Making Green Hydrogen a Reality: Some Aspiring Projects Ongoing in Europe

By Matteo Cadenazzi

As we have illustrated in several publications by INCONCRETO, green hydrogen emerges as a potent energy carrier, providing significant support in the endeavour to curb carbon emissions from heavy industries. Hydrogen earns its "green" label when produced in a climate-neutral manner. According to the common definition, this form of “clean hydrogen” is generated by using clean energy from surplus renewable sources, such as solar or wind power, to undergo electrolysis, splitting water into two hydrogen atoms and one oxygen atom (Source: WEF, 2021).

Green hydrogen serves as a sustainable substitute for fossil fuels in sectors like steelmaking, cement production, chemical manufacturing, and energy-intensive processes. Moreover, it has diverse applications, spanning from cleaning products and refrigeration to stabilizing electricity grids and specific transportation modes. This adaptability highlights its vital role in advancing decarbonization initiatives across multiple sectors.

The European Union’s Hydrogen Strategy

Globally, the European Union has taken centre stage as a prominent proponent of advancing renewable hydrogen production and developing interconnected hydrogen infrastructures. Since 2020, the EU has implemented a Hydrogen Strategy with two ambitious goals:

• Achieving a domestic renewable hydrogen production capacity of 10 million tonnes.
• Importing an additional 10 million tonnes of renewable hydrogen by 2030.

The European Commission states that as of the first quarter of 2022, all 20 action points outlined in the Hydrogen Strategy have been successfully implemented and fulfilled. These key actions are categorized into four broad macro-areas of intervention:

1. An investment agenda for the EU. An Hydrogen Pipeline has been established to facilitate the deployment of hydrogen production and usage, and of a tangible pipeline of projects. In addition, 15 EU countries have opted to endorse strategic investments in clean hydrogen as part of the Commission’s recovery plan. This support is notably channelled through the Strategic European Investment Window of InvestEU, amounting to a total of 9.3 billion euros.
2. Boosting demand for and scaling up production. Specific strategies have been initiated to facilitate the integration of hydrogen and its derivatives in transportation, as well as in end-use sectors such as renewable hydrogen in buildings.
3. Designing an enabling and supportive framework. The objective here is to ensure the widespread implementation of a comprehensive range of infrastructures, including networks for hydrogen transport and energy, as well as facilities for renewable hydrogen production, storage, transport, distribution, and essential components for priority end-uses of clean hydrogen, all at a competitive price.
4. The international dimension. This aspect involves the European Union's commitment to bolstering its leadership in international fora regarding technical standards, regulations, and definitions related to hydrogen. Tailored partnerships are being formed to foster collaboration with partners in the Southern and Eastern Neighbourhoods, as well as Africa, focusing on renewable electricity and hydrogen programmes.

The current landscape of Green Hydrogen in Europe

According to the White Paper “2024 Europe Green Hydrogen Project Updates” produced by Connecting Green Hydrogen Europe 2024, the present landscape of hydrogen initiatives within the European Union – and limitrophe countries – is highly diverse and robust.

As of December 2023, a total of 1,085 low-carbon hydrogen projects are underway across 31 European countries. Notably, Germany leads the pack with 198 projects, followed closely by Spain, France, the United Kingdom, and the Netherlands with 143, 126, 111, and 89 projects respectively. Such a concentration of hydrogen programmes stresses the dominance of these top five countries, which collectively account for 61% of the total number. Other relevant countries in the continent, such as Denmark, Italy Finland and Sweden, account between 30 and 60 projects each. Australia, also brought up here as a point of comparison, is undertaking 28 projects in the realm of hydrogen.

Furthermore, the report identifies other 13 countries, not shown in the chart above, with fewer than ten programmes each, highlighting a more limited involvement in hydrogen initiatives across certain regions of Europe.

