OSLO – Hydrogen produced from renewable energy sources will account for 20% of Europe’s power consumption in 2050, and for 10% globally, a report published by Norwegian power company Statkraft on Thursday showed.
Green hydrogen is produced by splitting water molecules with a current of renewable electricity in electrolysers. The gas is touted as a clean replacement for fossil fuels in industries that are otherwise hard to decarbonise.
The company is one of Europe’s largest renewable energy producers and also operates several gas plants in Germany. It uses its analysis from the Low Emissions Scenario as the foundation for future investments.
At present, green hydrogen production is more expensive than traditional production from fossil fuel sources, but Statkraft said that would change.
“Seasonal storage can be beneficial in markets with significant power price differences between seasons, for example in Europe,” the report said.
Limiting global warming to 1.5 degrees as per the Paris Climate Accord will require more renewables and electrification at a faster pace than at present, Statkraft said.