New data from Westwood Global Energy Group (Westwood) highlighted that despite significant ambitions and substantial funding commitments, Europe is unlikely to meet its 2030 hydrogen production targets.
In its recent whitepaper, “Europe’s Hydrogen Future: How Much Is Realistically Achievable?” Westwood research reveals only 17% of the EU’s planned project pipeline is expected to materialise without market intervention.
The analysis points to a European pipeline under strain, as regulatory delays, elevated costs and weak demand weigh heavily on progress , with 23 hydrogen projects totalling 29.2 GW(LHV) already stalled or cancelled by the close of 2024.
Moreover, the UK market presents a similar story, with Westwood estimating a potential delivery range of just 1% to 24% of its pipeline by 2030, underlining the sizable policy, funding and mandate shortfall.
Despite the stark outlook, the research also outlines a best-case scenario for the market, where 70% of the current EU pipeline could materialise if planned frameworks are effectively developed and implemented.
In this scenario, the EU could reach its 2030 production targets, underscoring the importance of effective progress.
The gap between ambition and reality in Europe’s hydrogen sector is widening. While targets are necessary, they will remain out of reach unless the policy landscape evolves. For the UK in particular, without sharper coordination and a clearer demand-side focussed approach, there is a potential risk of falling behind.
…said Jun Sasamura, Hydrogen Manager, Westwood.
David Linden, Head of Energy Transition, Westwood, added that while it is easy to focus on the challenges, it should be acknowledged that delivering 17% (12 GW(LHV)) of the EU’s pipeline still represents substantial progress. European governments are increasingly adopting a more realistic perspective on hydrogen’s role in the economy.
Governments must now act decisively on the three critical areas that we have identified to ensure continued progress.
…said David Linden.
To remind, in February, Hydrogen Europe and 16 European associations committed to the development of the hydrogen market, released a joint statement asking the European Commission for a revision on the European Hydrogen policy in order to adjust the course at the EU level.
