European Nations Strike Hydrogen Deals

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany, Norway and Denmark are among a number of European nations signing hydrogen deals and fast-tracking hydrogen investment in the wake of Russia's invasion of Ukraine.

Germany and Norway have officially announced plans to assess a hydrogen link between both countries as part of wider cooperation on energy, climate policy and industrial transformation. "Norway wants to actively contribute to the rapid development of the hydrogen market in Germany and the EU," read a joint statement from both governments following a meeting between high level ministers. "To this end, it has been agreed that a joint review will be conducted with a view to make large-scale transport, including via pipeline, of hydrogen from Norway to Germany possible. We plan to rapidly commission a joint feasibility study on this."

It added: "Germany would like to see Norway become a future partner for the production and supply of hydrogen. In order to realise the fastest possible high-volume imports of hydrogen and ensure the rapid availability thereof, we will also jointly plan the use of blue hydrogen for a transition period. In this context, we will ensure environmental and climate integrity by establishing for example the highest possible standards for Carbon Capture and Storage."

Industrial Info is tracking more than 550 European projects across all aspects of hydrogen production, worth US$47 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for related reports.

Ministers cited Russia's invasion of Ukraine and the escalating threat to energy supplies as a key reason for accelerating investment into alternative sources. "Russia's bloody and illegal war of aggression in Ukraine is shocking the whole world. The war affects us all. As Europe and the international community continue to impose further sanctions, Russia is becoming more and more isolated. A number of measures are now needed to enable Europe to reduce its dependence on Russian energy supplies. Over the coming months and years, it will be extremely important to speed up the development of alternative energy sources for Europe as substitutes for Russian gas and oil and to develop the necessary infrastructure for this. Norway is a very important exporter of oil and gas to Europe."

Norway is Europe's second-largest supplier of oil and gas at 23%. Russia accounts for roughly 40% of gas demand in Europe and 27% of crude oil demand. Europe relies on gas imports for 90% of its needs. The other main gas suppliers to the EU are Algeria (12%), the United States (6%) and Qatar (5%). For crude oil, Russia was also the largest supplier of EU imports (27%), followed by Norway (8%), Kazakhstan (8%) and the U.S. (8%). In the hard coal sector, even though import volumes have declined in recent years, Russia remains the leading supplier (46%), followed by the U.S. (15%) and Australia (13%).

In Denmark, the coalition government has announced its intention to rapidly boost production of green hydrogen in order to "minimise reliance on fossil fuel imports and attain carbon neutrality." The government aims to create up to 6 gigawatts (GW) of electrolysis capacity by 2030 to convert renewable energy into green hydrogen for the manufacturing of ammonia and methanol, as well as to cut Russian oil and gas imports as a result of Moscow's aggression in Ukraine. Funding amounting to $185 million has been allocated to kickstart the process.

"With the agreement, we strengthen the climate, Danish industry and green security of supply. I am very pleased that we have broad political agreement to set the goal so high that Denmark can play more than a national role in the development and production of new fuels. Europe is intensely looking for alternatives to fossil energy and we are busy. Both by becoming green and by becoming more independent of Russian black energy," said minister of climate, energy and supply, Dan Jørgensen.

In recent weeks, Industrial Info reported that the European Commission had highlighted rapid hydrogen investment as part of its wider REPowerEU plan to ensure the region's energy independence from Russia by 2030. For additional information, see March 16, 2022, article - Europe Plans to Cut Russia From Energy Mix.

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