Renewable Energy Consumption in the EU up by 2pp

With investments in new green technology development, green hydrogen will take on a leading role in the energy transition

Green hydrogen will undoubtedly be one of the most significant factors in accelerating the energy transition and creating a new world based on green energy. Although it may sound idealistic, the process moves forward and creates opportunities even where we previously thought there were none. This process of transformation that we are witnessing opens many opportunities for innovative and bold ideas that contribute to the realization of the green agenda.

The global political turbulence that caused an unprecedented energy crisis is both an obstacle and an opportunity for the global energy transition process. In the process of the energy transition, the “struggle” for positioning through new technologies and innovations is the main feature. Investments in the development of new technologies are supported by various parties, and in addition to the private sector and international institutions, the governments are more often a source of financing, through various funds established precisely for such projects.

The corporate world has heard the news of Johnson Matthey’s new investment in a new plant for the production of hydrogen cell components, and the new plant will be located at the existing site in Royston, Great Britain. With the investment of about 90 million US dollars, Johnson Matthey claims to become the leader in the automotive market for hydrogen fuel cells. The targets for the extension are also ambitious. It is planned that by the end of 2025 the sale of hydrogen technologies will reach 2000 million pounds. The investment in this major project, which will contribute significantly to the energy transition, is supported by the British Government through the Car Transformation Fund. The idea is to expand the capacity in the future, and the production should meet the local needs of electric vehicles, for the next ten years. According to estimates, the number of electric vehicles is expected to reach 3 million in Britain by 2035.

This investment clearly shows that investments in such projects are becoming larger and have a serious impact in the overall energy transformation. Increasing investments in new technologies, especially green hydrogen, will contribute not only to faster technological development but also to a reduction in the price of these technologies and their greater availability. This, on the other hand, means a reduction in CO2 emissions from traffic.

Johnson Matthey’s investment, as well as others of this type, are significant for the economy in several aspects. Apart from the investment in the development of new technologies and innovations, this type of investment also ensures the preservation of jobs and easier requalification of employees.

Green hydrogen has a huge potential and the increase in its production opens up many new opportunities due to its wide application in transport and the increase in the number of electric vehicles, marine ships, and trucks, as a stationary source of energy, for the production of electrical energy and as a source of energy for households. Because of its potential, some forecasts put the future value of the green hydrogen market at up to $10 trillion. The potential is great, but the production of green hydrogen is still very expensive. In 2020, the cost of green hydrogen was estimated at $18.58 and $333.44 per decameter, which is several times more than the cost of natural gas production.

However, investments in the development of technologies based on green hydrogen will also bring down costs. Green hydrogen has huge potential that is yet to be tapped. Investments in the development of green hydrogen are increasing year by year and this small but powerful element will play a big role in the green transition in the future.