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DMEA COMMENTARY DMEA

breakthrough technologies.” Europeans with millions of jobs in clean tech-
Large-scale infrastructure is also needed, that nologies made in Europe,” the general secretary
only the EU, by working as one, can achieve. of European gas association Eurogas, James Wat-
son, said in a statement this week. “The Euro-
Deployment plan pean Hydrogen Alliance will make sure that all
The EU’s priority is developing green hydrogen, clean hydrogen technologies – carbon capture
which involves using renewable energy to sepa- and storage, pyrolysis, electrolysers – are used to
rate hydrogen from water in a process known as kick-start the hydrogen economy now.”
electrolysis. It can be deployed in sectors which The EC’s inclusion of blue hydrogen contrasts
will struggle to decarbonise in any other way in with the hydrogen strategy just adopted by Ger-
the coming decades. many, which is aspiring to be a world leader in
Between 2020 and 2024, the plan is to estab- hydrogen technologies. Berlin’s policies only
lish at least 6 GW of hydrogen electrolyser capac- provide subsidies for hydrogen derived from
ity, capable of producing 1mn tonnes per year renewables.
(tpy) of the fuel. The EC will seek to create a reg- By acknowledging blue hydrogen’s role, the
ulatory environment that supports the market’s EC’s strategy won praise from German gas asso-
development, providing incentives to both sup- ciation Zukunft Erdgas.
pliers and consumers. “It sends a clear signal for the production
Under the second phase, at least 40 GW of and use of green hydrogen, but the production
renewable hydrogen electrolysers would be of CO2-neutral hydrogen from natural gas is
installed between 2025 and 2030 to produce up emphasised for the competitive and technolo-
to 10mn tpy of hydrogen. gy-open development of a hydrogen economy,”
Still, the EC recognises that blue hydro- the association said in a statement issued after
gen also has a role to play in the transition in the strategy was unveiled. “Europe has rec-
the short and medium term. Blue hydrogen is ognised that electrification alone will not be
derived from fossil fuels but uses carbon capture enough to achieve climate neutrality; hydro-
and storage (CCS) technology to limit emissions. gen will become the second pillar of the future
This technology is yet to be tested on a commer- energy strategy and an integral part of the Euro-
cial scale. pean energy mix.”
Some fossil fuel-based hydrogen is necessary Still, others in the oil and gas industry were
as a stop-gap, according to the EC, while costs less welcoming of the policy plan.
for green hydrogen come down. As it currently While commending the EC for including
stands, green and blue hydrogen would cost blue hydrogen, the International Association of
€2.5-5.5/kg and €2/kg respectively for the EU, Oil & Gas Producers (IOGP) said a more bal-
the International Energy Agency (IEA) esti- anced approach to different hydrogen technol-
mates, while unabated grey hydrogen is only ogies was needed.
€1.5/kg. Over the next decade, the EC envisages “The future basket of implementing measures
carbon capture technology being retrofitted to will need to be more realistic and ensure that the
existing hydrogen production. full range of clean energy solutions are equally
During a third and final stage between 2030 able to play their part,” the group’s regional direc-
and 2050, green hydrogen technologies should tor for Europe, Francois-Regis Mouton, said.
reach maturity, and be deployed en masse to “On paper, it is easy to pick winners to pro-
reach even hard-to-decarbonise sectors, the EC duce large volumes of clean and cheap hydro-
said. gen. What is difficult is to get industrial actors
to take on the market, technology and policy
Reactions risks associated with real investments in a global
The EU also formally established the European competitive landscape,” he said. “The strategies
Clean Hydrogen Alliance on July 8, consisting rely massively on new, hypothetical competitive
of public authorities, industry and civil society, renewable hydrogen imports while forgetting
aimed at creating an agenda for hydrogen invest- Europe’s own resources, and its existing strategic
ment and a pipeline of projects. energy partnerships which can ensure compet-
“Ramping up hydrogen is a future-proof solu- itive supply of clean hydrogen from natural gas
tion to achieve climate neutrality and provide with CCS or pyrolysis.” ™

SAUDI HYDROGEN
How a potential hydrogen revolution takes production plant in northwest Saudi
shape in Europe will affect how the fuel Arabia.
is deployed in other areas of the world. The project, also involving Saudi Arabian smart
European countries are not the only ones city initiative NEOM, will use over 4 GW of
looking at hydrogen seriously. This week renewable energy, including solar and wind,
Air Products of the US reached a deal to produce 650 tonnes of green hydrogen daily,
with Saudi Arabia’s ACWA Power to build for export across the world. It is due to come on
a $5bn green hydrogen-based ammonia stream in 2025.

P6 www. NEWSBASE .com Week 27 09•July•2020