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1、Northwest EuropeanHydrogen MonitorThe IEA examines the full spectrum of energy issues including oil,gas and coal supply and demand,renewable energy technologies,electricity markets,energy efficiency,access to energy,demand side management and much more.Through its work,the IEA advocates policies tha
2、t will enhance the reliability,affordability and sustainability of energy in its 31 member countries,11 association countries and beyond.This publication and any map included herein are without prejudice to the status of or sovereignty over any territory,to the delimitation of international frontier
3、s and boundaries and to the name of any territory,city or area.Source:IEA.International Energy Agency Website:www.iea.org IEA member countries:Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Japan Korea LithuaniaLuxembourg Mexico Ne
4、therlands New Zealand Norway Poland Portugal Slovak Republic INTERNATIONAL ENERGY AGENCY Spain Sweden Switzerland Republic of TrkiyeUnited Kingdom United States The European Commission also participates in the work of the IEAIEA association countries:ArgentinaBrazilChinaEgyptIndiaIndonesiaMoroccoSin
5、gaporeSouth AfricaThailandUkraine Northwest European Hydrogen Monitor PAGE|2 IEA.All rights reserved.Abstract Abstract Northwest Europe is at the forefront of renewable and low-emission hydrogen development.This region accounts for around half of Europes total hydrogen demand,and has a vast and unta
6、pped renewable energy potential in the North Sea.It also has a well-developed,interconnected gas network which could be partially repurposed to facilitate the transmission and distribution of renewable and low-emission hydrogen from production sites to demand centres.The development of renewable and
7、 low-emission hydrogen1 in Northwest Europe is expected to gradually scale up in the short-to medium-term to reach a low-emission hydrogen production capacity target of over 30 GW by 2030.Most of the low-emission hydrogen projects are currently in the early stages of development.Their success will d
8、epend to a large extent on the supporting policy and regulatory frameworks,and continuous monitoring of progress.The cost-efficient development of renewable and low-emission hydrogen markets will also necessitate a regional approach in order to maximise the existing synergies amongst national market
9、s.1 When the term“low-emission hydrogen”is used,the International Energy Agency refers to hydrogen produced via electrolysis where the electricity is generated from a low-emission source(renewables or nuclear),biomass or fossil fuels with carbon capture usage and storage(CCUS).This does not necessar
10、ily reflect the official definitions of the countries involved in the Monitor on the carbon intensity or sustainability of hydrogen production methods.This is the first edition of the Northwest European Hydrogen Monitor.It aims to provide an annual update of the renewable and low-emission hydrogen m
11、arket developments in Northwest Europe.It is the result of a collaboration among the countries involved in the Hydrogen Initiative of the Clean Energy Ministerial(CEM-H2I)workstream entitled,“Roundtable on the North-West European Region”and the hydrogen working group of the Pentalateral Forum.The co
12、untries analysed in this monitor are:Austria,Belgium,Denmark,France,Germany,Luxemburg,the Netherlands,Norway,Switzerland and the United Kingdom.Market monitoring is accompanied by a continuous dialogue with key stakeholders to facilitate information exchange and data collection.Briefing note on rece
13、nt LNG market and contracting trends PAGE|3 Introduction Table of contents Northwest European Hydrogen Monitor.1 Abstract.2 Table of contents.3 Executive summary.4 Hydrogen policies and targets.9 Hydrogen targets in Northwest Europe are being scaled up.10 Most Northwest European countries have adopt
14、ed hydrogen strategies.11 Northwest Europe targets at least 30 GW of installed electrolysis production capacity by 2030.19 Subsidy schemes and support mechanisms.21 Subsidies and support mechanisms will be key for the early deployment of low-emission hydrogen in Northwest Europe.22 Several EU fundin
15、g programmes are available for hydrogen projects.25 Hydrogen supply.36 Low-emission hydrogen is at the intersection of decarbonisation efforts and energy supply security.37 Northwest Europe leads the world in low-emission hydrogen production development.39 Low-emission hydrogen production developmen
16、t varies by country.41 Hydrogen trade.48 European countries could play a central role in a nascent hydrogen trade market.49 Dedicated financial instruments will be key to facilitating hydrogen imports.50 The number of planned export-oriented projects is growing,but a considerable margin exists for s
17、ecuring off-take agreements.51 Hydrogen demand.56 Demand creation will be crucial in creating a low-emission hydrogen market.57 Low-emission hydrogen demand in Northwest Europe could reach close to 7 Mt/yr by 2030.62 Infrastructure.63 Dedicated hydrogen infrastructure will be key for the large-scale
18、 deployment of low-emission hydrogen.64 Northwest European countries lead the way in infrastructure development.66 Regulation.74 Developing an effective regulatory framework will be crucial to fast-tracking the deployment of low-emission hydrogen.75 Harmonised hydrogen standards and certification sc
19、hemes will be key to establishing a regional hydrogen market in Northwest Europe.77 Harmonised hydrogen blending thresholds could facilitate the development of low-emission hydrogen trade in Northwest Europe.80 Costs of hydrogen production.83 High gas.84 Hydrogen production cost outlook in Northwest
20、 Europe .85 Annex.88 Key low-emission hydrogen projects in Northwest Europe.89 Regional and country groupings.90 Abbreviations and acronyms.91 Units of measure.92 Acknowledgments,contributors and credits.93 Northwest European Hydrogen Monitor PAGE|4 IEA.All rights reserved.Executive summary Executiv
21、e summary Low-emission hydrogen can play a significant role in decarbonising existing gas and energy systems and will be critical to the countries efforts to achieve a climate neutral society.Besides its environmental benefits,low-emission hydrogen can already help reduce reliance on fossil fuel imp
22、orts in the medium-term.Northwest Europe2 leads the development of low-emission hydrogen as a new energy carrier.This region accounts for around half of Europes total hydrogen demand,and has a vast and untapped renewable energy potential in the North Sea.It also has a well-developed,interconnected g
23、as network which could be partially repurposed to facilitate the transmission and distribution of renewable and low-emission hydrogen from production sites to demand centres.When the term“low-emission hydrogen”is used,the International Energy Agency refers to hydrogen produced via electrolysis where
24、 the electricity is generated from a low-emission source(renewables or nuclear),biomass or fossil fuels with carbon capture usage and storage(CCUS).This does not necessarily reflect the official definitions of the countries involved in the Monitor on the carbon intensity or sustainability of hydroge
25、n production methods.2 The Northwest European Hydrogen Monitor covers the following countries:Austria,Belgium,Denmark,France,Germany,Luxembourg,Netherlands,Norway,Switzerland and the United Kingdom.Northwest Europe has set a target of 30-40 GW of electrolyser capacity by 2030 The adoption of hydroge
26、n strategies,including medium-and long-term targets,is considered essential in providing the necessary impetus and guidance for the developments of hydrogen markets.In Northwest Europe,nine of the ten countries included in the Monitor have already developed hydrogen strategies or roadmaps,and six ha
27、ve adopted specific production capacity targets up to 2030.Following Russias unprovoked invasion of Ukraine,several Northwest European countries have doubled,or are considering raising their production targets.While most of the countries have adopted production targets for electrolytic hydrogen,Norw
28、ay has opted for a technology-neutral approach.In all,the Northwest European countries target electrolyser capacity deployment of between 30 and 40 GW by 2030.Low-emission hydrogen production could fully replace unabated,fossil-fuel based hydrogen by 2030 in Northwest Europe If all announced and pla
29、nned projects become commercially operational,Northwest Europes low-emission hydrogen production Northwest European Hydrogen Monitor PAGE|5 IEA.All rights reserved.Executive summary capacity is expected to reach close to 14 Mt H2/yr by 2030.This would mean that Northwest Europe would account for aro
30、und 80%of the total expected production capacity of low-emission hydrogen production in OECD Europe by 2030.Electrolytic hydrogen is set to take the lead,meeting approximately two-thirds of the total planned low-emission hydrogen production capacity by 2030,whilst the share of fossil-fuel based hydr
31、ogen projects,equipped with CCUS would account for about one-third of the projected production capacity.Taking into account assumptions relating to efficiency and utilisation factors,Northwest Europes low-emission hydrogen production could reach close to 6.2 Mt H2/yr by 2030,potentially enabling the
32、 replacement of the regions current use of unabated,fossil-fuel based hydrogen.however,over 95%of the low-emission hydrogen projects are in the early stages of development,highlighting the need for support mechanisms and subsidy schemes According to the IEAs Hydrogen Projects Database,less than 5%of
33、 the planned capacity by 2030 has reached a final investment decision(FID)or is under construction.Over 95%of these projects are in various early stages of development,i.e.either conceptual or subject to feasibility studies.This highlights the importance of subsidy schemes and support mechanisms.The
34、 scale-up of low-emission hydrogen will require an effective framework of support mechanisms and subsidy schemes along the entire value chain,i.e.R&D,production,transportation and demand creation.Public funding programmes and state-backed risk-sharing mechanisms(such as contracts for difference)can
35、help to de-risk investment and improve the economic feasibility of low-emission hydrogen projects.Demand creation should be used as a key instrument to stimulate investment,including via quotas and public procurement rules.This Hydrogen Monitor provides a detailed overview of the various subsidy sch
36、emes and support mechanisms that are available,and are given at both the level of the European Union and at the national level in Northwest European countries.Northwest Europe is playing a key role in developing international trade in low-emission hydrogen Based on the export-oriented projects curre
37、ntly under development,global hydrogen trade could reach 12 Mt H2/yr by 2030.However,because off-take agreements and import contracts are lagging behind,the projects which have reached a more advanced stage of development represent only 0.2 Mt H2/yr.The role of ports in the Northwest European region
38、 will be pivotal in the development of a new import market for clean hydrogen.Major ports in the Netherlands,namely the Port of Rotterdam and the Port of Amsterdam,have plans to import a combined amount of more than 5 Mt H2 by 2030.In Germany,the H2Global auction-based mechanism will facilitate the
39、conclusion of long-term import contracts for low-emission Northwest European Hydrogen Monitor PAGE|6 IEA.All rights reserved.Executive summary hydrogen and hydrogen derivatives.The German government has approved a grant of EUR 900 million for the scheme.Notably,the German governments draft budget fo
40、r 2023 includes a budget of EUR 3.6 billion for H2Global.In October 2022,the Netherlands expressed its interest in joining H2Global.The scale-up of international trade in hydrogen and hydrogen derivatives will also require the construction of transport infrastructure.Liquefied hydrogen trade still r
41、equires technology development.There is only one demonstration project for hydrogen transport in the world.It originates in Australia and goes to Japan,with the first shipment delivered in February 2022.In contrast to hydrogen,ammonia is already a widely traded commodity.However,using it as a hydrog
42、en carrier would require a significant expansion of the global supply chain.For example,using ammonia as a hydrogen carrier to achieve the REPowerEUs target of 10 Mt/yr hydrogen imports by 2030,would require over 60 Mt/yr of ammonia,or three times its current global trade volume.Moreover,if the end-
43、uses require hydrogen,ammonia must be reconverted to hydrogen via ammonia cracking,which is an energy-intensive process(consuming around 30%of the energy content of the ammonia).Northwest Europes hydrogen network is set to expand almost eight-fold by 2030 Northwest Europe has around 1 600 km of hydr
