Some high-level reflections from #WHC World Hydrogen Summit this week in Rotterdam where I was with Dharmesh Jadavji A) Project developers are getting clearer on what target business model is emerging for each of their projects. Mandates for grey hydrogen and RFNBOs in transport at EU level, along with emergence of several planned subsidy auctions at state level means that the pathway to bankability is becoming clearer B) Everyone is raising eyebrows at the European Hydrogen Bank (EHB) auction results. These results imply a significant voluntary green premium for some of the winning bids (and many of the losing ones). There are two possible explanations for this: 1) Consumers of grey hydrogen (or grey ammonia) are willing to pay a premium either in expectation of a state mandate aimed at delivering the RED III mandate AND/OR have the ability to pass on premia downstream in the value chain. 2) Subsidies are being stacked on top of local incentives which are allowed under EHB rules for subsidy stacking. C) The EHB results highlight disparity in green hydrogen production costs across Europe. Example: Germany is 2x more expensive to produce green hydrogen than Spain. But German power is not 2x as expensive as Spanish power. This outcome highlights the impact of the EU's RFNBO rules in providing advantage to countries with ample renewable power generation.
Shane Heffernan’s Post
More Relevant Posts
-
Green Hydrogen - Important Projects of Common European Interest (IPCEI) 23 green hydrogen projects in Germany have received €4.6bn in IPCEI grant funding including: - 1.4GW of electrolyser capacity - 2,000km of pipeline conversion - 370GWh of storage Energy Cork stakeholders have recommended that the proposed green hydogen hub in lower Cork Harbour be put forward as an Irish green hydrogen IPCEI - suggest we need to move at same pace as rest of Europe to avail of green hydrogen IPCEI funding? Port of Cork Company Ltd. MaREI Department of Enterprise, Trade and Employment Department of the Environment, Climate and Communications #eng4climate
To view or add a comment, sign in
-
🗞️UK and German governments announce collaboration on hydrogen in Joint Declaration of Intent, committing to acceleration, technological advancement and investment. 📰"The two countries will work together to underpin the international trade in hydrogen. Under the agreement, each government will accelerate the role of low-carbon hydrogen in its nation’s energy mix and have committed to work together to advance innovative and renewable hydrogen technologies, supporting jobs and low-carbon investment." 📰 “This agreement will underpin the development of this new fuel not just for our respective countries but also for an international trade that could be transformative in our work towards achieving Net Zero emissions by 2050. It is through these partnerships that we can move away from expensive fossil fuels – and in doing so boost our energy security.” - Lord Callanan, UK Minister for Energy Efficiency and Green Finance 🔍Read the full story from Supporting Partner H2 View here: https://ow.ly/hfcQ50PQ6MP 👉Want to be a part of the UK's hydrogen industry or the global acceleration of clean hydrogen? Register your interest for World Hydrogen UK, which is taking place 9 - 10 April 2024! 🔖Register your interest here: https://ow.ly/4N8350PQ6Nk Don't miss World Hydrogen Week! Taking place next month from 9 - 13 October, World Hydrogen Week is the THE global hydrogen event and an opportunity to meet over 3,000 senior hydrogen industry professionals! 🎟️Book your pass here: https://ow.ly/I1JA50PQ6Np #WorldHydrogenWeek #WHW23 #HydrogenWeek #HydrogenEvent #WorldHydrogenCongress #WHC23 #WorldHydrogenDerivatives #WHD23 #WorldHydrogenUK #HydrogenUK #HydrogenGermany #GreenHydrogen #CleanHydrogen #RenewableHydrogen #Hydrogen #HydrogenIndustry #HydrogenMarket #HydrogenInvestment #HydrogenTechnology
UK and Germany collaborate to further advance hydrogen developments
h2-view.com
To view or add a comment, sign in
-
