While Western Europe is at the forefront of low-carbon hydrogen development, accounting for around half of total hydrogen demand in Europe, greater political support and demand stimulation are needed to accelerate the pace, says the International Energy Agency (IEA) in the second edition of its Northwest European Hydrogen Monitor report, published on Wednesday 17 April.
The region has the potential to produce 7 million tonnes a year by 2030. However, despite ambitious targets, less than 4% of planned projects are operational, underway or have been the subject of a final investment decision, which puts them behind the United States and China.
According to the IEA, political support throughout the value chain is essential to accelerate supply and stimulate demand, sending clear signals to investors considering production projects.
Against a backdrop of geopolitical tensions, production targets doubled after the invasion of Ukraine in 2022, with 40 GW of electrolysis capacity targeted by 2030.
However, uncertainties such as market changes and cost fluctuations persist and greater efforts are deemed necessary to make the price of low-carbon hydrogen competitive with hydrogen produced from fossil fuels. In particular, the report considers it essential to develop underground hydrogen storage capacity.
To see the report: https://aeur.eu/f/bt1 (Original version in French by Pauline Denys)