With the increasing interest in sustainable development, the need to reduce emissions across various sectors of the economy, and the search for alternative energy sources, renewable hydrogen has become a crucial component of the modern economy.
A key assumption of the European Union is to achieve climate neutrality by 2050. To achieve this goal, the EU has been implementing a series of regulatory changes aimed at accelerating the transformation of sectors and reducing their dependence on fossil fuels. In the face of this challenge, alternative energy carriers, including renewable hydrogen, are growing in importance. It represents a source of clean energy and a significant raw material in various sectors, opening the way to new, more sustainable business opportunities.
The potential of renewable hydrogen
Renewable hydrogen as an energy carrier has several advantages and a wide range of applications, with its potential particularly evident in transport, industry, and energy. It is produced through the process of water electrolysis using renewable energy sources such as solar or wind energy, which eliminates greenhouse gas emissions and reduces dependence on fossil fuels. It thus contributes to the implementation of climate strategies and sustainable development of cities and businesses.
Transport
Firstly, hydrogen generates zero emissions during combustion, making it an attractive solution for the transport sector. Hydrogen-powered vehicles emit only water and heat, eliminating the emission of harmful substances, which contributes to improving air quality and reducing negative environmental impact. Hydrogen can be used as fuel in passenger vehicles, but its particular importance is considered in the context of long-distance, heavy-duty, rail, and ultimately maritime and aviation. Increasing investments in hydrogen refueling infrastructure and the development of fuel cell technologies make hydrogen an increasingly competitive option compared to traditional fuels.
Energy
Renewable hydrogen can also play a crucial role in storing electricity generated from renewable sources. Water electrolysis processes allow for the conversion of excess electrical energy into hydrogen, which can be stored long-term and used during periods of increased demand. In this way, hydrogen can contribute to stabilizing power grids and ensuring a continuous supply of fuel and energy.
Industry
Renewable hydrogen is also used in industry as a raw material to produce chemicals and fertilizers and in metallurgical and manufacturing processes. Replacing traditional fuels and fossil raw materials with clean hydrogen allows for the reduction of CO2 emissions from this demanding sector.
Projected costs of renewable hydrogen production in the EU
However, crucial for its widespread adoption are the costs, which currently remain higher than those of fossil fuels due to technological development and the still niche nature of projects. Encouragingly, forecasts for the costs of renewable hydrogen production in the European Union by 2030 are promising. According to reports from the European Hydrogen and Fuel Cell Joint Undertaking and the International Renewable Energy Agency, a significant decrease in the costs of hydrogen production from renewable sources is expected, even by around 40% by 2030. Mainly due to technological progress, production scalability, and the increasing share of renewable energy in the energy mix.
As we can see, renewable hydrogen has the potential to revolutionize various sectors of the economy, offering a clean energy source and a versatile raw material. The projected decrease in the costs of renewable hydrogen production thus paves the way for the development of new economic models based on the sustainable use of energy and resources.
