30 European energy players have launched a previously confidential integrated value chain project intended to deliver green hydrogen across Europe at €1.5/kg 1 before 2030.
The project, known as HyDeal Ambition, will see the production of green hydrogen generated by solar-driven electrolysis from the Iberian Peninsula beginning in 2022. The ambition is to achieve 95GW of solar and 67GW of electrolysis capacity by 2030 to deliver 3.6 million tonnes of green hydrogen per year to users in the energy, industry and mobility sectors via the gas transmission and storage network, the energy equivalent of 1.5 months of oil consumption in France.
In 2020 the Institute for Energy Economics and Financial Analysis (IEEFA) suggested that green hydrogen supplies will only hit 3 million tonnes annually by 2030, short of a projected demand of 8.7 million tonnes. If that gap is to be met with black, grey or even blue (low carbon hydrogen generated from non-renewable sources such as nuclear) hydrogen it could destroy decarbonisation targets. While developments in the solar PV market have outstripped predictions in terms of cost and deployment for a decade, we are still some way from seeing such activity in hydrogen.