2. H ydrogen in the European Union This section analyzes EU26 hydrogen markets and the key aspects of the bloc strategy to 2050.27
2.1. Hydrogen Supply and Demand EU hydrogen demand stands at 7.8 Mt, equivalent to about 11% of global demand.28 Refining and fertilizers account for 3.9 Mt (50%) and 2.4 Mt (30%), respectively (Figure 1). Consumption for energy and transportation accounts for about 1.2%.29 Germany and the Netherlands are the largest consumers of hydrogen, accounting for over a third of EU demand with 1.7 Mt (22%) and 1.3 Mt (17%), respectively. Countries with demands of 0.5 Mt or more include Poland, Spain, Italy, Belgium, and France. The remaining member states collectively account for about 25% of the total demand, with national demands below 0.2 Mt each. Overall, EU production capacity stands at about 11.3 Mt/yr (Figure 2).30 Steam methane reforming (SMR)31 accounts for 77%, while SMR with carbon capture and storage (SMR+CCS) and water electrolysis amount to 0.4% and 0.1%, respectively. The remaining production capacity includes industrial processes, where hydrogen is obtained as a by-product, such as coal coking,32 and the production of chemicals such as ethylene, styrene, and chlorine.
26 Unless otherwise stated, all references to the European Union include the post-Brexit 27 member states. 27 EC (2020). 28 Fuel Cell and Hydrogen Observatory (FCHO) (2020) Hydrogen Molecule Market, FCHO Reports. https:// www.fchobservatory.eu/sites/default/files/reports/Chapter_2_Hydrogen_Molecule_Market_070920.pdf 29 Energy applications refer to hydrogen combustion in boilers or combined heat and power units. Uses classified as “others” include chemical production, such as methanol and hydrogen peroxide, applications in the food industry, glass manufacturing, automotive, metal welding and cutting, electronics, and research labs. 30 FCHO (2020). 31 Methane is the main component of natural gas. 32 Coal coking is a process used to produce carbon coke, also known as metallurgical coal, a key raw material in steel making. Coal gas is one of the byproducts.
Belfer Center for Science and International Affairs | Harvard Kennedy School
11
