Debate: A national hydrogen target is required to reach the EU targets
The EU’s climate agenda is clear: renewable hydrogen is a central part of the Union’s strategy to reach the goal of climate neutrality by 2050. The Commission has set a target to produce 10 million tonnes of renewable hydrogen (approx. 333 TWh) within the EU by 2030. It is a signal to act on.
Namely, electrification cannot solve all the challenges linked to the green transition. Hydrogen fills important gaps, especially in sectors that are difficult to electrify. Heavy transport, shipping, aviation and energy-intensive industries such as steel and chemical production depend on alternative solutions to phase out fossil fuels. Here, fossil-free hydrogen can revolutionize both energy systems and industrial production, while at the same time we contribute to strengthening the global competitiveness of Swedish and European industries.
In a time of uncertainty regarding Europe’s energy supply, it is an opportunity for Sweden to take advantage of.
Hydrogen also plays a crucial role in stabilizing the energy system. It can be stored and used as control power during periods of low electricity production from wind and solar power.
In addition, it contributes to strengthening security of supply. In a time of uncertainty regarding Europe’s energy supply, it is an opportunity for Sweden to take advantage of.
A future industry with great potential
Sweden’s conditions for producing fossil-free hydrogen are good: we have extensive access to renewable electricity and a well-developed industrial base. This also gives us the opportunity to take a leading position in Europe.
But Sweden’s efforts so far are too limited. Sweden has no targets for the production of fossil-free hydrogen. There is also no clear plan for how the hydrogen is to be distributed so that it becomes available where it is needed and when it is needed. The regulatory efforts, including support and policy instruments, that have been made so far have been unsystematic. An almost too obvious example is that Klimatklivet supported the expansion of filling stations for renewable hydrogen, while at the same time there remain significant obstacles that need to be cleared in order to achieve both the rollout of vehicles, the expansion of domestic production capacity and imports.
Government support – a key to success
The challenges of building a functioning hydrogen industry are great. The market is new, the technology is capital intensive, and the initial investment costs are high. This requires government support that creates the right conditions. The government should:
- Adopt a national production target for hydrogen: By developing a target that promotes production throughout the value chain, Sweden can contribute to the EU’s targets and benefit from future business opportunities.
- Develop Klimatklivet as an alternative to investment support for the production of fossil-free hydrogen: Klimatklivet should be given a broader mandate and increased resources to support comprehensive and strategic hydrogen projects, especially in light of Industriklivet’s future uncertainty and the Environmental Protection Agency’s new guidelines for Klimatklivet.
- Before a production premium for fossil-free hydrogen: To support the production of hydrogen, a production support similar to that which already exists for biogas should be established.
- Before policy instruments that secure demand: In addition to production targets, long-term and predictable policy instruments are needed. For the transport sector, it needs to be ensured that the total cost calculation (TCO) for a hydrogen truck is on par with a diesel truck.
The Swedish Energy Agency will come out with a final report regarding its hydrogen mission in the coming days. Our appeal to the authority and the Government is to dare to take a step forward. By investing in fossil-free hydrogen, we not only strengthen our climate ambitions, but also our energy security, industrial competitiveness and economic development But it is urgent. The investments are time-consuming, so in order to reach the necessary production capacity in 2030, decisions are required already now.
The government has the opportunity to create many new jobs and attract major investment to the country by now paving the way for a new green industry and energy policy – let’s not miss that chance.
Sara Wihlborg, Sweden manager Lhyfe
Björn Aronsson, operations manager Vätgas Sweden
