Hydrogen in 2023. Summary and trends for 2024

In 2023, the hydrogen industry is poised at a pivotal juncture, shaped by key trends identified during a recent industry summit attended by esteemed figures such as Hanna Mojsiuk, President of the Northern Chamber of Commerce; Żaneta Kłostowska, an expert from the Hydrogen Technologies Cluster; and Mateusz Sołtysiak, CEO of SES Hydrogen Energy. This year, technological innovation remains a cornerstone, driving advancements in hydrogen production, storage, and utilization technologies. Governments worldwide are intensifying their support through robust policies and regulatory frameworks aimed at fostering hydrogen’s role in clean energy transitions. Diversification across sectors beyond transportation and industrial applications is accelerating, with hydrogen increasingly considered for heating, power generation, and as a versatile feedstock. Investments are scaling up in hydrogen infrastructure, particularly in refueling stations and large-scale storage facilities, to meet expanding demand. The momentum towards green hydrogen, produced using renewable sources like wind and solar power, continues to gain traction as nations strive towards carbon neutrality. International collaboration is strengthening to harmonize standards and facilitate global hydrogen supply chains. Moreover, market growth, supported by significant investments and strategic partnerships, underscores hydrogen’s emergence as a pivotal component of future energy landscapes. Public awareness campaigns are pivotal in enhancing understanding and acceptance of hydrogen’s pivotal role in achieving sustainable energy solutions worldwide.

The world has fallen in love with hydrogen

In the past year, global enthusiasm for hydrogen reached unprecedented levels, with 1,400 hydrogen projects launched worldwide and investment commitments soaring from USD 435 billion to USD 570 billion. These substantial investments prompted upward revisions in long-term forecasts for green hydrogen production, now projected to reach 45 million tons annually by 2030, up from 36 million tons. The global capacity of installed electrolyzers also surged from 0.7 GW to 1 GW. According to Mateusz Sołtysiak, CEO of SES Hydrogen Energy, 2023 has seen continued advancements in fuel cell technology, expanding their role as power sources and energy reserves, particularly in heavy and long-distance road transport and railways. Discussions on their application in maritime and aviation operations are growing, despite current technological challenges.

Europe and North America led the charge in hydrogen project implementation last year, with Europe seeing 540 investments and North America 248, underscoring their leadership in advancing hydrogen technologies and infrastructure.

Stand up to the IRA

In the United States, the proliferation of hydrogen projects can be largely attributed to the Anti-Inflation Act (IRA), which has facilitated substantial financing for renewable energy and energy storage installations across the country. This policy has not only spurred domestic investments but also attracted international companies, including those from Europe, keen on participating in America’s green energy initiatives. Over the next decade, Washington plans to allocate USD 369 billion for these green projects.

In response, Europe has enacted its own measures, notably the Net-Zero Industry Act and revisions to the Temporary Crisis Framework (TCTF). These initiatives have influenced decisions such as locating a lithium-ion battery gigafactory within Europe rather than abroad.

Another significant European move is the establishment of the European Hydrogen Bank (EBW), described by Mateusz Sołtysiak, CEO of SES Hydrogen Energy, as a response to US initiatives aimed at retaining hydrogen producers in Europe. The EBW offers fixed premiums, with a maximum allowable price of EUR 4.5/kg of hydrogen produced, and a pilot auction began in November to support this effort.

Looking ahead, the European Union has set ambitious targets, aiming for 10 million tonnes of green hydrogen production annually post-2030, requiring an estimated EUR 430 billion in investments. To facilitate this goal, EU countries are collaborating on the European Hydrogen Backbone project, involving thirty-three power grid operators across 25 member states to enhance hydrogen infrastructure and integration across Europe.

EU regulations in 2023 – what impact did they have on hydrogen?

In 2023, the European Union implemented several pivotal regulations aimed at advancing hydrogen technologies across various sectors. A significant milestone was the adoption of the AFIR, which mandates the establishment of hydrogen refueling stations by 2030 in all 424 major European cities and along the TEN-T network, ensuring accessibility every 200 km.

Żaneta Kłostowska highlights additional key regulations including RED III, FuelEU Maritime, REFuelEU Aviation, and AFiR-RFNBO. These frameworks aim to increase the share of renewable fuels (RFNBO) in transportation to 5.7% and phase out gray hydrogen in industrial processes, replacing it with renewable hydrogen up to 75% by the decade’s end.

Further impacting the sector, SES Energy underscores regulations influencing the heating sector, particularly under the MCP, EED, and EPBD directives. These directives emphasize emissions reduction from medium-sized combustion plants and promote the expansion of district heating systems. They also advocate for increased integration of renewable energy sources and the optimization of heating and cooling systems in both residential and commercial buildings.

