A combined potential electrolyser capacity of 2138MW in Europe, across 115 green hydrogen projects, is due to become operational by the end of 2023, according to intelligence from Delta-EE.
The analyst also found that 794MW or 37% of the 2138MW has reached final investment decision or been awarded public funding in Europe and the UK.
Many of these projects are dependent upon positive legislative indications and incentives from respective governments.
Incentives, such as the UK Hydrogen Business Model and the wider Net Zero Hydrogen Fund, expected to launch in early 2022 and 2023; the UK Hydrogen Strategy, aiming for regulatory frameworks to be in place in the early 2020s; and the EU’s RED II delegated act and Hydrogen and Decarbonized Gas Package, are expected to be key policy drivers.
“If the necessary policy environment is achieved, 2022 could represent a tipping point for a flurry of activity,” stated Delta-EE.
With over 6GW of announced projects now planned by the end of 2024, according to Delta-EE’s pipeline, the “focus must shift to providing a policy environment that allows these projects to reach reality”, the company stated.
Total green hydrogen demand within Europe is expected to rise from around 9200 tonnes per year in 2021 to approaching 600,000 in 2026.
Delta-EE’s research identifies the Hydrospider project in Switzerland as an example of legislative frameworks providing a viable environment for commercial hydrogen activity, as hydrogen fuel cell heavy goods vehicles are exempt from road tax on commercial vehicles, allowing them to approach cost competitiveness with diesel vehicles.
Robert Bloom (pictured), service manager for Delta-EE’s Global Hydrogen Intelligence Service, said: “To date, many green hydrogen projects have been planned and announced in Europe, but relatively few have reached final investment decision.
“Our research suggests that 2022 could be the year where we see the necessary policy environment develop that could drive projects in the tens or even hundreds of megawatts towards coming online.
“Long-term incentives and long-term policy will allow de-risking of projects.
“This will give developers confidence that project finances are viable, and customers can be provided with a cost-effective solution leading to the green lighting of a number of the planned projects in the UK and Europe.”