Policy support can bring about 'flurry of activity' in Europe's green hydrogen field

• This year could be a tipping factor for Europe's green hydrogen market, with a flurry of activity forecasted if the essential policy environment is accomplished, according to research and also consulting company Delta-EE.

While 115 projects with a mixed possible electrolyser capacity of 2,138 MW are set to end up being functional throughout Europe in 2022 and also 2023, just 37% have actually reached last investment decision or have actually been awarded public financing. Many are claimed to be dependent on positive legislative indicators and rewards from federal governments throughout the continent.

With greater than 6GW of announced green hydrogen projects planned in Europe by the end of 2024, Delta-EE stated the emphasis should move to supplying a policy atmosphere that allows them to be know.

Long-term motivations as well as policy will permit de-risking of projects, offering programmers self-confidence that project finances are viable, said Robert Bloom, service manager for Delta-EE's Global Hydrogen Intelligence Service.

"Our research recommends that 2022 could be the year where we see the required policy atmosphere establish that could drive projects in the tens and even thousands of megawatts towards coming online," Bloom said.

Amongst the policies that are anticipated to be essential chauffeurs for the industry's development consist of the European Union's Hydrogen and also Decarbonised Gas Package and the UK's Hydrogen Strategy, which details the nation's strategies to achieve 5GW of reduced carbon hydrogen production capacity by 2030.

Delta-EE expects that yearly green hydrogen demand throughout Europe will enhance from around 9,900 tonnes in 2021 to greater than 620,000 tonnes in 2026, through which time the industrial sector will represent 60% of green hydrogen demand.

Research released last month by Fitch Solutions contacted federal governments internationally to subsidise low-carbon hydrogen manufacturing to get over cost barriers and also established standards to further stimulate development.

The consultancy claimed that although substantial investments are needed to achieve price parity with grey hydrogen, federal governments have a vital role to play in adjusting public procurement procedures to produce 'market pull'.