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Hydrogen Outlook in Central and Eastern Europe

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Hydrogen Outlook in Central and Eastern Europe HYDROGEN OUTLOOK IN CENTRAL AND EASTERN EUROPE EVENT REPORT | FEBRUARY 2021 https://eurac.tv/9SdC With the support of HYDROGEN OUTLOOK IN CENTRAL AND EASTERN EUROPE EVENT REPORT https://eurac.tv/9SdC According to EU scenarios, the share of hydrogen in Europe’s energy mix is expected to grow from less than 2% today to 13-14% by 2050, as part of efforts to de- carbonise transport and heavy industries. Central and Eastern EU countries are now stepping up prepara- tions to be part of the game. Contents Polish climate minister: ‘It is critical that EU legislation on hydrogen is colour-blind’ 4 Hydrogen – the case for Central and Eastern Europe 7 ‘Low hanging fruit’: Eastern EU states eye existing gas network for hydrogen 9 4 EVENT REPORT | HYDROGEN OUTLOOK IN CENTRAL AND EASTERN EUROPE | EURACTIV INTERVIEW Polish climate minister: ‘It is critical that EU legislation on hydrogen is colour-blind’ By Frédéric Simon | EURACTIV.com Michal Kurtyka during a press conference summing up the COP24 Climate Summit in Katowice, 16 December 2018. [EPA-EFE/ANDRZEJ GRYGIEL] oland has welcomed the and Environment of Poland, which The Polish government adopted its inclusion of hydrogen currently holds the Presidency of the 2040 energy policy on 2 February. Pinfrastructure in the European Visegrad 4 group of countries comprising What is the place of hydrogen in the Commission’s recast regulation for the Czech Republic, Hungary, Poland country’s energy policy? Does Poland cross-border energy networks. “It and Slovakia. He answered EURACTIV’s have objectives in terms of scaling up is critical for our region that this questions in writing ahead of a virtual production capacity and infrastructure legislation is colour-blind and does not conference on the outlook for hydrogen in deployment? And what are the related discriminate between different ‘types’ Central and Eastern Europe taking place cost projections for this? of hydrogen,” says Michał Kurtyka. on Friday (12 February). The recent adoption of the Polish Michał Kurtyka is Minister of Climate 2040 energy policy is a milestone Continued on Page 5 EVENT REPORT | HYDROGEN OUTLOOK IN CENTRAL AND EASTERN EUROPE | EURACTIV 5 Continued from Page 4 towards future climate neutrality. by the first applications of innovative regional specificities when designing It sets a clear vision of our strategy production installations. the support instruments for energy for a low- and zero-emission energy transition. transition, which ensures energy Our ambition is to have 2GW of security and creates the basis for electrolyser capacity installed by Moreover, in the mid- and long- meeting economic needs resulting 2030, which will require investments term perspective, a stable increase from the recovery from the COVID-19 of over €2 billion. in share of the green gases (such as crisis. hydrogen and biomethane) in gas What are the main challenges networks, is expected. In this regard, The new energy policy recognises and opportunities related to the retrofitting of existing infrastructure the importance of innovation and development of hydrogen in central to enable blending of renewable paves the way for the application of and east European countries? How do and decarbonised gases, such as hydrogen as an alternative fuel, energy those differ from the rest of the EU? hydrogen, in the natural gas network carrier and energy storage device. should be considered as the most The role of hydrogen will increase CEE countries have made a big reliable option for greening the gas together with the implementation effort to overcome the historical networks and economies. of offshore wind and nuclear energy dependencies, but our energy mix into the Polish power system. still relies on coal. We plan to diversify Putting differences aside, we have our energy mix through nuclear plant something in common across the The adoption of our energy policy and offshore wind farms. It will give EU. Poland has a sizeable hydrogen gives a strong impetus for other us energy security. production – we are the 3rd producer energy and climate-related strategies. in the EU – but just like everywhere A draft Polish 2030 hydrogen Phasing out coal is a very costly else it is largely based on fossil fuels. strategy is currently under public process which has to be done with a We share the challenge of making consultation. Our proposal covers all due account of what our public and our hydrogen more sustainable. aspects of the hydrogen value chain, energy system can sustain. Not every including production, transmission, EU country has an excess of renewable The development of a European- storage and use. It presents hydrogen electricity in the system. Thus, the wide hydrogen market will rely first coexisting with other energy carriers key issue in hydrogen production on market integration at a regional to cover growing power demand and should be the level of CO2 emissions, level. What can be the contribution respond to the need of a secured and not the specific technology. In order of central and eastern European balanced