Hydrogen technologies will play an essential role in reaching the Green Deal’s 2050 net zero targets by decarbonising hard-to-abate sectors, according to a study released by Hydrogen4EU.
The study states that allowing low-carbon hydrogen to contribute at its full potential along with renewable hydrogen could save Europe over €2 trillion ($2.42 trillion) through 2050.
The study addresses gaps left by other decarbonisation solutions such as efficiency and electrification in addition to supporting renewable energy integration with a total demand in 2030 to increase up to three times higher than the EU’s hydrogen strategy projections.
The study looks at two policy scenarios charting pathways for hydrogen to contribute to the EU’s goal of net zero emissions by 2050, based on actual European targets and transparent modelling frameworks.
It looks at the technology mix, the cost of the transition as well as the risks associated with various policy choices.
Crucially it finds that the contribution of hydrogen to decarbonising the EU’s energy system can well exceed EU projections, with demand exceeding 100 million tonnes of hydrogen by 2050.
Low-carbon hydrogen plays as essential role in supporting the deployment of renewable hydrogen and integration of higher volumes of renewable energy.
In both of the scenarios, renewable hydrogen scales up rapidly after 2030 however a more competitive technology mix enables a lower-cost and more effective pathway to net zero.
The study also reports several key factors including that more than half of the total gross final energy consumptions is supplied by non-electrified technologies in 2050.
As well as this, hydrogen has been identified as essential in getting the EU to net zero, particularly where electrification and efficiency gains is challenging.
Hydrogen can also unluck decarbonisation of hard-to-abate sectors such as transport, where demand exceeds 50mt H2 in 2050, and the steel and chemical industries with a demand of 45mt H2.
Renewable and low carbon hydrogen both being needed for net zero, with natural gas and carbon capture storage remaining essential even with higher renewable ambitions.
The last significant factor is that a stronger renewable push requires infrastructure and value chain investments and represents a total system cost of an additional 70 billion per year compared to a technology diversity scenario.
The study was conducted by research partners IFP Énergies Nouvelles, SINTEF and Deloitte on behalf of the funding partners of Hydrogen4EU.
