Northwestern Europe has big goals for hydrogen

Energy Diary - The Northwest Europe Hydrogen Monitor 2025 report, prepared by the International Energy Agency (IEA) , contains important insights into the region's journey toward a hydrogen economy. Europe's hydrogen strategy highlights the renewable energy potential in the North Sea and the advantages of adapting existing gas infrastructure to hydrogen.

INVESTMENTS ARE STILL IN THE EARLY STAGE

However, more than 90 percent of planned low-emission hydrogen projects are still in the feasibility or conceptual stage.

The report projects that planned low-emission hydrogen production by 2030 could reach approximately 8 million tons per year, with 59 percent of this coming from electrolyzers and 41 percent from fossil fuel-based projects equipped with carbon capture (CCUS). The region's total current hydrogen demand is approximately 3 million tons per year.

However, high production costs, slow demand generation, complex logistics chains, and technology constraints are limiting progress. By 2024, the price of renewable hydrogen will be approximately 2.5 times that of natural gas-based hydrogen without carbon capture.

SUPPORT MECHANISMS ARE CRITICAL…

Support mechanisms are therefore crucial. Public support programs such as the European Hydrogen Bank, Germany's H2Global model, and the IPCEI project aim to mitigate investment risks. Approximately half of the planned hydrogen pipelines in Europe will be implemented by converting existing natural gas pipelines. However, only 6% of these pipelines have reached the investment decision stage.

Underground storage capacity is also a key factor. 16 TWh of hydrogen storage capacity is planned by 2030, but only 3% has been finalized to date.