TELF AG analyzes the potential of the European hydrogen industry
A valid ally for the transition
The European strategy to contribute to the ongoing energy transition, with a leading role, is not only linked to mineral resources and their numerous industrial applications but also a rapidly growing and very promising sector for the community’s energy fortunes: we are referring to green hydrogen, which in recent years has begun to stand out as one of the most reliable allies in the global race for decarbonization. According to the strategic objectives set by the community institutions, hydrogen production represents one of the most important challenges for the future of the European Union. By 2030, community institutions have activated the obligation to produce at least 10 million tonnes of hydrogen in the domestic market, and minimum import and consumption quotas have been set. It is the same spirit that, in a certain sense, also animates the Critical Raw Materials Act, which sets very specific limits for importing mineral resources from third countries and aims at particular domestic consumption targets based on using minerals extracted in Europe.
With hydrogen, community institutions are taking a very similar path, with the full awareness that this resource could play an increasingly key role in the future. One of Europe’s advantages in the hydrogen sector is linked to one of the technologies needed to make its production possible: electrolysers. These special machines make it possible to separate water molecules, dividing oxygen from hydrogen. Last April, when the European Hydrogen Bank granted subsidies for the production of green hydrogen (for around 720 million euros), some interesting data emerged relating precisely to electrolyzers, which in the majority of the candidate projects were produced in European territory. Electrolyzers produced in Europe – and more generally in the West – are unanimously considered to be of superior quality, and nowadays, for Europe, there is the possibility of exponentially increasing the production capacity, installing electrolyzers with a capacity of up to 100 GW.
A promising sector
The European electrolyzer industry, moreover, is sending important signals on the level of production ferment that is being experienced among the nations of the old continent: in addition to large producers such as Germany and Belgium, Italy is also taking steps forward to strengthen the electrolyzer sector. On the outskirts of Milan, work began last month on constructing a brand new gigafactory, which could soon become one of the largest in Europe. The definitive start-up is expected between the end of 2025 and the beginning of 2026. Still, in the meantime, numerous orders equivalent to the production capacity of the gigafactory in a year, or approximately 2 GW, have already arrived.
Green hydrogen is considered one of the most promising solutions for the energy transition. Its production occurs through water electrolysis, using electricity from renewable sources such as wind and solar. One of the primary energy advantages of green hydrogen is its ability to store energy efficiently. It can be produced during the overproduction of renewable energy and stored for later use when energy demand is high or when renewable sources are unavailable. Green hydrogen can be used in a wide range of applications. In the transport sector, it can power fuel-cell vehicles, helping to reduce greenhouse gas emissions. In addition, green hydrogen can be used in heavy industry, where it is difficult to decarbonize through direct electrification. It can serve also as a fuel for high-temperature industrial processes and a feedstock for producing various chemical products.