44、ogen pipelines,accounting for over 95%of the hydrogen pipelines operational in Europe.Most are closed systems owned by large merchant hydrogen producers and are concentrated near industrial consumer centres.Achieving the ambitious targets in terms of low-emission hydrogen deployment will require acc
45、elerating the development of hydrogen infrastructure for transport and storage.Based on the current targets set by Northwest European countries,the regions hydrogen network could increase by almost eight-fold to over 12 000 km by 2030.Repurposing gas pipelines to hydrogen service could cut investmen
46、t costs by 50-80%compared to the cost of building new pipelines.This in turn,could translate into lower transmission tariffs and improve the cost-competitiveness of low-emission hydrogen.According to first estimates,close to two-thirds of the hydrogen pipelines operational in 2030 would be repurpose
47、d natural gas pipelines.Low-emission hydrogen could enhance overall energy system flexibility by balancing short-term supply variability and meeting seasonal demand swings,thereby improving energy supply security.To fulfil this role,low-carbon hydrogen deployment will need to be coupled with develop
48、ment of cost-effective,large-scale and long-term storage solutions.Several underground hydrogen storage projects are currently under various phases of development in Northwest Europe.Northwest European Hydrogen Monitor PAGE|7 IEA.All rights reserved.Executive summary Developing a harmonised regulato
49、ry framework will be crucial to enabling regional trading in low-emission hydrogen Harmonised regulatory frameworks for hydrogen enable the development of regional trade in low-emission hydrogen.They would also benefit cross-regional synergies in terms of production and demand creation.The European
50、Commission published its Hydrogen and Decarbonised Gas Market Package in December 2021.This package lays down the foundations for the integration of low-emission gases,including hydrogen,into the broader European gas system.The proposed regulation provides guidelines on the gradual implementation of
51、 non-discriminatory third-party access to hydrogen networks,blending limits,tariffs,network codes and operational transparency.Regulatory standards for low-emission hydrogen are emerging in Northwest Europe.In the United Kingdom,the Low Carbon Hydrogen Standard Policy defines low-carbon hydrogen wit
52、h an emissions intensity lower than 2.4 kg CO2-eq/kg of produced hydrogen.Hydrogen producers seeking support from certain UK Government programmes must adhere to this standard.In the European Union,the European Commission proposed an emissions threshold of 3.38 kg CO2-eq/kg H2,which is 70%lower than
53、 that of the predefined fossil fuel comparator including transport and other non-production emissions.Harmonised approaches to hydrogen certification schemes providing evidence of the emissions intensity of a given unit of hydrogen will be key in establishing a regional hydrogen market in Northwest
54、Europe amidst tightening regulatory standards.Similarly,hydrogen blending thresholds should be harmonised to facilitate regional trading.Renewable electrolytic hydrogen would be competitive with unabated gas-based hydrogen by 2030 The cost of unabated gas-based hydrogen rose above the estimated cost
55、 of wind-based electrolytic hydrogen in 2022 amidst the surge in gas prices to record levels.Natural gas markets are expected to remain tight until the mid-2020s,and this situation could accelerate the transition towards renewables-based electrolytic hydrogen.Our projections indicate that renewable
56、electrolytic hydrogen will be competitive with gas-based hydrogen by 2030,even if it is assumed that natural gas prices return to their pre-crisis average levels.Northwest European Hydrogen Monitor PAGE|8 IEA.All rights reserved.Executive summary Over 95%of Northwest Europes planned low-emission hyd
57、rogen production capacity is in the early stages of development and will require policy support to take off IEA.CC BY 4.0.Source:IEA(2022),Hydrogen Projects Database.Low-emission hydrogen project capacity in Northwest Europe by status,2021-2030 Northwest European Hydrogen Monitor PAGE|9 IEA.All righ
58、ts reserved.Hydrogen policies and targets Hydrogen policies and targets Northwest European Hydrogen Monitor PAGE|10 IEA.All rights reserved.Hydrogen policies and targets Hydrogen targets in Northwest Europe are being scaled upThe adoption of hydrogen strategies,including medium-and long-term targets
59、,are considered essential to provide the impetus and guidance necessary for the development of hydrogen markets.The European Unions Hydrogen Strategy,published in July 2020,provided a vision to create a European hydrogen ecosystem and to scale up production and infrastructure to an international dim
60、ension.The Strategy spans three phases for the development of low-emission hydrogen:In the first phase,from 2020 up to 2024,the strategic objective is to install at least 6 GW of renewable hydrogen electrolysers in the EU,with the aim to produce up to 1 Mt of renewable hydrogen in order to decarboni
61、se existing hydrogen production(e.g.in the chemical sector).In the second phase,from 2025 to 2030,hydrogen is expected to become an intrinsic part of an integrated energy system.The target is to install at least 40 GW of renewable hydrogen electrolysers by 2030.In the third phase,from 2030 onwards a
62、nd towards 2050,renewable hydrogen technologies are expected to reach maturity and be deployed at large scale to reach all hard-to-decarbonise sectors where other alternatives might not be feasible or have higher costs.In Northwest Europe,of the ten countries included in the Monitor,six have already
63、 adopted specific production targets by 2030.Altogether,Northwest European countries foresee electrolyser capacity deployment between 30 and 40 GW by 2030.Since Russias unprovoked invasion of Ukraine,several Northwest European countries have doubled,or are considering increasing their production tar
64、gets.Similarly,the European Union has raised its target for hydrogen production from 5.6 Mt to 10 Mt by 2030,complemented by 10 Mt of imports.Depending on the end-use sector,the rapid scale-up of low-emission hydrogen could replace 34-68 bcm/yr of natural gas by 2030(equating to 25%-50%of the Europe
65、an Unions Russian piped imports in 2021).Similarly,the United Kingdom in April 2022 doubled its ambition for low-carbon hydrogen production capacity from 5 GW to up to 10 GW by 2030,with at least half of this from electrolytic hydrogen.The following section provides an overview of the key hydrogen p
66、olicies and production targets adopted by the Northwest European countries covered in this Monitor.Northwest European Hydrogen Monitor PAGE|11 IEA.All rights reserved.Hydrogen policies and targets Most Northwest European countries have adopted hydrogen strategies IEA.All rights reserved.Sources:IEA
67、analysis based on various policy documents(hydrogen strategies,roadmaps and papers).Hydrogen strategies and roadmaps adopted in Northwest Europe,2020-2023 Northwest European Hydrogen Monitor PAGE|12 IEA.All rights reserved.Hydrogen policies and targets Austria targets 1 GW electrolyser capacity by 2
68、030 Austria published its National Hydrogen Strategy in June 2022.The main targets of the strategy are:Installation of 1 GW electrolyser capacity for the production of renewable hydrogen by 2030.1.Replacing fossil-based hydrogen with climate-neutral hydrogen in energy intensive industries:80%of curr
69、ent consumption of fossil-based hydrogen until 2030.2.Creation of a supporting framework for the production of renewable hydrogen.3.Establishing the production of hydrogen as an integral part of the energy system.4.Development of a targeted hydrogen infrastructure.5.Enhancing international partnersh
70、ips for climate-neutral hydrogen.6.Strengthening the innovation and technology potential in Austria through focused development of hydrogen-technologies.The use of hydrogen must contribute to the decarbonisation of the energy system and to the achievement of climate neutrality in Austria by 2040.The
71、refore,a focused application in strategic priority sectors is key.The contribution of hydrogen to reach climate neutrality is maximised by focusing on sectors which are otherwise difficult to decarbonise,such as energy-intensive industries.In addition,energy efficiency and cost-effectiveness are ess
72、ential guiding principles of the Hydrogen Strategy regarding the transformation of the energy system.In order to reach these targets,the strategy foresees a number of measures,divided into eight policy fields of action:1.Enabling a timely market ramp-up through flagship projects.2.Support and incent
73、ives for the production of renewable hydrogen.3.Incentivising market-based business models and the targeted application of climate-neutral hydrogen in industry.4.Establishing an infrastructure for hydrogen and creating import opportunities.5.Targeted advancement of hydrogen-technologies in the area
74、of mobility.Northwest European Hydrogen Monitor PAGE|13 IEA.All rights reserved.Hydrogen policies and targets 6.Intensifying research and development activities.7.Creation of the national hydrogen-platform H2Austria.8.Addressing Austrias priorities at both the European and international levels.Belgi
75、um adopted its Federal Hydrogen Strategy in 2021 In Belgium,both Wallonia and the Flanders published hydrogen papers,although without setting quantitative targets.In Wallonia,the industry sector published a government-approved hydrogen roadmap in 2018.In Flanders,the Minister for Innovation presente
76、d a Hydrogen Vision for Flanders in 2020.The Belgian Federal Hydrogen Vision and Strategy was approved by the Council of Ministers in October 2021.An updated version of the Federal Hydrogen Vision and Strategy was published in October 2022.The federal hydrogen policy is part of the federal governmen
77、ts broader energy policy,which aims to achieve the European climate neutrality goals.The strategy therefore focuses particularly on the importance of renewable hydrogen and its potential to decarbonise industry and transport.More specifically,the strategy is based on four pillars:positioning Belgium
78、 as an import and transit hub for renewable molecules in Europe expanding Belgiums leadership in hydrogen technologies establishing a robust hydrogen market investing in cooperation as a key success factor.In its National Recovery and Resilience Plan,Belgium set the target to have at least 0.15 GW o
79、f electrolysis capacity in operation by 2026.According to the updated version of the Federal Hydrogen Vision and Strategy,the total domestic demand for both H2-molecules and H2-derivatives will increase to 125-200 TWh/year in Belgium by 2050(bunkering fuels included).Denmark targets 4-6 GW of electr
80、olyser capacity by 2030 Denmark adopted its Power-to-X Strategy in March 2022 to accelerate the conversion of electricity into green hydrogen and other e-fuels over ten years.The strategy aims to promote energy exports in the form of green hydrogen and e-fuels.With the announcement,Denmark aims to b
81、uild 4-6 GW of electrolysis capacity by 2030.The strategy will support the use of green hydrogen particularly in hard-to-abate sectors like shipping and aviation,as well as heavy road transport and industry.The Power-to-X Strategy includes four objectives for promoting Power-to-X in Denmark:Northwes
82、t European Hydrogen Monitor PAGE|14 IEA.All rights reserved.Hydrogen policies and targets Power-to-X must be able to contribute to the realisation of the objectives in the Danish Climate Act.The regulatory framework and infrastructure must be in place to allow Denmarks strengths to be utilised and f
83、or the Power-to-X industry to operate on market terms in the long run.The interaction between Power-to-X and the Danish energy system must be improved.Denmark must be able to export Power-to-X products and technologies.Reaching 4-6 GW of electrolysis capacity by 2030 is expected to entail CO2 emissi
84、on reductions of 2.5-4.0 Mt.Frances Hydrogen Strategy targets 6 GW of electrolyser capacity by 2030 France was one of the first European countries to present a hydrogen plan in 2018.The National Strategy for the Development of Decarbonised and Renewable Hydrogen in France was published in September
85、2020 and accompanied by a commitment of EUR 7.2 billion of investments over the next decade.The 2030 targets for the decarbonised hydrogen development in France include:6.5 GW of water electrolysis capacity clean mobility,in particular for heavy-duty vehicles,with the goal to abate more than 6 Mt of
86、 CO2 emissions by 2030 an industry spanning the entire value chain of hydrogen and creating between 50 000 and 150 000 jobs.Germany targets 10 GW electrolyser capacity by 2030 Germany published its National Hydrogen Strategy(NWS)in June 2020.The Federal Government expects that around 90 to 110 TWh o
87、f hydrogen will be needed by 2030.In order to cover part of this demand,Germany plans to establish up to 5 GW of generation capacity including the offshore and onshore energy generation facilities needed for this.The implied hydrogen import gap by 2030 would be in the range of 62 to 82 TWh/yr.The co
