Following a recent report published by Transport & Environment (T&E) on February 13, Hydrogen Europe wrote a factual response, making the case for global hydrogen trade.
Essentially, T&E’s report asserts that there is a disconnect between Europe’s hydrogen ambitions and the real potential, particularly when it comes to imports. The said report therefore maintains that there is no case for hydrogen trade. However, as it is reminded by Hydrogen Europe as a preamble, “Hydrogen’s role in Europe’s net-zero economy will be substantial and multi-faceted.” And the association corroborates this position with facts and figures.
Potential for imports
As part of REPower EU, the target for green hydrogen by 2030 includes 10 million tons (Mt) of domestic production and 10Mt imported from multiple global partners. T&E upholds that there will only be a demand of around 4Mt by 2030. Consequently, such a low demand could be met by European production alone. As for Hydrogen Europe, it claims that there are already projects accounting for 7Mt worth of demand in the project pipeline for 2030. And that is for industry alone.
Furthermore, Europe will not solely import from the 6 countries listed in the report. For instance, Germany plans to import from many other countries such as Canada or Australia. And it will rely heavily on imports. As stated in its hydrogen strategy, it will need to import around 50-70% of its hydrogen demand.
Beyond trade: the issue of water consumption
Regarding the issue of water consumption, Hydrogen Europe is very clear. “Electrolysis process is around 40% less per kWh of fuel than that used by gasoline or diesel (0.27l/kWh vs 0.44/kWh), the fuels hydrogen is intended to replace.” The association backs up its argument with two graphs. While putting an emphasis on the actual saving of water that transitioning from fossil fuels to hydrogen would entail.
Hydrogen Europe also emphases that, for many countries, hydrogen development represents an important socioeconomic development opportunity that goes far beyond trade.
You can read the report from T&E here and access Hydrogen Europe’s full response there.
