Experts Explore European Underground Hydrogen Storage
A new GIE study reveals the urgent need for targeted policy intervention to fulfil European underground hydrogen storage requirements.
Earlier this month, critical questions were addressed during the workshop organized in Brussels by Gas Infrastructure Europe (GIE).
Stakeholders and market players from the entire energy value chain participated in an interactive panel discussion and in insightful presentations, touching topics such as flexibility, resilience and optimization of the energy system.
Discussions focused on the new GIE study conducted by Artelys and Frontier Economics. The findings shed light on the urgent need to ramp up underground hydrogen storage (UHS) as a vital component for the cost-effective deployment of renewable energy sources and reduction of CO2 emissions.
Christopher Andrey, Artelys Director and Catherine Galano, Frontier Economics Director gave valuable insights on how UHS can contribute to the ambitious energy and climate policy targets in the European Union and recommend targeted policy intervention to support a more cost-efficient and integrated European energy system.
The panel discussion presented different perspectives on UHS’ contribution and related challenges. There were several experts talking about this topic.
Anne-Sophie Corbeau, Global Research Scholar, Center on Global Energy Policy, Columbia SIPA moderated the session welcoming:
- Vasilis Papandreou, Policy Officer, Emerging Hydrogen Markets, The European Union Agency for the Cooperation of Energy Regulators (ACER)
- Marzia Sesini, Senior Research Associate, FSR Gas and Hydrogen Area, European University Institute
- Kamila Waciega, Director, Energy & Infrastructure Policy, Hydrogen Europe
- Michael Schmöltzer, Head of the Value of Storage Working Group, Gas Infrastructure Europe (GIE)
- Romain Capaldi, Director, Guidehouse, H2eart for Europe
The conclusions presented Charlotte Roule, Gas Storage Europe (GSE) President.
Why European underground hydrogen storage needs should be fulfilled
Artelys and Frontier Economics published their study ‘Why European Underground Hydrogen Storage Needs Should Be Fulfilled’. The document delves into the crucial aspect of Underground Hydrogen Storage (UHS) capacity requirements for Europe’s net-zero future.
To answer the question about the optimal level of investments needed for UHS, the model used in the study is based on:
- the costs of developing and operating UHS technologies,
- the services UHS can provide to the entire system,
- other flexibility solutions that UHS can offer.
The study’s simulation results showcase the imperative for optimal UHS deployment: an estimated 45 TWh by 2030, aligned with the REPowerEU scenario, and a staggering 300 TWh by 2050 in a net-zero scenario.
However, the findings also highlight a stark reality – the current slate of announced projects falls short of meeting the developing storage needs of the energy system. According to the www.H2inframap.eu, the projected UHS capacity stands at 9 TWh by 2030 and 21.5 TWh by 2050, underscoring a significant gap that goes from four to more than ten times the UHS capacity needed in 2030 and 2050 respectively.
Several key measures for immediate and long-term action at the EU level:
- Set an explicit and structured 2030 target of 45 TWh for available UHS capacity;
- Decomplexify administrative approval processes and promote their digitalization;
- Define signaling support mechanisms such as, for example, the creation of Important European UHS Projects;
- Define a portfolio of financial support mechanisms drawing from relevant EU revenue sources as well as Member State contributions and loans;
- Monitor the market regularly via EU-wide Key Performance Indicators (KPIs) within a long-term H2 storage strategy.
Charlotte Roule, President of Gas Storage Europe, commented: “The findings of this study underscore the urgent need for strategic action. It is imperative that we address the pressing gaps in UHS capacity to ensure Europe’s energy security and advance our hydrogen ambitions.”
“Investing in underground hydrogen storage significantly decreases the costs of operating the EU energy system every subsequent year of operations. Additionally, it enables the integration of further investments in electrolysers, thereby avoiding curtailment costs and reducing CO2 emissions.
“The study estimates the cost differential, factoring in operational savings and impacts on fixed operational costs, for a 20-year period, by 32 billion euros in 2030 onwards,” said Michael Schmöltzer, Chair of the Gas Storage Europe Value of Storage Working Group.
Byline: Petra Čotić
