Europe well on its way to meet hydrogen goals by 2030 – Lhyfe CEO

• RFNBO legislation already in place in UK and Europe key
• Other export-heavy regions may struggle to keep up
• Hydrogen tenders set to become the norm going forward

LONDON (ICIS)–Hydrogen production within the EU will reach 10m tonnes/year by the end of the decade, according to Matthieu Guesne, founder and CEO of renewable hydrogen production company Lhyfe.

Speaking to ICIS, Guesne said “I think that the EU will achieve this objective, because it has understood that this is what needs to be done to decarbonise a large proportion of our uses that cannot be decarbonised in any other way.”

Guesne added that “the fact that Europe has already legislated on renewable fuels of non-biological origin (RFNBO), and the UK on its equivalent, is very positive,” adding that this allows industry to have clear visibility on development.

QUESTION OVER IMPORTS

The target for the EU is to have 10m tonnes/year of domestic renewable hydrogen by 2030 as well as importing 10m tonnes/year of renewable hydrogen and its derivatives (such as renewable ammonia) to manage the estimated 20m tonne/year demand by the end of the decade.

Guesne was unsure that the volume of imports would be that high. “The vast majority of this goal will be achieved through domestic production, because unlike those countries from which we may wish to import, Europe has roadmaps that date back to 2020, support mechanisms, regulations, secured budgets, and a structured industrial base.”

Europe is set to import renewable hydrogen and its derivatives from other global regions, which include both Africa and South America, who have large renewable potential and a cheaper cost of producing renewable hydrogen.

OFFSHORE RENEWABLE HYDROGEN

Guesne said that “in Europe, offshore hydrogen production will begin on the Baltic and North Seas, 100km away from the coast, where we can still use fixed wind turbines where the wind resources are good, and where we are not competing with electricity production because of the connection costs.”

Connection costs for projects have increased in recent years due to both inflation and higher maintenance expenses, meaning that production of hydrogen offshore has become more economically viable as opposed to a direct connection from wind farms onshore to the electricity grid.

The development of floating wind turbines, which are now at the same prices as fixed wind turbines 15-20 years ago according to Guesne, could unlock offshore hydrogen production in other areas.

Guesne also said that “we are doing water desalination” rather than using sea water for the electrolysis process as the technology is “available and mature.”

DEMAND GROWING, HYDROGEN TENDERS

Guesne had little fear on the demand side, saying that there is a lot of demand for hydrogen and interest is due to pick up in pace.

“During the war in Ukraine and the rise in gas prices, there was an increase in interest in renewable energies, including renewable hydrogen. But since then, demand has continued to grow strongly,” Guesne said.

Guense also added that hydrogen tenders, such as thyseenkrupp Steel recently announced, will be “the norm from now on.”

“The industry needs to decarbonise. Just as they launch tenders for the supply of electricity and gas, they will also launch tenders for renewable hydrogen,” Guense said.