Europe must act quickly to enable its key industries to adopt large-scale green hydrogen at an affordable cost, according to a new analysis by the Transhyde alliance — a group that includes Fraunhofer research institutes, universities, the Research Institute for Energy (FFE), and industry partners, reports Hydrogen Central.
The alliance said Europe can build a reliable and cost-effective hydrogen supply system if it makes clear and timely decisions.
Mario Ragwitz, head of the Fraunhofer Research Institution for Energy Infrastructures and Geotechnologies (Fraunhofer IEG) and a lead author of the report, said the continent’s hydrogen future depends on actions taken before the decade ends.
Green hydrogen produced with renewable electricity is considered essential for cutting emissions from heavy industry. However, Germany’s plans to scale up hydrogen use have fallen behind, as both supply and demand remain far lower than expected despite significant public funding.
The report finds that the steel and chemical industries will drive most of the future demand for hydrogen, though the outlook varies widely based on global competition, COâ‚‚ prices, and the cost of green hydrogen. The researchers estimate industrial demand could reach 779 terawatt-hours across the EU, Great Britain, Norway, and Switzerland.
A rapid and steady expansion of renewable energy is described as vital for securing future green hydrogen supplies. The alliance warns that failing to meet renewable-energy targets would push up hydrogen prices and increase reliance on imports.
The report says targeted policy tools — including contracts for difference to narrow the cost gap between low-carbon and traditional production, as well as stronger markets for climate-friendly raw materials — will be necessary to support the transition of the steel and chemical sectors.
Researchers also highlight that pipeline imports from regions such as North Africa and South-Eastern Europe could offer the most affordable long-term option. They note that converting existing natural gas pipelines for hydrogen transport would lower costs and reduce the need for major new infrastructure, but would require early planning and coordination.
