Hydrogen is now widely recognized as one of the main energy carriers for ecological transition and decarbonization. In the first months of 2024, the hydrogen sector has seen significant progress, promising to transform the international energy landscape.
Hydrogen is now widely recognized as one of the main energy carriers for ecological transition and decarbonization. In the first months of 2024, the hydrogen sector has seen significant progress, promising to transform the international energy landscape.
Recent developments have accelerated the adoption of hydrogen as an energy carrier in various fields, from the energy sector to sustainable mobility, and the industrial sector.
This acceleration is primarily driven by:
- New regulations and support policies to incentivize hydrogen production and consumption
- Funds and grants for hydrogen-based projects
Let’s learn more.
Hydrogen 2024: New Regulations and Support Policies
In recent months, various states have introduced regulations and support policies aimed at incentivizing the use of hydrogen.
Specifically, in January 2024, the European Commission approved a measure worth 500 million euro to support investments in the use of hydrogen in industrial processes.
The measure is specifically intended, with direct grants, for companies that rely on fossil fuels as an energy source or raw material for production processes.
Eligible projects must meet at least one of the following conditions:
- A reduction of at least 40% in green house gas emissions from production processes
- A reduction of at least 20% in energy consumption compared to today
To benefit from the measure, companies must switch from fossil fuels to renewable hydrogen, they can supplement these investments with investments to electrify production processes or significantly improve their energy efficiency.
Italy, in line with the European strategy, has also actively committed to hydrogen production and utilization through the PNRR (National recovery and Resilience Plan). Specifically, for the creation of 52 Hydrogen Valleys, the PNRR has allocated 500 million euro, along with an additional 90 million euro from the RePower EU chapter.
These funds are essential for developing a hydrogen market. Indeed, the Italian hydrogen supply chain is not yet complete, contributing to the current market uncertainty. Additionally, hydrogen is not yet competitive, and its sustainability necessarily depends on government incentives and specific support policies.
Funds and Grants for Hydrogen Projects in 2024
In 2024, funds and grants for hydrogen-related projects were announced. For instance, the European Commission announced that the budget for the second auction of the European Hydrogen Bank set for next fall will amount to 1.2 billion euro. These funds are crucial to overcoming current technological and infrastructural challenges and promoting broader adoption of hydrogen.
The primary goal of the European Hydrogen Bank is to unlock private investments in the hydrogen value chains and boost the creation of a renewable hydrogen market. In April 2024, the first auction allocated approximately 720 million euro to 7 European green hydrogen projects.
Hydrogen in 2024: The Energy Carrier of the Future
Hydrogen is now one of the most promising solutions for decarbonizing the energy and industrial sectors and represents the energy carrier of the future.
Indeed, hydrogen allows for the storage and supply of large amounts of energy without producing CO₂ emissions. This is why it generates significant interest globally as a strategic element to tackle the climate challenge and decarbonize.
- Industry
- Transportation
- Energy production
In particular, hydrogen as a form of storage can drive the integration and use of energy from renewable sources such as wine and solar energy.
Therefore, future prospects see hydrogen as an opportunity to invest in achieving global climate goals.
Simplifhy: The Excellent Partner for the Hydrogen Market
We at Simplifhy are the excellent partner for the Italian hydrogen market. Specifically, we offer strategies and systems for industrial decarbonization through the use of hydrogen-based technologies as an energy carrier and alternative fuel.
In particular, we design complete solutions for hydrogen production, storage, and use of power generation, hydrogen vehicle refueling, and industrial processes.
Contact us for more information.
