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Final Report Hydrogen in Necps

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Final Report Hydrogen in Necps Contract details Fuel Cells and Hydrogen 2 Joint Undertaking (FCH 2 JU) Study on Opportunities arising from the inclusion of Hydrogen Energy Technologies in the National Energy & Climate Plans (Ref. FCH / OP / Contract 234) [email protected] Study prepared by Consortium led by: Trinomics B.V. Westersingel 34 3014 GS, Rotterdam the Netherlands Date August 2020 © FCH 2 JU, 2020. Reuse is authorised provided the source is acknowledged. For any use or reproduction of photos or other material that is not under the copyright of FCH 2 JU, permission must be sought directly from the copyright holders. Acknowledgment The Fuel Cells and Hydrogen Joint Undertaking (FCH 2 JU), in consultation with the European Commission - DG Energy, has commissioned a study on the “Role of Hydrogen in the National Energy and Climat e Plans”. This study was conducted by the consultancies Trinomics and LBST and its results are presented in this report. Disclaimer The information and views set out in this report are those of the authors and do not necessarily reflect the official opinion of the FCH 2 JU. The information is based on the NECPs that were publicly available in April 2020. The FCH 2 JU does not guarantee the accuracy of the data included in this study. Neither the FCH 2 JU nor any person acting on the FCH 2 JU’s behalf may be held responsible for the use which may be made of the information contained therein. Rotterdam, July 2020 Opportunities for Hydrogen Energy Technologies considering the National Energy & Climate Plans Final Report Client: Fuel Cells and Hydrogen 2 Joint Undertaking Reference number: FCH / OP / Contract 234 Frank Gérard (Trinomics) Luc van Nuffel (Trinomics) Jan Michalski (LBST) Tycho Smit (Trinomics) Matthias Altmann (LBST) Jessica Yearwood (Trinomics) Ondřej Černý (Trinomics) ABSTRACT This study analyses the role of hydrogen in the National Energy and Climate Plans (NECPs) and identifies and highlights opportunities for hydrogen technologies to contribute to effective and efficient achievement of the 2030 climate and energy targets of the EU and its Member States. The study focuses on the potential and opportunities of renewable hydrogen, produced by electrolysers using renewable electricity and of low-carbon hydrogen, produced by steam methane reforming combined with CCS. The opportunities for and impacts of hydrogen deployment are assessed and summarised in individual fiches per Member State. The study analyses to what extent policy measures and industrial initiatives are already being taken to facilitate large-scale implementation of hydrogen in this and the next decades. The study concludes by determining the CO2 reduction potential beyond what is foreseen in the NECPs through hydrogen energy technologies, estimating the reduction of fossil fuel imports and reliance, the prospective cost, and the value added and jobs created . National teams working on decarbonisation roadmaps and updates of the NECPs are welcome to consider the opportunities and benefits of hydrogen deployment identified in this study. TEC1216EU TEC1216EU Oppor tunities ar ising fr om the inclusion of Hydr ogen Ener gy Technologies in the National Ener gy & Climate Plans CONTENTS Executive Summary ......................................................................................i Résumé exécutif ......................................................................................... v Definitions and abbreviations ........................................................................ ix 1 Context ................................................................................................ 1 1.1 Introduction ................................................................................ 1 1.1.1 Objective and scope of the study ...........................................................................1 1.1.2 Structure of the report ........................................................................................2 1.2 Methodology ................................................................................ 2 1.2.1 Methodology used for the analysis of the NECPs .........................................................2 1.2.2 Assessment per EU Member State of opportunities for hydrogen deploy ment .....................3 1.2.3 Scenario assessment per EU Member State of hydrogen deploy ment ................................3 1.3 Hydrogen is a key option in the long-term decarbonisation strategy ................ 6 1.4 Status-quo regarding existing and planned hydrogen transport infrastructure ..... 7 2 Hydrogen in the NECPs........................................................................... 11 2.1 Deployment of renewable and/or low-carbon hydrogen is to a different extent addressed in the NECPs ................................................................. 11 2.1.1 Role of hydrogen in the energy transition ............................................................... 12 2.1.2 Drivers for and benefits from hydrogen deployment referred to in the NECPs................... 12 2.1.3 General approach of hydrogen integration in the NECPs ............................................. 13 2.1.4 Specific national (or regional) hydrogen roadmaps and strategies ................................. 14 2.2 Hydrogen related targets, initiatives and policy measures in the NECPs .......... 16 2.2.1 Most NECPs refer to Hydrogen generation via electrolysers using renewable electricity ...... 16 2.2.2 Several NECPs refer to the intention of using existing methane infrastructure for hydrogen and of setting up a market for hydrogen ................................................................ 17 2.2.3 Transport is in most NECPs considered as the first market segment to deploy hydrogen ...... 18 2.2.4 Industry is the second target sector for hydrogen use ................................................ 19 2.2.5 NECPs refer explicitly to the need for further R&D and to national commitments in this domain.......................................................................................................... 19 2.2.6 Several NECPs refer to supra-national cooperation on hydrogen related research and industrial initiatives.......................................................................................... 19 2.3 Conclusions and good practices based on the NECPs’ assessment .................. 20 2.3.1 Main conclusions .............................................................................................. 20 2.3.2 Good practices identified in the NECPs that can serve as guidance for preparing national hydrogen roadmaps .......................................................................................... 22 3 Opportunities for deploying renewable and low-carbon hydrogen technologies ... 29 3.1 Hydrogen production potential and its role in energy system flexibility .......... 29 TEC1216EU Oppor tunities ar ising fr om the inclusion of Hydr ogen Ener gy Technologies in the National Ener gy & Climate Plans 3.1.1 Context ......................................................................................................... 29 3.1.2 Overview of the findings .................................................................................... 31 3.2 Potential for hydrogen transport and storage by using existing methane infrastructure ............................................................................ 34 3.2.1 Context ......................................................................................................... 34 3.2.2 Overview of the findings .................................................................................... 34 3.2.3 Main opportunities at EU level ............................................................................. 37 3.2.4 Main barriers at EU level .................................................................................... 37 3.3 Current and potential hydrogen demand.............................................. 37 3.3.1 Industry......................................................................................................... 38 3.3.2 Transport....................................................................................................... 43 3.3.3 Heating and cooling in the built environment .......................................................... 47 3.4 Enabling political and industrial environment for hydrogen development ........ 49 3.4.1 Context ......................................................................................................... 49 3.4.2 Overview of the findings .................................................................................... 49 4 Assessment of hydrogen deployment in the high and low scenario .................... 57 4.1 Estimated hydrogen demand by 2030 in the two scenarios ......................... 57 4.2 Hydrogen end users, infrastructure and generation ................................. 61 4.2.1 End user applications and refuelling station infrastructure.......................................... 61 4.2.2 Renewable or low-carbon hydrogen generation ........................................................ 64 4.3 Environmental and financial impacts .................................................. 67 4.3.1 Environmental impact ....................................................................................... 67 4.3.2 Financial impact .............................................................................................. 69 4.4 Impacts of renewable hydrogen deployment on security of energy supply, employment
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