On the road to FID – creating value chains for the hydrogen economy in Europe

The outline of a hydrogen economy is slowly taking shape in Europe. While the time of press releases about new hydrogen projects is not over, the development has passed the age of announcements. Moreover, it has passed the age of pure hydrogen projects. Today, projects relating to ammonia, methanol and other so-called hydrogen derivatives are also being developed, not to mention carbon capture, utilization and storage projects which slowly emerge as a complementary necessity in the development of a hydrogen economy. For these developments, the European Union (EU) is an important centre where relevant regulation is devised. However, such regulation is still not finalized. Uncertainty about the regulatory framework is a big hurdle to the final investment decision (FID) of project developers and investors. Unfortunately, it is not the only hurdle. Other equally serious issues need to be resolved in order for developers to actually invest and establish the value chains for the hydrogen economy and to reach the development targets set by politicians across the EU.