88、alition agreement targets 10 GW electrolyser capacity by 2030.With the NWS,the federal government has published a number of different goals and ambitions.The 38 measures of the NWS Action Plan are derived from these overarching goals and ambitions.The goals published with the NWS are very general an
89、d correspond to priority fields of action.Thus,they do not yet form a sufficient basis for monitoring the implementation of the NWS.For this purpose,the goals need to be made more concrete.As part of the monitoring process,the ministries and departments responsible for implementing the NWS have ther
90、efore defined the following seven strategic goals in a next development step:1.Creation of regulatory framework conditions for the market ramp-up of hydrogen,including uniform sustainability standards.Northwest European Hydrogen Monitor PAGE|15 IEA.All rights reserved.Hydrogen policies and targets 2
91、.Building up of generation capacities for green hydrogen and derivatives to 5 GW by 2030.3.Completion of infrastructure for hydrogen value chains,including hydrogen filling stations.4.Improvement of the competitiveness of green hydrogen and its derivatives.5.Progress in decarbonising the transport a
92、nd industry sectors through the use of hydrogen.6.Germany is positioned as a leading provider in the field of green hydrogen production and application technologies.7.Establishment of international cooperation with regard to hydrogen imports and technology exports.The Federal Government published a
93、progress report on the NWS on 2 June 2022.The report presents developments and achievements in the field of hydrogen promotion for the reporting period June 2020 to December 2021.It shows the impact of the implemented measures and developments on the way to the market ramp-up of the German hydrogen
94、economy.The federal government is currently working on revising the hydrogen strategy in order to ensure that the targets from the coalition agreement(e.g.increasing the electrolyser capacity to 10 GW by 2030)are met.Publication is planned for the end of 2022.Luxembourgs Hydrogen Strategy targets ha
95、rd-to-decarbonise sectors Luxembourgs Hydrogen Strategy was presented in September 2021,with a focus on sectors that are difficult to decarbonise through direct electrification,such as heavy industry.Luxembourg consumes about 450 tonnes of fossil hydrogen per year.The immediate objective is to subst
96、itute fossil hydrogen with renewable hydrogen to cut GHG emissions by over 5 kt/yr.The strategy proposes the following seven key measures to promote the production,import and use of renewable hydrogen:1.Contributing to the definition of the legal and regulatory framework at the EU level.2.Cooperatin
97、g with the EU member states and third countries.3.Identifying opportunities in Luxembourg research and innovation.4.Concrete flagship projects to be studied and carried out.5.Prioritising actions towards targeted decarbonisation by renewable hydrogen.6.Developing instruments for a renewable hydrogen
98、 market.7.Implementing and continuously improving Taskforce H2 Luxembourg.Northwest European Hydrogen Monitor PAGE|16 IEA.All rights reserved.Hydrogen policies and targets The Netherlands plans to increase its renewable hydrogen production and develop national-wide hydrogen infrastructure by 2030 Th
99、e Netherlands strong hydrogen ambitions,stated back in 2019 in the National Climate Agreement and reinforced in 2020 with its Hydrogen Strategy,continue to receive supportive legislation and funding.The Hydrogen Strategy focuses on scaling up hydrogen production by means of electrolysis and setting
100、up a nation-wide hydrogen transport infrastructure.The year 2021 was marked by strong political commitment for hydrogen in the form of funding for large infrastructure projects.The new governments coalition agreement presented in December 2021 reinforced the commitment to achieve a clean energy syst
101、em in which hydrogen plays a fundamental role,by providing a EUR 35 billion Climate Fund of which at least EUR 15 billion will be destined for the expansion of the production capacity of renewable energy carriers such as hydrogen.This materialised in 2022 with large budget commitments for hydrogen v
102、ia the Climate Fund and National Growth Fund.In addition,the government is incentivising the development of electrolysis projects in combination with tenders for new offshore wind farms.The Netherlands short-to medium-term targets are as follows:500 MW of electrolyser capacity in 2025 and at least 3
103、-4 GW electrolyser capacity in 2030(the government is evaluating an increase of the current electrolyses capacity target in 2030).The targets for use of renewable H2 in the industry will align with the European Unions Fit for 55 target.Mobility:50 H2 refuelling stations in 2030,use of renewable hydr
104、ogen in line with the European Unions Fit for 55 target.Home heating pilot schemes for approximately 1 000 homes by 2030.Development of national hydrogen backbone:approximately 750-1 000 km and approximately four salt caverns for hydrogen storage to be available by 2030.A Hydrogen Roadmap is being d
105、eveloped within the National Hydrogen Programme and will be published in November 2022.Norway adopted an export-oriented Hydrogen Strategy Norway adopted its Hydrogen Strategy in June 2020 and its Hydrogen Roadmap in June 2021.Both documents lay the necessary foundation for Norway to become a low-em
106、issions society by 2050.Norway does not have a specific production target and has a technology-neutral approach.According to its Strategy,hydrogen will be an important energy carrier,produced with zero or low emissions.It will help decarbonise sectors that are difficult to electrify,such as the tran
107、sport sector,mainly maritime transport,and the industrial sector.The Hydrogen Northwest European Hydrogen Monitor PAGE|17 IEA.All rights reserved.Hydrogen policies and targets Roadmap sets different,but not fully quantified,targets for hydrogen development in Norway:collaborate with the private sect
108、or to develop five hydrogen hubs for maritime transport develop“one or two”industrial projects associated with hydrogen production plants establish five to ten pilot projects for the development and demonstration of new,more cost-effective hydrogen solutions and technologies.Switzerland is working o
109、n its Hydrogen Roadmap The Swiss Hydrogen Roadmap is currently under preparation and a first outline will be published in 2023.With a view to achieving the net-zero target by 2050,the Federal Council is mandated to present a report on the importance of green hydrogen in the quest to reduce energy-re
110、lated CO2 emissions and for securing Switzerlands long-term energy supply.The Roadmap is intended to reveal the sectors in which the use of green hydrogen is viable(mobility,industry,buildings)and which regulatory framework conditions must be fulfilled in order to ensure the gradual development of a
111、 clean domestic hydrogen economy.The Roadmap will also provide a view of the scale and cost of the reconversion of green hydrogen into electricity,as well as how it could contribute to the security of electricity supply during the heating season.In addition,it will clarify to what extent the existin
112、g gas distribution network can become part of a future hydrogen network.This requires an analysis of future hydrogen and other power-to-X production sites as well as sites for the extraction and transport of CO2.Finally,the Roadmap will provide a view of how the future Swiss hydrogen market can be c
113、onnected to the EUs internal hydrogen market.In addition,a hydrogen paper was published in September 2022 by the Swiss Federal Office of Energy.It presents nine theses on the goals,role and areas of application of hydrogen in Switzerland.The United Kingdom doubled its ambition for low-emission hydro
114、gen production capacity to up to 10 GW by 2030 In its Hydrogen Strategy published in August 2021,the United Kingdom set an ambition of 5 GW of low carbon hydrogen production capacity by 2030.However,in April 2022,in the British Energy Security Strategy,the production capacity ambition was doubled to
115、 up to 10 GW by 2030,with at least half of this coming from electrolytic hydrogen.The Hydrogen Investor Roadmap was also published in April 2022,following several public consultations on the design of funding schemes.The United Kingdoms main ambitions for hydrogen development are summarised below:1
116、GW of electrolytic hydrogen capacity in construction or operational by 2025,with up to 2 GW of hydrogen production Northwest European Hydrogen Monitor PAGE|18 IEA.All rights reserved.Hydrogen policies and targets capacity overall(including CCUS-enabled hydrogen)in operation or construction by 2025.D
117、eploy CCUS in at least two industrial clusters by the mid-2020s,identified through the CCUS Cluster Sequencing Process,and in four clusters by 2030.Up to 10 GW of low carbon hydrogen production capacity by 2030,with at least half of this from electrolytic hydrogen.The UK Government is also supportin
118、g a variety of low carbon hydrogen production methods,including electrolytic and CCUS-enabled hydrogen.The Hydrogen Strategy Update to the Market provided further discussion on the potential of a wide range of production routes,including nuclear-enabled and biomass/waste-related technologies.The Uni
119、ted Kingdoms Low Carbon Hydrogen Standard sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen in order for it to be considered“low-carbon hydrogen”.The Scottish Government has set an ambition of 5GW installed hydrogen production capacity
120、 by 2030.The UK Government is supporting industry to deliver a hydrogen neighbourhood trial by 2023,a village trial by 2025 and plans by 2025 for a possible hydrogen-heated town that would be delivered by the end of the decade.These trials,and a range of other R&D and testing projects will inform st
121、rategic decisions in 2026 on the role of 100%hydrogen in the decarbonisation of heat.The UK Government is aiming to reach a policy decision in 2023 on whether to allow the blending of up to 20%hydrogen by volume into the gas distribution networks.Northwest European Hydrogen Monitor PAGE|19 IEA.All r
122、ights reserved.Hydrogen policies and targets Northwest Europe targets at least 30 GW of installed electrolysis capacity by 2030 IEA.All rights reserved.*The United Kingdom has a target of low-carbon hydrogen production of 10 GW,with at least 5 GW being electrolysis-based,by 2030.The values for the U
123、K have been estimated assuming 70%efficiency.Note:The shaded area marks targets under discussion and/or higher range of announced targets.Sources:IEA analysis based on various policy documents(hydrogen strategies,roadmaps and papers).Electrolysis capacity targets in Northwest Europe by 2030 Electrol
124、ysis capacity targets in Northwest Europe by 2030 Northwest European Hydrogen Monitor PAGE|20 IEA.All rights reserved.Subsidy schemes and support mechanisms Northwest European Hydrogen Monitor PAGE|21 IEA.All rights reserved.Subsidy schemes and support mechanisms Subsidy schemes and support mechanis
125、ms Northwest European Hydrogen Monitor PAGE|22 IEA.All rights reserved.Subsidy schemes and support mechanisms Subsidies and support mechanisms will be key for the early deployment of low-emission hydrogen in Northwest EuropeThe scale-up of low-emission hydrogen will require an effective framework of
126、 subsidy schemes and support mechanisms along the entire value chain,i.e.R&D,production,transportation,storage and demand creation.The following section provides an overview of the various subsidy schemes and support mechanisms available that are provided at the European Union level and at the natio
127、nal level in each of the Northwest European countries.European Union Several EU funding programmes have been established for hydrogen projects.The Innovation Fund,financed from the Emission Trading System revenues,leverages private financing for large EU hydrogen projects through grants in multiple
128、rounds.It aims at supporting commercial demonstration,with the aim of bringing market industrial solutions that will help decarbonise Europe and support its transition to climate neutrality.The Innovation Fund supports up to 60%of the relevant costs of projects.For large-scale projects,the relevant
129、costs are the net extra costs(CAPEX and OPEX)linked to the implementation during the ten years following a projects entry into operation.In the first call for large-scale projects,three projects out of a total of seven selected projects had important hydrogen components(HYBRIT,SHARC and KairosC).In
130、the second call for large-scale projects,seventeen projects were invited for the EUR 1.8 billion grant preparation,of which three pertain to hydrogen production.All three production projects based in the Netherlands have capital costs above EUR 7.5 million and are sufficiently mature for deployment.
