EU energy policy: the beginning of the hydrogen era?

With the Green New Deal, EU is preparing to implement a real energy revolution, pursuing not only a green energy policy, but also developing a new supply chain for hydrogen

In 2015, the European Union decided to undertake a new energy policy within the bloc, capable of establishing an “Energy Union”. The Energy Union builds five closely related and mutually reinforcing dimensions: security, solidarity and confidence, for which it is necessary to diversify European energy sources and ensure energy security; a fully integrated internal energy market, allowing for the free flow of energy in the EU through appropriate infrastructure; energy efficiency, to reduce dependence on energy imports, reducing emissions and stimulating employment and growth; decarbonisation of the economy, committing to speedy ratification of the Paris Agreement and maintaining its leadership in the renewable energy sector; and research, innovation and competitiveness to support breakthroughs in low-carbon technologies and clean energy.

These key points have led European energy policymakers to develop a decarbonisation process that, until 2020, had not utilized the energy supply chain to the point necessary to try to achieve the objectives expressed in the Paris Agreement. The Covid-19 pandemic has accelerated the process of decarbonisation necessary to reverse the climate risk that would have catastrophic consequences on our planet. The European Union, in its various reports, and especially in the last “Quarterly report on European gas markets”, highlighted once again the need to develop a green energy supply chain. In this process of energy transformation, hydrogen could be fundamental in the development of a sector that could lead the European Union to be a leader in the hydrogen supply chain.

The hydrogen chain in Europe

The rhetoric surrounding hydrogen and its advancement in energy and industrial systems is heavily influenced by the criticism of those who argue (rightly or wrongly) that the time was not and is not ripe. The limitations and obstacles that this energy vector faces are not a mystery, and keeping silent about them would not reduce the complexity of the process exacerbated by new entrants in an already highly consolidated market. On the other hand, however, it would be biased not to highlight the steps forward that have been taken in recent years, starting with recent developments involving green hydrogen. The future of hydrogen as a fundamental energy vector is in the making: from grey hydrogen to green hydrogen, passing through blue, purple and turquoise hydrogen, there are immense possibilities that can be very useful for a necessary green energy transition.

In Europe there is now the objective of creating a network of more than 40,000 kilometres to transport hydrogen. To hypothesize this scenario are the operators of the European gas networks through the project of the European Hydrogen Backbone. It is not by chance that the latter is based on the important possibility of extending the European hydrogen network by aiming at a decisive decarbonisation. The European Commissioner for Energy, Kadri Simson, highlighted some “key aspects for building a hydrogen market for Europe”. Simson also conceptually spoke of the strategy then the role of hydrogen within the Green Deal; to finance planned projects with a value of approximately 420 billion euro by 2030 in electrolysers, renewable generation and infrastructure; and the need for international cooperation to structure a European interconnected hydrogen energy system in the near future.

Focusing on hydrogen to support the ecological transition is inevitably one of Europe’s objectives, and this involves not only efforts to produce hydrogen, but also to distribute it.

The current forecast, also expressed by the World Energy Council, is that a possible hydrogen network will be able to unite 21 countries within the European Union and this will only be possible through a suitable infrastructure policy. According to current forecasts, about 70% of the total infrastructure will come from an upgrade of existing one, while 30% of the remaining route would be created from scratch.

The plan will help integrate large amounts of renewable energy and create the basis for a cross-border market for renewable and low-carbon hydrogen.

Europe needs to quickly develop a network dedicated to hydrogen, as is also explained in the “European Hydrogen Backbone”, where a clear roadmap is shown on how this can become a reality. The European Union is therefore convinced that it has embarked on an ambitious and feasible project. Rifkin has always suggested the possibility of a hydrogen-powered industrial segment; it is now up to the institutions to implement investments and make these projects credible for the start of a hydrogen economy.