Producing hydrogen can be expensive and energy-intensive, and transporting and storing it can be difficult. The infrastructure required to support widespread adoption of hydrogen as a fuel source is far from being fully developed. In spite of everything, Europe wants to be the global leader in hydrogen economy, specifically targeting Renewable Hydrogen through REPowerEU.
Ubiquitous H2
Hydrogen is a chemical element with the symbol H and atomic number 1. It is the lightest and most abundant element in the universe, making up about 75% of its elemental mass. Hydrogen is a colorless, odorless, and tasteless gas that is highly flammable and has the highest energy content per unit of weight of any known fuel. It is a building block of water, a vital component of everyday life.
Hydrogen can be used as a fuel in a variety of ways, including combustion, fuel cells, and as a raw material in industrial processes. In combustion, hydrogen is burned with oxygen to produce heat, which can be used to generate electricity or power vehicles. In fuel cells, hydrogen is reacted with oxygen from the air to produce electricity, with water as the only byproduct. Fuel cells are often used in transportation applications, such as in cars, buses, and even airplanes.
The colors of hydrogen
Industry uses a commonly known chart to describe different methods to produce hydrogen.
- Grey hydrogen: This is hydrogen that is produced from natural gas through steam methane reforming (SMR). It is the most commonly used method of hydrogen production, but it also produces a significant amount of greenhouse gas emissions.
- Blue hydrogen: This is similar to grey hydrogen, but the carbon emissions from SMR are captured and stored or utilized, usually through carbon capture and storage (CCS) technology.
- Turquoise hydrogen: This is produced through a process called methane pyrolysis, which breaks down methane into hydrogen and solid carbon without emitting any CO2. This is still an emerging technology and is not yet commercially available.
- Green hydrogen: This is produced through the process of electrolysis, using electricity from renewable sources such as solar or wind power to split water into hydrogen and oxygen. It is the most sustainable and environmentally friendly method of hydrogen production.
- Yellow hydrogen: This is produced through the gasification of biomass, such as agricultural waste, wood chips, and other organic materials.
- Purple hydrogen: This is produced through the process of electrolysis, but instead of using renewable electricity, it uses electricity from nuclear power.
- Brown hydrogen: This is produced through coal gasification, which is a highly polluting method of hydrogen production.
- Black hydrogen: This is produced through the gasification of coal, which is the most polluting method of hydrogen production.
Each of these colors of the spectrum pollutes in a different way and amount. More or less, fossil fuel sources are currently being used to separate out the hydrogen and each is left with its own way of dealing with the pollutant.
The problem with all of them is that burning natural gas directly to generate heat or electricity is more efficient and often less polluting than converting it into hydrogen fuel.
The reason why natural gas is still used to produce hydrogen is that it is a well-established method and there is significant infrastructure in place for processing and transporting natural gas. Additionally, natural gas is typically less expensive than other feedstocks, such as biomass or electricity from renewable sources. It is mostly a matter of convenience.
Only (logically!) true and environmentally safe way that hydrogen should be produced is the color “green”, made from electricity from renewable sources. Then again, scholars say that in practice both “grey” and “green” methods of production have the same CO2 amounts produced. The difference is that while CO2 amounts may be the same, in green hydrogen there is no input of fossil fuels and that makes it somewhat free in the long term.
Key to understanding this is in plant efficiency which is way worse for intermittent sources of energy for electrolysis, such as wind and solar. Hydrogen using steam methane reforming is simply easier to produce at continuous peak efficiency.
Costs of doing bussiness
The cost of producing hydrogen fuel can vary depending on the production method used and the availability of low-cost feedstocks such as natural gas or biomass. Currently, without any doubt, the cost of producing hydrogen fuel is generally higher than the cost of producing conventional fuels such as gasoline or diesel.
It is easily noticeable that the cleanest and most desireable form of hydrogen production is at the same time the most expensive by factor x2—x10 when compared to common feedstock. Looking at the very beginning, it is going to be an uphill battle for the EU to describe benefits of such an expensive end product with limited practical use.
Planners of REPowerEU have their hearts and minds in the right place, but reality is strongly against such investment — unless there is going to be a Europe-wide effort to achieve this common goal.
Missing infrastructure
According to a report by the European Commission, as of 2021 there were over 200 hydrogen refuelling stations in the EU, with the highest concentrations located in Germany, France, and the UK. The majority of these stations are concentrated in urban areas and along major transportation routes, and there are still many regions without access to hydrogen refuelling infrastructure.
The EU has set a target of deploying at least 40,000 hydrogen refuelling stations by 2030 to support the development of a hydrogen economy.
In Europe, there are only several hydrogen pipelines, including a 180-km pipeline that runs from Rotterdam in the Netherlands to Antwerp in Belgium, and a 160-km pipeline that runs from the Rhine-Ruhr region in Germany to Cologne. However, the existing hydrogen pipeline infrastructure is limited compared to the extensive network of natural gas pipelines that currently exist.
