Mathieu Gitton’s Post

🌍 The Draft Terms and Conditions for the 2024 EU Hydrogen Bank Auction have just been released, and they're bringing some significant changes to the table. 📜 Check out the details here: https://lnkd.in/dRTip6vc 𝐂𝐚𝐯𝐞𝐚𝐭: 𝐄𝐔 𝐬𝐭𝐚𝐫𝐭𝐢𝐧𝐠 𝐭𝐨 𝐫𝐞𝐬𝐭𝐫𝐢𝐜𝐭 𝐦𝐚𝐫𝐤𝐞𝐭 𝐚𝐜𝐜𝐞𝐬𝐬 𝐟𝐨𝐫 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐡𝐲𝐝𝐫𝐨𝐠𝐞𝐧 𝐞𝐥𝐞𝐜𝐭𝐫𝐨𝐥𝐲𝐬𝐞𝐫𝐬? Procurement strategies now to include critical raw materials allocation, by indicate the percentage of electrolyser value allocated to critical raw materials as per EU's fifth list of critical raw materials, as well as indication of the % of the added value of the electrolyser stacks used in the project, which is manufactured in the European Economic Area (EEA) These requirements can indirectly impact suppliers from certain regions, including China, if they do not meet the specified criteria. For instance, if a Chinese supplier cannot demonstrate a significant portion of added value within the EEA or fails to comply with EU safety and performance standards, they may not be eligible to participate in the procurement process. This shift seems to pivot and focus on building an EU-based hydrogen supplier economy an those aligned with EU regulations to step up their game, potentially boosting local manufacturing and innovation. Restricting access for Chinese suppliers, also aligns with recent recommendations from a Dutch government study. https://lnkd.in/dugEB77v Chinese manufacturers has recently won major electrolyser tenders, revealing low prices: $210,000/MW for alkaline and $630,000/MW for PEM. Western 𝐩𝐫𝐢𝐜𝐞𝐬 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 3-5 𝐭𝐢𝐦𝐞𝐬 𝐡𝐢𝐠𝐡𝐞𝐫, signaling potential shift in global hydrogen market. https://lnkd.in/drBBRXX4 𝐎𝐓𝐇𝐄𝐑 𝐊𝐄𝐘 𝐓𝐀𝐊𝐄-𝐀𝐖𝐀𝐘𝐒 ⚡ Reduction of the auction ceiling price from 4.5 to 3.5 EUR/kg. ⚡ Reduction of the maximum “Entry into Operation” time from 5 to 3 years. ⚡ Increase the requested amount of the completion guarantee, from 4% to 10% of the requested grant amount. ⚡ Inclusion of a dedicated budget basket for projects with off-takers in the maritime sector, in accordance with the 2023 ETS Directive revision.

This is the latest development in the hydrogen sector! The European Union has just announced a significant allocation of funding towards hydrogen initiatives, marking a major leap forward in our journey towards a sustainable future. This funding injection is a testament to the EU's commitment to accelerating the transition to clean energy and fostering innovation in the hydrogen space. Three of the auction winners are located in our growth geographical region, one in #spain with a further two in #portugal #Hydrogen #CleanEnergy #EUInvestment #Sustainability #Innovation

Astonishing Bids for Europe's First Hydrogen Bank Auction—A New Era for Hydrogen? The initial bids for the first European Hydrogen Bank have been revealed, and they are nothing short of astonishing, ranging between just €0.37/kg and €0.48/kg! 🤯 This pricing could potentially reflect the impact of anticipated negative energy prices in certain regions. If true, this positions hydrogen not only as a viable storage solution but also as a promising financial hedge in the energy market. As these projects begin to materialize, it will be fascinating to see how they influence the dynamics of the second auction. Is hydrogen set to become a cornerstone of our renewable energy future? Only time will tell, but these developments are definitely worth watching. #Hydrogen #RenewableEnergy #EnergyMarket #EuropeanHydrogenBank

Embracing the Power of Hydrogen: Navigating the Energy Transition!   Economic Realities: While green hydrogen holds promise, its high production costs compared to grey hydrogen present a challenge. However, punitive measures to promote green hydrogen adoption risk further overload consumers, necessitating a balanced approach to ensure affordability.   Efficiency Dilemma: The efficiency of hydrogen as a clean energy solution depends heavily on the development of a robust transportation infrastructure. Without it, the potential for widespread adoption and availability is limited, underscoring the need for strategic investment and planning.   Regulation's Role: Effective regulation is pivotal in guiding the energy transition. However, punitive measures run the risk of choking innovation and obstructing sustainable development. Instead, regulations should incentivize industry growth while prioritizing affordability for consumers.   Global Impact: The pursuit of a net-zero carbon future must not come at the expense of affordability. As nations navigate their positions on the developmental spectrum, it's imperative that clean energy solutions are accessible to all in a fair competitive environment.   In this quest for a greener future, we should keep a spotlight on affordability.   #Hydrogen #EnergyTransition #AffordableEnergy #SustainableDevelopment  #CleanEnergyForAll #EuropeanCommission #EuropeanHydrogenBank

