Optimizing Hydrogen Usage for a Sustainable European Economy
Key Ideas
- Direct electrification remains crucial, but strategic deployment of hydrogen in key sectors is essential for decarbonisation and industrial competitiveness.
- EU needs clear prioritization of hydrogen use cases, integrated energy system planning, and robust definitions for renewable and low-carbon hydrogen.
- Misallocation of hydrogen deployment could hinder the energy transition and slow down the competitiveness of the EU economy.
- While EU policies support hydrogen uptake, gaps in sector prioritization and infrastructure planning need to be addressed for optimal impact.
The European Union is focusing on reducing fossil fuel dependence to enhance its economy's resilience and competitiveness. While direct electrification is vital, incorporating hydrogen from renewable sources is crucial for specific sectors. The EU lacks a comprehensive plan to prioritize and maximize the utilization of hydrogen effectively. To fully benefit from hydrogen, the EU must establish priority use cases, integrate hydrogen into energy system planning, and define renewable and low-carbon hydrogen clearly. Strategic deployment of hydrogen is essential for sectors like chemical feedstocks and steel production. Although the EU has set ambitious hydrogen uptake goals, gaps in sector prioritization and investment planning persist. By addressing these gaps, the EU can leverage hydrogen's decarbonization benefits effectively, supporting a competitive and sustainable economy.