Renewable hydrogen is undoubtedly a key energy vector that is shaping the energy transition agenda. Development is advancing rapidly, but it is still largely unknown, which means that perceptions of it can lead to confusion in certain areas.
There are several hydrogen-related myths. This article explores some of them, demonstrating that hydrogen is a sustainable, safe and versatile alternative that is the key to a carbon-neutral future and of utmost importance for the competitiveness of industry and Europe’s energy sovereignty.
One of the arguments most often used by green hydrogen sceptics is that it is an immature technology, still at an experimental stage and with no real capacity to compete with other energy sources. However, this statement is not true. Green hydrogen technology already exists, is functional and is being deployed at a rapid rate.
Green hydrogen technology is fully mature in terms of technical feasibility and operation. Electrolysers, fuel cells and storage and transmission systems are developed and operational in a wealth of projects around the world. It is not an experimental or testing technology, but a solution ready to be deployed on a large scale.
Hydrogen, as such, has been used on a large scale in industry for more than 100 years. Its industrial use began in the early 20th century, and has evolved over time, making it an industry-known technology with a proven track record.
Green hydrogen technology already exists, is functional and is being rapidly deployed
There is also often debate about how competitive green hydrogen is with other renewable energy sources.
While it is true that it will become more competitive as production costs fall, mainly down to the expected reduction in the cost of electrolysers and renewable electricity, other factors will also play a role, such as the increase in the production cost of current alternatives as the cost of CO2 emissions rises in the wake of the corresponding emission rights.
However, electrolysis technology for producing hydrogen has also made great strides in recent years, driven by the need to decarbonise sectors that are difficult to electrify and by growing interest in green hydrogen, thereby cutting down on the cost of electrolysers. The current cost of producing green hydrogen in Spain stands at €5.9/kg, according to the IBHYX index developed by the Iberian Gas Market.
Furthermore, just like with renewable electricity, the cost of producing green hydrogen in the Iberian Peninsula is expected to range between €2.6 and €3.8 per kilogram by the end of this decade, due to increased capacity and economies of scale.
However, in sectors such as mobility, hydrogen has already proven to be competitive, which could bridge the competitiveness gap in other areas even further.
Hydrogen has two major advantages that make it more competitive with other alternatives: it allows energy storage and transmission.
While electricity is difficult to store on a large scale, hydrogen can be stored more efficiently, making it an ideal solution to ensure a continuous supply of renewable energy when electricity generation is insufficient due to the intermittency of other sources such as solar or wind.
Large-scale hydrogen production will take place in hubs located near renewable energy generation centres, minimising losses and additional costs associated with electricity transmission, thereby improving competitiveness.
Spain has the potential to produce the most competitive green hydrogen in Europe thanks to its large renewable generation capacity. Through these hubs, it will be able to export it to other countries in the region via infrastructure such as H2med, the first major European hydrogen corridor, thereby contributing to the global energy transition.
Another recurring myth is that green hydrogen production requires enormous amounts of water, which could lead to availability problems in areas with water stress.
However, approximately 15,000 litres of water are needed to produce one tonne of green hydrogen through electrolysis. This may seem like a lot, but compared to water losses in urban or agricultural pipelines, for example, it is extremely low. As the Spanish Hydrogen Association says, reaching the PNIEC target of 11 GW would use 0.07% of the water that reservoirs can store annually. In other words, 0.1% of the water used for agricultural purposes in Spain each year.
The production of green hydrogen by electrolysis requires a similar amount of water as the grey hydrogen currently used, so its gradual replacement would not imply a significant water demand
In Spain, between 500,000 and 600,000 tonnes of hydrogen are consumed per year, mainly grey hydrogen which is used for some industrial processes. Green hydrogen production by electrolysis requires a similar or even lesser amount of water than grey hydrogen, so its gradual replacement would not imply a significant additional water demand. So, while it is true that hydrogen production consumes water, a comparison with other industrial processes shows that the impact is not so great.
Another common question surrounding renewable hydrogen is whether large tracts of land are required to produce it. Currently, hydrogen production-related projects generally coexist alongside existing renewable energy facilities, such as photovoltaic parks.
In any case, the space required for electrolysers is significantly less than that required for solar power generation. The ratio is 150 m² of land per MW of hydrogen, compared to 15,400 m² for a solar plant per MWn (megawatt nominal). To sum up, green hydrogen generation by electrolysers calls for significantly less space than solar power generation.
Hydrogen projects being developed in rural areas of Spain represent an opportunity for the socio-economic and industrial development thereof
Furthermore, many of the hydrogen projects being carried out in Spain are located in rural areas, or what is commonly referred to as “depopulated Spain” (España vaciada), which undoubtedly opens up an opportunity for socio-economic and industrial development in areas that would otherwise be neglected.
Thanks to these projects, not only will it be possible to supply consumption areas with 100% clean energy, but the local economy will also be stimulated and the territorial gap between the most developed and least developed regions will be reduced, fostering a just transition.
Despite making great strides, doubts still remain as to whether the current demand for green hydrogen is sufficient to justify the planned investments in infrastructure and market development in Europe in the short term.
Demand for hydrogen is growing steadily and this trend is expected to continue in the coming years, driven by the European Union’s ambitious climate and energy independence targets, technological advances and the urgent need to decarbonise key sectors such as emission-intensive industry and heavy transport.
In this context, EU Member States must transpose the RED III Directive into their national legislation, which sets binding targets for renewable hydrogen consumption by 2030. This regulation anticipates a regulatory demand of between 3 and 4.5 million tonnes (Mt) of green hydrogen for that timeframe.
At the national level, the update of the Integrated National Energy and Climate Plan (PNIEC) 2023-2030, approved by the Spanish Government in September 2024, sets a target of achieving an installed capacity of 12 GW in electrolysers for the production of renewable hydrogen by 2030. This is three times the target set in the previous version of the plan, which envisaged 4 GW.
In the last quarter of 2023, Enagás conducted a non-binding consultation, a Call for Interest, for the future Spanish hydrogen network. The initiative saw a high level of participation and support from the entire sector.
The 2030 scenario, taking into account only the most mature projects of all those submitted to the consultation, showed a hydrogen production of approximately 2.5 million tonnes per year, 23.3 GW of electrolysis capacity and a consumption of one million tonnes.
As for domestic demand, according to the data collected, it is expected to reach approximately 1 Mt/year, exceeding the current consumption of grey hydrogen, which is around 600,000 tonnes per year.
Renewable hydrogen has established itself as a key energy vector for decarbonisation, in particular in industrial and transport industries where electrification is not feasible, and also for energy independence.
Renewable hydrogen will clearly play a key role in the energy transition in Spain and Europe as a whole, which are firmly committed to it, integrating it optimally into the existing energy ecosystem and generating broad social acceptance.
The development of the appropriate technology and planned sustainability-focused infrastructure projects such as those being developed by Enagás mean that renewable hydrogen is in a great position as an effective solution to achieve carbon neutrality while contributing to economic growth in rural and urban areas alike.