131、The third call for large-scale projects will be launched in late 2022,accompanied by additional support for hydrogen application in industry,innovative clean tech manufacturing including electrolysers,fuel cells and heat pumps,and mid-sized demonstration projects.In the State of the Union speech of
132、September 2022,the President of the European Commission proposed the creation of a Hydrogen Bank.The Bank would use the resources available under the Innovation Fund and would help guarantee the purchase of hydrogen.The Hydrogen Bank would aim to invest EUR 3 billion to help build the future market
133、for hydrogen.EU member states could leverage the Recovery and Resilience Facility(RRF)programme to support low-emission hydrogen projects.This programme would provide up to 37%of EUR 338 billion in grants and EUR 386 billion in loans for green transition,including low-emission hydrogen.The RRF is a
134、non-repayable financial support and loan.The assessment of national RRF plans is on-going.These mechanisms,complemented with national risk-sharing Northwest European Hydrogen Monitor PAGE|23 IEA.All rights reserved.Subsidy schemes and support mechanisms schemes and credit enhancement are necessary f
135、or large-scale demonstration projects like trade.To develop an intra-European hydrogen market,the European Commission agreed in 2020 to launch“Important Projects of Common European Interest”(IPCEIs)for hydrogen value chains,covering storage,transmission and distribution as well as application in ind
136、ustrial sectors.The IPCEIs consist of large projects that seek to address market and regulatory failures within the EU,for which the prerequisites include the collaboration of several EU countries and engagement of private financing by the beneficiaries.In July 2022,fifteen EU Member States Austria,
137、Belgium,Czech Republic,Denmark,Estonia,Finland,France,Germany,Greece,Italy,Netherlands,Poland,Portugal,Slovak Republic and Spain received Commission approval to provide up to EUR 5.4 billion in public funding for 41 hydrogen technology value chain projects called the IPCEI Hy2Tech.In September 2022,
138、the Commission approved a second IPCEI to support research and innovation,first industrial deployment and construction of relevant infrastructure in the hydrogen value chain.The project,called“IPCEI Hy2Use”was prepared and notified jointly by thirteen Member States:Austria,Belgium,Denmark,Finland,Fr
139、ance,Greece,Italy,Netherlands,Poland,Portugal,Slovakia,Spain and Sweden.The Member States will provide up to EUR 5.2 billion in public funding,which is expected to unlock an additional EUR 7 billion in private investments.The Connecting Europe Facility for Energy(CEF-E)finances Projects of Common In
140、terest as identified under the TEN-E regulation.The TEN-E Regulation currently in force does not include hydrogen infrastructure,electrolysers,or smart gas grids as eligible projects.In December 2020,the Commission presented a legislative proposal to revise the TEN-E Regulation.The Commissions propo
141、sal envisages support for the roll-out of cross-border hydrogen infrastructure,certain types of electrolysers and smart gas grids as new projects of common interest(PCI)categories.Negotiations with the European Parliament and the Council are currently under way,with a political agreement still to be
142、 expected.The Connecting Europe Facility for Transport(CEF-T),which came into force in 2021,finances hydrogen refuelling infrastructure for all modes of transport.Both CEF-E and CEF-T generally co-finance up to 50%of the CAPEX.EU Member States receiving allocations from the European Regional Develop
143、ment Fund(ERDF)and the Cohesion Fund(CF)can spend up to 30%and 37%,respectively,to support innovation and entrepreneurship geared to the transition into a net-zero economy.Several hydrogen projects have already received funding through these support schemes.Support to hydrogen projects under the Jus
144、t Transition Fund could be available in countries that diversify local economies or reskill/upskill workers away from fossil fuel production,transport,distribution and storage.The Modernisation Fund,supporting ten lower-income EU countries transition to a net-zero economy can support retrofitting No
145、rthwest European Hydrogen Monitor PAGE|24 IEA.All rights reserved.Subsidy schemes and support mechanisms natural gas pipelines for hydrogen,developing district heating pipelines,storage,grids,hydrogen-mobility,high-efficiency hydrogen combined heat and power(CHP)as well as the production and use of
146、renewable-based hydrogen.The Modernisation Fund is funded from the auctioning of 2%of EU Emissions Trading System(ETS)revenues and can cover up to 70%of relevant costs for non-priority investments via grants,premiums,guarantee instruments,loans or capital injections.For more early-stage technologies
147、,the European Commission provides research and innovation(R&I)opportunities through the Horizon Europe 2021-2027 Programme,administered in the form of grants,prizes and procurement.Pillar II Climate,Energy and Mobility supports several hydrogen R&I partnerships,including the Clean Hydrogen Partnersh
148、ip,which invests EUR 102 million for renewable hydrogen and EUR 49 million for hydrogen storage and distribution.Pillar III oversees the deployment industry applications and technologies,including hydrogen.In addition,the EU facilitates dialogue and offers in-house advisory through the InvestEU Fund
149、 and the European Clean Hydrogen Alliance.The InvestEU Fund is expected to mobilise more than EUR 372 billion of public and private investment through an EU budget guarantee of EUR 26.2 billion that backs the investment of financial partners such as the European Investment Bank(EIB)Group and others.
150、Clean hydrogen is part of the main policy priority of the Invest EU programme.Repayable support can be provided to projects targeting the use of low-carbon gas such as clean hydrogen production,commercial-scale supply,on-site storage,low-carbon technologies and all modes of transport from the innova
151、tion stage to proven technological solutions at the deployment stage,as well as equity type investments.The InvestEU fund is accompanied by an Advisory Hub which can support potential project applicants seeking financial advisory support for InvestEU or other financial envelopes.In 2019 the Hydrogen
152、 Council and the EIB launched the InnovFin Advisory Programme to advise companies to structure their R&I projects in ways which improve their access to riskier projects though corporate loans,project finance or venture debt.The European Clean Hydrogen Alliance was established in 2020 and organises a
153、 bi-annual roundtable for over 1 500 stakeholders to discuss the key challenges for large-scale deployment.Through the Alliance,the EIB and European Institute of Innovation and Technology(EIT),InnoEnergy advises project promoters on bankability and de-risking strategies,investment readiness and due
154、diligence preparations,and invests in individual projects.Countries can combine EU funds with national financial measures via energy and carbon taxes,penalties and subsidies in the form of grants,tax credits,low-cost loans and feed-in tariffs.Northwest European Hydrogen Monitor PAGE|25 IEA.All right
155、s reserved.Subsidy schemes and support mechanisms Several EU funding programmes are available for hydrogen projects IEA.All rights reserved,Sources:IEA analysis based on European Commission(2021),Hydrogen Public Funding Compass.Key EU funding programmes available for hydrogen under the Multiannual F
156、inancial Framework,2021-2027 Northwest European Hydrogen Monitor PAGE|26 IEA.All rights reserved.Subsidy schemes and support mechanisms Austria In Austria,a number of support measures have been implemented through the Renewable Expansion Act(EAG)in 2021.The act foresees EUR 40 million per year in in
157、vestment subsidies for electrolysis facilities producing renewable hydrogen(minimum of 1 MW capacity,with a focus on industrial use).The subsidy scheme is expected to run until 2030.Austria is creating a new funding program for the transformation of the industry,which will include hydrogen projects(
158、EUR 2.975 billion until 2030).Hydrogen is part of the funding programme,“Umweltfrderung im Inland”(UFI),which provides funding for pilot and demonstration facilities(EUR 150 million per year until 2025).Hydrogen projects can also benefit from investment subsidies under the framework of the Recovery
159、and Resilience Facility(EUR 100 million until 2026).The“Vorzeigeregion Energie”Programme provides funding for the analysis,realisation,development and demonstration along the entire hydrogen value chain.From 2018 to 2025,the Climate and Energy Fund will invest up to EUR 120 million,endowed with fund
160、s of the Ministry of Climate Action and Energy,in the three“energy flagship regions”(one of them focuses on hydrogen).Hydrogen is also included in the funding programmes for zero-emission buses,commercial vehicles and the e-mobility programme.Hydrogen technology competes with other existing zero-emi
161、ssion technologies(in particular battery electric vehicles)to ensure that the most efficient technology for the respective application is used.In addition,Austria is taking part in both the first and second wave of IPCEI Hydrogen(Hy2Use and Hy2Tech)and has allocated EUR 125 million for its participa
162、tion.Furthermore,Austria is currently preparing a quota for the domestic production of renewables gases.The details regarding this quota are currently under discussion.Austrias EAG provides exemptions for hydrogen from renewable energy subsidy fees,grid fees for electricity and grid fees for natural
163、 gas used for blending purposes.To ensure a regular dialogue between relevant stakeholders and decision makers on the implementation of the hydrogen strategy,a national hydrogen platform,H2Austria,has been established.The platform intends to strengthen cooperation and synergies between local,regiona
164、l and national actors from various fields,facilitate the exchange of information,provide evidence-based foundations for the strategic implementation of the Hydrogen Strategy and create greater awareness for climate-neutral hydrogen through communication.Belgium Several funding instruments are availa
165、ble in Belgium for the support of low-emission hydrogen projects and R&D,including:Northwest European Hydrogen Monitor PAGE|27 IEA.All rights reserved.Subsidy schemes and support mechanisms The Energy Transition Fund supports,among other things,R&D in the production,transport and storage of hydrogen
