Renewable H2: The emerging opportunity for the European chemical industry
Accenture presented new data on hydrogen use, hydrogen production and CO2 emissions in the chemical sector. Approximately 4% of the total European CO2 emissions originate in the chemical industry, 55% of which comes from fuel combustion, power and heat. Hardly any form of hydrogen is available at a competitive price due to conversion losses. Meanwhile many countries are investing in it and technological development may help make renewable hydrogen cost competitive. It was raised that hydrogen is a solution molecule and an opportunity for the chemical industry, but the business case still needs to be improved; major cost reductions are needed to make renewable hydrogen competitive. Key points:
- Europe needs to build a hydrogen economy. For this, grey hydrogen (fossil-based) will need to be decarbonised through carbon capture (CCS), while the production of green hydrogen is being ramped up;
- Speakers suggested that Europe could cooperate with North and West-Africa in producing renewable energy and renewable hydrogen;
- In 2021, the Commission is expected to release two legislative packages outlining the enabling framework for a hydrogen economy. A first package will establish criteria and certifications for renewable hydrogen; a second will consist of a series of revisions of existing legislation to ensure hydrogen can play a role in energy markets.
“I am fully convinced that the chemical industry has the innovation potential to help make those step changes required; to work on the system to optimise it… it requires taking the investments, getting the pilot and making that a priority”
Dr Bernd Elser, Managing Director – Resources, Accenture
See Accenture PowerPoint and click here to receive an advanced copy of Accenture Chemicals’ new report “Renewable hydrogen: The emerging opportunity for the European chemical industry”.