The Future of Green Hydrogen: International Collaboration and Innovation

In 2022, the Hydrogen Technology Expo (HTE) took place in Bremen, establishing itself as the largest hydrogen expo globally, with over 6,500 participants and 350 exhibiting companies. Events like these are crucial in fostering a green hydrogen ecosystem that transforms existing industrial processes—particularly those that are difficult to decarbonize—to utilize renewable energy. The global hydrogen market is expected to reach $500 billion by 2050. In addition, it has the potential to reduce up to 6 gigatons of CO₂ emissions per year, emphasizing the massive growth and decarbonization potential that hydrogen technology holds. We conducted a survey involving 64 industry experts in collaboration with the hyTrack project at the University of Bremen. Key results are shown in the digital poster below.

The extensive redesigns required for the hydrogen transition, coupled with the inherent uncertainties of investing in emerging technologies, emphasize the need for comprehensive communication among various stakeholders. These include governments, corporations, financial institutions, city planners, universities, and startups. A unified vision is essential to instill confidence in the transition to green hydrogen as a viable energy source and mobilize private investment. This confidence-building process needs to extend beyond national borders.

For example, to support the development of cross-border infrastructure projects, initiatives like the European Hydrogen Backbone (EHB) aim to establish a 39,700-kilometer pipeline network across Europe by 2040. This infrastructure will connect hydrogen production hubs with demand centers, ensuring a reliable supply and making hydrogen economically viable on a large scale. The EU also aims to foster regional collaboration with North Africa to harness solar power for hydrogen production, leveraging the region's abundant solar capacity and existing renewable energy infrastructure. Morocco, for instance, has launched projects like Hevo Ammonia Morocco, a collaboration aimed at producing over 31,000 tons of green hydrogen annually for export to Europe. The country’s strategic position, abundant sunshine, and proximity to Europe make it a critical player in the future hydrogen supply chain. With projections indicating that the European Union may need to import up to 50% of its future hydrogen requirements, the transition to green hydrogen raises significant research questions in the field of international business studies.

The challenges to the transition are multifaceted. There is significant technological uncertainty regarding which electrolysis technologies will dominate. Options include PEM, alkaline, and solid oxide electrolysis, each with different advantages. This uncertainty makes investors cautious, as they seek the most reliable, scalable, and cost-effective solutions. Additionally, green hydrogen is still significantly more expensive compared to grey hydrogen. Estimates from the International Renewable Energy Agency (IRENA) indicate that the cost of green hydrogen production must fall below $2/kg to compete effectively. Achieving this cost reduction will require considerable innovation, governmental support, and economies of scale. These factors are obviously not harmonized across national borders.

Therefore, the role of governments is pivotal, and their policies are actively shaping the hydrogen market. The EU's Green Hydrogen Strategy, launched in 2020, set a target of installing 40 gigawatts (GW) of renewable hydrogen electrolyzers by 2030. Moreover, the Clean Hydrogen Partnership funds research and innovation to close the gap between early-stage technologies and commercially scalable solutions. A unified approach among governments, private corporations, and financial institutions is crucial for creating an ecosystem that promotes investment and accelerates the transition to green hydrogen. Foundational questions remain: What are the critical barriers that block private investments? Based on what information would ecosystem participants act? What is the role of governments in mobilizing private investments? Is there a constructive role for foreign direct investment in a sector with national strategic importance, and how can collaboration across borders succeed?

For further information please contact: Gunnar Leymann