According to study

Hydrogen: EU “far away” from targets

According to the study, there is a huge gap worldwide between announcements and implementation.

(Bild: Daimler Truck)

Clean hydrogen as an energy source is indispensable for achieving global climate targets. However, according to a study published on Monday by management consultants PwC Strategy&, the EU is in danger of missing its own hydrogen targets. 

According to PwC, the EU wants to use at least 20 million tons of clean hydrogen by 2030 and produce half of it itself in Europe. However, "the EU is a long way from achieving this". It would need to build 120 gigawatts (GW) of capacity to achieve this. However, only 0.2 GW of plants are currently in operation, while plants with a capacity of 3 GW are under construction or financed. In view of its own targets, the EU would have to build plants with a capacity of 20 GW every year.

According to the study, there is a huge gap between announcements and implementation worldwide: projects with 840 GW have been announced, 15 GW are financed or under construction, while plants with just 1 GW are in operation.

Asia leads the way
In terms of plans, Europe is in first place ahead of Africa and Latin America - in terms of implementation, China, South Korea and Japan are the frontrunners. According to PwC, the Asian trio already has "twice as much production capacity in operation, financed or under construction as Europe". The USA is focusing primarily on cheaper hydrogen, which is produced by capturing and storing CO2.

"The capital-intensive hydrogen market is still in its infancy and has recently had to contend with high interest rates and inflation in material prices," said co-author Dirk Niemeier. Politicians have a duty here.

"The biggest barrier is the lack of large-volume purchase agreements, which prevents the financing and thus completion of production projects. The prerequisite for such purchase agreements is, in turn, a subsidy that compensates for the initial additional costs compared to fossil alternatives, similar to renewable electricity." In addition, renewable energy is necessary for clean hydrogen, but is in short supply.