Denmark and Germany recently announced plans to jointly construct a pipeline to transport hydrogen between these two countries. In a non-binding agreement, both countries want to cooperatively enhance Danish hydrogen production to upwards of 20 TWh with planned electrolyser capacity of 6 GW by 2030.
To achieve EU’s goal of producing, importing, and transporting 20 million tonnes of hydrogen by 2030, it will be crucial to accelerate the implementation of hydrogen infrastructure as soon as possible. While cross-border hydrogen infrastructure is still in its early stages, the revised trans-European networks for energy have already included hydrogen infrastructure in their planning and development.
The total investment required for the primary hydrogen infrastructure categories is expected to be approximately EUR 28-38 billion for EU-internal pipelines and EUR 6-11 billion for storage. Remember, the EU wants to get rid of at least 35 billion cubic meters of imported natural gas and is using hydrogen, biogas and biomethane to do so at any cost.
Very small number of automobiles that use hydrogen
Some European automakers have been developing hydrogen fuel cell vehicles. For example, the German automakers BMW and Mercedes-Benz have both introduced hydrogen fuel cell vehicles in limited numbers, and the French automaker PSA Group (now Stellantis) has also been developing hydrogen fuel cell technology.
Current global leader in hydrogen fuel cell technology is Toyota, a Japanese automaker. They offer their second generation hydrogen fuel cell vehicle in Europe called the Mirai, a mid-size 4-door sedan powered by an electric motor that uses a fuel cell to generate electricity on-board with a range of around 650 km (402 miles) on a single tank of hydrogen.
Toyota also recently introduced a hydrogen internal combustion engine (HICE) that uses hydrogen fuel without problems with nitric compounds commonly occurring because of the high combustion temperatures. When hydrogen oxidizes in a normal atmosphere the result is water vapour and no harmful substances. When it happens inside HICE it can produce nitrogen oxides (NOx) during the combustion process, which can react with other compounds in the atmosphere to form harmful nitric compounds such as nitric acid (HNO3) and nitrogen dioxide (NO2).
There are several reasons why automakers are not currently producing more hydrogen fuel cell vehicles. One of the main reasons is the high cost of producing fuel cell technology, which is still more expensive than traditional internal combustion engines or battery electric vehicles. Additionally, the lack of hydrogen refuelling infrastructure in many parts of the world makes it difficult for automakers to market fuel cell vehicles to consumers.
Furthermore, battery electric vehicles are currently receiving more attention and investment from automakers, with many major automakers making significant commitments to producing electric vehicles in the coming years. As a result, there may be less focus and investment in developing and producing hydrogen fuel cell vehicles.
The chicken-and-egg problem with hydrogen fuel cell vehicles: automakers are reluctant to produce more of these vehicles until there is a robust infrastructure of refueling stations, but the development of that infrastructure is unlikely to happen until more fuel cell vehicles are on the road. This is a challenging hurdle that will require significant investment and coordination among automakers, governments, and private industry to overcome.
Extreme technology solutions make H2 tech hard to reach
Hydrogen is a small and slippery molecule, it readily escapes through every seal, it even diffuses into metals making them brittle. Since hydrogen is very lightweight, for it to have a significant energy density in a small volume practical to be carried around in a vehicle it has to operate under high pressures, reaching 700 bar for the IV generation technology.
Tanks that can withstand such immense pressures and to be resistant to any kind of external damage have to be made with high specifications. Such tanks usually have composite structure made of carbon fiber for stiffness, special polymers that stop hydrogen from escaping and glass fiber outer layer to make them strong and durable, making them heavy and expensive.
With current technology, around 1 percent of hydrogen stored in tanks is lost daily. Specialized seals are required for hydrogen due to its low molecular weight and high diffusion rate. Some commonly used seal materials for hydrogen applications include elastomers such as Viton, Kalrez, and Chemraz, as well as metal seals like copper and aluminum. Hydrogen seals often require specialized surface finishes and coatings to prevent hydrogen embrittlement and ensure long-term performance, which raises the price of the finished product once more.
Electrodes for fuel cells are made with rare metals that are hard to obtain such as platinum, palladium and iridium. Platinum is a key component in the catalyst layers of many fuel cells, and it is expensive and relatively rare. Major platinum producer is South Africa, accounting for approximately 75% of global supply, with rest being produced in Russia, Zimbabwe, Canada, and the United States. Although ongoing research to reduce the amount of platinum needed in fuel cells or to replace it entirely with other materials, platinum is still highly needed in production of hydrogen fuel cars.
Europe’s renewable energy potential
In July 2021, the European Commission adopted the ‘fit for 55’ package, which updates existing climate and energy legislation to meet the new EU objective of reducing greenhouse gas emissions by at least 55% by 2030. This package is part of the European Green Deal, which aims to achieve climate neutrality in the EU by 2050. The revised Renewable Energy Directive (RED II) is a key element of the ‘fit for 55’ package, which strengthens the previous goal of ensuring that at least 32% of energy consumption in the EU comes from renewable energy sources by 2030.
