
Growth Opportunities in the European Hydrogen Industry, 2024–2040
Description
As the energy transition gathers pace in Europe, market evidence and the growth trajectory of alternative/low-carbon hydrogen point to a niche market opportunity where production and offtake will likely be dominated by traditional hydrogen consumption industries, including refining, chemicals, and petrochemicals, as well as heavy industrial sectors like steel and glass manufacturing. Our latest analysis of key EU markets and the UK indicates that total low-carbon hydrogen production will likely reach 3 million tonnes by 2030, led by green and blue hydrogen, followed by purple and bio-based hydrogen, with the Netherlands, Germany, and Spain leading from the front. As growth becomes increasingly complex in this market, one of the key enablers for investors and project developers to overcome this challenge has been long-term funding support, such as contracts for difference payments offered over a ten- to fifteen-year horizon in countries like France and Italy. Such mechanisms will be vital for the hydrogen industry to achieve cost competitiveness with conventional hydrogen.
This study outlines how major European markets are aligning with their respective national hydrogen strategies through a three-dimensional rating and ranking based on regulatory drivers, market access, and physical market design in each country covered in scope, followed by long-term production forecasts of different types of hydrogen, an overview of key incumbents across the hydrogen value chain, and the top offtakers in each country market.
This study outlines how major European markets are aligning with their respective national hydrogen strategies through a three-dimensional rating and ranking based on regulatory drivers, market access, and physical market design in each country covered in scope, followed by long-term production forecasts of different types of hydrogen, an overview of key incumbents across the hydrogen value chain, and the top offtakers in each country market.
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