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The Hydrogen Race Is Undergoing Unexpected Changes

By December 29, 2022 3   min read  (518 words)

December 29, 2022 |

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As the world shifts towards a more sustainable future, the use of hydrogen as a clean energy source has garnered increasing attention. In recent years, the race to secure a strong position in the hydrogen industry has intensified, with various countries and organizations vying for a place at the forefront of this technology.

One of the main players in this race is the European Union, which has been working on developing a comprehensive regulatory framework for hydrogen production and distribution. These standards provide clarity for local projects and also allow for the export of hydrogen to other countries. For example, the EU has established a collaboration with Gulf nations to work towards the development of a hydrogen supply chain.

However, the EU has faced some challenges in maintaining its competitive edge in the hydrogen industry. As the United States announces plans to bring the entire green hydrogen supply chain within its borders, European authorities are under pressure to create a similarly attractive environment in order to prevent technology providers from moving to the US.

Another factor contributing to the slow progress of the hydrogen industry is the time and resources required to develop large-scale projects. For example, Siemens Energy predicts that it will take at least two years before significant regional projects are able to produce green hydrogen.

Despite these challenges, many companies and organizations remain optimistic about the future of the hydrogen industry. The Masdar Group, a UAE-based renewable energy company, is one such example. Masdar is investing heavily in hydrogen technology and is waiting for import market laws to be finalized in countries such as Japan, South Korea, and the EU in order to position itself as an early adopter.

The Gulf nations, including Kuwait, Oman and Bahrain, are also actively participating in the hydrogen race. These countries are utilizing a combination of collaboration and competition in their strategies, with some even investing in green hydrogen projects in other countries where they may not have as much resources of their own.

In addition to the competition for hydrogen supplies, there is also competition in the technology used to produce and distribute hydrogen. Experts predict that there could be significant supply chain challenges if only half of the planned pipeline projects are completed, and technology vendors are expected to play a significant role in shaping the future of the hydrogen market.

One country that may have the potential to accelerate the hydrogen supply chain is China. Experts believe that the supply chain could benefit from initiatives such as the Inflation Reduction Act in the US, and the EU’s regulatory framework is also expected to unlock investment from European companies.

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Overall, it is clear that the competition for a dominant position in the hydrogen industry will continue for the foreseeable future. However, as demand for clean energy sources increases, the development and scaling up of innovative components such as electrolyzers and compressors is expected to benefit all technology vendors.

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