Unlocking the hydrogen economy — stimulating investment across the hydrogen value chain
Green hydrogen, sourced from water and renewable energy, has – by replacing fossil fuels – enormous potential for the reduction of global carbon emissions in hard-to-abate industrial sectors. Yet, like many early stage technologies past and present, a complex interplay of economic, regulatory, industrial and operational challenges still need to be overcome before hydrogen can play a large-scale role in the modern industrial economy. The shift towards hydrogen is expected to require investment in the hundreds of billions of euros over the coming decades and will require substantial amounts of private financing alongside public funding. In this report, the European Investment Bank’s advisory services summarise the results of an investor consultation to get to the heart of these challenges, and offer recommendations for an accelerated development of the hydrogen sector.
Unlocking the hydrogen economy.
Hydrogen is among the technologies with the greatest potential to reduce global carbon emissions, especially in hard-to-abate industrial sectors, and thereby address our damaging impact on the planet’s climate and ultimately our living conditions. Today hydrogen is predominantly produced from fossil fuels, yet there is a great opportunity to switch to lower-carbon methods based on “green hydrogen” produced with renewable energy.
The world has woken up to hydrogen’s potential to make a substantial impact towards the “net zero” objective. In 2020 the European Union launched its European Hydrogen Strategy and similar plans were announced at national level — outlining ambitious goals to establish the infrastructure necessary for the widespread adoption of hydrogen as a clean energy carrier. Many projects are now in various phases of development across Europe. As the EU climate bank, we applaud these developments and stand ready to act.