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European consortium seeks to make green hydrogen cost competitive by 2030

February 16, 2021

Renew Economy:

A consortium of 30 European energy companies and financial institutions have launched the HyDeal Ambition project, which aims at delivering 100% green hydrogen across Europe at a price of just €1.5/kg before 2030 by building 95GW worth of solar capacity and 67GW worth of hydrogen electrolysis capacity.

HyDeal Ambition is the result of 2 years of research and confidential preparation by 30 European energy players, and the targeted price of €1.5/kg ($AU2.3/kg) includes the production of, transmission, and storage of green hydrogen.

One of the primary purposes of HyDeal Ambition is to deliver green hydrogen to customers at cost-parity with fossil fuel competitors, helping to make the transition to a carbon-neutral economy a much easier prospect.

Hydrogen fuel is one of the most promising zero emission fuels for energy storage, transport and heating – an alternative to coal and gas in the grid, oil for transport and gas for heating. There are several ways to create hydrogen, but the most promising is by electrolysis of water powered by electricity. Hydrogen production is classified under various coloured nomenclature, with “grey” hydrogen that made with significant emission, “blue” hydrogen made in tandem with carbon capture technology, or “green” hydrogen produced using electricity generated from renewable energy sources.

Green hydrogen is gaining in popularity, especially in Europe, where several large-scale green hydrogen projects and demonstration projects have been introduced in recent years. HyDeal Ambition is the newest of these projects, and the biggest. Production of green hydrogen is expected to begin on the Iberian Peninsula in the southwest corner of Europe in 2022.

Overall, HyDeal Ambition expects to build 95GW worth of solar capacity to power 67GW worth of electrolysis capacity by 2030, delivering 3.6 million tonnes of green hydrogen annually to users in the energy, industry, and mobility sectors via the gas transmission and storage network.

[Joshua S Hill]

More: European consortium to deliver 95GW of solar and 67GW of hydrogen by 2030

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