Page 5 - EurOil Week 27

EurOil COMMENTARY EurOil

breakthrough technologies.”
Large-scale infrastructure is also needed, that
only the EU, by working as one, can achieve.

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

Week 27 09•July•2020 www. NEWSBASE .com P5