💬 “If you want to supply H2 to the entire EU steel industry, at large-scale [...] imports from overseas and cross-border #H2 trade between EU countries is a critical part of the equation.” In an interview with Hydrogen Insight, Hy24’s Chief Investment Officer Amir Sharifi breaks down the recent participation in the €1.5-billion equity raise of H2 Green Steel and its investment in Elyse Energy, and what's needed to make renewable #hydrogen viable to help transform sectors such as steel and oil refining with cleaner production models. As Amir Sharifi notes, the implementation of support schemes will be critical to help offtakers “feel sufficiently comfortable to make the switch” to cover the extra cost compared with cheaper fossil fuels. 👇 Read the full interview with Polly Martin: https://lnkd.in/eayVhN9k Hy24 | Joint Venture | FiveT Hydrogen AG | Ardian

Hydrogen has the potential to be an important contributor to our transition to #netzero through use in areas such as industry, transport, grid firming, chemicals and metals production. #Australia has up to $300 billion of potential #hydrogen investments, including projects that are focussed on domestic use as well as large export projects. Australia’s pipeline is the largest in the world. To know more: https://bit.ly/4bXvWxB #cleanenergy #energy #renewableenergy #greenenergy #sustainability

📢 **HYDROGEN: European Court of Auditors calls for a rethought strategy** 💧🚀 The European Court of Auditors published on **July 17** a critical report on the EU's strategy for renewable hydrogen. The report highlights several key points: 🔍 **Criticisms and Recommendations:** * The 2030 targets, aiming for 20 million tonnes (Mt) of renewable hydrogen (10 Mt produced within the EU and 10 Mt imported), are deemed **too ambitious** and **not based on rigorous analysis**. * The demand for renewable hydrogen for 2030 will likely not reach **10 Mt**. * The Court calls for a **realistic assessment** and an update of the EU's strategy to avoid harming the competitiveness of key industries and creating new dependencies. 🏭 **Current Challenges:** * **Chicken-and-egg problem**: The mutual dependence between hydrogen supply and demand hinders investments. * **Scattered funding**: The €18.8 billion allocated for 2021-2027 is spread across several programs, complicating access to appropriate funding for businesses. 💡 **Progress and Gaps:** * Although the European Commission has established an almost complete legal framework, difficulties persist throughout the hydrogen value chain. * Market incentives and more targeted allocation of funds are needed to maximize the potential for renewable hydrogen production. 🌍 **Implications for Industry and Environment:** * Renewable hydrogen can help decarbonize heavy industries such as steel, petrochemicals, cement, and fertilizers. * Achieve the EU's 2050 climate goals and reduce dependence on fossil fuels. 📄 **Link to the full report:** [View the report](https://lnkd.in/eyuCPGU9) 🌐 #Hydrogen #RenewableEnergy #EU #Environment #Competitiveness #EnergyStrategy #Decarbonization #GreenIndustry #EuropeanCourtOfAuditors

In a bid to propel the production of carbon-free hydrogen, the French government has allocated a substantial envelope of 4 billion euros. However, the eligibility criteria for this financial support reveal a stark reality: the doors are open only to entities boasting a minimum annual turnover of 100 million euros and a track record of five projects each exceeding 30 million euros.

The recent TNO report, funded by the Dutch Ministry of Economic Affairs and Climate Policy, casts a shadow on the viability of green hydrogen in the Netherlands. It reveals that the production cost is likely to exceed €13 per kilogram—far beyond the €1-2 needed to be competitive with grey hydrogen. This figure is based on data from 14 projects by 11 companies, including industry giants like Shell and BP. The report highlights that even with potential subsidies and optimistic scenarios, the lowest production cost barely dips below €9/kg, still not enough to challenge the established hydrogen market. The stark reality is that despite the promise of a clean energy future, green hydrogen remains an expensive endeavor, with electricity costs and grid tariffs significantly inflating the price. #sustainability #GreenHydrogen #SustainableEnergy #CleanTech #RenewableEnergy #EnergyTransition #CircularEconomy

The EU must control the distribution of raw materials to 15 technologies, if it wants to dominate the 5 most strategic industrial sectors of the economy! They are renewables, e-mobility, energy industry, ict and aerospace+defence. (right side of the diagram) Source 👉 https://lnkd.in/e8DeyTJB The raw materials are divided into 2 categories: critical (bright red) and strategic (dark red). On the overall supply chain, while the EU is vulnerable on the raw materials side, it is reasonably strong in the assembly of the final technologies. --------------- How will this shape up in the future? Comment below!👇 Are you a fan of recycling? Support me by reposting this! ♻️ And follow me, Kedar Balasubramanian for more of the same! 🚀 Himanshu Bhatt John Poljak #europe #energytransition #criticalminerals #supplychains #energysecurity #renewables #emobility #sustainability