The European Federation of Local Energy Companies (CEDEC) just released a report on hydrogen presenting its challenges and opportunities for local energy companies.
There is growing debates and interest for hydrogen becoming a key energy source for a clean energy transition in Europe. The European Commission even published its Hydrogen Strategy in July 2020. However, there is still little knowledge about the potential of hydrogen at local level notably with the decarbonisation of gas grid.
In this report, CEDEC highlights the strong role for local energy companies in the hydrogen economy. The success of hydrogen implementation is deeply linked to regional factors. What better actors to implement such infrastructures than local companies? They have a clear knowledge of the local utilities, local partners and are close to the customers. Such decentralised solutions are more flexible and can create local synergies. Green hydrogen produced thanks to renewables can be a key feature of the energy transition. Waste treatment for example can generate the electricty needed to produce hydrogen, contrbuting to the development of a local circular economy.
There are different solutions, decentralised and centralised which potential should be used to fully benefit the advantages of hydrgen and manage quantities of energy effectively. However, the EU still needs to create favourable conditions to develop this sector. CEDEC elaborates in this report several policy recommandations, notably the development of fundings programs dedicated to hydrogen and an adapted legal framework.
