Value chain for hydrogen

Hydrogen will be crucial for developing an efficient and sustainable power system and for effectively transitioning to zero-emission solutions in the industry and transportation sectors.

Hydrogen is vital for an efficient transition of the European energy system. The potential for hydrogen is vast, but before the technology can be adopted on a large scale, several framework conditions must be established. The journey towards a hydrogen society requires, for example, technology development, finding solutions to market and economic challenges, and the development and implementation of effective regulations.

Hydrogen and the renewable power system must work together

Hydrogen is expected to play a crucial role in the future of renewable power systems. It can serve as a long-term storage solution for surplus energy from the increasing amount of intermittent power production based on wind and solar energy. Hydrogen can be produced during periods of surplus power generation and used to generate electricity when there is a shortage.

This means that hydrogen can offer flexibility in the system both on the consumption side, with flexible operation of electrolysers, and on the production side in flexible gas-fired power plants, where hydrogen will eventually replace natural gas.

At the same time, the production of hydrogen requires a significant portion of the expected volumes of renewable power. REPowerEU sets a goal of producing 10 Mt of green hydrogen in Europe by 2030, which corresponds to approximately 500 TWh of renewable power or almost the entire current German power production.

Hydrogen reduces emissions in the transportation sector and industry

Hydrogen has the potential to contribute to emissions reductions both in the transportation sector and in industry. Hydrogen produced from renewable sources (green hydrogen) or from gas with CO2 capture (blue hydrogen) can reduce emissions from sectors that cannot be electrified. This is particularly relevant for long-haul transportation, maritime transport, and industrial processes. Therefore, hydrogen has the potential to become a crucial energy carrier on the path towards a zero-emission society.

Complex drivers for the development of hydrogen

Detailed knowledge of the underlying drivers and a broad understanding of society are required to chart a course towards the realisation of the hydrogen society. By understanding the various price and cost drivers for hydrogen technology in the future, we have a solid basis for assessing both technology and price developments going forward.

We have a strong and versatile team ready to assist with in-depth analyses of issues along the entire hydrogen value chain. Through the projects we undertake, through information exchange and discussions with customers and our modelling expertise, we combine knowledge of technology and the market into a solid overall understanding.

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