EU 2040 emissions target outlines large role for hydrogen

The European Commission's ambitious 2040 emissions target outlined Feb. 6 defines a key role for clean hydrogen in the EU's energy transition, with production of 20 million to 35 million mt representing up to 10% of final energy demand, industry group Hydrogen Europe said.

This rises to last least 16% of final energy demand by 2050, it said in a statement Feb. 6.

However, the impact assessment model published by the EC accounted for only 3 million mt/year of hydrogen production by 2030, far below the 10 million mt objective set out in the EU's 2020 hydrogen strategy.

Hydrogen Europe said the EC's assessment failed to consider "other key roles for hydrogen, such as in long-term seasonal storage, power production and heavy-duty road transport," and said the 2030 production model was below the combined targets presented by member states' National Energy and Climate Plans.

"Meeting any of the proposed 2040 climate targets will depend on Europe's capacity to meet its 2030 goals [...] under Fit for 55 legislation, which establishes binding targets for the use of hydrogen and low-carbon fuels in industry and transport," Hydrogen Europe said.

Key to meeting these targets was sufficient state aid and the right market support mechanisms to unlock private capital, Hydrogen Europe added.

"Hydrogen's role in providing flexibility solutions and advancing sectoral integration should not be undermined by any preference for an electrification-only scenario," Hydrogen Europe Chief Policy Officer Daniel Fraile said in the statement. "Only by developing hydrogen and electricity infrastructure together will we have a chance at decarbonizing all sectors by 2050."

Platts, part of S&P Global Commodity Insights, assessed the cost of producing hydrogen via alkaline electrolysis in Europe at Eur4.69/kg ($5.04/kg) Feb. 5 (Netherlands, including capex), based on month-ahead power prices. Proton exchange membrane electrolysis production was assessed at Eur5.63/kg, while blue hydrogen production by steam methane reforming (including carbon, CCS and capex) was Eur2.55/kg.