Also known as ‘Renewable H2’ or ‘RH2’, it is a clean and sustainable energy vector that is produced from renewable sources, such as solar, wind or biomass.
Unlike fossil fuels, renewable hydrogen does not emit greenhouse gases or contribute to climate change.
Its main characteristics are:
Clean energy
It does not produce any polluting emissions during its use, making it an environmentally friendly option.
Versatility
It can be used in a wide range of applications, including electricity generation, transport and industry.
Efficient storage
It can be stored on a large scale and for long periods of time, making it a viable option to overcome the intermittency challenges of other renewable sources.
How is renewable hydrogen produced?
Renewable hydrogen is produced through a process called electrolysis of water.
In this process, electricity from renewable sources is used to break down water into hydrogen and oxygen, the two elements that make up water.
The hydrogen generated by this process can be used immediately or stored for later use.
How is renewable hydrogen stored?
The storage of RH2 is a key aspect for its effective integration into the energy systems of different countries. Currently, there are different storage methods that allow hydrogen to be maintained safely and efficiently for later use.
One common way is through compression, where hydrogen is compressed at high pressure and stored in tanks. Another form is cryogenisation, where hydrogen is cooled to very low temperatures and stored as a liquid in isolated tanks. It can also be stored in solid materials, such as metal hydrides, which can release hydrogen when heated.
The storage of renewable hydrogen presents several challenges. One of the main challenges is its low energy density, which means that large volumes are required to store a significant amount of energy. This makes it difficult to transport and store efficiently.
Another challenge is the loss of hydrogen through leakage, as it is a small molecule that can easily escape. In addition, hydrogen can weaken materials that it comes into contact with, which can cause safety issues.
To address these challenges, researchers are developing innovative technologies and techniques. New storage materials that can improve energy density and reduce leakage, such as magnesium-based hydrides, are being researched.
Advanced storage techniques, such as underground storage in caverns or adsorption in porous materials, are also being studied.
In addition, regulations and safety standards are implemented to ensure the safe storage of hydrogen. Research is carried out to better understand the behaviour of hydrogen and to develop efficient leak detection systems.
Transport and distribution options are also being explored, such as the use of pipelines and transport in the form of ammonia or methanol.
The storage of renewable hydrogen presents several challenges. One of the main challenges is its low energy density, which means that large volumes are required to store a significant amount of energy. This makes it difficult to transport and store efficiently.
Another challenge is the loss of hydrogen through leakage, as it is a small molecule that can easily escape. In addition, hydrogen can weaken materials that it comes into contact with, which can cause safety issues.
To address these challenges, researchers are developing innovative technologies and techniques. New storage materials that can improve energy density and reduce leakage, such as magnesium-based hydrides, are being researched.
Advanced storage techniques, such as underground storage in caverns or adsorption in porous materials, are also being studied.
In addition, regulations and safety standards are implemented to ensure the safe storage of hydrogen. Research is carried out to better understand the behaviour of hydrogen and to develop efficient leak detection systems.
Transport and distribution options are also being explored, such as the use of pipelines and transport in the form of ammonia or methanol.
What is renewable hydrogen used for?
The most recent figures indicate that global hydrogen demand was 94 million tonnes (Mt) in 2021, of which only 1% is considered low-carbon (renewable or with CO2 capture systems).
However, RH2 has the potential to reach a wide range of uses and applications in different sectors.
While some applications are more viable than others due to economic and thermodynamic reasons, renewable hydrogen offers several opportunities to drive the transition towards a more sustainable energy future.
Some of its main applications are:
Heat generation
Renewable hydrogen can be used to generate heat in industrial processes, such as the production of steel, cement and other materials, as well as in the refining of metals such as copper. It replaces the use of fossil fuels such as natural gas, coal and oil in these processes, reducing greenhouse gas emissions. It can also possibly be incorporated into residential district heating networks.
Sustainable mobility
Renewable hydrogen can be used as a fuel in various means of transport. From forklifts and long-haul trucks to shipping vessels and aircraft. This is achieved through fuel cells that produce electricity from hydrogen, powering specially designed engines and turbines. Hydrogen derivatives, such as synthetic fuels (also known as eFuels), can also be used in combustion engines similar to those that exist today.