energy system. to achieve emission reductions in a countries to this effort? cost effective manner and to prevent The expansion of the hydrogen creating permanent disproportions CEE countries can actively economy will support the increase in between the regions and member promote new opportunities for the share of renewable energy sources, states at the beginning hydrogen cooperation on low-carbon hydrogen give a new role to the gas sector in should be produced from all possible with neighbouring countries and terms of storage, transmission and low-emission sources. regions. Such cooperation can distribution of mixtures of natural contribute to their energy transition, gas and hydrogen and will be a way The CEE region needs in terms of sustainable growth and development. for climate neutrality of transport and gas infrastructure are significantly industry. different from those of member By 2030 the EU will aim at building states from North Western Europe. an open and competitive EU hydrogen The ambition of the Government In the case of Poland, we have market, with unhindered cross- of Poland is to develop strong identified gaps in gas transmission border trade and efficient allocation national and local competences in the and distribution infrastructure which of hydrogen supply among sectors. production of key components of the need to be filled in order to enable hydrogen technology value chain. In further transition towards low- Currently there is limited the short term, we aim at supporting carbon energy system. The EU policy infrastructure in place dedicated research and development followed needs to take into account these to transport and trade of hydrogen Continued on Page 6 6 EVENT REPORT | HYDROGEN OUTLOOK IN CENTRAL AND EASTERN EUROPE | EURACTIV Continued from Page 5 across borders. Development of excluding any other sectors at this adjustment of support schemes infrastructure is an important element stage. for investment, research and of the CEE cooperation. development activities. It is necessary We need more time to assess the to seize the opportunities for the We welcomed the inclusion economic and environmental aspects R&D&I in hydrogen created by the EU of hydrogen infrastructure in the of hydrogen deployment across Green Deal and policies that follow. Commission’s proposal on the TEN-E sectors. The market uptake will be regulation recast. It is critical for our a good indicator of what should be The European Commission’s hydrogen region that this legislation is colour- prioritised. strategy, published in July last year, blind and does not discriminate aims for 100% renewable hydrogen between different “types” of hydrogen. Today, most hydrogen production production from electrolysis. What While physical properties of hydrogen is fossil-based and the quantities will be Poland’s contribution to this are irrespective of its production available are small. How does Poland objective? mode, the infrastructure must be in intend to bridge the gap between fossil, place to support the development of low-carbon and renewable hydrogen? There is an important scientific the market. Will supply come mainly from locally- and research potential in the field sourced hydrogen or from imports? of hydrogen technologies in Poland. What are the industrial sectors that We have significant achievements in are expected to be the main users If hydrogen is to be an alternative designing functional materials for the of hydrogen in Poland and CEE for crude oil and coal, at the beginning production of fuel cells and hydrogen countries? Is it industry, heating, or it should be produced from all possible storage. We also have specialists in transport? By contrast, are there any sources, the overall CO2 emission of all aspects related to the construction sectors that Poland believes should not which is significantly lower than that of fuel cells. We intend to use these be prioritised? of oil’s and coal’s. talents to take the lead in this relatively new market which is being created in Currently we are working in the When we reach the point where Europe. Ministry of Climate and Environment low-carbon hydrogen meets a much on the Polish Hydrogen Strategy larger demand, more and more low- We are also planning to create a which is going to define our goals and carbon hydrogen from renewable comprehensive research program, measures necessary to introduce the sources can be included. Our ambition the ultimate goal of which will be the hydrogen economy. is to develop strong national and local development of the technology and competences in the production of key construction of electrolysers and fuel We want hydrogen to support components of hydrogen technology cells. This will allow a direct economic energy transition in three priority value chain. effect. areas: energy and heating, transport and industry. We are also The use of hydrogen will help Above all, however, the key to addressing hydrogen production and us achieving not only climate success in developing the hydrogen distribution, and the need to create a neutrality but also maintaining the economy is working together stable regulatory framework for the competitiveness of Polish economy.
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