Hydrogen emerges as the winner in the race for fossil-free energy
September 4, 2023
Growing concerns about climate change and the need to reduce our dependence on fossil fuels have triggered a global race to develop the technology for and implement fossil-free energy sources. One of the most promising energy sources is hydrogen, which offers the potential for clean and sustainable energy production. However, a possible downside with the race, and associated local investments, is that it may create distorted competitive conditions in the global hydrogen market.
In the United States, the Biden administration has made clear commitments to promote the transition to clean energy and reduce greenhouse gas emissions. Initiatives such as the Inflation Reduction Act (IRA), Green New Deal, and American Jobs Plan all include measures to promote the use of renewable energy, including hydrogen. The U.S. government’s investments in infrastructure, research and development within the hydrogen sector are expected to accelerate the expansion of hydrogen infrastructure and increase the market for hydrogen-powered vehicles and energy systems.
The U.S. investments within the IRA are reported to be USD 369 billion (which equals ca. SEK 3 700 000 million) with approximately two-thirds of the funds directed to climate action.
The U.S. investments have protectionist measures with requirements for domestic content, which exclude European companies, for example. Nevertheless, the U.S. investments are beneficial for the development of the hydrogen market also outside of the U.S. So, even though the competition is distorted, it accelerates the progress and investments in other markets as well.
Significant progress has also been made in Europe regarding investments and development of hydrogen technology. The EU has adopted ambitious strategies and goals to promote the use of hydrogen as part of the green energy transition. The Hydrogen Strategy for Europe and the EU’s Recovery Fund have allocated significant funds to support the development of hydrogen infrastructure, production, and utilization. Many European countries have launched their own national strategies to promote hydrogen as a key component in their energy transition. Under the Horizon 2020 program, the EU has allocated 1.4 billion euros for hydrogen-related projects.
Not only in the U.S. and Europe, but also in other major markets around the world, significant investments have been made in hydrogen infrastructure and technologies. For example, China has launched its own hydrogen strategy and aims to be a leader in hydrogen technology and infrastructure. Japan has also made substantial investments in the hydrogen field and sees hydrogen as a key component in its energy mix to reduce the dependence on imported energy.
Insplorion, with a focus on innovative sensor and hydrogen analysis technology, has identified several primary target industries where their technology can play a crucial role in monitoring and optimizing hydrogen usage. These industries include the automotive sector, the energy sector, and renewable energy storage. Insplorion has already made significant progress in several of these areas and has the potential to become a major player in global hydrogen technology.
In summary, the race for fossil-free energy and the development of hydrogen technology is a global trend driving progress in sustainable energy production. Investments in hydrogen technology and infrastructure are being made not only in the U.S. and Europe but also in other important markets. To achieve a fair and competitive transatlantic hydrogen market, it is important that regulations and policies promote open and transparent competition. Through collaboration and knowledge exchange, we can maximize the benefits of hydrogen as a key component in future energy systems, and accelerate the global energy transition towards a sustainable and climate-neutral future.
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