Decarbonisation has become the main topic for green investors and it seems hydrogen might become the next trend.
Not only environmentalistic advocates are calling for an increased use of renewable energy, the European Commission shared its latest green strategy last week to meet zero-carbon emission by 2050.
While the European Union is already using eight million tonnes of hydrogen each year, most of it is a so-called “grey” hydrogen, since it is using planet-warming emissions.
Thus, green H2 is the new goal for energy industrials who are aiming to have green hydrogen ready by 2030 – catching the attention of all green investors.
A gradual approach
Is Europe ready for a zero-emission world? According to Reuters, it is highly likely. Earlier this month, the European Union published the “EU Strategy for Energy System Integration” detailing its plan.
“The EU’s priority is to develop “green” hydrogen and largely deploy it for sectors hard to decarbonize or where electrification is difficult or impossible from 2030 to 2050”, reported the London-based agency.
From 2020 to 2024, six gigawatts of renewable energy will be set up in the European Union.
In total, investments in green hydrogen according to Reuters, could reach between “180 billion and 470 billion euros by 2050, and between 3 billion and 18 billion euros for low-carbon fossil-based hydrogen”.
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Why choose hydrogen?
With several alternatives already available – from solar panel to wind power – hydrogen is said to be the most available fuel on Earth. According to Euronews, gas actually “makes up 75 percent of the universe.”
EU #hydrogenstrategy is no excuse to NOT phase-out fossil gas by 2035.
Temperature rise cannot be limited to the needed 1.5°C if #fossilgas remains in our energy system beyond 2035.
👉 https://t.co/zzh3bLzksX#EUGreenDeal needs NO DIRTY GAS ‼️ pic.twitter.com/hYiHSyZZw0
— CAN EUROPE (@CANEurope) July 8, 2020
It makes it a great source of energy because it “never runs out”. However, hydrogen only represents 2% of Europe’s current energy output.
Listed companies are already involved
Based on information from Euractiv, energy-related giants have already expressed their interest towards green hydrogen, such as Airbus claiming hydrogen might become the ideal fuel for its fleet.
“Hydrogen is one of the most promising technologies available to help us reach zero-emission flights by 2035. We welcome the EU’s Hydrogen Strategy and Roadmap, which enables us to live up to that ambition”,
Last but not least, Air Liquide is also set to be a safe investment, since it recently joined forces to secure hydrolysis. McPhy, Siemens, ThyssenKrupp, and ITM Power are also starting to develop hydrogen strategies.
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