vestas had lobbied in a Choose Renewable Hydrogen campaign to push for the only and truly green option to produce hydrogen.
However, solar industry players in the region see a massive opportunity in renewable hydrogen and have been exploring the area big time. In October 2019, Hydrogenics, Meyer Burger, Ecosolifer and European Energy proposed solar PV module manufacturing with 2 GW annual capacity to produce 100% renewable hydrogen. Iberdrola is also planning a 100 MW bifacial solar power plant with 20 MWh battery storage to produce green hydrogen in Spain.