European H2 investments to grow 140% in 2024: von der Leyen
Investment in the European hydrogen sector is set to grow by 140% this year, claims European Commission president Ursula von der Leyen.
The president was speaking during a video message at the Renewable Hydrogen Summit in Brussels, Belgium on Thursday.
In the past year, Europe saw final investment decisions on green hydrogen projects reach over 2 gigawatts – around four times the region’s current installed capacity. Europe is leading in green hydrogen globally with 11 large-scale projects starting construction, while the US lags behind, she adds.
“To put that into perspective, the United States saw just two such decisions during the same period,” von der Leyen notes. “This illustrates European leadership in renewable hydrogen.”
“So why is Europe leading? We set clear targets,” she adds.
The EU has set a target of producing 10 million tonnes of renewable hydrogen by decade-end. The bloc also set renewable hydrogen binding targets, requiring a minimum use of 42% in industry and 29% in transport, by 2030. Member states are required to turn these targets into law by May 2025, Kallanish notes.
“If done right, this will be a game-changer, unlocking demand across the entire value chain,” von der Leyen says. Yet, she also admits that “big challenges” persist in the industry and “not every project on paper makes it to the construction phase.”
Recent months have seen several companies across Europe either pausing or stopping their hydrogen projects or scaling back their hydrogen ambitions. German energy company Uniper said it is delaying its green investments amid a “sluggish” development of the hydrogen market, having already shelved a 200-megawatt hydrogen-based sustainable aviation fuel (SAF) project in Sweden last month. Similarly, last week bp said it stopped 18 early-stage hydrogen projects.
Nonetheless, von der Leyen says the commission is “working closely” with member states and offtakers in steel, chemicals, transport and energy storage to identify priorities.
“We want to prioritise the infrastructure needed to connect large-scale hydrogen projects with end-users,” she adds. “We will tap into Europe’s vast renewables potential and bring it to our industries to help them decarbonise.”
The president also confirmed that the second round of the European Hydrogen Bank, with a budget of €1.2 billion ($1.3 billion), will be held in December.
“Rome was not built in a day, and neither will a world-leading, climate-neutral European economy,” she concludes. “But together, step by step, we are building it. And the European Commission is fully committed to staying the course.”
Truly global, user-friendly coverage of the steel and related markets and industry that delivers the essential information quickly while delivering on most occasions just the right amount of between-the-lines comment and interpretation for a near real time news service of this kind.
Anonymous
Very good overview of the weekly steel market.
Anonymous