To fuel its ambition the EU is pouring billions of euros into the sector. Green hydrogen is more expensive to produce and accounts for less than 1% of total global production. Around three-quarters is derived from methane gas and a quarter from coal. It is a tall order, considering that last year worldwide green hydrogen production capacity was 109 kilo tonnes – a fraction of what the EU wants to achieve.Ĭurrently, most hydrogen is created using fossil fuels. The bloc has set a target of reaching annual domestic production of 10 million tonnes of renewable hydrogen by 2030 and importing the same amount. Green hydrogen is mostly produced through electrolysis, a process that separates water into hydrogen and oxygen, using electricity generated from renewable sources. “As it happened with fossil fuels, countries seem ready to stake everything on becoming exporters without being given the necessary safeguards.” Betting big on hydrogenĭespite being a nearly non-existing energy source today, green hydrogen has become a cornerstone of Europe’s decarbonisation plans. “Green hydrogen is something Europe desperately wants and developing countries could potentially mass-produce for a lucrative market,” she says. Marta Lovisolo, a hydrogen analyst at Bellona, says the risk developing countries will divert resources toward production for exports is “extremely high”. “There is a real possibility that foreign countries come in with direct investment, but all the benefits and added value end up being extracted and sent across to Europe”. Otherwise, he says, the risk is that green hydrogen may turn into “another neo-colonial project”. This would be a problem for countries like Namibia – one of the EU’s key hydrogen partners – where just over half of the population has access to electricity.įor Godrje Rustomjee, an analyst at the African Climate Foundation, countries need to find the right trade-off between domestic needs and export potential. Incentives built into the EU regulations mean the massive scale-up of green hydrogen exports could take up most renewable electricity in developing nations, at the expense of local populations. Countries, especially in Northern and Sub-saharan Africa, have been attracted by the sector’s opportunity for investments and new jobs, analysts told Climate Home News.īut experts warned the enthusiasm hides significant risks. While the European industry is in its infancy, hopes of achieving short-term goals largely rest on production overseas. The EU bloc sees hydrogen made with renewable energy – known as “green hydrogen” – as a cost-effective way to reduce emissions, especially in industries that are difficult to decarbonise such as aviation and heavy land transport. ![]() EURACTIV’s media partner, Climate Home News, reports. Europe’s green hydrogen plans have set off a race among developing nations, particularly in Africa, to become the bloc’s first suppliers, risking energy needs among their own populations.
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