TRENDS OF BLUE HYDROGEN
PROJECTS AND CCUS IN EUROPEP R E PA R E D BY G R E G K E L S A L LP R E S E N TAT I O N F O R J O G M E C , M A R C H 2 0 2 2

PRESENTATI ON OUTLINE• Blue hydrogen strategy in Europe• Trend of blue hydrogen projects in Europe• Trends of CCUS projects in Europe• Regulation and support of CCUS in Europe

Disclaimer: Views, findings and publications of theInternational Centre for Sustainable Carbon do notnecessarily represent the views or policies of the IEA
Secretariat or its individual member countries.

B LU E H Y D RO GEN ST RAT EGY IN E U RO P E

E U P O L I C I ES
• Hydrogen and CCUS strategies form part of theEU’s plan to be NZE by 2050
• Known as ‘a clean planet for all’ the most relevantof the 7 building blocks are:
1.
2.

3.
7.

Maximise benefits from energy efficiency
including zero emission buildings
Maximise deployment of renewables and theuse of electricity to fully decarbonise Europe’s
energy supply
Embrace clean, safe and connected mobility
Tackle remaining CO2 emissions with carboncapture and storage• This strategy covers the climate ambition elementof the more recent Green Deal

A Clean Planet for all

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018DC0773&from=EN
https://eur-lex.europa.eu/resource.html?uri=cellar:b828d165-1c22-11ea-8c1f-01aa75ed71a1.0002.02/DOC_1&format=PDF

E U H Y D RO GEN ST R AT EGY
Hydrogen can support the decarbonisation of industry,transport, power generation, and buildings
Priority is renewable hydrogen, produced using mainly
wind and solar energy, supported in the short/medium term by blue hydrogen:• 2020-2024: install >6 GW of renewable hydrogenelectrolysers in the EU, and production of up to 1
Mt/y of renewable hydrogen• 2025-2030, install >40 GW of renewable hydrogenelectrolysers and production of up to 10 Mt/y ofrenewable hydrogen• 2030-2050, renewable hydrogen technologies
deployed at large scale across all hard-todecarbonise sectors
https://refhyne.eu/

Power-to-gas project in Wessling, Germany with
10MW pressurized PEM electrolyser which aims
to lay foundation for 100MW electrolysers

NAT IO NAL H Y D ROGE N ST RAT EGIES
Number of European countries producing H2 strategies orroadmaps and the scale of ambition is increasing• Austria, Belgium, EU, France, Germany, Italy, the Netherlands,Norway, UK

EU-27 country example: Germany• Published strategy in June 2020
• Strategy favours green-hydrogen• Aims for 5 GW of industrial hydrogen capacity by 2030
• Further 5 GW of capacity by 2035-40• Providing €7 billion in addition to existing programmes
https://www.bmwi.de/Redaktion/EN/Publikationen/Energie/the-national-hydrogen-strategy.html

T R E N D S O F B LU E H Y D RO GEN P ROJEC TS IN E U RO PE

B LU E H Y D RO GEN - INDU STRY
• Hub and Cluster approach• Deployment at scale• Example is Zero Carbon Humber• Shared pipelines, for low-carbonhydrogen and captured carbon
emissions, creating world’s first
net zero industrial cluster by2040• Aim is to produce 1800 MW ofblue-hydrogen to support
industrial users, Triton power
station fuel switch and theplanned Keadby- 3 hydrogen
power station
https://www.zerocarbonhumber.co.uk/Zero Carbon Humber industrial cluster

B LU E H Y D RO GEN - POW E R G E NE RATION

Keadby-Hydrogen power station, UK••••

900 MWe of electricity generated fromhydrogen produced in the East CoastCluster (Zero Carbon Humber)- 100% H2 fuelJoint development by SSE and Equinor
Potentially operational by 2027
CCGT technology, currently based on
Siemens gas turbine
Artists impression of Keadby-Hydrogenhttps://www.ssethermal.com/flexible-generation/development/keadby-3-carbon-capture/

FO REC A ST H Y D ROG EN D E MA ND IN E U RO PE• Hydrogen is an essential element ofEurope’s energy transition− Large-scale decarbonisation of gas grids,
transport and industrial processes
requires hydrogen in large quantities• Increase electrification and renewables
integration requires large-scale energy
storage− Hydrogen is the primary energy carrier toaddress this• Hydrogen could provide 2250 TWh by2050, accounting for 24% of EU’s final
energy demand
Forecast hydrogen demand in Europe
https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf

H Y D ROG EN D E MA ND - I ND U ST RY• Industrial sector could be around 885 TWh (27MtH2/y); close to 40% of H2 demand by 2050
- Largest potential sector for blue-Hydrogen• Ammonia manufacture at 44%, methanol at 20%
and refinery applications at 14% continue as themain uses
- Europe is a key global region• Existing feedstock uses (325 TWh) could be fully
decarbonised by 2050 with blue hydrogenproviding 75% of this• Hydrogen use in steel manufacture could develop
as a DRI fuelProjected industrial uses of H2 in 2050
https://www.dnvgl.com/publications/hydrogen-as-an-energy-carrier-134607

C C U S T RE N D S IN E U RO P EEUROPEAN CCUS COMMERCIAL PROJECTS (GCCSI, 2020; 2021)

