FIS sees hydrogen market ready for take-off

Hydrogen consistently garners attention in energy-related publications as a prospective substitute for fossil fuels, playing an indispensable role in achieving decarbonization goals. The technology for producing, transporting, and storing hydrogen is continually advancing. Considerable research is dedicated to repurposing gas networks for hydrogen transport, seasonal hydrogen storage, and improving efficiency of hydrogen production. Progress is also being made in legislation, particularly in defining “green hydrogen.” According to the EU Commission’s Delegated Act of February 2023, hydrogen is deemed green when it is generated using renewable resources directly linked to an electrolyzer. It can also qualify as green when produced with electricity sourced from the grid, where over 90% of the energy production in the previous year was from renewable sources. Another option for hydrogen to be considered green is based on power sourced from a Power Purchase Agreement (PPA) contract, which is subject to meeting various criteria. However, there is more uncertainty on the demand side. The low-hanging fruit for green hydrogen is its industrial usage, which currently amounts to 94.2 million metric tons annually and can transition from grey hydrogen (produced from fossil fuels) to green or blue hydrogen as a first step. By 2025, total hydrogen demand is… continue reading

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