Engie bets on a flexible energy system where hydrogen plays a key role

Engie bets on a flexible energy system where hydrogen plays a key role

Engie bets on a flexible energy system where hydrogen plays a key role

The energy company took the floor to urge action in light of the risks threatening Europe’s decarbonisation path. To achieve carbon neutrality by 2050, it is crucial to support technologies that can contribute to the decarbonisation of maritime and air transport, as well as heavy industry.

According to Engie, the European 2030 target, known as “Fit for 55”, is “within our reach” because it largely relies on mature technologies (solar, wind, electric vehicles, etc.). The challenge now lies in accelerating their rollout. Furthermore, the Group confirms that Europe needs to reduce emissions by 4% annually until 2050 to achieve carbon neutrality (Net Zero Carbon). To meet this target, massive electrification is required, along with the activation of all decarbonisation levers, including the development of “green molecules,” to ensure a successful and cost-effective energy transition.

In other words, hydrogen will be essential to meet these goals. The company forecasts a sevenfold increase in hydrogen demand (100% low-carbon by 2050), driven by new applications in aviation, shipping, and heavy industry.

Engie estimates that achieving the European targets will require a 5.5-fold increase in renewable energy production and a 4.5-fold expansion of flexibility solutions to balance electricity supply and demand. Engie is banking on a more flexible energy system, involving grid-connected battery storage systems and effective demand management, particularly through electrolysers producing renewable hydrogen. This approach will combine domestic batteries, electric vehicle batteries, and hybrid heat pumps, as well as temporary reductions in industrial production.

By 2050, nearly two-thirds of flexibility capacity will come from demand-side solutions, leading to a profound transformation of the entire energy system and consumer behavior. All of this requires immediate preparation, including the development of appropriate infrastructure.

Learn more about Engie’s recommendations here.

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About the author

Picture of Marina Leite King

Marina Leite King

As a Brazilian passionate about languages, human rights and environmental issues, I hold a Bachelor's degree in Applied Foreign Languages with a major in International Economic Development. Drawing on my experience as a content creator on social networks, I joined Seiya Consulting and H2 Today in June 2022, first as an intern, then as Marketing & Communication Manager and Designer.

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