The EU is mulling finance toward the development of Ukrainian hydrogen valleys, according to energy association the Ukrainian Hydrogen Council.

The country has proposed two hydrogen valleys, one in the Zakarpattia region in the west and one in Odesa in the south. The two hubs could install 2.5GW of electrolyser capacity able to produce up to 220,000t/yr of hydrogen. The Ukrainian Hydrogen Council anticipates production could begin in 2027.

In February, the EU and Ukraine signed a memorandum of understanding toward a strategic partnership on renewable gases including hydrogen. The agreement includes the development of a Ukraine-EU corridor by 2030, as well as access to commercial and institutional financing via the European Investment Bank and the European Reconstruction and Development Bank.

2027 – Estimated first production from proposed hydrogen valleys

Ukraine’s energy minister German Galushchenko and US climate envoy John Kerry announced at Cop27 a pilot project demonstrating low-carbon hydrogen and ammonia production from solid-oxide electrolysers coupled with small modular nuclear reactors.

However, the ongoing war could put potential developments at risk. While neither proposed valley would be sited in regions that Russia has annexed, the war has resulted in significant destruction of Ukraine’s energy infrastructure.

Pavlo Bilodid, head of strategic communications for utility DTEK, tells Hydrogen Economist that over half of the country’s power generating capacity is “currently unavailable” due to occupation or damage. This includes the takeover of the 5.7GW Zaporizhzhia nuclear power plant—the largest in Europe—which has been fully disconnected from the grid since September, as well as nearly all windfarms. Thermal generation has seen particular damage, with 49pc of assets damaged compared to 25pc across the energy system. Bilodid notes that thermal power plants were attacked 30 times in the past six months.

While DTEK is preparing for the next heating season with repairs to thermal power units and has already replaced or repaired around 230km of power lines, “billions of hryvnias are needed to restore the full-fledged operation of energy enterprises”, Bilodid says. He adds that DTEK has already invested over $200mn toward stabilising and restoring the country’s electricity supply, in addition to receiving $10mn in aid.

“We support the European Commission in laying the groundwork for a fast economic recovery in Ukraine once the war is ended,” says trade association Hydrogen Europe. “In the long term, Ukraine indeed has the potential to export hydrogen to the rest of Europe but will first have to focus on rebuilding its own energy infrastructure and economy.”

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Author: Polly Martin