In December 2015, 195 countries, practically every nation on earth, signed the Paris Agreement, committing to take necessary measures to contain global warming by 2100. Carbon-neutral sources of energy, including new types of fuel and technology for road transport and aviation, will play a very important part in this effort. Hydrogen, which has been long talked about as the energy source of the future, may finally have the support of newly developed technology to become a crucial link in the process for the creation of a carbon-neutral world.
The European Union (EU) will play an increasingly important role in this process. Fourteen member states have already included their hydrogen strategies in their post COVID lockdown economic recovery plans.
The EU is now looking to create a leverage effect for the private sector by combining national and European funding. For some time now, the European Commission partnered with over 160 companies and about 80 research organisations through Hydrogen Europe, the European Hydrogen and Fuel Cell Association. The EU has also supported the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), a public-private partnership in the field of hydrogen energy research and development[1].
German and French governments have recently earmarked about EUR15bn for hydrogen technology. Hydrogen is also a key recipient of support under the Recovery Plan for Europe plans because it is seen as a key tool for achieving the EU Green Deal’s targets and other objectives relating to Europe’s climate-neutrality and strategic autonomy. Across the various funding programmes outlined under Next Generation EU, hydrogen industry could benefit from extra funding support, especially through the Strategic Investment Facility, the Recovery and Resilience Facility, and the reinforced Just Transition Fund[2].
The European Commission is working on the proposals to increase hydrogen-based energy generation, in stages, to 6 gigawatts (GW) by 2024 and 40 GW by 2030. These are ambitious targets: 40 GW is the maximum capacity of 20 Hoover Dams[3], which can also equal to the electric consumption of about 20 million homes. The EU Commission estimated that, by 2050, this will require a remarkable investment of between EUR180bn and EUR470bn.
The qualities of hydrogen, which can make it an attractive alternative source of energy, have been known to scientists for a long time but the world did not possess the technology to make it happen in an efficient and profitable way. Hydrogen contains more energy per unit of mass than natural gas or gasoline, making it an attractive basis of transport fuel of the future. Going through a fuel cell, it can release 140 times more energy than the batteries currently used in electric and hybrid vehicles on the road. It does not emit any poisonous fumes, just water. Used for storage of electricity, hydrogen-based batteries use less rare materials than traditional batteries, while providing longer battery life. Recharging time is 15 times faster than for electric batteries.
While the use of hydrogen was relatively expensive, its investment case is based on a reasonable expectation that, just like with solar and wind, its price will fall with increased use and better technology is gradually introduced, supported by government subsidies.
[1] https://hydrogeneurope.eu/about-us-2
[3] https://www.climatecentral.org/blogs/helpful-energy-comparisons-anyone