166、 and its derivatives.Active since 2017,the Fund subsidises various projects with EUR 20 to 30 million per year and is set to operate until 2025.The call for projects Clean Hydrogen for Clean Industry is organised within the framework of Belgiums national recovery and resilience plan.It focusses on t
167、he development of promising technologies for the production and use of hydrogen and its derivatives with a relatively high maturity level.Through this instrument,the federal government aims to support investments that will enable a faster scaling of commercial applications of low-emission hydrogen.A
168、 first call was launched in April 2022 for a total of EUR 50 million.A second call will be launched in 2023 for a total of EUR 10 million.The H2 Import Call focuses on the development and demonstration of technologies that enable the import of hydrogen and hydrogen-derivatives.This call will be laun
169、ched in early 2023,with funding of EUR 10 million.Belgium also allocated EUR 95 million from Belgiums National Recovery and Resilience Plan to support the development of a low-emission hydrogen network.The first phase will be started with the commissioning of a minimum of 100 to 160 km of pipelines
170、by 2026.The federal government also supports the development of the VKHyLab(a test infrastructure which will help research institutes and companies scale up their hydrogen technologies).The government is investing EUR 1.5 million in the acquisition of the site and is subsidising the Von Karman Insti
171、tute of fluid dynamics with an additional EUR 14.7 million to develop this project.This test facility is expected to be operational by 2025.Given the importance of developing the first electrolysis capacities in Belgium to enable companies and research institutions to gain experience in this field,t
172、he electrolysis activity is exempted from excises on electricity.Denmark Denmark has several support mechanisms in place for hydrogen development.In the aftermath of the Climate Agreement for Energy and Industry of June 2020,an agreement was reached that at least DKK 750 million(close to EUR 100 mil
173、lion)can be allocated for tenders to support the production of chemical fuels or products from electricity(Power-to-X).The purpose of the tenders is to promote the production of Power-to-X in an efficient manner and promote the use of electricity based on renewable energy for the production of green
174、 products which can be used in difficult-to-electrify sectors.Denmark reached an agreement in June 2021 to allocate DKK 850 million(EUR 110 million)for Danish participation in the IPCEI Hydrogen project.Northwest European Hydrogen Monitor PAGE|28 IEA.All rights reserved.Subsidy schemes and support m
175、echanisms In March 2022,Denmark agreed on subsidies worth DKK 1.25 billion(EUR 161 million)through one tender aimed at supporting production and making green hydrogen more commercially viable.The Danish government will also earmark DKK 344 million(EUR 45 million)for innovative green technologies via
176、 funds from the REACT-EU initiative and the Just Transition Fund.Denmarks Energy Technology Development and Demonstration Programme is providing DKK 622 million(EUR 84 million)funding for green projects including hydrogen.France The overall budget of the National French Decarbonised Hydrogen Strateg
177、y is about EUR 9 billion for the entire value chain and for all the technology readiness levels(TRL)(1 to 9).The budget is to be spent through calls for projects to support R&D,technological innovation,as well as the deployment of local hydrogen hubs and a support mechanism for decarbonised hydrogen
178、 production facilities.The following subsidy schemes planned for 2023 are ongoing:“demonstration and technology bricks”hydrogen call for projects “local hydrogen hubs”call for projects hydrogen IPCEI procedure French Energy Regulatory Commissions support scheme for Non-interconnected areas multi-ann
179、ual research programme with an overall budget of EUR 80 million until 2030.There are two key action points under the multi-annual research programme:(1)Strategic Projects and Hydrogen Technologies Durability Test benchmark operated by the National Research Centre(CNRS)and the French Alternative Ener
180、gies and Atomic Energy Commission(CEA)supporting R&D hydrogen projects in production,storage and transport,and end-use;(2)To complement the first action,a call for projects is also in place,but operated by the National Research Agency.A decarbonised hydrogen production support mechanism is expected
181、to be operational in 2023 at the latest.A tax break is planned for 2023,applicable to biofuels and renewable fuels of non-biological origin(RNFBOs),including renewable hydrogen.This tax break pertains to the following renewable hydrogen uses:(1)direct use in fuel cell electric vehicles,(2)oil refini
182、ng(desulfurisation),and(3)biofuels production(hydrotreated vegetable oil).Germany The following subsidy schemes and support mechanisms are available in Germany:Carbon Contracts for Difference(CCfD)for Industrial Transformation:runs from January 2022 to December 2031 with a budget of around EUR 550 m
183、illion.This mechanism supports industrial companies(initially in the steel,ammonia,Northwest European Hydrogen Monitor PAGE|29 IEA.All rights reserved.Subsidy schemes and support mechanisms cement and lime sectors)balance the operating cost differences between conventional and low-CO2 or CO2-free pr
184、ocesses,taking into account the actual CO2 price,thus enabling an economic market entry earlier.CCfDs create a level-cost playing field for the use of green hydrogen in various downstream sectors and thus generate a demand for hydrogen use that would not exist today without KSVs(Climate Protection C
185、ontracts or CCfD for Industrial Transformation).Overall Support Concept Renewable Fuels:runs from January 2021,with a total budget of EUR 1.5 billion.It comprises four funding schemes listed in detail below.The overall support concept for renewable fuels covers the entire spectrum of(further)develop
186、ment of electricity-based fuels and advanced biofuels up to their production and market ramp-up.The concept provides for four funding measures:(1)funding guidelines for measures to develop renewable fuels,(2)promotion of a development platform for power-to-liquids for air and water transport,(3)fund
187、ing guidelines for investments in plants for the production of renewable fuels,and(4)funding guidelines for the market ramp-up of power-to-liquids kerosene production.Decarbonisation in industry funding programme:runs from January 2021 to June 2024,with a budget of approximately EUR 3 billion.The fu
188、nding programme supports the energy-intensive(basic materials)industry(e.g.steel,cement)in the R&D and large-scale application of innovative climate protection technologies to avoid process emissions.Living laboratories of the energy transition(funding format within the 7th Energy Research Programme
189、)intends to close the technological development gap for innovations between application-oriented research and broad implementation.Hydrogen Innovation and Technology Centre(ITZ)runs from 2021 to 2024,with a budget up to EUR 290 million.It aims to create joint development environments,especially for
190、companies,which reduce the need for investment(e.g.in test benches)by the individual players and to initiate cooperation for product development.The services offered by the ITZ are meant to contribute to increasing the product availability of fuel cell applications(components,vehicles,tank infrastru
191、cture).A central goal of the ITZ is to strengthen the competitiveness of start-ups and small-and medium-sized enterprises.H2Global is an auction-based mechanism that runs from January 2022 to December 2033 with a budget of EUR 900 million.It was established with the objective to promote a timely and
192、 effective power-to-X market ramp-up on an industrial scale.Under the H2Global mechanism,the Hydrogen Intermediary Network Company GmbH(HINT.CO)concludes long-term purchase contracts on the supply side Northwest European Hydrogen Monitor PAGE|30 IEA.All rights reserved.Subsidy schemes and support me
193、chanisms and short-term sales contracts on the demand side.The difference between supply prices(production and transport)and demand prices will be compensated by HINT.CO using grant funding from the German government.The German governments draft budget for 2023 includes EUR 3.6 billion for H2Global.
194、The long-term purchase contracts signed by HINT.CO effectively de-risk initial investments and enable companies on the supply side to set up production facilities on an industrial scale.On the user side,companies will be able to purchase green energy sources at economic prices for the first time and
195、 thus drive forward their decarbonisation.There are also other subsidies that support cooperation in the field of hydrogen with third countries.These include HySupply,a German-Australian feasibility study on hydrogen from renewable energies with a budget of EUR 1.7 million,the implementation of the
196、German-Moroccan Hydrogen Alliance with a budget of up to EUR 88.5 million in grant funding,and the promotion of green hydrogen in Brazil(EUR 34 million)and South Africa(EUR 40 million)between 2021 and 2023.The H2-Uppp programme,funded by the German Federal Ministry for Economic Affairs and Climate A
197、ction supports investments,via the German Agency for International Cooperation,in green hydrogen or its derivatives in developing and emerging countries.Funding guidelines for international hydrogen projects within the framework of the National Hydrogen Strategy and the Economic Recovery Plan establ
198、ish an offer of support for international projects(outside the EU and European Free Trade Association states)for the construction of production plants for green hydrogen and its derivatives,as well as for the storage,transport and integrated application of hydrogen,and for accompanying research proj
199、ects aligned with the National Hydrogen Strategy.Project outlines were submitted in three funding rounds(the submission deadlines were 31 October 2021,31 December 2021 and 28 February 2022).Important Projects of Common European Interest IPCEI on Hydrogen runs from January 2021 to December 2027 with
200、a budget of approximately EUR 11 billion(federal and state funds).It aim to establish a German and European market for green hydrogen at all levels of the value chain,in particular by expanding initial electrolysis capacities,a hydrogen network and hydrogen applications(e.g.in transport).This is to
201、be accompanied by improvements in hydrogen technologies and cost degression.Northwest European Hydrogen Monitor PAGE|31 IEA.All rights reserved.Subsidy schemes and support mechanisms H2Global aims to de-risk hydrogen investment via long-term hydrogen purchase agreements IEA.All rights reserved.HINT.
