The energy crisis we are experiencing could represent a turning point in the fight against climate change. The attempt to maximize decarbonization drives us to convert a large part of our energy consumption into electricity and to invest in green hydrogen, the only energy vector capable of providing alternative solutions to fossil fuels in sectors such as heavy road transport, maritime transport, aviation, and heavy industry.
Green hydrogen represents a fundamental ally in the process of changing energy resources. It is a highly flexible, carbon-neutral fuel that can be compressed or liquefied and transported over long distances. These characteristics lead the UNFCCC to believe that hydrogen can meet up to 20% of global energy demand by 2050.
The prospects of the region
In this process, the Iberian peninsula has the potential to become the first European hub for the supply of green hydrogen for the western and northern regions of the continent.
Enagas, Spain‘s grid operator, expects the country to produce between 2 and 3 million tonnes per year of renewable hydrogen and export nearly 2.5 million tonnes annually by 2030. The Iberian peninsula will exploit the pipeline H2Med, announced last December, to export green hydrogen at a continental level. At full capacity, the pipeline could cover about 10% of European hydrogen demand by 2030, equal to about 2 million tpa.
A unique position
The good fortune of Spain and Portugal, in terms of green hydrogen, is determined by various favorable factors. Let us try to analyze the main ones. The two countries can draw on large quantities of zero-emission electricity produced from different sources of renewable energy (solar, wind, biomass, and hydropower).
Furthermore, the Iberian peninsula benefits from a flexible and widespread electricity grid. As anticipated, the peninsula is equipped with an excellently developed system of port infrastructures and gas pipelines, capable of ensuring the transport of green hydrogen both nationally and continentally.
Strong domestic demand for green hydrogen is driving operations in the sector. Furthermore, the membership to the European Union facilitates the direct access of Iberian green hydrogen to EU markets; and to future incentives aimed at guaranteeing the continent’s energy security.
Source: upstreamonline.com, weforum.org
