Blog | Growth and Growing Momentum for Green Hydrogen in Europe and the U.S.
Growth and Growing Momentum for Green Hydrogen in Europe and the U.S.
Valentine’s Day came a day late for those of us who adore the power and potential of green hydrogen (GH) as a game changer in the fight against climate change. February 15 brought momentous developments across the Atlantic, in both Europe and in the U.S.
The Green Hydrogen Coalition (GHC) was thrilled to see HyDeal Ambition’s announcement that it launched the first industrial implementation of its platform, HyDeal España, as the world’s largest integrated renewable and competitive GH hub.
HyDeal España marks the realization of our collective vision for GH, and also demonstrates a successful pathway for other GH hubs. This hub will manage the development, funding, and construction of GH production and transmission infrastructure to produce green steel, ammonia, fertilizer, and other industrial and energy products.
A key attribute of a thriving hub is committed, anchor offtakers. HyDeal España has major industrial sponsors including ArcelorMittal, Enagás, Grupo Fertiberia, and DH2 Energy. Offtakers plan to purchase 6.6 million tons of renewable hydrogen over 20 years following the start of production in 2025. Total installed capacity is expected to reach 9.5 gigawatts (GW) of solar power and 7.4 GW of electrolysis by 2030. In all, HyDeal España aims to provide the equivalent of 5 percent of Spain’s natural gas imports, contributing to the country’s energy independence.
The development and deployment of GH continues to build momentum across the pond as well. On the same day of the HyDeal España announcement, the U.S. Department of Energy released its Request for Information (RFI) for the implementation of the major clean hydrogen initiatives of the Bipartisan Infrastructure Law: $8 billion for Regional Clean Hydrogen Hubs that will create jobs to expand use of clean hydrogen in the industrial sector and beyond; $1 billion for a Clean Hydrogen Electrolysis Program to reduce the cost of hydrogen produced from clean electricity; and $500 million for Clean Hydrogen Manufacturing and Recycling Initiatives to support equipment manufacturing and strong domestic supply chains.
The GHC is gratified by the bipartisan support for the development and deployment of scalable GH projects that accelerate the production and use of this powerful resource to speed up multi-sectoral decarbonization and combat climate change. In addition, we are encouraged by the tremendous progress HyDeal Ambition is making in Europe to realize its vision of GH hubs across Western Europe.
After all, the GHC’s HyBuild™ North America platform was inspired by HyDeal Ambition and aims to create North America’s first scaled, low-cost hub in the Los Angeles Basin. HyBuild™ LA is bringing together key ecosystem stakeholders, including multi-sectoral offtakers, to plan and develop the competitive, high-volume supply chain necessary to achieve less than $2/kg delivered GH. To even begin to drive down costs and achieve these aims, securing a bankable, at-scale first off taker is a prerequisite. GHC’s anchor offtaker is Los Angeles Department of Water and Power (LADWP). LADWP power plants, sited close to the Port of Los Angeles/Long Beach, serve as a foundation to supply scaled, low-cost GH to other users and support the transition away from fossil fuels like diesel and bunker fuel across the LA Basin.
There is much to discuss about HyBuild™ LA. We will be releasing new details on our project in the coming weeks, so please stay tuned.
In the meantime, if you are interested in learning more about the GHC please
Disclaimer: In September 2022, GHC rebranded HyDeal North America and Los Angeles to HyBuild™ North America and HyBuild™ Los Angeles.