202、CO=Hydrogen Intermediary Network Company GmbH(HINT.CO).Sources:IEA analysis based on H2Global(2022),The H2Global Mechanism.Simplified scheme of the H2Global instrument Northwest European Hydrogen Monitor PAGE|32 IEA.All rights reserved.Subsidy schemes and support mechanisms Luxembourg The Luxembourg
203、 government is currently developing a subsidy scheme for the production of renewable hydrogen.A final concept paper is expected to be published in early 2023 by the Ministry of Energy and Spatial Planning.There are several CAPEX funding possibilities which are available from the Ministry of Economic
204、 Affairs.Luxembourg is also in contact with H2Global and is looking forward to further information regarding the Global European Hydrogen Facility(REPowerEU).Netherlands In the Netherlands,while most subsidy programmes are not solely focused on hydrogen,the leaders of hydrogen projects can apply for
205、 funding via a variety of subsidy instruments made available through the Ministry of Economic Affairs and Climate Policy,and the Ministry of Infrastructure and Water Management.In total,around EUR 60 million was spent via subsidy schemes between 2020-2021 for hydrogen projects.Up to EUR 15 billion i
206、s expected to be allocated to hydrogen up to 2030.The following support schemes are available for hydrogen:MOOI scheme(Mission-Driven Research,Development and Innovation)supports industrial research and experimental development.It supports integrated solutions that contribute to climate goals.DKTI s
207、cheme(Demonstration of Climate Technologies and Innovations in Transport)supports projects that focus on mobility and transport.A total of EUR 64.8 million was spent on hydrogen between 2017 and 2021.DEI+scheme(Demonstration of Energy and Climate Innovation)supports practical experiments,pilots and
208、demos.As of June 2022,there was a specific call,with a budget of EUR 30 million,for hydrogen and green chemistry via the DEI+;TSE Scheme(Top Sector Energy Scheme)supports projects that focus on feasibility studies carried out prior to the finalisation of investment decisions relating to an innovativ
209、e pilot or demonstration project.The TSE Scheme was established specifically for R&D and supports R&D projects that can cost effectively reduce CO emissions in industry by 2030.SDE+scheme(Sustainable energy transition subsidy scheme)supports the deployment of renewable energy generation techniques a
210、nd other CO-reducing techniques.HER+scheme(Renewable Energy Transition)is intended to achieve cost reductions for technology categories that are supported under the SDE+scheme.These projects lead to CO reduction by 2030 and save on future expenditure on subsidies in accordance with the SDE+scheme.No
211、rthwest European Hydrogen Monitor PAGE|33 IEA.All rights reserved.Subsidy schemes and support mechanisms MIT scheme(Innovation Stimulation Region and Top Sectors)is available for small-and medium-size enterprises.GroenvermogenNL(Green PowerNL)is a programme that focuses on accelerating the scaling u
212、p of hydrogen and green chemistry,with a maximum budget of EUR 838 million between 2021 and 2028.It will focus on R&D,pilots,demonstration projects and human capital development,including training.The aforementioned DEI+call of EUR 30 million is part of this programme.The government has assigned EUR
213、 750 million to develop a national hydrogen transport network,EUR 35 million to develop storage locations and EUR 250 million to support electrolysis.Another EUR 35 million have been assigned for the first IPCEI wave,and it was announced recently that EUR 1.3 billion is to be devoted to the IPCEI wa
214、ves on hydrogen production and imports.In addition to the subsidy schemes,tax benefits are available to support hydrogen-related investments.Under the Energy Investment Allowance Scheme entrepreneurs can reduce their taxable profits.They may deduct 45.5%of the cost of the energy investment from thei
215、r taxable profit.Given that hydrogen plays an important role in the transition to a climate-neutral society,three new operating assets have been included in the scheme to support these developments:(1)production of hydrogen by means of electrolysis,(2)stationary storage of hydrogen,and(3)connection
216、to private hydrogen networks.Norway Enova,Innovation Norway,Forskningsrdet(Research Council of Norway)and Gassnova cooperate closely in the funding of hydrogen R&D through their various support schemes,such as PILOT-E and Grnn Plattform.In 2020,these agencies allocated a total of NOK 1 574 million(o
217、ver EUR 150 million)to hydrogen projects.These projects are expected to span several years.The reported amount of funding is meant to cover the entire duration of the projects.The amount allocated to hydrogen projects in 2021 was NOK 1 604 million(EUR 155 million).In 2022,the Research Council of Nor
218、way(RCN)established two new Centres for Environment-Friendly Energy Research(FME)on hydrogen.They will receive a total of NOK 310 million(over EUR 30 million)public funding over an eight-year period.Switzerland In Switzerland,there are no direct subsidy/supporting schemes in place as of yet to suppo
219、rt the production and deployment of low-carbon hydrogen.Switzerland has several research funds at its disposal to finance R&D projects.The public funding for R&D projects in the hydrogen and fuel cell sector amounts to approximately CHF 25 million(EUR 25.5 million)per year.A number of tax exemptions
220、 provide support for the end-uses of hydrogen:Northwest European Hydrogen Monitor PAGE|34 IEA.All rights reserved.Subsidy schemes and support mechanisms Fuel cell electric vehicles are exempted from the mineral oil tax.In addition,heavy-duty fuel cell trucks are also exempted from the heavy vehicle
221、fee.Hydrogen is exempted from the CO2 levy imposed on fossil heating fuels(currently 120 CHF/t CO2).There is no CO2 levy on transport fuel.Instead,importers of transport fuels must compensate part of the CO2 emissions of the imported fuels.Replacing fossil fuels with hydrogen(e.g.for buses and truck
222、s)is one of many possible compensation programmes.Switzerland has CO2 emissions targets for passenger cars and light duty vehicles similar to the EU where fuel cell electric vehicles(FCEVs)count as zero-emission vehicles.Switzerland is currently investigating additional incentives and supporting sch
223、emes which could support the Swiss hydrogen market ramp-up.United Kingdom The Net Zero Hydrogen Fund will provide up to GBP 240 million(close to EUR 280 million)to support the development and construction of new low-carbon hydrogen production plants throughout the United Kingdom between 2022 and 202
224、5.The Fund is open to multiple production technologies,including CCUS-enabled and electrolytic hydrogen,and is targeted at projects that can become operational during the 2020s.It forms part of a suite of measures designed to stimulate the deployment of scalable low-emission hydrogen production.The
225、Fund has four strands:(1)Support for front-end engineering and design(FEED)studies and post-FEED costs,(2)CAPEX for projects that do not require hydrogen business model support,(3)CAPEX for non-CCUS enabled projects that require hydrogen business model support,and(4)CAPEX for CCUS-enabled projects t
226、hat require hydrogen business model support.In addition,the Hydrogen Production Business Model will provide revenue support to producers to overcome the operating cost gap between low-emission hydrogen and high-carbon counterfactual fuels.The hydrogen production business model will be critical to un
227、locking private investment,by providing a subsidy to close the gap between the cost of producing hydrogen(strike price)and the price it can be sold for(achieved sales price).UK Government support for hydrogen production will only be available to pathways that are sufficiently“low carbon”which will b
228、e defined by the Low Carbon Hydrogen Standard.The Energy Innovation Portfolio and Net Zero Innovation Portfolio funds are supporting a number of hydrogen innovation projects to accelerate the commercialisation of hydrogen-related technologies.Northwest European Hydrogen Monitor PAGE|35 IEA.All right
229、s reserved.Subsidy schemes and support mechanisms The Hydrogen Production Business Model will provide a subsidy to close the gap between hydrogen production costs and the sales price IEA.All rights reserved.Sources:IEA analysis based on presentation of the United Kingdom at the First Hydrogen Monito
230、ring Study Expert Panel Meeting held 25 May 2022,in Brussels,Belgium.Illustrative price support through the variable premium design of the Hydrogen Production Business Model Northwest European Hydrogen Monitor PAGE|36 IEA.All rights reserved.Hydrogen supply Hydrogen supply Northwest European Hydroge
231、n Monitor PAGE|37 IEA.All rights reserved.Hydrogen supply Low-emission hydrogen is at the intersection of decarbonisation efforts and energy supply security Low-emission hydrogen can play a significant role in decarbonising existing gas and energy systems and will be critical to the countries effort
232、s to achieve a climate neutral society.Besides its environmental benefits,low-emission hydrogen can help reduce reliance on fossil fuel imports already in the medium-term.Hydrogen can be produced through a wide variety of technologies(e.g.reforming,gasification,electrolysis,pyrolysis,water splitting
233、 and many others from a range of primary and secondary fuels(including coal,oil,natural gas,biomass,renewables-and nuclear-based electricity).There is currently no international agreement on the definition of low-emission hydrogen.As for the IEAs Global Hydrogen Review,low-emission hydrogen in this
234、Monitor includes hydrogen3 produced via the following technology routes:from renewables-based and nuclear electricity via electrolysis from fossil fuels via steam methane reforming(SMR)or autothermal reforming(ATR)with CCUS.Notably,production 3 The current analysis includes planned production projec
235、ts of low-emission hydrogen and excludes planned projects related to low-emission hydrogen-derived fuels.from fossil fuels with CCUS is included only if upstream emissions are sufficiently low,if capture at high rates is applied to all CO2 streams associated with the production route,and if all CO2
236、emissions are permanently stored to prevent their release into the atmosphere from bioenergy via pyrolysis,anaerobic digestion and other technologies.The choice of technology will depend largely on the country where the hydrogen is to be produced and its resource availability.For example,the cost-co
237、mpetitiveness of electrolytic hydrogen will be to a large extent determined by the availability of variable renewable energy sources,while CCUS-based solutions might be considered as more competitive in markets with greater fossil fuel and/or biomass availability.In this regard,several Northwest Eur
238、opean countries have included electrolyser capacity deployment targets in their national hydrogen strategies,while Norway have chosen a technology neutral approach.In all,the Northwest European countries target electrolyser capacity deployment of between 30 and 40 GW by 2030.Northwest European Hydro
239、gen Monitor PAGE|38 IEA.All rights reserved.Hydrogen supply Low-emission hydrogen can be produced through a variety of production routes Simplified scheme of selected low-emission hydrogen production routes IEA.CC BY 4.0.Note:PEM=Polymer electrolyte membrane.Northwest European Hydrogen Monitor PAGE|
240、39 IEA.All rights reserved.Hydrogen supply Northwest Europe leads the world in low-emission hydrogen production development The ten countries considered in the Hydrogen Monitor use over 4 Mt of hydrogen every year,mainly in the refining and chemical industries.Close to 100%of the hydrogen used in th
241、e region is produced from unabated fossil fuels.Northwest European countries are at the forefront of low-emission hydrogen production development.The region accounts for close to 85%of OECD Europes operational low-emission hydrogen capacity.As per the IEAs Hydrogen Projects Database,the electrolytic
242、 hydrogen production capacity of Northwest Europe reached 17 kt/year in 2022.Most of the operating capacity is located in Germany,accounting for close to 65%of the total.Two gas-based hydrogen production projects capture CO2 for use in industrial or agricultural applications in the region.In the Net
243、herlands,the Shells Pernis refinery in the Rotterdam area captures carbon emissions from hydrogen production as part of the OPAC project,which re-uses CO2 for enhanced crop growth.In France,Air Liquide equipped its Port-Jrme hydrogen production facility in 2015 with a cryogenic CO2 purification syst
244、em(0.1 Mtpa).For the purposes of this Monitor,these projects are not classified as low-emission hydrogen.Assuming that all of the announced and planned projects become commercially operational,the total low-carbon hydrogen production capacity of the ten countries considered in the Hydrogen Monitor i
245、s expected to reach close to 14 Mt/year by 2030.This would mean that Northwest Europe would account for around 80%of the total expected production capacity of low-emission hydrogen production in OECD Europe by 2030.Fossil-fuel based hydrogen projects,equipped with CCUS,account for over one-third of
