The House of Hydrogen: A Holistic Approach to Developing a European Hydrogen Market

Already used in a number of heavy industrial processes, hydrogen can also be leveraged to support carbon-free steel production or transportation. Embracing hydrogen, it will help these sectors reduce their carbon footprints. Despite its net zero benefits, hydrogen does present logistical challenges, owing to its high storage and transportation costs. For hydrogen to become more widely adopted, its costs will need to fall significantly.

With the support of SIX, students of the University of St. Gallen have produced a framework – ‘The House of Hydrogen’ – to accelerate hydrogen adoption in Europe. Discover the new white paper

Despite increasing its investments into hydrogen infrastructure, Europe’s hydrogen market still lags behind other parts of the world, most notably China. 

“Hydrogen can be produced using carbon emitting techniques , but it can also be generated in a sustainable fashion. While Europe prioritises green hydrogen production, China is scaling up its hydrogen output regardless of carbon intensity. Europe’s challenge is that it needs to balance sustainability concerns with the competitive pressures of the global hydrogen market. This paper outlines how Europe could become a major player in the hydrogen market by addressing some of these issues,” said Prof. Dr. Ulrike Baumöl, University of St. Gallen.

Among its recommendations are for the establishment of HY Catalyst , an accelerator programme designed to nurture hydrogen-focused start-ups and innovations. 

Other proposals include creating a bond market focused on green hydrogen infrastructure development; rolling out commodity hedging to stabilise hydrogen prices for producers and consumers; launching a ‘Financing Platform’ to connect project developers with investors; and building a data hub to drive transparency. 

“In coalition, these proposals could create the foundations for a promising hydrogen market in Europe. Start-ups supported by HY Catalyst can make use of the financing platform to obtain funding, whilst de-risking projects with bonds and hedging, and refining their strategies through invaluable insights from the Data Hub. If these recommendations are onboarded, then this will pave the way for a scalable, competitive hydrogen market in Europe,” said Maneesh Wadhwa Head Business Development Exchanges a.i., SIX.