Policy support could lead to ‘flurry of activity’ in Europe’s green hydrogen sector

Facebook
Twitter
LinkedIn
Reddit
Email
Toshiba’s pilot solar-to-hydrogen project in Fukushima prefecture, Japan. This year could see policy shifts help Europe’s green hydrogen sector start moving towards “projects in the tens or even hundreds of megawatts”, Delta-EE’s Robert Bloom said. Image: Toshiba.

This year could be a tipping point for Europe’s green hydrogen sector, with a flurry of activity predicted if the necessary policy environment is achieved, according to research and consulting firm Delta-EE.

While 115 projects with a combined potential electrolyser capacity of 2,138MW are set to become operational across Europe in 2022 and 2023, only 37% have reached final investment decision or have been awarded public funding. Many are said to be dependent on positive legislative indications and incentives from governments across the continent.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

With more than 6GW of announced green hydrogen projects planned in Europe by the end of 2024, Delta-EE said the focus must shift to providing a policy environment that allows them to be realised.  

Long-term incentives and policy will allow de-risking of projects, giving developers confidence that project finances are viable, said Robert Bloom, service manager for Delta-EE’s Global Hydrogen Intelligence Service.

“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,” Bloom said.

Among the policies that are expected to be key drivers for the sector’s growth include the European Union’s Hydrogen and Decarbonised Gas Package and the UK’s Hydrogen Strategy, which details the country’s plans to achieve 5GW of low carbon hydrogen production capacity by 2030.

Delta-EE expects that annual green hydrogen demand across Europe will increase from around 9,900 tonnes in 2021 to more than 620,000 tonnes in 2026, by which time the industrial sector will account for 60% of green hydrogen demand.

Research published last month by Fitch Solutions called on governments globally to subsidise low-carbon hydrogen production to overcome cost barriers and put in place standards to further stimulate growth.

The consultancy said that although substantial investments are required to achieve cost parity with grey hydrogen, governments have an important role to play in adapting public procurement procedures to create ‘market pull’.

Read Next

June 30, 2025
Heliene has completed the sale of Section 45X Advanced Manufacturing Production Tax Credits in association with Minnesota-based U.S. Bank.
June 30, 2025
Australian module manufacturer Tindo Solar has secured a 30MW solar module supply agreement to power Australia's first "net zero pipeline”.
June 25, 2025
First Solar has sold US$311.8 million in tax credits to “a leading financial institution” under the rules set out in the IRA.
June 18, 2025
Australia’s minister for climate change and energy, Chris Bowen, has announced plans to streamline the Capacity Investment Scheme (CIS) to around six months.
June 17, 2025
Blue Elephant Energy has received a €200 million (US$214 million) investment from European asset management company Infranity.
June 16, 2025
US solar residential installer Sunnova has received court approval for a US$90 million debtor-in-possession financing agreement.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece