Comparison of hydrogen policy, focusing on green hydrogen deployment in the EU and Japan

Abstract

The core objective of this thesis is to compare hydrogen policies with a focus on green hydrogen deployment in the European Union (EU) and Japan, to capture lessons learnt and best practices, and to identify how a suitable policy or approach may look like for other countries that consider adopting green hydrogen in the near future. Green hydrogen is produced with renewable electricity through water electrolysis, which is the focus of this thesis. It is called renewable hydrogen or clean hydrogen in the EU and CO2-free hydrogen or clean hydrogen in Japan. Adopting green hydrogen requires the availability of inexpensive renewable power and electrolysers and the efficient and flexible performance of the latter, the cost and availability of its transport and storage infrastructure, and the availability of a sufficient number of skilled personnel. All these aspects need to be covered under hydrogen strategies, plans and actions, and an enabling policy framework with concrete financial instruments to be established when countries envisage to adopt green hydrogen. Strong national stakeholder (government, industry, academia, and investors) collaboration and partnerships are essential. Regional coordination and support, as seen in the EU, and international cooperation are also necessary to accelerate the adoption and deployment of green hydrogen.The hydrogen strategies of the EU and Japan both provide overall targets and measures on the future role of hydrogen in their (multi-) national energy systems and economies. The EU and Japan likewise started from a research and development (R&D) level, with continued hydrogen demonstration and deployment. Both strategies adopted a phased approach to integrating hydrogen into their energy systems, indicating short-, medium- and long-term actions with concrete targets and measures, as well as the provision of substantial financial support. They recognized the necessity of using low-carbon (blue) hydrogen to replace existing hydrogen and create an economy of scale of green hydrogen in the transitional phase until around 2030. Existing multilateral partnerships and initiatives also support their actions and accelerate electrolyser technology improvement and green hydrogen uptake. Where applicable, cooperation on the regional level, as seen in the EU, enables countries to achieve a coordinated deployment of green hydrogen across Member States. Each country has a different base for its policies and actions, depending on its social, economic, and political priorities, as well as available resources and infrastructure. Still, the lessons learnt and best practices from the hydrogen strategies of the EU and Japan provide useful perspectives for those countries that may consider adopting green hydrogen in the near future. ii Countries where renewable energy resources are affordable and sustainable, and where higher renewables shares in their energy mixes have been or will be achieved, appear to have a higher potential for adopting green hydrogen. If produced in a sustainable manner, green hydrogen would be a promising option as an energy carrier by providing flexibility and long-term storage capacity and contributing to decarbonization. It can be expected that in the near future, with the right policies put in place, green hydrogen could become one of the most reliable and affordable energy carriers for many countries and contribute to achieving the climate change goals and environmental benefits altogether.