The revised RED II sets a new EU target of a minimum 40% share of renewable energy in final energy consumption by 2030, along with new sectoral targets. As part of the REPowerEU plan introduced in May 2022, the Commission proposes raising this renewable energy target to a 45% share by 2030.
Crunching the numbers for different kinds of renewable energy we always get the same old answer – it depends. In energy generation the most important rule is one of the efficiency per euro. Not all European regions are viable for all types of investments into renewable energy systems, and cannot use one technology universally. There are many factors that have to be accounted before entering into an investment.
Wind power
The role of offshore wind energy in achieving the goals of the EU Green Deal cannot be overstated. To this end, the European Commission’s offshore renewable energy strategy aims to integrate 300 GW of offshore wind generation capacity into the energy system by 2050. However, such a large-scale transition presents several challenges for the European electricity system.
These challenges include the need to establish cost-effective connections and grid development, ensuring system security, accommodating a complete redefinition of power flow patterns, addressing spatial planning and environmental concerns, achieving an integrated perspective across time, space, and sectors, and securing flexible resources to balance the power system.
The goal of REPowerEU is to enhance Europe’s energy security by increasing the current wind energy capacity of 190 GW to a minimum of 480 GW by 2030. Achieving this would entail streamlining the permitting process and collaborating to reinforce Europe’s wind energy supply chain. Additionally, it would necessitate substantial investments in offshore grid infrastructure, port facilities, and vessels.
Germany, Denmark, Netherlands and Belgium already signed a 135 EUR billion pact to raise offshore wind capacity to 150 GW by 2050. The goal of the agreement is to increase the offshore wind power capacity in the region by tenfold, which is expected to attract total investments of €135 billion from the private sector. However, the actual figure could be even higher, since the European Commission has estimated that a total of €800 billion in offshore energy investment is required to meet the EU’s 2050 objective.
The four nations also plan to increase collaboration in the production of renewable electricity-derived “green” hydrogen and expand associated infrastructure in the area. Also, they want to invest into 30 GW electrolyser capacity by 2030.
Solar energy
Despite a decrease of over 80% in the cost of solar photovoltaics (PV) in the last ten years, its contribution to the EU electricity grid was only 5% in 2020. In heat production, solar power accounted for a mere 1.5%.
The European Solar Rooftops Initiative has been launched in Brussels to accelerate the transition away from gas-fueled power and heating in homes, offices, shops, and factories. The initiative was supported by the EU and national governments who took action to limit permitting times to three months for rooftop installations. Through this initiative, countries have successfully used EU funding and launched support programs for rooftop panels, and installed solar energy in all suitable public buildings by 2025. The initiative has played a key role in boosting the share of solar power in the EU’s electricity mix and has helped reduce the region’s greenhouse gas emissions.
In a significant move towards boosting Europe’s solar industry, the EU has launched several initiatives and funds aimed at supporting investments in manufacturing and skilling solar sector workers. The newly established “EU Solar Industry Alliance” is set to utilize the bloc’s budget and carbon market innovation fund to help finance solar manufacturing projects in Europe. As part of the initiative, governments and training providers will collaborate to provide training for workers in the solar sector.
Currently, Europe has approximately 14 planned solar component manufacturing projects, some of which require significant financing to launch. To address this challenge, the EU has taken proactive steps to support these projects through the establishment of the “EU Solar Industry Alliance”.
In recent years, Europe has struggled to compete with China’s large-scale solar factories, which accounted for 75% of EU solar panel imports in 2020. Despite the EU imposing anti-dumping and anti-subsidy controls on solar panels from China between 2013 and 2018, Europe has found it challenging to compete with China in terms of solar manufacturing. However, with the newly established initiatives and funds, the EU is optimistic about boosting the continent’s solar industry and reducing reliance on imports from other countries.
Renewable hydrogen world according to EU
Renewable hydrogen will be key to replace natural gas, coal and oil in hard-to-decarbonise industries and transport. REPowerEU sets a target of replacing around 664 TWh of energy imports: 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of renewable hydrogen imports by 2030.
The full transition to a hydrogen economy would require a powerful increase in renewable energy capacity. It’s worth noting that a full transition to a hydrogen economy is unlikely to occur overnight and would likely occur gradually over several decades, providing time for the necessary infrastructure and capacity to be developed.
A study by the International Energy Agency (IEA) found that meeting just 5% of global energy demand with hydrogen would require the deployment of 3,600 GW of electrolyzer capacity by 2050, which is equivalent to more than ten times the current global installed wind and solar capacity.
The giant ball of hydrogen has slowly started rolling in the EU. In present and near future, a mix of energy sources, including both renewable and non-renewable sources, is going be required to meet the energy needs of a hydrogen economy, especially during the transition period. That is the reality of the situation for the decades to come.
Recent news:
Council and Parliament reach provisional deal on renewable energy directive – 30. March 2023.