09/25/2023
Source: Energy & Management Powernews
Wind- and sun-rich countries in the EU can meet the hydrogen needs of the community. But to do so, investment there would have to be increased, according to a study.
A joint study by the Fraunhofer Institute for Systems and Innovation Research (ISI), the Research Institute for Sustainability (RIFS) in Potsdam and the German Energy Agency (Dena) concludes that Europe could meet most of its future hydrogen needs from production in member states. What's more, this would be possible at competitive prices, according to a Fraunhofer ISI release.
In countries where conditions are favorable for hydrogen production, however, the investments are comparatively low, it said. According to the authors, stronger cooperation at the EU level could contribute to a better allocation of financial resources.
According to the analysis, the technical potential for renewable electricity production in Europe (EU and Norway, Switzerland, and the UK) in 2050, at a cost of up to 40 euros/MWh, is large enough to meet all electricity demand as well as electricity demand for hydrogen production.
For wind and solar electricity production, Norway (more than 1,900 TWh in 2050), Spain (more than 1,760 TWh), and France (more than 1,700 TWh) in particular come into question. In these countries, the potential for hydrogen production is greater than their own needs, he said.
The potential in Germany, on the other hand, is not even half as large as the future demand. For 2050, the researchers therefore see the largest supply gap for hydrogen in Germany. They put this at 550 TWh, even with a very narrow range of applications.
The scientists have no doubt that Germany will remain an importing country of energy and hydrogen in the long term. Other countries that will also have large supply gaps are the Netherlands, Belgium and the Czech Republic, they said.
Germany, France and the United Kingdom are investing the most in building a hydrogen industry. To be sure, Spain also currently has some projects underway. Overall, however, the country falls far short of its potential.
The authors criticize that the current subsidy programs are exacerbating the imbalance in investment. Therefore, they make suggestions on how the EU could come to a better allocation of financial resources in the future and provide more targeted support for the ramp-up of hydrogen in countries with great potential.
Five items are on this list: higher EU subsidies for hydrogen projects, cross-border auctions for green hydrogen, national expansion target paths for green power, bilateral or regional hydrogen partnerships between surplus and deficit countries, and concentration of hydrogen use in deficit countries on areas that cannot be electrified or are difficult to electrify.
However, the researchers concede, regulation and promotion at the EU level is much more complex than in the U.S., for example. Funding there under the Inflation Reduction Act is much more attractive to investors, they say. With the new auction concept for subsidy allocation, the EU has created an accessible instrument, they say. "However, this now needs to be backed up with substantial funding," said Prof. Rainer Quitzow of RIFS Potsdam and one of the study's authors.
The study was published as a "HYPAT Discussion Paper" in September 2023. The Hypat project is funded by the German Federal Ministry of Education and Research and supervised by Project Management Jülich.
Information on the project is available on the website for the " Global H2 Potential Atlas ".
Author: Fritz Wilhelm
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