Renewable Hydrogen Revolution: European Countries Leading the Way
Key Ideas
  • Aurora Energy Research predicts renewable hydrogen will cover over half of the demand in Germany, Spain, Sweden, and the UK by 2035.
  • Transition to sustainable sources requires €100 billion in additional investments, with Germany leading the current funding efforts.
  • Sweden and Spain are rapidly progressing in green fuel projects, with Germany focusing on public funding for the transition.
  • Political support is crucial for sectors like aviation, maritime transport, and green steel to switch from grey hydrogen to renewable sources.
Aurora Energy Research forecasts that by 2035, renewable hydrogen will play a significant role in meeting over half of the demand in key European countries like Germany, Spain, Sweden, and the UK. These countries are expected to collectively contribute 40% of Europe's hydrogen consumption. The transition to renewable hydrogen sources will require substantial investments, with an estimated €100 billion needed through subsidies to support the shift towards sustainability. Germany is currently at the forefront of these investments, while Spain and Sweden are quickly catching up, driven by lower costs. Sweden is making strides in green fuel projects with five projects totaling 1,000 MW, while Germany leads with 20 projects amounting to 2,000 MW. Spain is notable for having 67% of e-fuel projects exceeding 100 MW. However, the UK is lagging behind with no new developments in this area. The shift from grey hydrogen to renewable sources necessitates strong political backing, especially in sectors like aviation, maritime transport, and green steel production. Spain and Sweden are poised to potentially become exporters of electrofuels, while Germany is relying on significant public funding, with already over €10 billion allocated for this purpose. The collective efforts of these countries signify a positive trajectory towards a more sustainable and hydrogen-dependent future.
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