Investment in green hydrogen projects on the rise in Europe viola-funding July 13, 2023

Investment in green hydrogen projects on the rise in Europe

Green hydrogen projects
Investments in green hydrogen projects in Europe

Hydrogen is the most abundant chemical element on the planet; it is present in 75 % of matter. However, we never find it alone, but in the company of other chemical elements such as oxygen forming water or carbon forming organic compounds. Among them are investments in  green hydrogen projects.

Humanity has long used it as a raw material in the construction of chemical industry or metallurgy and as a fuel, but because it  cannot be taken directly from nature in its pure state, it needs to “manufacture” it.

When we talk about green hydrogen, we mean hydrogen that has been obtained without generating pollutant emissions, i.e. sustainable hydrogen. A fuel that is already being presented as the key energy vector for achieving global decarbonisation and fulfilling the commitments made for 2050 in the fight against climate change. Europe is seeking to accelerate innovative projects in several areas that will help combat climate change and enable digital transformation, Bloomberg reported.

At this stage, renewable energy sources can hardly be offered as a real alternative to energy-intensive industries such as steel production. But hydrogen could very soon replace coal in high-temperature blast furnaces.

Green hydrogen can also be used in modern home heating projects. European Union regulators are considering new tools to finance investment projects in areas such as hydrogen technology, sustainable transportation, 5G and block chain. As for the first part, Germany and France are the only countries in Europe with clear hydrogen strategies.

European union is on the rise to secure a huge investments in green hydrogen projects to ensure a carbon-free future and boost her economy.

Investments of over 460 billion euros in green hydrogen projects by 2030 in Europe

The European Commission is currently preparing a legislative package to help meet the ambition of reducing carbon dioxide emissions by 55% by 2030. This package should include some elements of the hydrogen strategy, including the establishment of market rules, infrastructure development plans and so on.

European investments in green hydrogen, which is considered a clean alternative to fossil fuels, could amount to 320-460 billion euros by 2030. The bulk of these funds will be spent to ensure sufficient green energy generation for hydrogen production.

As for research and development, European scientists have recently done a lot in this area. In particular, German researchers have recently developed a unique method for separating natural gas and hydrogen in order to transport these substances through the same gas pipelines with minimal investment.

The problem with molecule separation is solved by using relatively inexpensive membranes with holes less than a nanometer in diameter, through which the hydrogen molecule (H2) but not the natural gas (CH4) passes.

Now, the existing gas transmission network can easily transport both hydrogen and natural gas.

The country has a well-developed natural gas pipeline network spanning over 511,000 kilometers and 33 natural gas storage facilities, but so far there have been no established delivery routes for hydrogen to all of the German states.

$2.5 trillion in investments by 2050 for hydrogen revolutions

Hydrogen has been called a promising alternative to coal and a key element of global energy conversion plans. However, it will take at least 10 years before a well-functioning, competitive market for hydrogen is created.

This global initiative is closely aligned with major energy and automobile companies interested in the mass use of hydrogen as a fuel. According to the Hydrogen Council, the world plans to invest $2.5 trillion in hydrogen projects by 2050.

This is due to large multi-year investments and clear national strategies, in the creation of which representatives of industry and state institutions were actively involved. According to economists, hydrogen will accelerate the industrial production and economic growth of European countries as a whole in the coming decades.

This sector is also supported by the ever-decreasing prices of building green power plants, which will play an important role in green hydrogen production. As of early 2021, there are more than 220 hydrogen projects in development, which could be enough to meet environmental goals for the near future.

Large loans for green hydrogen plant projects on flexible terms

Viola Funding Limited specialized in large business financing and project financing. Our company has brought together professionals from UK and other countries to provide all the advantages of advanced financial engineering technologies to its corporate clients.

We offer long-term investment loans for green hydrogen facilities in Europe and other countries on flexible terms

Our team is also ready to arrange a customized project finance scheme, financial model development, consulting and support. If you are planning a large investment project in the chemical industry or related sectors, please contact our representative for details.

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