The European Union’s ambitious hydrogen strategy, aiming for 10 million tonnes of domestic production and an equal amount of imports by 2030, is facing a critical juncture. The intermediate target of 6 GW of installed electrolyser capacity by 2024, primarily relying on mature technologies like alkaline and proton exchange membrane electrolysis, appears to be lagging. This underscores the urgent need for intensified efforts to scale up hydrogen production capacity and diversify technological pathways. The progress, or lack thereof, could significantly shape the future of the hydrogen sector, influencing investment flows, technological innovation, and policy directions.
To meet the 2030 targets, the EU must not only expand existing technologies but also accelerate innovation in emerging and lower technology readiness level (TRL) solutions. These include less mature electrolysis technologies like solid oxide electrolysis cells, proton conductive ceramic electrolysis, and anion exchange membrane electrolysis. Additionally, low TRL hydrogen production routes such as direct solar water splitting and offshore wind-powered electrolysis, along with alternative feedstocks like biogas, biomethane, and bioethanol, are crucial for enhancing system flexibility and reducing the levelized cost of hydrogen (LCOH) to below €3/kg.
The Horizon Europe H2SHIFT project, coordinated by Snam, is designed to accelerate the development, validation, and market readiness of innovative hydrogen production technologies. The project aims to establish a European-wide Open Innovation Test Bed (OITB) that enables the emergence of next-generation hydrogen production pathways that are efficient, cost-effective, and scalable. H2SHIFT offers comprehensive 360° support services for startups and SMEs, including prototyping, upscaling, circularity, sustainability, and business development, to help advance technologies from TRL3 to TRL8.
The project focuses on several emerging technology areas: alternative electrolysis, hydrogen production from bio-based feedstocks, direct solar hydrogen production, and hydrogen production from offshore wind energy. Testing services for these technology areas are offered by test lines located around Europe and managed by expert research and innovation specialists. For instance, IREC in Spain provides test stations for high-temperature electrolysis, while the Hydrogen Centre at the University of South Wales offers AEM electrolysis testing lines. Tecnicas Reunidas in Spain and Snam in Italy provide facilities for hydrogen production from bio-based feedstocks, and Politecnico di Torino in Italy specializes in direct solar hydrogen production. Youwind and Politecnico di Torino’s wind gallery evaluate the business case for hydrogen production and storage in offshore wind parks.
Hardware testing services are complemented by software-based development support, including modelling and simulation by partner Resolvent. Additionally, support is provided on acceleration, business development, and technoeconomic, safety, and life cycle analysis by the project’s expert through the test line managed by CDI.
The project is validating its service offering through several showcases involving project partners and external companies. For example, Politecnico di Milano is developing an electrified biogas/biomethane steam reformer (e-SMR) designed for low-carbon hydrogen production. Snam will support POLIMI in evaluating both lab-scale and pilot-scale prototypes of the e-SMR, while CDI will manage techno-economic analysis, regulatory compliance checks, and optional life cycle assessments. H2B2 is developing a high-temperature electrolysis stack with integrated 3D printing technology, collaborating with IREC to enhance hydrogen output and mechanical stability.
The progress and outcomes of the H2SHIFT project and similar initiatives will be pivotal in determining the trajectory of the hydrogen sector. Success in scaling up and diversifying hydrogen production technologies could attract significant investment, accelerate market formation, and contribute to the EU’s decarbonisation goals. Conversely, failure to meet intermediate targets and scale up technologies could lead to policy adjustments, shifts in investment priorities, and delays in achieving a climate-neutral economy. The sector must intensify its efforts to ensure that the EU’s hydrogen strategy remains on track and that the vision of a climate-neutral Europe by 2050 is achievable.