We have developed a report by Aurora China Energy Guohua Europe Renewable Energy subsidiary of China Energy- one of the largest power generators in the globe, to assess the Greek and European hydrogen market. In this report, we deep dive into current policy, regulations status and the technological landscape.
Some of the main points we covered are:
- European countries, such as Germany, Spain, and Romania, have set ambitious targets for hydrogen production and infrastructure. In the UK, the government plans to allocate funds for hydrogen projects in two rounds. The EU’s CBAM tool concentrates on direct emissions, and auctions across Europe aim to encourage investments in electrolyte capacity.
- Greece has a target of 1.2 GW electrolyser capacity by 2030, the forecast for hydrogen demand triples by 2050, with electrolysers playing a key role. Initially, refineries are the primary source of demand in Greece, shifting to heating by 2060. The European electrolyser landscape sees substantial growth, with wind power as the primary energy source.
- Financially, the hydrogen sector attracts diverse investors, with the main focus being the industrial and mobility sectors, while the introduction of Hydrogen Purchase Agreements (HPA) is expected to enhance market maturity and improve lending conditions.
- Hydrogen investments vary, with four identified electrolyser business models: inflexible, flexible, co-located (island), and co-located (grid). Different models suit different countries based on factors such as grid mix and fees.
- While a significant reduction in the Levelised Cost of Hydrogen (LCOH) by 2050 is predicted, the challenge of expensive and complex hydrogen transportation persists. The analysis of conditioning costs for various hydrogen forms considers different transport methods, with varying efficiency and costs based on origin, destination, distance, and conditioning/reconditioning expenses.
If you would like bespoke analysis for your project get in touch with Petro Ylli.