Exciting developments for the European hydrogen market! European Commission President Ursula von der Leyen has just revealed plans for the upcoming Spring 2024 auction of the European Hydrogen Bank, with a substantial €2.2 billion budget. This initiative is set to amplify the European Hydrogen Bank's total investments to an impressive €3 billion. The estimated total investment requirements for the hydrogen sector in Europe range from €335 to €471 billion, with a significant portion earmarked for additional renewable energy production. The European Union is strategically leveraging private funding through effective financial instruments to narrow the cost gap between renewable and fossil hydrogen. These forward-thinking policies align with the recommendations I outlined in my recent post Countdown to COP Back in my home country, Norway, there's ongoing debate surrounding hydrogen. It's evident to me that implementing Contracts for Difference, as proposed by Norsk Hydrogenforum to the Norwegian government, is imperative to de-risk hydrogen projects and accelerate our transition. With the technology at our fingertips, let's advocate for the right policies and financial instruments to propel the hydrogen revolution forward! 🌍 #HydrogenMarket #RenewableEnergy #SustainabilityLeadership
To view or add a comment, sign in
-
Rotterdam is a leading hydrogen hub in Europe and beyond with its strategic location, top-notch infrastructure, and innovative initiatives. Here are some facts: 1. Port of Rotterdam handles over 13% of Europe's energy, solidifying its status as the continent's largest energy hub. Transitioning to green hydrogen is a clear solution to propel European industries toward CO2 neutrality. 2. Leading Maritime Cities Report 2024 by DNV and Menon Economics: Rotterdam is a 2nd maritime city worldwide, scoring high on most pillars, especially on Ports & Logistics and Attractiveness & Competitiveness. 3. Europe's biggest green hydrogen plant – Holland Hydrogen I by Shell will be built on the Maasvlakte 2 and operational in 2025. 4. National hydrogen network: A 1,200-kilometer network will connect five Dutch industrial clusters to green hydrogen, starting with a 30-kilometer section from Maasvlakte to Pernis, with the Holland Hydrogen I plant producing green hydrogen while also providing a connection to Germany via the Delta Rhine Corridor. 5. World Hydrogen Summit & Exhibition is here and now in the city, with over 15,000 professionals from all over the world gathering at Rotterdam Ahoy Convention Centre to discuss the power and plans of the hydrogen economy. Read more on hydrogen here: https://lnkd.in/gJNMj8Wp. #WorldHydrogen2024 #EnergyTransition #Hydrogen #Rotterdam #RotterdamStepsAhead
To view or add a comment, sign in
-
EU is a front runner in promoting the use of hydrogen. The European Commission is now working on a new pilot mechanism to boost the hydrogen market. Highlights: 1. The Commission launched a pilot mechanism under the decarbonised gases and hydrogen package to support the European hydrogen market, focusing on improving market transparency and facilitating supplier-off-taker connections. 2. The mechanism, part of the European Hydrogen Bank, will operate for five years, gathering and processing data on hydrogen demand and supply to aid investment decisions and off-take agreements. 3. The EU has a comprehensive regulatory framework for hydrogen market development, including targets and definitions for renewable and low-carbon hydrogen, and strategic project support. 4. Significant investments and projects are underway, with the EU investing around €18 billion and approving State aid for IPCEIs, aiming to establish a full hydrogen value chain. 5. The Commission supports hydrogen infrastructure development through initiatives like the Hydrogen Valleys Innovation Mission, promoting integrated hydrogen projects across Europe and globally. #hydrogen #decarbonisation
To view or add a comment, sign in
-
Low Bid Shock in First European Hydrogen Bank Auction Some €720 million ($773 million) has been awarded to seven green hydrogen and ammonia projects under the first pilot auction of the European Hydrogen Bank (EHB), an EU financing vehicle to help accelerate the growth of hydrogen production in the bloc. The results of the auction are interesting in what it says about the massive cost challenges of producing the clean fuel and meeting EU green hydrogen output targets. https://lnkd.in/eCynjHqj #hydrogen #europe #greenhydrogen #cleanenergy
Low Bid Shock in First European Hydrogen Bank Auction
energyintel.com
To view or add a comment, sign in
-
The European Commision through Hydrogen Europe announces €1.2 billion for second Hydrogen Bank auction budget. This represents 25% of the Innovation Fund’s 2024 budget, with the remainder going to batteries (€1bn) and conventional grants (€2.6bn) which also support innovative hydrogen projects. The aim is to allow more projects to reach a final investment decision. #hydrogen #hydrogeneconomy #industry #energytransition https://lnkd.in/ddjAnzJ7