246、the total planned low-emission hydrogen production capacity by 2030,whilst electrolytic hydrogen production capacity accounts for almost two-thirds.If all planned projects become commercially operational,and taking the assumptions on efficiency and utilisation factors into account,Northwest Europes
247、low-emission hydrogen production could reach close to 6.2 Mt/yr by 2030.However,less than 1%of these projects are currently operational.According to the IEAs Hydrogen Projects Database,just 2%of the expected capacity by 2030 has already reached a FID or is under construction.Over 95%of these project
248、s are currently either conceptual or subject to feasibility studies.Accelerating the deployment of low-emission hydrogen will require stronger policy support,to“pull”investment along the entire value chain of hydrogen supply.Public funding programmes and state-backed risk-sharing mechanisms can help
249、 to de-risk investment and improve the economic feasibility of low-emission hydrogen projects.Demand creation should be a key instrument to stimulate investment,including via quotas and public procurement rules.Northwest European Hydrogen Monitor PAGE|40 IEA.All rights reserved.Hydrogen supply Elect
250、rolytic hydrogen accounts for two-thirds of Northwest Europes low-emission hydrogen production capacity in 2030,but 95%of the projects are still in the early stages of development IEA.CC BY 4.0.Source:IEA(2022),Hydrogen Projects Database.Low-emission hydrogen projects in Northwest Europe by type(203
251、0)Low-emission hydrogen projects in Northwest Europe by status(2030)Northwest European Hydrogen Monitor PAGE|41 IEA.All rights reserved.Hydrogen supply Low-emission hydrogen production development varies by countryThe following section provides an overview of the low-emission hydrogen projects in No
252、rthwest Europe and the outlook to 2030.Austria Austria has set a target for 1 GW of electrolyser capacity for the production of renewable hydrogen by 2030.The countrys National Hydrogen Strategy aims to replace 80%of fossil-based hydrogen with climate-neutral hydrogen in energy intensive industries
253、by 2030.Austria has several demonstration projects for renewable hydrogen production via electrolysis,including the“Hydrogen Village in Burgenland”project launched in 2006,and the Wind2Hydrogen and HyCentA projects in 2015.The DEMO4GRID project is currently under commissioning and will be supported
254、by a 4 MW alkaline electrolyser.The DEMO4GRID project will produce green hydrogen for the food retail company,MPREIS,to replace fossil-based natural gas for heating.Several electrolytic renewable hydrogen projects have reached a FID or are in their conceptual phase.They include the installation of a
255、 10 MW electrolyser at the OMV Schwechat Refinery by 2025.In 2022,plans for a large-scale renewable electrolysis plant in Burgenland were announced.The project will be implemented in several phases,towards a 300 MW electrolyser capacity in 2030.Altogether,the combined capacity of Austrias renewable
256、hydrogen projects would stand at around 400 MW by 2030,falling short of Austrias 1 GW target.If all planned projects start commercial operations by then,it is estimated that Austria could produce over to 70 kt of renewable hydrogen by 2030.Belgium The Belgian Federal Hydrogen Strategy does not speci
257、fy a low-emission hydrogen production target.In its National Recovery and Resilience Plan,Belgium set a target of at least 0.15 GW of electrolysis capacity in operation by 2026.According to the IEAs Hydrogen Projects Database,the country has four operational low-emission hydrogen production faciliti
258、es,with a combined capacity of 2.5 MW.Projects which are under construction have a total capacity of 1.3 MW while the ones that have reached a FID have a capacity of close to 75 MW.This includes the HyPort Project in Ostend,which is expected to become operational in 2025.This project would consist o
259、f a 50 MW electrolyser and would use offshore wind to produce low-emission hydrogen.Several projects are either in the midst of feasibility studies or are in their conceptual phase.They could add 0.8 GW and 1.9 GW of low-emission hydrogen production capacity,respectively,by 2030.Northwest European H
260、ydrogen Monitor PAGE|42 IEA.All rights reserved.Hydrogen supply Together,all of the low-emission hydrogen projects under development in Belgium could produce 0.17 Mt by 2030.Denmark Denmark adopted its Power-to-X Strategy in March 2022 which targets 4-6 GW of electrolyser capacity by 2030.Denmark ha
261、s several operational electrolytic hydrogen projects.The majority are small-scale,pilot projects with a combined installed electrolysis capacity of over 5 MW.There are several projects under construction,including the HySynergy Project,which is expected to begin producing hydrogen late in 2022 from
262、the initial 20 MW electrolyser.The facility could be expanded to 300 MW in 2025 and 1 GW in 2030.Projects in the midst of feasibility studies or are in their concept phase(including the HySynergy projects Phase II&III and the Brint-Hydrogen Island project)could add 4.1 GW and 7.4 GW of electrolysis
263、capacity,respectively,by 2030.Together,all of the low-emission hydrogen projects currently under development in Denmark could produce around 0.7 Mt by 2030.France A target of 6.5 GW of water electrolysis capacity by 2030 is given in Frances National Strategy for the Development of Decarbonised and R
264、enewable Hydrogen.France has several small-scale low-emission hydrogen production projects.In all,the country has over 4 MW of electrolysis capacity in operational status.In addition,the Port-Jrme hydrogen production facility was equipped with a cryogenic CO2 purification system(0.1 Mtpa)in 2015.For
265、 the purposes of this Monitor,this project is not classified as a low-emission hydrogen project.Projects currently under construction could add close to 4 MW,and those which have reached a FID could contribute over 11 MW of electrolysis capacity by 2025.The Masshylia hydrogen project,consisting of a
266、 125 MW electrolyser,is scheduled to begin operating in 2026.This facility will be able to produce close to 22 kt/yr of low-emission hydrogen to meet the needs of the biofuel production process at the biorefinery.Projects undergoing feasibility studies or are in their concept phase could add close t
267、o 2.9 GW and 6.8 GW of electrolysis capacity,respectively,by 2030.They include the giant Lacq Hydrogen Project which is being developed by Frances and Spains gas transmission system operators,Enags and Terga.In addition to electrolytic hydrogen,several gas-based low-emission hydrogen projects are un
268、der consideration.According to the IEAs Hydrogen Projects Database,they could add 0.18 Mt of low-emission hydrogen production by 2030.Together,all of the low-emission hydrogen projects currently under development in France could produce over 0.63 Mt by 2030.Northwest European Hydrogen Monitor PAGE|4
269、3 IEA.All rights reserved.Hydrogen supply Germany Under its National Hydrogen Strategy,Germany plans to establish up to 5 GW of electrolytic hydrogen production capacity by 2030.The federal government is currently working on revising the hydrogen strategy in order to secure the targets from the coal
270、ition agreement,e.g.increasing the electrolyser capacity to 10 GW by 2030.Germany alone accounts for close to 65%of Northwest Europes currently operational electrolysis capacity.Distributed among several small-scale(1-2 MW)projects,the country has close to 70 MW capacity of electrolysers.The project
271、s which are under construction could add close to 57 MW,while the ones which have reached a FID could add almost 1.1 GW of electrolysis capacity by 2026.This includes the ArcelorMittal Project to use low-emission hydrogen in the production of direct reduced iron(DRI)at its Hamburg steel plant.The pr
272、oject will consist of a 50 MW electrolyser using renewable electricity supply and is expected to begin operation by 2025.Projects that are in the midst of feasibility studies or are in their concept phase could add 3.5 GW and 9 GW of electrolysis capacity,respectively,by 2030.This would put Germany
273、on track to reach its 10 GW target of electrolyser capacity.In addition,Germany has several gas-based low-emission hydrogen projects in the conceptual phase of project development.They include the H2morrow Project,developed jointly by Norways Equinor and Germanys Open Grid Europe.Under the project s
274、cheme,Norwegian gas would be converted into low-emission hydrogen in Germany via autothermal reforming subject to carbon,capture and offshore storage(CCOS).The CO2 emissions would be stored in the Norwegian continental shelf.Taken together,all of the low-emission hydrogen projects currently under de
275、velopment in Germany could produce close to 1 Mt by 2030.Luxembourg At the time of writing,though Luxembourg had not set quantified targets for low-emission hydrogen production,the government had stated that it is aiming to replace fossil-based hydrogen with low-emission hydrogen to reduce greenhous
276、e gas emissions by more than 5kt CO2/year.Netherlands The Netherlands has set a target of 3-4 GW electrolyser capacity by 2030,with an intermediate target of 0.5 GW by 2025.The ruling parties in the Netherlands proposed increasing the countrys 4 GW target to 8 GW by 2030 and this is being evaluated
277、within the National Hydrogen Programme.At present,the Netherlands has around 3 MW of operational electrolytic low-emission hydrogen production capacity installed.In addition,Shells Pernis refinery in the Rotterdam area captures Northwest European Hydrogen Monitor PAGE|44 IEA.All rights reserved.Hydr
278、ogen supply carbon emissions from hydrogen production as part of the OPAC project.The resulting hydrogen production is estimated at 17 kt/year but for the purposes of this Monitor,it is not classified as low-emission hydrogen.Projects which are under construction could add 12 MW,and one project,the
279、Holland Hydrogen I project(which would consist of 200 MW of electrolyser capacity to supply low-emission hydrogen to Shells Pernis refinery)has reached a FID aiming to be operational by 2025.The electricity would be sourced from the future Hollandse Kust North offshore wind farm.Projects which are i
280、n their concept phase could add 2.7 GW of electrolysis capacity,while the ones currently carrying out feasibility studies could add 8.2 GW by 2030.They include the giant NorthH2(4 GW)and HyNetherlands Phase 2 Projects(1 GW).In addition,there are several gas-and oil-based low-emission hydrogen projec
281、ts in the early phases of development.If they reach commercial maturity,they could add around 0.4 Mt of low-emission hydrogen production by 2030.Together,all of the low-emission hydrogen projects currently under development in the Netherlands could produce close to 1.1 Mt by 2030.Norway Norway adopt
282、ed its Hydrogen Strategy in June 2020 and its Hydrogen Roadmap in June 2021.The country does not have a specific production target and has a technology-neutral approach towards low-emission hydrogen production.Currently,Norway has just over 6 MW of electrolysis capacity.FIDs have been reached on the
283、 installation of almost an additional 60 MW.Projects in their early phases of development could add over 150 MW while others in the midst of feasibility studies could add over 3 GW of electrolysis capacity by 2030.In addition,gas-based low-emission hydrogen projects are being considered.The planned
284、HyDemo Project,currently undergoing a feasibility study,would supply close to 180 kt H2/year by 2025,sourced via steam methane reforming subject to CCUS.Together,all of the low-emission hydrogen projects currently under development in Norway could produce almost 0.5 Mt by 2030.Switzerland Switzerlan
285、d has not yet set any low-emission hydrogen production targets.The countrys Hydrogen Roadmap is currently under preparation and will be published in 2023.Switzerland has several small-scale,low-emission hydrogen production projects in operation,with a total capacity of 3.5 MW.Northwest European Hydr
286、ogen Monitor PAGE|45 IEA.All rights reserved.Hydrogen supply Electrolytic projects which are under construction and/or have reached FID could add around 2.5 MW and 5 MW,respectively,in the coming years.Electricity would be sourced mainly from hydropower.Projects which are currently in the midst of f
287、easibility studies could add 25 MW of electrolysis capacity by 2025.Together,all of the low-emission hydrogen projects currently under development in Switzerland could produce over 2 kt/year by 2030.United Kingdom In its British Energy Security Strategy,the United Kingdom doubled its low-emission hy
288、drogen production ambition to up to 10 GW by 2030,with electrolytic hydrogen accounting for at least half of it.The Strategy sets,as intermediary targets,1 GW of electrolytic hydrogen capacity in construction or operational by 2025,and 1 GW of CCUS-enabled hydrogen capacity in construction or operat
289、ional by 2025.The United Kingdom currently has over 8 MW of electrolysis capacity,mostly in the form of small-scale,pilot projects.If projects in development are considered,overall electrolysis capacity could reach over 1 GW by 2025.The gap between capacity under construction/FID and capacity in the
