Hydrogen energy in Ukraine: preconditions, potential and prospects for european integration
Authors:   Institute of Industrial Economics NAS of Ukraine, Kryl Iaroslav 
Published: December 2024

The article examines the development of renewable hydrogen production in Ukraine, emphasizing its critical role in global decarbonization efforts and integration into the European energy system. Ukraine has significant potential to become a key supplier of “green” hydrogen for the European Union, leveraging its vast renewable energy resources, particularly from solar and wind energy. The analysis explores the geographic advantages of the Western and Southern regions, which present favorable conditions for the construction of hydrogen-related infrastructure, such as electrolysis plants, storage, and transportation systems.

Furthermore, the article highlights European initiatives, particularly the REPowerEU program, which designates Ukraine as a strategic partner in the supply of renewable hydrogen to Europe. It examines the necessary infrastructure projects, including the Central European Hydrogen Corridor, which is pivotal for connecting Ukrainian hydrogen production with European markets. The analysis also identifies Ukraine's potential contribution to the 2x40 GW initiative, aiming to construct 10 GW of electrolysis capacity within Ukraine by 2035, making it one of the key hydrogen suppliers to the EU.

One of the critical challenges identified in the article is Ukraine's integration into the European hydrogen market. The article discusses the regulatory and certification barriers that currently exist in global hydrogen markets, particularly the lack of standardized hydrogen certification across different regions. To address this, the article suggests the adoption of harmonized certification standards for hydrogen production and transportation, aligning Ukraine’s certification systems with EU regulations, which would facilitate easier market access and enhance investment attractiveness.

Moreover, the article details the potential economic impact of hydrogen energy development on Ukraine’s economy. It highlights the creation of new jobs, both direct and indirect, and the potential to attract significant foreign investments. The scaling of hydrogen projects, particularly those in Zakarpattia and southern Odesa, could drive substantial GDP growth, contributing to Ukraine’s energy independence and economic resilience. By integrating innovative technologies like blockchain for hydrogen certification and monitoring, Ukraine can enhance the transparency and traceability of its hydrogen, making it competitive on the international market.

Finally, the article provides recommendations for policymakers and businesses. It calls for the acceleration of negotiations at the international level to include Ukraine in European hydrogen support programs, such as the European Hydrogen Bank, and emphasizes the importance of private-sector involvement in hydrogen infrastructure development. The collaboration between Ukrainian and European stakeholders will be essential for Ukraine to secure its position as a leader in the hydrogen economy, contributing to the EU’s decarbonization goals and strengthening energy security in the region.