Bulgaria’s National Hydrogen Roadmap: Unlocking the Potential for Sustainable Development and Green Transition

Bulgaria’s National Hydrogen Roadmap, directed by the Ministry of Innovation and Growth, aims to stimulate hydrogen technologies across industry, energy, and transportation sectors. Aligned with broader European decarbonization objectives, it outlines a green hydrogen production plan and emphasizes regulatory, financial, stakeholder, and public engagement components. Petar Murginski’s analysis offers valuable insights into these strategic shifts and their transformative potential. For expert advice on leveraging EU funding opportunities related to hydrogen technologies and beyond, reach out to Dimitar Ganev, Deloitte’s Gi3 Director in Bulgaria immediately. Seize the opportunity to maximize your funding potential and be ahead of the curve.

Introduction

The European Union recognizes the importance of hydrogen technologies in achieving its environmental objectives, as highlighted in the European Green Deal and the Hydrogen Strategy for a Climate Neutral Europe. Hydrogen, with its multifunctionality as a feedstock, fuel, energy carrier, and storage medium, holds significant potential for reducing carbon emissions in challenging sectors. However, hydrogen technologies and decarbonization measures currently have a minor position in Bulgaria’s strategy documents.

To address this gap, Bulgaria’s National Hydrogen Roadmap, part of the National Recovery and Sustainability Plan, is pivotal for achieving the Green Deal’s targets and decarbonizing the economy. This roadmap sets the foundation for advancing the hydrogen economy over the next decade, with activities planned from 2023 to 2026.

Aligning Bulgaria’s Climate Strategy with Hydrogen Technology

Bulgaria’s National Hydrogen Roadmap aligns with international and national strategies, including the UN Sustainable Development Goals, the European Green Deal, and the Paris Agreement. By aligning with the EU’s goal for climate neutrality by 2050, Bulgaria reinforces its commitment to cut greenhouse gas emissions. The roadmap also corresponds with national strategies such as the National Development Program Bulgaria 2030 and the Innovation Strategy for Smart Specialization 2021–2027.

To speed up hydrogen technology adoption, Bulgaria’s roadmap proposes additional actions through the Hydrogen Accelerator. These include doubling renewable hydrogen production targets, establishing hydrogen valleys, nurturing international partnerships, developing hydrogen infrastructurе, and revising renewable energy policies. The roadmap also highlights the increasing international competition in the sector, emphasizing the need for Bulgaria to have a clear and ambitious plan for promoting hydrogen production.

1. Vision
   
   The Bulgarian National Hydrogen Roadmap seeks to stimulate hydrogen tech growth, hit climate targets, cut emissions, champion renewables, and advance towards a circular economy. It ensures a balanced transition to climate neutrality, with an eye on Bulgaria’s unique economic attributes.
   
2. Strategic Objectives
   
   The Roadmap defines strategic objectives that include decarbonizing the economy, replacing energy sources with hydrogen, and building capacity to harness the potential of hydrogen technologies.
   
3. Operational Objectives
   
   The Roadmap targets seamless carbon neutrality by 2050, involving green hydrogen tech deployment, enhancing research, fostering training programs, and boosting European and global cooperation. It calls for regulatory support, sector investment, and stakeholder involvement.

Strategies for Decarbonizing Bulgaria’s Industry

1. Current State of Hydrogen Technologies in Bulgaria
   
   Bulgaria annually produces 150,000 tons of grey hydrogen, largely for industrial sectors. The potential shift to green hydrogen could benefit several industries. Bulgaria also plans to use renewable hydrogen for grid balancing and surplus renewable energy storage, even eyeing green hydrogen exports to EU states. This aligns with the European Hydrogen Backbone Initiative for a broad hydrogen pipeline network. 
   
   As part of the REPowerEU plan, the establishment of a comprehensive hydrogen network has become a priority, with Bulgaria joining the Southeast corridor alongside Greece and Romania. By 2030, REPowerEU aims to develop approximately 30,000 km of transport routes, with 60% of them being pipelines originally built for natural gas. The associated financial support is estimated to range between €28–38 billion for pipelines and €6–11 billion for storage facilities.
   
2.  Measures to Promote Green Hydrogen
   
   Bulgaria aims to promote green hydrogen through regulatory and administrative measures. These include transitioning from grey to green hydrogen, initiating pilot projects, decarbonizing power generation, modifying electricity trading regulations, and developing hydrogen transport infrastructure. The roadmap also explores the potential of non-biological renewable fuels.
   
3. Intensifying Research and Innovation
   
   Bulgaria, with a background in innovative hydrogen solutions, prioritizes research and innovation for decarbonization and tech advancement. The country aims to boost hydrogen tech research, train and motivate researchers, encourage sectoral research, promote competition, and collaborate on a European scale.
   
4. Education, Training, and Awareness in Hydrogen Technologies
   
   Bulgaria aims to stimulate hydrogen tech adoption through workforce training, vocational education, administrative capacity building, public awareness initiatives, safety training, and a digital platform for related projects. These steps aim to build a skilled workforce, enhance public acceptance, and lessen administrative hurdles.

