Green Hydrogen Projects in Europe: Navigating Challenges and Opportunities
Key Ideas
- Despite a slowdown, green hydrogen projects in Europe are still progressing, with IOCs adjusting their ambitious plans to focus on existing usage.
- Major companies like TotalEnergies, BP, and Shell are investing in electrolytic hydrogen projects to decarbonize their operations and refineries.
- Partnerships like Total's agreement with Air Liquide signal a significant step towards producing green hydrogen at scale, utilizing wind power for electrolysis.
- While the sector faces challenges like cost and demand uncertainty, investments and project developments indicate a continued push towards green hydrogen in Europe.
Clean hydrogen in Europe, particularly green hydrogen produced with electrolyzers powered by renewable energy, has experienced a shift in momentum from the earlier part of the decade. Although international oil companies (IOCs) have scaled back their ambitious plans for green hydrogen, they are still actively pursuing projects in Europe. These projects aim to partially displace the current demand for conventional gray hydrogen at refineries, emphasizing the sector's focus on existing usage for short-term success. Notable companies like TotalEnergies, BP, and Shell have moved forward with electrolytic hydrogen projects to supply their refineries in Europe. Total's recent partnership with Air Liquide to produce and deliver green hydrogen for its refineries in Belgium and the Netherlands is a significant development, with investments exceeding €1 billion. Utilizing electrolyzers from Air Liquide and Siemens Energy, this initiative will draw power from Total's OranjeWind offshore wind farm. Other projects include BP's green hydrogen facility in Germany and Shell's Refhyne 2 project in Germany. Portugal's Galp is also investing in a hydrogen project at its Sines refinery in Spain. While the outlook for green hydrogen in Europe faces challenges such as high costs and uncertain demand, these ongoing investments and project advancements demonstrate a positive trajectory towards sustainable hydrogen production in the region.