EU Hydrogen Bank - The cherry on the cake of a new industrial policy
Jorgo Chatzimarkakis
CEO @ Hydrogen Europe | Hydrogen Philosophy | European Policy |
EU #Hydrogen Bank - The cherry on the cake of a new #industrial policy
It is a great day for the European clean-tech industry: the European Commission has today published its proposal for the European Net Zero Industry Act (#NZIA ) in line with the Critical Raw Material Act (#CRMA ). As the cherry on the cake of a new industrial approach, Commission President Ursula von der Leyen presented a communication on the design of the European Hydrogen Bank #hydrogenbank
Just to make things clear:?
? Clean technologies are regarded as strategic and therefore as a matter of immediate and strong support.?
? The strategic technologies are: #Solar and #thermal , #onshore and #offshore #wind , #battery , #heatpumps and #geothermal , #electrolysers and #fuelcells , #biomethane , carbon capture for usage and sequestration (#CCUS ).
? The European Commission understands the pressure on the clean-tech industry worldwide caused by the Inflation Reduction Act (#IRA ) in the US. This is a strong reaction to the IRA and will definitely boost clean tech in #Europe .
?? The plan comes along with new manufacturing objectives for these key technologies by 2030.
?? The EU ETS #innovationfund will be the most important source of funding.
?? Reduced permitting procedures and timespans are a key element.
?? Critical raw materials are also in focus?? :
?? New definitions on “Strategic raw materials” and “Critical raw materials” as well as “Strategic projects” are introduced.
?? Permitting procedures and timespans will be reduced.
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?? New extraction, processing and recycling objectives for key materials are introduced for 2030.
?? Member states can jointly purchase raw materials via a CRM Board with an underlying funding and scheme to crowd-in private investments.
?? The EU Hydrogen Bank ??is the cherry on the cake and should serve as a tool to accelerate this development:
?? Main target is to achieve the production of 10 million tons of #renewablehydrogen in the EU by 2030 and to make sure another 10 million tons can be imported.
?? The EU Hydrogen Bank aims to bring together information on renewable hydrogen demand and supply in the EU and worldwide.?
?? It will be building on existing sources and structures, e.g., information available via the Commission, especially the development of data collection on hydrogen led by Eurostat , the European Clean Hydrogen Alliance, Renewable and Low-Carbon Fuels Alliance and Zero Emission Aviation Alliance.????
?? The total investment needed to produce, transport, and consume 10 million tonnes of renewable hydrogen is expected to be in the range of EUR 335-471 billion, with EUR 200-300 billion needed for additional renewable electricity production.?
?? The investments for key hydrogen infrastructure categories by 2030 are estimated at EUR 50-75 billion for electrolysers, EUR 28-38 billion for EU-internal pipelines and EUR 6-11 billion for storage.?
?? The upscaling of the electrolyser manufacturing capacities will require investments estimated at a maximum of EUR 1.2 billion.?
?? An additional EUR 500 billion of investments will be needed in international value chains to enable the import of 10 million tonnes of renewable hydrogen, including in the form of derivatives.
PhD MEng | CEO Biorefic
1 年It is regrettable to note that H2 Bank's exclusive focus on RFNBO-H2, rather than a broader interpretation of renewable H2 as outlined in RED II/III, is a strategic oversight with potential adverse implications for the advancement of H2 infrastructure in Europe. This approach represents a significant setback for our company, which concentrates on H2 production from the upcycling of agricultural byproducts via gasification. If things don't change, we will be left with no alternative but to redirect our efforts towards the US market, embracing the opportunities presented by the Inflation Reduction Act.
Partner bei Chatham Partners
1 年The Commission certainly recognized and seized an opportunity here: The European Hydrogen Bank is going to be more than just a grant-awarding body. For the real punch though, the funding will be crucial. In this regard, more and more specific commitments are necessary.
Chief Commercial Officer at LIBALELE ENERGY
1 年Interesting: Hopefully a good address for projects in southern Africa that produce Green H2 with the aim to export to Europe…
Energy Policies expert | Associate Director BCG | Management consulting | Former member ACER Board of Appeal | Initiator and co-author "Touching Hydrogen Future" | #5 ??thought leader Hydrogen @Illuminem | Podcast cohost
1 年Jorgo Chatzimarkakis great analysis. I am wondering - if suggestion in document - enabling EU to "coordinate investments" in Hydrogen eventually - however tentatively formed, is something one should regulate in stone at legal act of founding of the entity - markets tend to take better decisions, when market design works. Views very welcome. Quote I base myself on "Publicly available information indicates that in 2021-2022 EU Member States and companies have signed hydrogen cooperation MoUs with at least 30 countries around the world. To explore synergies between multiple bilateral initiatives, the European Hydrogen Bank could enhance transparency and coordination of renewable hydrogen transactions and negotiations within the EU and with third countries [..]. To ensure diversification of renewable hydrogen sources over time, the Commission is exploring the option of an instrument inspired by the transparency provisions of the EU Energy Platform under Council Regulation (EU) 2002/257625. It could be a positive contribution to the incipient renewable hydrogen market to provide intelligence, and possibly provide Commission the possibility to issue recommendations on coordination of hydrogen investments".
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