Regulatory Framework 

1. European Legislation and Initiatives
   
   The European Union is adjusting its legislation and introducing funding initiatives to facilitate the adoption of hydrogen technologies. Recognizing hydrogen as pivotal in decarbonizing the European economy, the EU has adopted rules defining renewable hydrogen, implemented measures for hydrogen mobility, and developed strategies for integrating the EU energy system. Initiatives such as the Innovation Fund and sector-specific legislation aim to incentivize clean energy solutions.
   
   In her State of the European Union address on 14 September 2022, Commission President Ursula von der Leyen announced the establishment of the European Hydrogen Bank. The bank aims to bridge the investment gap and connect the future supply of renewable hydrogen with the EU’s target of 20 million tonnes. It will support renewable hydrogen production within the EU and internationally, provide transparency on hydrogen demand and supply, and coordinate with existing financial instruments to facilitate hydrogen projects. For the hydrogen bank to be successful, the regulatory framework for the production and consumption of hydrogen must be finalized as a matter of priority.
   
2. National Legislation Adaptation
   
   Bulgaria should consider revising its national legislation to accommodate the rise of the hydrogen economy. Essential areas for adaptation include defining concepts, rights, and obligations for hydrogen technologies, addressing barriers to hydrogen production, transport, and use, specifying safety rules, and aligning with European hydrogen standards. Upcoming legislative revisions and integrated energy and climate plans should support the penetration of hydrogen technologies in Bulgaria.

Financing Support Instruments

Strategic financing and support instruments are essential for driving the deployment of hydrogen technologies. Bulgaria can leverage local grant programs to direct grant funding towards research, innovation, and enhancing competitiveness in the hydrogen sector.

In detail:

• Adopting hydrogen technology requires the renewal of national plans and the assurance of vital investments. Given the current EU and national funding dynamics, Bulgaria could potentially mobilize €3.2 billion, supplemented by €0.5 billion of own funds, including private investment, over the next decade.
  
• Key strategic documents, including the Innovation Strategy for Smart Specialization 2021–2027 and the Competitiveness and Innovation in Enterprise Program 2021–2027, are vital for directing funds towards research, innovation, and competitiveness in the hydrogen sector.
  
• The Research, Innovation, and Digitalization for Intelligent Transformation Program 2021–2027, in line with the European Green Deal’s objectives, anticipates total funding of €1.09 billion.
  
•  National Recovery and Resilience Plan prioritizes investments in renewable energy and will provide grant support for hydrogen and biogas production pilot projects – Investment 5. Reform 5 and Investment 7 on the other hand promote electric mobility and sustainable urban mobility.
  
• Plans for the future include allocating investments for hydrogen production under the Regional Development Program 2021–2027, facilitated by the Just Transition Fund.
  
• The Clean Hydrogen Partnership provides another avenue for financing support and plays an important role in supporting hydrogen projects – it offers stakes for grants and contributes to the development and deployment of clean hydrogen technologies, aligning with Bulgaria’s efforts to advance clean energy solutions and decarbonization.
  
• The two grants programs managed directly by the European Commission – the LIFE Program and Innovation Fund, serve as significant low-carbon funding mechanisms that can enhance Bulgaria’s hydrogen transition and complement sustainable and efficient energy use goals.

In addition to direct financial support, the implementation of investment risk mitigation policies and the provision of both financial and non-financial incentives, such as subsidies, exemptions, and tax relief, are crucial for successful deployment of hydrogen technologies.

Management and Monitoring of the Hydrogen Map

To ensure successful implementation, Bulgaria’s National Hydrogen Roadmap establishes a structured management system. A Coordinating Working Group and a Hydrogen Task Force oversee progress and address emerging needs. Regular evaluations are conducted to monitor implementation, assess objectives, and evaluate impact. This approach enhances accountability, supports evidence-based decision-making, and promotes continuous improvement in the hydrogen sector.

Conclusion

Bulgaria’s National Hydrogen Roadmap aligns with global and local strategies to drive the transition to a carbon-neutral economy, emphasizing decarbonization, innovation, and collaboration, while considering Bulgaria’s specific economic needs.

Unlocking hydrogen technology’s potential requires focus on industrial and energy decarbonization, hydrogen mobility, and transport. Regulatory changes, financing, stakeholder engagement, and public awareness are integral to integration. The Ministry of Innovation and Growth’s oversight ensures accountability and progress.

With this comprehensive plan, Bulgaria is poised for a sustainable future, aiming to make substantial strides towards a carbon-neutral and eco-friendly economy by embracing hydrogen technologies, securing financial support, and strategic management.

For more insight and guidance on hydrogen technologies and EU funding, feel free to reach out to Deloitte’s Gi3 team in Bulgaria. We are ready to assist innovators, visionaries, and business leaders in capitalizing on your green transition. Harness the power of expert advice and stay at the forefront of sustainable innovation by connecting with us today.

Together, let’s navigate a path towards a sustainable, carbon-neutral future.

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