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Energy Business
Ujjal Ghosh, Ph D
Ujjal Ghosh, Ph D
 · Posted in Energy Business

Hydrogen Horizons: Global Surge in Funding, Policies, and Innovations

1. Hydrogen Production Funding

The global landscape for hydrogen production funding has seen significant advancements over the past week. Governments and private entities across several key nations are making substantial investments to accelerate hydrogen technology.

  • United States: The Department of Energy announced an additional $1 billion in funding aimed at expanding hydrogen production infrastructure. This new funding is part of the broader $8 billion allocated under the Hydrogen Energy Earthshot initiative, which aims to reduce the cost of clean hydrogen by 80% to $1 per kilogram within a decade .
  • United Kingdom: The UK government has committed ÂŁ200 million to support green hydrogen projects. This funding is part of the UK Hydrogen Strategy, which targets 5 GW of low-carbon hydrogen production capacity by 2030 .
  • Australia: The Australian Renewable Energy Agency (ARENA) announced $100 million in grants for hydrogen production projects. This is aligned with Australia’s National Hydrogen Strategy, aiming to position Australia as a global leader in hydrogen exports .
  • Germany: The German Federal Ministry for Economic Affairs and Energy (BMWi) has increased its funding for hydrogen research and development to €500 million, emphasizing green hydrogen production .
  • France: France’s Ministry of Ecological Transition revealed a €300 million investment in hydrogen projects to support the decarbonization of industries

2. Hydrogen in the Transport Sector

Hydrogen is becoming a pivotal component in the transportation sector, with several countries launching new initiatives to integrate hydrogen fuel cells in various transport modes.

  • United States: California announced a new $150 million program to expand hydrogen refueling infrastructure for light-duty and heavy-duty vehicles. This move is part of California’s goal to have 200 hydrogen stations by 2025 . Additionally, California’s new bill, SB1420, mandates that at least 60% of hydrogen used in vehicles must be sourced from renewables by 2045 .
  • UK: The UK’s first hydrogen-powered train, HydroFLEX, has started operational trials, signaling a significant step towards decarbonizing rail transport .
  • Germany: Germany launched a fleet of hydrogen fuel cell buses in Hamburg, part of a broader strategy to replace diesel buses with zero-emission alternatives by 2030 .
  • China: China’s Ministry of Industry and Information Technology (MIIT) has approved the rollout of 1,000 hydrogen fuel cell trucks in key industrial regions as part of its 2025 target for new energy vehicles .
  • India: Indian Railways has begun trials for hydrogen-powered trains, aiming to reduce its carbon footprint significantly .

3. Hydrogen Policy Updates and Initiatives

Several countries have updated their hydrogen policies and launched new initiatives to foster the growth of the hydrogen economy.

  • Netherlands: The Dutch government published a new Hydrogen Vision document, outlining plans to establish 3-4 GW of electrolyzer capacity by 2030 and integrate hydrogen into the national energy system .
  • Spain: Spain’s Ministry for the Ecological Transition announced a strategic partnership with the European Union for the development of a Southern European hydrogen corridor, enhancing cross-border hydrogen transport and storage .
  • Japan: Japan’s New Energy and Industrial Technology Development Organization (NEDO) has set new targets under the Green Growth Strategy, aiming to commercialize hydrogen-based power generation by 2035 .

4. Global Collaborations and Agreements

International collaborations are proving crucial in accelerating hydrogen technology development and deployment.

  • USA & EU: A new transatlantic partnership has been announced between the U.S. Department of Energy and the European Commission to collaborate on hydrogen technology research, infrastructure development, and market creation .
  • Australia & Germany: Australia and Germany signed a bilateral agreement to develop hydrogen supply chains, focusing on exporting Australian green hydrogen to Germany .
  • India & Japan: India and Japan have entered into a partnership to develop hydrogen storage and transportation technologies, aiming to enhance their respective hydrogen economies .

5. Noteworthy Developments

  • Thyssenkrupp Nucera: Electrolyser maker Thyssenkrupp Nucera has been named one of the 100 most influential companies in the world by Time magazine. The German company, known for its high-tech electrode coatings, has sold more hydrogen electrolysers than any other manufacturer, including major contracts with the Neom green hydrogen project in Saudi Arabia and Shell’s Hydrogen Holland 1 project .
  • India’s Procurement Rules: The Indian government has relaxed procurement restrictions on wind turbines used for green hydrogen production, allowing developers to source equipment independently for projects within Special Economic Zones (SEZs) and Export Oriented Units (EOUs). This move aims to lower costs and boost renewable hydrogen production .
  • EU Subsidies: The European Commission approved €1.4 billion in state subsidies for hydrogen projects under the Hy2Move initiative, involving major companies like Airbus, BMW, and Michelin, to advance low-carbon hydrogen technology in transport .
  • South Australia: Remarkable test results in South Australia have shown hydrogen purity levels up to 95.8%, positioning the region as a potential leader in natural hydrogen production .
  • Tunisia: Tunisia has set a target to produce 8.3 million tonnes of green hydrogen annually by 2050, with plans to export 6.3 million tonnes primarily to Europe via the planned SoutH2 pipeline corridor .
  • France: HDF Energy inaugurated the world’s first factory to manufacture fuel cells larger than 1 MW, aimed at decarbonizing heavy maritime and rail mobility as well as public power grids .

Conclusion

The period from May 27 to June 2, 2024, has been marked by significant progress in hydrogen production funding, transport sector integration, and policy updates across the globe. As nations continue to invest and collaborate, the hydrogen economy is poised for substantial growth, contributing to global efforts to achieve net-zero emissions.

References

  1. Time Magazine: Thyssenkrupp Nucera
  2. Greenleaf: India’s Procurement Rules
  3. Hydrogen Insight: Californian Bill
  4. Euronews: EU Subsidies
  5. Gold Hydrogen: South Australia Testing
  6. TNI: Tunisia’s Green Hydrogen Strategy
  7. Power Engineering International: HDF Energy