Half of all heavy industries in EU looking into hydrogen

Over 60% of heavy industry companies across the EU are looking at low-carbon hydrogen to replace carbon-intensive systems, according to new research.

According to new Capgemini data, energy and utilities companies expect low-carbon hydrogen to meet 18% of total energy consumption by 2050.

Around 63% of energy and utility organizations viewed low-carbon hydrogen as critical for decarbonising economies, and 62% believed it could help nations reduce dependence on fossil fuels and promote energy independence. 

According to those surveyed, low-carbon hydrogen could meet up to 55% of hydrogen mix totals by 2050. 

On average, 0.4% of total annual revenue is earmarked for low-carbon hydrogen by energy and utility organisations by 2030, in particular for hydrogen energy transport and distribution (53%), and production (52%).

Florent Andrillon, group climate technology lead at Capgemini, said: "Low-carbon hydrogen is crucial in the clean energy mix for decarbonizing priority high-emission sectors such as industry and transportation, and thus combating global warming. While achieving measurable success won't be easy, we have the opportunity to create a decarbonised future.”

Responses for the research were collected from 500 executives from energy and utility firms with more than $500m in annual revenue, and 360 executives from end-user sectors with more than $1bn in annual revenue, including heavy transportation, aviation, maritime transport, steel, chemicals, and refining.

Oil and gas giant Shell is currently backing the Holland Hydrogen 1 project in the Netherlands, which will be Europe’s largest renewable hydrogen plant.

Last week, the EU gave approval for Italy to undergo a €450m project to support integrated hydrogen and renewable energy production in brownfield sites.