The European Green Deal set unprecedented greenhouse gas emissions reduction targets, aiming for net-zero in 2050. This represents a formidable decarbonisation challenge for the energy system in Europe. It is uncertain whether renewables, electrification, and gains in energy efficiency can contribute enough to reach those goals. Renewable and low-carbon hydrogen can complement those enablers, providing a cost-effective solution to the limits of deep electrification and energy efficiency improvements in the hard-to-abate sectors of the economy. To concretize this potential, the European Commission published its hydrogen strategy outlining the deployment of hydrogen capacity to reach 6 GW of electrolyzers by 2024 and 40 GW by 2030.
To better understand the role of hydrogen in the European energy transition, Deloitte’s experts teamed up with research partners IFPEN and SINTEF for a joint-industry research project: Hydrogen4EU. It is a modelling-based study aiming to guide policymakers and industrials in harnessing the full potential of low-carbon and renewable technologies to create an optimal pathway to net-zero emissions in 2050. Underneath the hood of this research project steered by the Economic Advisory team at Deloitte is a powerful and robust optimization engine. The modelling architecture links HyPE, MIRET-EU, and Integrate Europe, three state-of-the-art mathematical models of the energy system from Deloitte, IFPEN, and SINTEF. This joint effort thus models learning-by-doing effects of the energy system at the highest level of geographical, sectoral, and technical details for Europe, North Africa, Middle East, Russia, and Ukraine.