290、 early stages of development,indicates that policy support,including funding,will be important in order for the United Kingdom to deliver its hydrogen production ambitions.The Net Zero Hydrogen Fund is expected to accelerate project development in the near term,facilitating final investment decision
291、s.Projects in the early stages of development could add close to 3.5 GW,while the ones in the midst of feasibility studies could add 2.5 GW of electrolysis capacity by 2030.This includes giant projects such as Gigastack-Hornsea 2(1 GW),Cerulean Winds(1.5 GW)and the Freeport East Hydrogen Hub(1 GW).I
292、n addition,several gas-based low-emission hydrogen projects are being considered.Though most of them are currently in the early stages of project development,they could add around 3 Mt of low-emission hydrogen production capacity by 2030.This includes the HyNet North West Project,which alone could a
293、ccount for over 30%of the countrys gas-based low-emission hydrogen supply by 2030.This Project aims to decarbonise the industries located in Northwest England and North Wales by providing low-emission hydrogen produced from natural gas via autothermal reforming subject to CCS.According to the projec
294、ts developers,HyNet North West could reduce carbon emissions by 10 Mt/year by 2030.Based on the IEAs Hydrogen Projects Database,all of the low-emission hydrogen production projects currently under development in the United Kingdoms could produce nearly to 2.2 Mt by 2030.Northwest European Hydrogen M
295、onitor PAGE|46 IEA.All rights reserved.Hydrogen supply Low-emission hydrogen production could reach close to 6.2 Mt/year by 2030 Projected low-emission hydrogen production in Northwest Europe by country,2022-2030 IEA.CC BY 4.0.Source:IEA(2022),Hydrogen Projects Database.Northwest European Hydrogen M
296、onitor PAGE|47 IEA.All rights reserved.Hydrogen supply United Kingdom,Germany and the Netherlands could account for 75%of the total low-emission hydrogen production capacity in Northwest Europe in 2030 Installed capacity and new capacity based on projects status by Northwest European country IEA.CC
297、BY 4.0.Source:IEA(2022),Hydrogen Projects Database.Northwest European Hydrogen Monitor PAGE|48 IEA.All rights reserved.Hydrogen trade Hydrogen trade Northwest European Hydrogen Monitor PAGE|49 IEA.All rights reserved.Hydrogen trade European countries could play a central role in a nascent hydrogen t
298、rade marketToday hydrogen is mainly produced and used in the same location,especially in industrial areas for the production of fertilisers,methanol and in oil refineries.It is produced onsite or obtained as a by-product(for example,from the chlor-alkali industry or from petrochemical processes)and
299、is used as a feedstock in industrial processes.Cross-border trade has started to take place in small-quantities in Japan and could become an important feature in the coming decades.The increasing demand for low-emission hydrogen,both to replace fossil-based hydrogen in current uses and for new appli
300、cations where direct electrification is difficult,is needed to reach the decarbonisation goals at the global level.This,together with potential production increases in geograpichal locations with abundant renewable resources or access to CO2 storage,as seen in national plans and in companies project
301、s,could pave the way for international trade of low-emission hydrogen and derivatives.This is the case for the highly industrialised Northwest European region,with clusters like the Antwerp-Rotterdam-Rhine-Ruhr area,where about 40%of the European Unions chemical production is concentrated.While the
302、region is,already today,a center of hydrogen demand and production(mainly from unabated natural gas),it not only has excellent port infrastructure with access to international trade routes,but also the potential to develop into clean hydrogen hubs.The Port of Rotterdam is actively positioning itself
303、 as the main import hydrogen hub in Europe.To this end,it is working on exploring opportunities and cooperation on new hydrogen and derivative trade routes,with more than 20 agreements signed with international counterparts.The Belgian ports of Antwerp and Zeebrugge have signed a Memorandum of Under
304、standing(MoU)with Chile in the interests of setting up a hydrogen import corridor,and Germany sees Hamburg as the strategic pioneer in hydrogen imports to the country.While,globally,an estimated 12 Mt of hydrogen per year could be exported by 2030,based on project annoucements,more than 80%of this v
305、olume still has no off-taker defined.And with the EU target of 10 Mt per year of renewable hydrogen imports by 2030 proposed in the REPowerEU plan,it is clear that the coming years will be pivotal for the deployment of a hydrogen trade market in this decade,in which the Northwest European region has
306、 a central role to play.Northwest European Hydrogen Monitor PAGE|50 Hydrogen trade Dedicated financial instruments will be key to facilitating hydrogen importsThe low-emission hydrogen market is in its infancy,and it will be crucial to establish the format of transactions between producers and consu
307、mers correctly,especially for international trade.Bilateral contracts between the importer and the exporter,usually companies,are the most widely used instruments today.At this point in time,the infrastructure needed to transport hydrogen via sea is practically non-existant.Ideally it should be buil
308、t in parallel with production facilities.The development of low-emission hydrogen production plants and related infrastructure are highly capital intensive investments.Companies may seek long-term contracts,with pre-defined pricing mechanisms,in order to provide financial security for the the develo
309、pment of the projects.In the longer term,once the market has been established,more open models for trade such as the ones used for liquefied natural gas(LNG)could also develop.Awarding contracts through auctions,on the demand or supply side or both,could help reduce the low-emission hydrogen price g
310、ap.It could guarantee the seller a fixed price for a certain period of time,which may also stimulate investment on the production side:in this way,the production cost could decrease faster and reduce the need for government funds in the mid to long term.One of the most advanced programmes today is t
311、he German H2Global auction-based mechanism.Through a dedicated intermediary,HINT.CO,ten-year purchase contract auctions are concluded on the supply side,at the lower price for electrolytic hydrogen and its derivatives from producers outside the European Union.Short term contracts are then auctioned
312、on the demand side,and the difference is compensated by the intermediary itself through German government funding.This compensation will potentially decline over time as the market develops.The German government has approved a grant of EUR 900 million for the scheme,and the first auctions are planne
313、d for the second half of 2022 with product deliveries expected to start in 2024.Notably,the German governments draft budget for 2023 includes a budget of EUR 3.6 billion for H2Global.In October 2022,the Netherlands also expressed its interest in cooperating in the H2Global funding instrument.As the
314、focus is on renewable hydrogen,clarity on standards and certification is needed in order to guarantee a consistent definition of the hydrogen produced inside and outside the European Union,and to provide certainty to importers.The rules formulated for the European energy market may not be easily app
315、lied to other countries,where the electricity markets are structured differently or where different renewable certification systems exist.Northwest European Hydrogen Monitor PAGE|51 Hydrogen trade The number of planned export-oriented projects is growing,but a considerable margin exists for securing
316、 off-take agreements Based on the export-oriented projects currently under development,the global hydrogen trade flow could reach 12 Mt per year by 2030.A fifth of this amount is planned to come online in the next four years.However,the majority of the projects are currently in the early stages of p
317、lanning or in the midst of feasibility studies.Projects that have reached a more advanced stage of development represent only 0.2 Mt H2/year.While the scale of planned exports is expected to grow through the remainder of this decade and beyond,it is apparent that off-take agreements and import contr
318、acts lag behind.In fact,of the total export-oriented projects planned,those representing 7 Mt H2 per year have not yet announced a delivery destination.The Northwest European region,together with a few Asian countries,account for the majority of the projects for which the import destination is defin
319、ed.The Netherlands and Germany lead the development of the import projects,with a combined volume of imports expected to reach about half a million tonnes of hydrogen by 2030.Project Nour,in Mauritania,completed its pre-feasibility study in May 2022.This project is expected to deploy 10 GW of electr
320、olysis powered by wind and solar power by 2030.Chariot,the project developer,signed a partnership agreement with the Port of Rotterdam for the sale of the renewable molecules to Europe.The Icelandic company Landsvirkjun and the Port of Rotterdam are working closely to carry out a pre-feasibility stu
321、dy on the shipment of 2-4 TWh of renewable hydrogen from Iceland to Rotterdam before 2030.This hydrogen would be produced via electrolysis powered by a combination of hydropower,geothermal and wind power,and it would be either liquefied or converted into another carrier for transport purposes.Angola
322、 could become the first supplier to Germany.The energy firm Sonangol announced plans to develop an electrolytic ammonia plant in the African country by 2024,with an expected capacity of 280 kt NH3(about 50 kt H2)to be exported.Uniper has signed a Letter of Intent(LoI)with the Chilean company HIF Glo
323、bal to negotiate off-take agreements for the sale of synthetic fuels,to be produced in the plants under development in the Magallanes.The plants will be scaled up in several phases during this decade,with a potential capacity of about 190 kt H2 equivalent per year,though the shipping destination is
324、not yet defined.A group of companies from Germany and the United Arab Emirates(UAE)are exploring the feasibility of transporting hydrogen,in the form of liquid organic hydrogen carrier(LOHC),to Europe by the end of the decade.The first shipment of ammonia(produced from natural gas with CCS)from the
325、UAE destined for Hamburg left Abu Dhabis Ruwais industrial site in September 2022.Northwest European Hydrogen Monitor PAGE|52 Hydrogen trade It was recently announced that some companies and governments are studying the possibility of hydrogen trade between Northwest European countries.The company N
326、ordic Electrofuel plans to build a power-to-liquid plant in Porsgrunn,Norway by 2024,with electricity sourced from wind and hydropower and having an intial capacity of 8 kt of synthetic liquid fuels and waxes per year.The representatives of a joint venture among German energy and chemical companies
327、have agreed to purchase the products.The Barents Blue Project,in northern Norway,is expected to start construction in the second half of this year.In the first phase,it will produce 1 Mt ammonia per year from natural gas,with the CO2 being captured and stored.The product could be exported to the Eur
328、opean market.The role of the ports in the Northwest European region is fundamental in the creation of a new import market for clean hydrogen.The major ports in the Netherlands,namely the Port of Rotterdam and the Port of Amsterdam,have plans for importing a combined amount of more than 5 Mt H2 by 20
329、30.In addition,the Port of Rotterdam has signed more than 20 MoUs and partnerships with partners all around the globe,to explore the potential and feasibility of exporting low-emission hydrogen to Northwest Europe.The Clean Energy Ministerial launched the Global Ports Hydrogen Coalition in June 2021
330、.This Coalition is the first global forum that brings representatives from ports together with decision makers from governments as well as industry in order to accelerate low-carbon hydrogen deployment.It builds upon already existing dialogues about the potential for adopting hydrogen in ports opera
331、tion,including,but not limited to,those at the International Association of Ports and Harbours(IAPH),the World Ports Climate Action Program(WPCAP)and the Hydrogen Council.Countries have also started,over the past three years,to establish cooperation agreements in the field of clean energy,hydrogen t
332、echnologies,and also hydrogen trade,with counterparts mainly in Africa,Australia and the Middle East.These non-binding agreements help to identify the potential hydrogen trade routes and a geographical map of this nascent market.The expansion of international trade in hydrogen and hydrogen derivativ
333、es will also require the build-up of transport infrastructure.Liquefied hydrogen trade still requires technology development.There is only one liquefied hydrogen demonstration project for hydrogen transport from Australia to Japan,with the first shipment delivered in February 2022.In comparison to hydrogen,ammonia is already a widely traded commodity.However,using ammonia as a hydrogen carrier wou