Hydrogen Europe
https://hydrogeneurope.eu
To view or add a comment, sign in
-
Energy Policies expert | Associate Director BCG | Management consulting | Former member ACER Board of Appeal | Initiator and co-author "Touching Hydrogen Future" | #5 🌎thought leader Hydrogen @Illuminem | Podcast cohost
“Erik, how would you spend 11 billion Euro* on Hydrogen Bank in Europe?” - was a question relation asked during World H2 summit in Rotterdam. That is the question relevant to any key utility and Hydrogen developer and policy maker in Europe. That is the question that is now in the running as part of European Hydrogen Bank consultation until 6 June, and relevant for attendants of the workshop on 12 June where draft rules will be discussed on how to structure forthcoming 2024 and consequent Hydrogen bank auctions. *With 2024 round ahead of us with promised 2,2 billion Euro, and rolling EU ETS IF funding until 2030, material funds are available. European Hydrogen bank design choices which will affect who and how will contribute to EU energy policy objectives include: 1) Go live within 3 years of award - up from 5 years now 2) 10% performance garantee based on requested subsidy - up from 4% now 3) Insistance on stronger geographical balance - IF rules permit to introduce a rule that would ensure that not just best loadfactors win levelling Iberian and Nordic bids to other geographies 4) Sectorial focus - eg baskets for specific EU targets such as ReFuel EU or FuelEU or RED3 mandates 5) Sizing of bids - now starting from 5 MW - should SME enterprises get a special focus as EU often wants to - or do we want a basket for 1 GW+ Neom sized projects 6) More radical measures - such as allowing bids based on Blue Hydrogen of same carbon intensity as Green Hydrogen 7) …your voice??? WDYT? What is the key design choice that will help EU energy policy meet its targets, and your company achieve its business plan. Consultations are boring sometimes - this one is a key priority and will affect how EU is spending 11 billion euro or more on Hydrogen by 2030. More on consultation here in an excellent post by Johanna Schiele - https://lnkd.in/ez9FuHww
To view or add a comment, sign in
-
🌊 This week, the European Commission awarded nearly 720 million EUR to 7 renewable hydrogen projects through the #EuropeanHydrogenBank. 💶 The funds come from the revenue of the EU Emission Trading System (#ETS) and will be used to scale up the production of clean energy to decarbonise hard-to-abate industries. In February 2023, EPICO KlimaInnovation, Guidehouse & Konrad-Adenauer-Stiftung analysed the benefits and challenges of the Hydrogen Bank, providing recommendations for improvement & future design options. “Support instruments implemented as part of the European Hydrogen Bank under both the domestic and imports pillars should provide effective incentives for the ramp-up of #GreenHydrogen and its derivatives by bridging the funding gap and providing sufficient investment security”, we said. ❓As the Commission plans to launch a second auction this year, what can be improved to make the Hydrogen Bank more efficient? Read the paper here 👇
Design Options for a European Hydrogen Bank
epico.org
To view or add a comment, sign in
-
We were delighted to see the UK and Germany sign a partnership agreement in September that will underpin international trade in #hydrogen. As both nations work together to become world leaders in the hydrogen industry, the declaration is another great example of the collaboration required to accelerate the transition to a thriving global hydrogen economy. In sum, five pillars of collaboration were agreed: ✔️ Accelerating the deployment of hydrogen projects for industry and consumers. ✔️ Establishing international leadership on hydrogen markets, setting safety and regulations to aid trade. ✔️ Research and innovation on hydrogen, from production to end use. ✔️ Promoting trade for hydrogen, plus related goods, technologies and services. ✔️ Joint market analysis, to support planning and investment by government and industry. If you missed it, you can read the full details here 👉 https://lnkd.in/e5JySVhx #InternationalCollaboration #Renewables #HydrogenInnovation
UK and Germany partner to further advance hydrogen developments
gov.uk
To view or add a comment, sign in
Senior Consultant in Power and Low Carbon Solutions | Renewable Power Market | Energy Transition Strategies | Hydrogen and CCUS | MSc Energy Systems - University of Oxford
2moInsightful! 💡