C C U S IN E U RO PE• More than 35 CCUS projects in Europe with
15 of these at commercial scale• Focus is on natural gas processing, industrial
manufacture, blue hydrogen and power
generation• Fuels are predominantly natural gas withsome biomass and waste-to-energy• Coal may have a limited role in existing
industrial manufacturing processes suchas steel and cement• European ambition is largely to phase outcoal in line with COP26 commitments

Capturecapacity, Mt/yTitle

StatusCountry

DateIndustrySnøhvit CO2
Storage

Operating

Norway

2008

Gas
0.7
processing

Sleipner CO2
Storage

Operating

Norway

1996

Gas
1.0
processing

MOL Szank field
CO2Operating

Hungary1992

Gas
0.2
processing

Norcem Brevik

Construction Norway

2024

Cement0.4

Port of Rotterdam(Porthos)

AdvancedThe2023
development Netherlands

Various2.0–5.0

Fortum Oslo
Varme- Langskip

Advanced
Norwaydevelopment

202324

Waste-toenergy

0.4

Brevik NorcemLangskip

Advanced
Norwaydevelopment

202324

Cementproduction

0.4

Hydrogen 2
Magnum (H2M)

Early
Netherlands 2024
development

Powergeneration

2.0

Caledonia Clean
EnergyEarly
UKdevelopment

2024

Powergeneration

3.0

Net Zero Teesside EarlyUK
development

2025

Various0.8–10.0

HyNet

Early
UK
development

MidHydrogen-2020s production

2.0

Northern Gas
Network (H21)

Early
UK
development

2026

Hydrogenproduction

1.5

H2H Saltend

Early
UK
development

202627

Hydrogenproduction

1.4

Drax BECCS

Early
UK
development

2027

Power
generation

4.0

Acorn Scalable
CCS

Early
UK
development

2020s

Oil refining

4.0

https://www.globalccsinstitute.com/resources/global-status-report/

C C U S I N E U RO PE - H U B A ND C LU STE R• CCUS considered necessary to achieve netzero emissions targets− Remains one of the EU’s seven strategic
building blocks− Deployed at lower level than foreseenpreviously due to growing renewables• Deployment at scale in clusters− Shared infrastructure• Examples include East Coast Cluster,Porthos, Northern Lights, HyNet

HyNet Industrial Cluster
https://hynet.co.uk/wp-content/uploads/2020/10/HyNet_NW-Vision-Document-2020_FINAL.pdf

C C U S E X A MPLE : P ROJ EC T
P O RT HOS• Port of Rotterdam• Partnership between Port of Rotterdam,Gasunie and EBN• Funded in part by SDE ++• €2.1 billion funding over 15 years• Bridges gap between EU ETS allowancesand cost of decarbonisation
technologies• 2.34 MtCO2/y storage• CCUS projects represent 40% of SDE++
budget, providing 70% of CO2 reductions• Final investment decision due in 2022 with
operation planned for 2024
https://www.globalccsinstitute.com/resources/global-status-report/

IN D U ST RIAL D EC A R B ON ISATION - ST E E L IND U ST RY• Range of potential technologies
to decarbonise steel becomingcommercially available in next 515 years• Recycling of steel must increase,requiring increased DRI• CCUS based technologies include
Hirsana, Top Gas, Course50 andFinex

Technology options to decarbonise steel (author prepared fromIEA, 2020 and Draxler and others, 2021)

R EG U L AT ION A N D S U P P ORT O F C C U S I N E U RO PE

O P P ORTUNIT IES TO S U P P ORT C C U S• More positive carbon pricing signals• Increased debt and equity financing requiring lower perceived risk including crosschain risk, policy risk, storage liability/leakage risk

Carbon price (€/tCO2)• Business models to enable private investment in transport and storage infrastructure
European ETS carbon pricehttps://ember-climate.org/data/carbon-price-viewer/

C C U S CO ST RE D U C T ION• All elements of CCUS technology chain
are in place• CCUS capture levels are nowcommercially available over 95% and areapproaching 100%•

99.7% capture is consistent with NZE forfossil fuels• CCUS costs reduced significantly,
currently around 65 $/tCO2 andpredicted to fall to below 45 $/tCO2

CCUS cost reduction (GCCSI, 2020)

KE Y M ES SAG ES• CCUS and low-carbon hydrogen are recognised as being a key part of Europe’s transition
to net zero emissions• Both are included in the EU’s seven strategic building blocks as augmented in the GreenDeal• EU and National Hydrogen strategies tend to favour green-hydrogen although the UK,
Norway and the Netherlands specifically include blue-hydrogen for the large scaledecarbonisation of industry• Hub and Cluster model features strongly in European decarbonisation projects, sharing
CO2 and hydrogen infrastructure• Strong financial, regulatory and incentive regimes will be needed to achieve large scale
CCUS roll-out in Europe• Doubling of the CO2 price in the EU ETS to over 80 €/tCO2 is a positive move

• Coal is set to play a limited role with many European countries announcing coal phaseout for power generation in the 2020’s

THANK YOU FOR LISTENINGANY QUESTIONS?

Greg Kelsall
greg.j.kelsall@gmail.com