Northwest Europe's Low-Emissions Hydrogen Leadership: Opportunities, Challenges, and Ambitious Goals
Key Ideas
  • Northwest Europe leads in low-emissions hydrogen, with 40% of Europe's demand, supported by renewable resources and carbon storage.
  • The region aims for 30-35 GW of electrolyser capacity by 2030, but faces challenges like high costs and limited demand.
  • Policy support, including quotas and fuel standards, is crucial to stimulate investment in low-emissions hydrogen.
  • Regional collaborations, research, and infrastructure investments are key to realizing the full potential of low-emissions hydrogen by 2030.
The International Energy Agency’s Northwest European Hydrogen Monitor 2025 report highlights Northwest Europe as a frontrunner in low-emissions hydrogen development, accounting for a significant portion of Europe's hydrogen demand. The region benefits from abundant renewable energy sources and carbon storage potential in the North Sea. Ambitious plans include developing 30-35 GW of electrolyser capacity by 2030, but challenges like high costs and limited demand exist. Policy support through quotas and fuel standards is deemed essential to drive investment. The report stresses the necessity of a comprehensive approach covering research, production, and demand creation to bolster the emerging sector. While the region is home to most of Europe's electrolyser manufacturing capacity, manufacturers face obstacles such as project delays. Despite facing challenges, the report projects substantial regional low-emissions hydrogen production growth by 2030, contingent on operationalizing current projects. However, less than 8% of these projects are in advanced stages. To enhance competitiveness, cost reductions are vital, with a suggested carbon price of US$140 per tonne of CO2-equivalent by the decade's end. Northwest European countries show commitment to hydrogen derivatives for the maritime sector, aligning with international regulations. With the potential for international low-emissions hydrogen trade, investments in transport and storage infrastructure are crucial. Immediate stakeholder action is urged to meet the ambitious 2030 targets set for the hydrogen network expansion.
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