These regulatory measures reflect Europe’s comprehensive strategy to accelerate the adoption of hydrogen as a clean energy solution, spanning transportation, industry, and heating sectors, while aligning with ambitious climate targets and sustainable development goals.

New regulations are desirable

According to my interlocutors, the absence of national regulations has significantly hindered the development of hydrogen projects in Poland throughout 2023. They argue that delays in adopting these regulations have impeded the rapid advancement of hydrogen technologies compared to other EU countries. For instance, Żaneta Kłostowska points out the disparity between Poland and countries like Portugal, where there is already widespread availability of publicly accessible hydrogen refueling stations. In Poland, however, progress has been notably sluggish. She emphasizes that regulations enabling easier access to financing for hydrogen projects would be instrumental in accelerating their development and implementation within the country.

The most important hydrogen innovations in Poland

In 2023, Poland witnessed several pioneering hydrogen projects that marked significant milestones in the country’s transition towards hydrogen-based technologies. Among the most noteworthy initiatives were:

1. “Cicha Moc” Hydrogen Boat: This innovative recreational boat, developed by Polish engineers, became the world’s first hydrogen-powered vessel of its kind.
2. Hydrogen Catamaran: Another achievement from the same manufacturer, showcasing Poland’s capabilities in hydrogen technology for maritime transport.
3. First Housing Estate Heated with Hydrogen: A pioneering project demonstrating the feasibility of hydrogen for residential heating, showcasing sustainable energy solutions in community settings.
4. First Publicly Available Hydrogen Stations: These stations are crucial for enabling widespread adoption of hydrogen fuel cell vehicles, enhancing infrastructure for clean transportation.
5. Successful Run of a Hydrogen-Powered Locomotive: A breakthrough in rail transport, highlighting Poland’s progress in integrating hydrogen as an alternative fuel source for heavy-duty applications.

Additionally, according to Żaneta Kłosowska from the Hydrogen Technologies Cluster, other notable projects include:

1. Rockfin Green BOX Electrolyzer: Polish green electrolyzers developed by Rockfin, contributing to local hydrogen production capabilities using renewable energy sources.
2. Professor Kupecki’s Electrolyzer and Fuel Cell Innovation: A significant advancement combining electrolysis and fuel cell technologies, paving the way for integrated hydrogen systems.
3. W2H2 Pyrolysis Technology: Innovations by W2H2 in waste pyrolysis to produce syngas and subsequently hydrogen, offering sustainable pathways for hydrogen production.
4. First Polish Electrolyzer with Hydrogen Storage: A pioneering project aimed at establishing local infrastructure for hydrogen production and storage, essential for scaling up hydrogen applications in Poland.

These projects underscore Poland’s commitment to advancing hydrogen technologies across various sectors, from transportation and heating to industrial applications, positioning the country as a key player in Europe’s hydrogen transition.

Hydrogen in 2024. What awaits us?

In 2023, Poland embraced hydrogen as a transformative technology, with numerous pioneering projects marking its emergence as a significant player in the global and European hydrogen landscape. The introduction of these initial hydrogen solutions underscored the rapid acceleration seen not only domestically but also internationally, reflecting a burgeoning interest in this new renewable energy source.

Hanna Mojsiuk, president of the Northern Chamber of Commerce in Szczecin, emphasizes the pivotal role hydrogen has assumed in the economy: In her words, “Hydrogen has unquestionably become a cornerstone of the economy in 2023.” Entrepreneurs engaged in discussions about energy transformation recognize hydrogen’s critical role in future energy systems and are increasingly seeking information about its applications. The popularity of hydrogen was evident during the “H2Szczecin – hydrogen drives the region” conference, where registration filled up within hours and nearly 300 participants attended.

Looking ahead to 2024, Mateusz Sołtysiak, CEO of SES Hydrogen Energy, predicts continued growth in the hydrogen market but highlights the challenge of aligning supply with demand. He notes, “Current financial instruments predominantly support hydrogen producers, with relatively fewer programs directly addressing end-users.” This imbalance could lead to an oversupply relative to actual demand unless public funds are strategically directed to connect hydrogen generation with its intended applications, thereby ensuring regulatory goals are met.

Mojsiuk also underscores the importance of financial support in 2024, particularly through the National Housing Plan, which she believes will aid entrepreneurs in implementing modern energy systems, including hydrogen installations. This financial backing is expected to play a crucial role in accelerating the adoption of hydrogen technologies across various sectors.

Overall, as Poland continues to navigate the evolving hydrogen landscape, 2024 promises to be a pivotal year marked by increasing awareness, strategic investment, and efforts to bridge the gap between hydrogen production and consumption.