Chemical production
RH2 is used in the production of chemicals, such as ammonia, which in turn is used as a raw material for the manufacture of fertilisers and explosives. Ammonia is easy to transport so it could be used as a form of transport, especially in the maritime field.
It should be noted that some of these applications are still in the development stage and have not been commercially validated on a large scale.
However, as research continues and new applications are developed, RH2 is emerging as one of the main energy sources of the future, with the potential to revolutionise key sectors of the economy and to contribute to the reduction of greenhouse gas emissions in the context of a global process to achieve net zero by 2050.
It should be noted that some of these applications are still in the development stage and have not been commercially validated on a large scale.
However, as research continues and new applications are developed, RH2 is emerging as one of the main energy sources of the future, with the potential to revolutionise key sectors of the economy and to contribute to the reduction of greenhouse gas emissions in the context of a global process to achieve net zero by 2050.
Advantages of renewable hydrogen
What are the advantages?
Renewable hydrogen has a number of comparative advantages.
H2 molecules have a high energy density per unit of mass: three times more than petrol and 120 times more than lithium batteries.
Hydrogen is the most abundant element in nature and its production by electrolysis has gradually lowered its costs, increasing its competitiveness.
In addition, its use will reduce greenhouse gas emissions in Chile by between 25% and 27% by 2050, according to estimates by the Ministry of Energy.
European renewable hydrogen policies and regulations
In recent decades, the European Union (EU) and its Member States have demonstrated a strong commitment to the fight against climate change and the transition towards a sustainable, low-carbon economy.
As part of this effort, European authorities have developed a number of public policies aimed at boosting the development of the clean or renewable hydrogen (RH2) industry.
These policies are based on a variety of rationales, ranging from climate change mitigation to the need for energy security and independence to boosting innovation and technological leadership in the region.
Delving into each of them, one of the main motivations for the promotion of policies related to clean hydrogen is the need to reduce greenhouse gas emissions and address climate change as a phenomenon of anthropogenic origin and global scope.
RH2 is considered a clean energy source, as its combustion does not produce carbon dioxide emissions, thus contributing to the reduction of dependence on fossil fuels and the decarbonisation of key sectors such as industry and transport.
The European Union supports the sustainable development of territories by promoting the highest social and environmental standards, criteria that are particularly relevant for the European Investment Bank and the German Development Bank and KfW.
In addition, the Commission has adopted two Delegated Acts on Renewable Hydrogen on 13 February 2023 that complement Directive 2018/2001 on the promotion of the use of energy from renewable sources.
Specifically, the first Delegated Act defines under which conditions hydrogen, hydrogen-based fuels or other energy carriers can be considered renewable fuels of non-biological origin, while the second one establishes a methodology for calculating the life-cycle greenhouse gas emissions of renewable liquid or gaseous fuels of non-biological origin.
In recent decades, the European Union (EU) and its Member States have demonstrated a strong commitment to the fight against climate change and the transition towards a sustainable, low-carbon economy.
As part of this effort, European authorities have developed a number of public policies aimed at boosting the development of the clean or renewable hydrogen (RH2) industry.
These policies are based on a variety of rationales, ranging from climate change mitigation to the need for energy security and independence to boosting innovation and technological leadership in the region.
Delving into each of them, one of the main motivations for the promotion of policies related to clean hydrogen is the need to reduce greenhouse gas emissions and address climate change as a phenomenon of anthropogenic origin and global scope.
RH2 is considered a clean energy source, as its combustion does not produce carbon dioxide emissions, thus contributing to the reduction of dependence on fossil fuels and the decarbonisation of key sectors such as industry and transport.The European Union supports the sustainable development of territories by promoting the highest social and environmental standards, criteria that are particularly relevant for the European Investment Bank and the German Development Bank and KfW.
In addition, the Commission has adopted two Delegated Acts on Renewable Hydrogen on 13 February 2023 that complement Directive 2018/2001 on the promotion of the use of energy from renewable sources.
Specifically, the first Delegated Act defines under which conditions hydrogen, hydrogen-based fuels or other energy carriers can be considered renewable fuels of non-biological origin, while the second one establishes a methodology for calculating the life-cycle greenhouse gas emissions of renewable liquid or gaseous fuels of non-biological origin.
