Dogged Pursuit Of Green Hydrogen Continues In Europe, With An Assist From The US

Europe’s pursuit of green hydrogen continues to gain momentum despite earlier setbacks marked by high costs and a lack of committed off-takers. The concept of green hydrogen—produced via water electrolysis powered by renewable energy—has been central to the EU and UK’s decarbonisation strategies, though progress has been uneven. The recent geopolitical tensions, particularly the war in Ukraine and concerns over energy security, have reinvigorated interest in locally produced green hydrogen as a strategic alternative to fossil fuels, especially given Europe’s reliance on Russian natural gas. Key developments highlight the involvement of both European and American companies in advancing green hydrogen projects across the continent. US-based Plug Power, which initially focused on hydrogen fuel cell forklifts, has expanded into electrolysis and is now a significant player in Europe. Its 30-megawatt Barrow Green Hydrogen project in Cumbria has reached its Final Investment Decision stage and is expected to supply around 100 GWh of green hydrogen annually to a local manufacturing plant, reducing its natural gas consumption by half. This project forms part of a broader UK portfolio by Plug Power and its partners, with plans to scale up to 55 megawatts across three sites. Meanwhile, Estonian firm Stargate Hydrogen is making strides with its electrolyser technology, recently delivering a 1-megawatt alkaline electrolyser to Finnish energy company Fortum’s Kalla Test Center. This pilot facility will serve as a crucial testing ground for hydrogen production technologies, signalling growing confidence in the industrial viability of green hydrogen in Northern Europe. Additionally, Norwegian and Dutch firms are pushing innovation and expansion, with Nel ASA launching a next-generation electrolyser and Power2X planning a 20-megawatt plant in the Netherlands aimed at supplying regional industry. Industry analysts remain cautious about the long-term trajectory of green hydrogen, noting that price volatility in natural gas markets heavily influences interest levels. Some experts suggest that enthusiasm for green hydrogen tends to spike during energy crises but may wane in calmer periods. However, the current geopolitical landscape and evolving EU policies could sustain a more consistent commitment to green hydrogen as a pillar of energy security and decarbonisation, potentially driving further investment and innovation in the sector.