Almost half of the 10mn t/yr of hydrogen production by 2030 targeted in the EU hydrogen strategy could be blended into the gas system, according to a study for the European Commission.

Assuming that a 20pc blend of hydrogen could be introduced into the gas transmission system without the requirement for major upgrades, around 4.5mn t/yr could be blended—making the EU gas grid a major source of demand alongside industry, aviation and road transport.

Electrolyser projects require guaranteed offtake to receive the funding from financial institutions needed for construction.

But guaranteed sources of demand are scarce until the market develops further—a phenomenon often referred to in the industry as the ‘chicken and egg’ problem.

20pc – Share of hydrogen that can be safely blended into gas grids

Many EU countries are considering allowing the injection of hydrogen into their natural gas networks, with some defining blending targets to be reached in 2030. This could create a major source of guaranteed demand, potentially enabling large projects to access finance.

The study, titled Blending hydrogen from electrolysis into the European gas grid, modelled different scenarios depending on whether electrolysers are linked—either directly or contractually—to renewable generation.

“We find that, due to the temporal correlation of gas demand and wind/solar availability, only a fraction (50-85pc) of the available green electricity can be converted to hydrogen and blended into the gas network,” the study.

“This fact determines the maximum hydrogen production that can be blended into EU gas systems, with a threshold of 20pc volume, to around 4.5mn t.”

Adding storage to hydrogen generation would likely increase this figure, the study found.

EU priority

Enabling the access of renewable gases to the gas grid was marked as one of the key priorities in the European Gas Regulatory Forum in Madrid, which called for the creation of a market for blending. The forum also proposed rules for the deployment of infrastructure.

Six more gas network operators recently joined the European Hydrogen Backbone—an industry initiative designed to drive the development of a hydrogen pipeline and storage system across the continent. The backbone would enable more blending of hydrogen into the gas grid by connecting more sources of demand.

---

Author: Tom Young