Page 4 - EurOil Week 16 2022

EurOil COMMENTARY EurOil

Europe broadens hydrogen

network ambitions

Hydrogen has now been repitched as a means of helping Europe phase out Russian gas supply

EUROPE THE EU is aiming to completely end its use of how it will achieve these accelerated hydrogen
Russian natural gas by the end of the decade, goals. However, the European Hydrogen Back-
WHAT: targeting a reduction in import volumes of two bone (EHB) initiative, which brings together 31
The EU is expanding its thirds within a single year. Yet in its REPowerEU network operators across Europe, has responded
targets for hydrogen strategy, the European Commission also makes to REPowerEU, outlining how hydrogen trans-
production and imports. it clear that it does not want this effort to jeopard- mission must be developed to realise these
ise its other paramount goal in the energy sphere higher targets.
WHY: – decarbonisation. In an updated roadmap published earlier
The bloc now sees As such, while the EU is looking to ramp this month, EHB called for the development of a
hydrogen not only as a up LNG imports in the short to medium term, 28,000-km hydrogen-carrying network by 2030,
tool for decarbonisation it has no plans to grow indigenous natural gas expanding to 53,000 km by 2040, across 25 EU
but also one for reducing production. Instead, it plans to double hydrogen member states plus Norway, the UK and Swit-
reliance on Russian production and rapidly expand biogas supply. zerland. Around 60% of its network would con-
natural gas. It estimates these efforts will enable it to slash sist of repurposed natural gas pipelines already
Russian imports by as much as over 80bn cubic in operation, while the remaining 40% would
WHAT NEXT: metres annually. That equates to around half of comprise purpose-built hydrogen pipelines.
Transmission operators the gas supply that it receives from Russia today. The overall cost of the initiative has also grown
have broadened the Hydrogen is the main focus. By 2030, the EC to €80-€143bn ($87-$155bn).
scope of a continental wants to ratchet up annual hydrogen production At its conception two years ago, the estimated
hydrogen network to and imports to 20mn tonnes per year (tpy). The cost of EHB was only €27-€64bn. Its proposed
handle the extra supply. Commission estimates that that would result in size back then was only 23,000 km by 2040,
a reduction in Russian gas imports of between although last year this was raised to 40,000 km.
25 and 50 bcm per year. Previously, in its Fit- At its launch, the initiative was only supported
for-55 climate proposals, Brussels was targeting by 11 network operators, and it covered pipelines
only 5.6mn tpy of domestic green hydrogen in only 10 countries, mostly in Western Europe.
production. EHB has not altered its cost estimates for
The Commission is yet to elaborate details on transport over the last two years, however. It still

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