In this regard, several European authorities, including the President of the European Commission, Ursula von der Leyen, have clearly expressed the importance of hydrogen as part of the EU’s climate strategy. They have stated that clean hydrogen has the potential to transform the region’s economy and to reduce greenhouse gas emissions coming from Europe, especially in sectors that are difficult to decarbonise. This rationale is reflected in the new public policies of the EU and its Member States, which seek to encourage the production, distribution and use of clean hydrogen as a way to achieve internationally committed emission reduction targets.
In addition to climate change mitigation, another reason for promoting policies related to clean hydrogen is the quest for energy independence and diversification of energy sources. The EU has become increasingly aware of its dependence on imported fossil fuels, which has created economic and security vulnerabilities for its citizens.
In response to the difficulties and disruptions in the global energy market caused by the Russian invasion of Ukraine, the European Commission has implemented the REPowerEU Plan. Launched in May 2022, this plan aims to help the EU address energy challenges and achieve three main objectives: saving energy, producing clean energy and diversifying energy supply.
This plan has played a crucial role in protecting EU citizens and businesses from energy shortages, while supporting Ukraine by weakening Russia’s military stockpiles. It has also helped to accelerate the transition towards cleaner energy. Joint efforts carried out under this plan are ongoing, making Europe increasingly resilient to such shocks.
The implementation of the REPowerEU Plan has required significant investments and reforms. The European Commission has mobilised approximately €300 billion, of which €72 billion in grants and €225 billion in loans. The main core of this funding comes from the Recovery and Resilience Mechanism (RRM), of which around 95% will be allocated to projects to accelerate and intensify the transition to cleaner energy sources, including RH2.
In recent decades, the European Union (EU) and its Member States have demonstrated a strong commitment to the fight against climate change and the transition towards a sustainable, low-carbon economy. As part of this effort, European authorities have developed a number of public policies aimed at boosting the development of the clean or renewable hydrogen (RH2) industry.
These policies are based on a variety of rationales, ranging from climate change mitigation, to the need for energy security and independence, to driving innovation and technological leadership in the region.
Delving into each of these, one of the main motivations for the promotion of clean hydrogen policies is the need to reduce greenhouse gas emissions and to address climate change as a global phenomenon of anthropogenic origin. RH2 is considered a clean energy source, as its combustion does not produce carbon dioxide emissions, thus contributing to the reduction of dependence on fossil fuels and the decarbonisation of key sectors such as industry and transport.
The EU established this comprehensive strategy in 2020 as part of its plan to drive the transition towards a decarbonised economy. It aims to promote the production, distribution and use of renewable and low-carbon hydrogen across Europe. Its vision is to establish a complete hydrogen value chain, from production to consumption, in order to contribute to climate neutrality and achieve the goals of the Paris Agreement.
The strategy focuses on the development of a complete and competitive value chain for hydrogen, encompassing production, transport, storage and use in different sectors. It promotes the deployment of electrolysers for large-scale hydrogen production, as well as the necessary infrastructure for distribution and storage.
- Up to 2024
The aim is to build a solid foundation for the development of the hydrogen market, establishing small-scale production and distribution capacity and fostering demand in high-purity and niche sectors. In terms of metrics, it mentions (i) the installation of at least 6 GW of electrolysis capacity, and (ii) the production of 1 million tonnes of RH2.
- Between 2025 and 2030
The aim is to scale up and expand the hydrogen market by increasing large-scale production and distribution capacity. Hydrogen is expected to be part of the integrated European energy system, playing a significant role in the decarbonisation of key sectors such as industry, mobility and energy storage. By the end of this period, it is envisaged that (i) installed electrolysis capacity will reach 40 GW, and (ii) RH2 production will reach 10 million tonnes.
- Between 2030 and 2050
The aim is to consolidate hydrogen’s position as a key energy source and storage vector in the European economy, achieving mass deployment and full integration into energy systems. Renewable hydrogen will be deployed on a large scale in all sectors that are difficult to decarbonise.
The EU Hydrogen and Decarbonized Gas Market Package is a key initiative to move towards a sustainable future and reduce greenhouse gas emissions. This package seeks to promote the production and consumption of green and decarbonized hydrogen, as well as decarbonize the gas market.
Its main measures include:
Infrastructure: Promote the creation of infrastructure dedicated to the transportation and storage of hydrogen and low-carbon gases.
Integration of renewable gases: Ensure access of these gases to the wholesale gas market, facilitating their trade and reducing injection costs by 75%.
