International Government Hydrogen Developments
Connor Dolan
With growing concerns over climate change, hydrogen is emerging as a clean solution that can help curb carbon emissions globally. While support for hydrogen is steadily increasing within the United States, many other nations are taking an active approach by implementing hydrogen-focused strategies and investments. Plans across the world, from Germany, to South Korea, to Australia and more, are laying the groundwork for a global hydrogen economy.
European Union
Following a push from Germany, France, the Netherlands, Austria, Belgium, and Luxemburg to increase European funding and support for hydrogen, the European Commission followed up on a pledge to allocate part of a €750 billion (~$825 billion) coronavirus recovery fund to support a clean hydrogen economy by publishing the EU Hydrogen Strategy in early July 2020. The plan was released concurrently with the EU Strategy for Energy System Integration to provide a full transition plan by addressing energy efficiency, electrification, and more.
The European Commission detailed how hydrogen energy can support deep decarbonization of industry, transport, power generation, and buildings, while providing a guide to investments, regulation, market creation, and research and development. The Strategy describes a phased approach with goals set for the next five, ten, and thirty years. By 2024, Europe aims to install at least six gigawatts (GW) of electrolyzer systems to produce one million tonnes (~1.1 million tons) of renewable hydrogen annually. Between 2025 and 2030, the European Commission states hydrogen must become an intrinsic part of the energy system. To accomplish this the Commission sets the goal of at least 40 GW of electrolyzers producing ten million tonnes of hydrogen (~11 million tons). By 2050 Europe hopes renewable hydrogen technologies will permeate through all hard-to-decarbonize sectors, becoming an essential and standard energy source.
“Hydrogen will play a key role in [building a clean and cost-effective energy system], as falling renewable energy prices and continuous innovation make it a viable solution for a climate-neutral economy.”
Germany
One of the leading proponents of hydrogen technology, Germany is solidifying its commitment to a low-carbon hydrogen economy with the adoption of a national hydrogen strategy. Enacted on June 9th as part of a broader COVID-19 economic stimulus package, Germany plans to invest €7 billion (~$7.9 billion) into new businesses and research, as well as an additional $2 billion to foster international hydrogen partnerships. The country is committed to focusing on renewably produced hydrogen, especially through the use of offshore wind farms. Germany intends to increase electrolyzer hydrogen production capacity to five GW by 2030 and 10 GW by 2040.
Netherlands
The Netherlands has expressed interest in transitioning to hydrogen energy through the new unveiling of the “Government’s vision on hydrogen” letter in March 2020. To scale up production for the country, the Netherlands aims to provide €35 million (~$39 million) annually to ramp up hydrogen technology deployment.
Australia
Australia is seen as a land of opportunity for renewable energy, and the government has taken note of the opportunities presented by hydrogen for creating fuel, energy storage, and even export revenue. Western Australia recognized this in July 2019, publishing the Western Australian Renewable Hydrogen Strategy, which saw the region as a producer, user, and exporter of the fuel. The plan included strategic focus area of export, remote applications, blending into existing gas networks, and transport applications. Through the publication of this plan, pressure has been put on the rest of Australia to follow suit in the pursuit of hydrogen technology.
As such, the central government created a National Hydrogen Strategy in November 2019 that focuses on advancing hydrogen production, developing export and domestic supply chains, establishing hydrogen hubs, and supporting projects building domestic demand for hydrogen.
Following up on the Strategy in May 2020, the Australian Minister for Energy and Emissions Reductions created the “Advancing Hydrogen Fund,” offering AUD 300 million (~$207 million) to finance projects growing a clean, innovative, and competitive hydrogen economy within Australia.
Japan
When looking at the international history of hydrogen support, one cannot pass up the first country to adopt a comprehensive plan: Japan. Home to two of the three automakers offering commercial fuel cell vehicles (FCV), Toyota and Honda, Japan displayed recognition of FCV and fuel cell importance by issuing a Basic Hydrogen Strategy in December 2017. Throughout the plan, Japan sets markers of 2030 and 2050 to achieve hydrogen goals that reduce the cost to the same of conventional energy. Japan’s plan is to create a carbon-free hydrogen society.
The Japanese government has also taken the lead by supporting the Fukushima Hydrogen Energy Research Field (FH2R), which finished construction of a solar-powered 10-megawatt hydrogen production plant at the end of February 2020. As part of the Basic Hydrogen Strategy, the plant will offer hydrogen for stationary fuel cell systems, fuel cell cars, fuel cell buses, and more.
South Korea
Home to FCV manufacturer Hyundai Motors, South Korea seeks to bolster hydrogen and fuel cell presence within its borders through the use of a “roadmap for hydrogen economy” unveiled in January 2019. The initial roadmap set targets including producing 81,000 FCVs in 2022, 1.8 million in 2030, and 6.2 million in 2040, but was expanded upon in June 2020 with the announcement of a fund targeted for the growth of the hydrogen economy.
In the midst of the coronavirus pandemic, South Korea committed to invest 34 billion won (~$28 million) into hydrogen and fuel cell technology, 28.9 billion won (~$24 million) for existing indirect investment and 5.1 billion won (~$4.2 million) for private and government funds. Among other goals, South Korea intends to target hydrogen production, hydrogen storage, transport, fuel cell and hydrogen charging, energy efficiency, repair and maintenance for solar and wind power, and companies specializing in hydrogen production as recipients of the investment.
South Korea has also bolstered its international government-industry relations. In February 2020, the South Korean hydrogen and fuel cell industry association Korea’s Hydrogen Convergence Alliance (H2Korea) signed a Memorandum of Understanding with FCHEA to collaborate and further the global interests of the industry. The partnership represents the worldwide interest expressed for industry to work with governmental entities, highlighting the necessary connections required between the two for success.
Action in the United States
The United States has shown increased support for hydrogen and fuel cell technologies each year, especially within the inclusion of many hydrogen provisions in $1.5 trillion infrastructure package, The Moving Forward Act, passed by the U.S. House of Representatives in July 2020.
In June 2019, the U.S. Department of Energy (DOE) issued a joint statement alongside the Ministry of Economy, Trade and Industry of Japan (METI) and the European Commission Directorate-General for Energy (ENER), to commit to the funding and development of hydrogen and fuel cell technology and to explore the best options for collaboration to that end.
For years, the United States DOE has also been spending roughly $100M a year (increased to $120M in Fiscal Year 2019 and $150M in Fiscal Year 2020), to advance fuel cell and hydrogen research, development, demonstration, and deployment through the Hydrogen and Fuel Cell Technologies Office. In addition $30M have been spent annually for many years on a separate Solid Oxide Fuel Cell Program. This funding has been instrumental in building the U.S. fuel cell and hydrogen industry in America today.
However, it is critical that the U.S. takes the step of forming a dedicated plan, as many other countries have done. By forming a hydrogen strategy, the United States should demonstrate its leadership and set a standard of how to address energy within the scope of clean fuels, climate change, and the economy.
Cover image by Pixabay via Pexels.