Some examples of relevant European Green Hydrogen Projects

Connecting Green Hydrogen Europe 2024 has illustrated specific pivotal green hydrogen programmes that have already begun to, and have the potential to further solidify, a meaningful impact across the entire continent.

One standout project, currently in its early planning stages, is Brint? - Hydrogen Island, proposed by Copenhagen Infrastructure Partners (CIP). Launched in 2022, this initiative involves the construction of an artificial island dedicated to large-scale production of green hydrogen, made possible by its connection to 10 gigawatts of offshore wind in the Danish part of the North Sea. Anticipated to be operational by 2030, the island aims to supply an unprecedented amount of green hydrogen, estimated at around 1 million tonnes, which equates to roughly 7% of Europe's outlined hydrogen demand by that time. This ambitious project is poised to provide renewable energy to approximately 10 million European households, thereby playing a crucial role in securing Europe’s future green energy supply.?

It is worth noting that a consistent aspect of the plan involves the construction of an approximately 275-kilometer-long offshore hydrogen pipeline. This infrastructure will facilitate the export of hydrogen to the northwestern part of the EU, including Germany, the Netherlands, and Belgium.

CIP partner Thomas Dalsgaard declared that “The Danish, German, Dutch, and Belgian ambitions for the North Sea show the rest of the world how the green transition can be turbocharged if you dare to think big, internationally and in integrated systems”.

Indeed, Hydrogen Island is just one component of a broader wave of initiatives aimed at harnessing the power of the North Sea to revolutionize Europe’s energy system. Following many years where oil and gas dominated energy production in the region, the North Sea's abundant wind resource, with a potential evaluated up to 180 GW, is now set to be deeply exploited and converted into green hydrogen, thereby enhancing European energy security. Additionally, old oil and gas pipelines are being repurposed for hydrogen transport, further contributing to the transition towards a greener energy landscape.

Another notable initiative, at present in the feasibility study phase, is NortH2. This project, started in 2020 in the Groningen province of the Netherlands, is conceived and managed by a consortium consisting of Eneco, Equinor, RWE and Shell Netherlands. Together, they are exploring the possibility of putting in place a large-scale production, storage and transportation infrastructure for green hydrogen. Their ambitious goal is to achieve a capacity between 2 and 4 gigawatts by 2030, with plans to expand to over 10 GW by around 2040, equivalent to approximately 750,000 tons of green hydrogen per year. This effort is envisioned to result in a significant reduction in emissions, estimated at 8 to 10 megatons of CO? per year.

For hydrogen production, electrolysis is initially conducted at a large plant in Eemshaven, where wind energy will be converted into green hydrogen. The consortium is also exploring the potential installation of electrolysers at sea in a subsequent phase. In terms of infrastructure, the national company Gasunie is expanding its transport network and collaborating with the consortium to develop a smart storage and transport system in the Netherlands and Northwestern Europe.

Among the programmes in the final financing phase, H2 Green Steel (H2GS) also stands out as particularly considerable. Founded as a start-up company in Sweden, H2GS aims to decarbonize the European steel industry. Located in Boden, northern Sweden, H2GS plans to operate a fully integrated, digitalized, and circular plant to produce green steel, achieving up to a 95% reduction in CO? emissions compared to traditional steelmaking methods. This remarkable feat is made possible by replacing coal with green hydrogen, powered by fossil-free electricity. As a result, water and heat become the primary emissions. The first phase of the project will have a capacity of 2.5 million tons of green steel, supported by an electrolyser capacity of 800MW, and is scheduled to commence operations in 2025.

In January 2024, it was reported that H2 Green Steel has finalized a debt financing agreement worth €4.2 billion, augmenting the previously announced equity by €300 million. To date, the company has secured nearly €6.5 billion in funding, which includes a €250 million grant from the EU Innovation Fund. Once completed, the plant in Boden would be the world's first large-scale green steel facility in the region. However, steel production is just the beginning for H2 Green Steel. The company aims to leverage green hydrogen to decarbonize other heavy industries as well.

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