Integrated grid planning: Develop a more cost-effective energy infrastructure and enable information exchanges on the use of transmission systems between electricity, gas and hydrogen grids.
Consumer protection: Provide sufficient information on energy consumption and origin, and protect vulnerable customers.
Security and resilience: Include renewable and low-carbon gases in gas supply security regulation.
In this regard, several European authorities, including the President of the European Commission, Ursula von der Leyen, have clearly expressed the importance of hydrogen as part of the EU’s climate strategy. They have stated that clean hydrogen has the potential to transform the region’s economy and to reduce greenhouse gas emissions coming from Europe, especially in sectors that are difficult to decarbonise. This rationale is reflected in the new public policies of the EU and its Member States, which seek to encourage the production, distribution and use of clean hydrogen as a way to achieve internationally committed emission reduction targets.
In addition to climate change mitigation, another reason for promoting policies related to clean hydrogen is the quest for energy independence and diversification of energy sources. The EU has become increasingly aware of its dependence on imported fossil fuels, which has created economic and security vulnerabilities for its citizens.
In response to the difficulties and disruptions in the global energy market caused by the Russian invasion of Ukraine, the European Commission has implemented the REPowerEU Plan. Launched in May 2022, this plan aims to help the EU address energy challenges and achieve three main objectives: saving energy, producing clean energy and diversifying energy supply.
This plan has played a crucial role in protecting EU citizens and businesses from energy shortages, while supporting Ukraine by weakening Russia’s military stockpiles. It has also helped to accelerate the transition towards cleaner energy. Joint efforts carried out under this plan are ongoing, making Europe increasingly resilient to such shocks.
The implementation of the REPowerEU Plan has required significant investments and reforms. The European Commission has mobilised approximately €300 billion, of which €72 billion in grants and €225 billion in loans. The main core of this funding comes from the Recovery and Resilience Mechanism (RRM), of which around 95% will be allocated to projects to accelerate and intensify the transition to cleaner energy sources, including RH2.
In recent decades, the European Union (EU) and its Member States have demonstrated a strong commitment to the fight against climate change and the transition towards a sustainable, low-carbon economy. As part of this effort, European authorities have developed a number of public policies aimed at boosting the development of the clean or renewable hydrogen (RH2) industry.
These policies are based on a variety of rationales, ranging from climate change mitigation, to the need for energy security and independence, to driving innovation and technological leadership in the region.
Delving into each of these, one of the main motivations for the promotion of clean hydrogen policies is the need to reduce greenhouse gas emissions and to address climate change as a global phenomenon of anthropogenic origin. RH2 is considered a clean energy source, as its combustion does not produce carbon dioxide emissions, thus contributing to the reduction of dependence on fossil fuels and the decarbonisation of key sectors such as industry and transport.
The EU established this comprehensive strategy in 2020 as part of its plan to drive the transition towards a decarbonised economy. It aims to promote the production, distribution and use of renewable and low-carbon hydrogen across Europe. Its vision is to establish a complete hydrogen value chain, from production to consumption, in order to contribute to climate neutrality and achieve the goals of the Paris Agreement.
The strategy focuses on the development of a complete and competitive value chain for hydrogen, encompassing production, transport, storage and use in different sectors. It promotes the deployment of electrolysers for large-scale hydrogen production, as well as the necessary infrastructure for distribution and storage.
- Up to 2024
The aim is to build a solid foundation for the development of the hydrogen market, establishing small-scale production and distribution capacity and fostering demand in high-purity and niche sectors. In terms of metrics, it mentions (i) the installation of at least 6 GW of electrolysis capacity, and (ii) the production of 1 million tonnes of RH2.
- Between 2025 and 2030
The aim is to scale up and expand the hydrogen market by increasing large-scale production and distribution capacity. Hydrogen is expected to be part of the integrated European energy system, playing a significant role in the decarbonisation of key sectors such as industry, mobility and energy storage. By the end of this period, it is envisaged that (i) installed electrolysis capacity will reach 40 GW, and (ii) RH2 production will reach 10 million tonnes.
- Between 2030 and 2050
The aim is to consolidate hydrogen’s position as a key energy source and storage vector in the European economy, achieving mass deployment and full integration into energy systems. Renewable hydrogen will be deployed on a large scale in all sectors that are difficult to decarbonise.
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