Ireland could become 'green hydrogen powerhouse' with Government support
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Ireland has the potential to become a "green hydrogen powerhouse" by producing the cheapest in Europe by 2030 in the still-evolving sphere, according to a new analysis.
British firm Aurora Energy Research, which is among the biggest power market analytics companies in Europe, said Ireland could become a continental leader in the space, but warned more policy support was needed to realise its potential.
Ireland is currently well behind the curve compared to other European countries when it comes to green hydrogen, which produces energy through the electrolysis of water, while eliminating emissions by using renewable energy.
Its supporters say it could completely revolutionise clean energy, while its detractors say it is too cumbersome and costly to achieve on a mass scale — however, it has turned even the heads of sceptics in recent years as costs come down.
The new analysis from Aurora suggests "production under optimal conditions" would lead to the lowest costs in Europe by 2030, 8% lower than optimal production costs in Spain and 35% lower than in Germany.
Ireland’s competitive advantage stems from its high wind speeds, particularly in the west, compared to other European countries, and rising congestion within the electricity transmission system, the firm said.
"The Government aims to install 2GW of offshore wind generation connected to electrolysers by 2030, which could produce up to 138 kilotons of green hydrogen annually," it added.
"Developers could also produce green hydrogen from surplus renewable power that would otherwise be curtailed."
For context, proponents of green hydrogen calculate that one kiloton of hydrogen can be used to fuel 240 buses for one year, produce 20 kilotons of steel, or generate 22.5 gigawatt hours of electricity.
The firm cautioned that for the plans to come to fruition, there would need to be favourable policy changes such as incentives for producers and relief on infrastructure costs.
Aurora head of research for the UK and Ireland, Marlon Dey, said: "Ireland has the potential to become a green hydrogen powerhouse. Its abundance of high wind speeds presents a key competitive advantage, but significant financial support will be critical to kickstarting the industry, either by bringing hydrogen costs in line with natural gas prices, or by paying the cost difference to consumers directly.”
Despite favourable production economics, Ireland is not yet an attractive option for hydrogen developers, the analysis found.
The firm's research product manager for Ireland, Nick Byrne, said: “Aurora’s latest Hydrogen Market Attractiveness Report ranks the Republic of Ireland 14th of the 15 EU countries considered, primarily because it lacks a national hydrogen strategy.
"This is due to change in the spring, potentially propelling Ireland to the other end of the rankings, but only if the strategy addresses all aspects of the market — policy support for supply, demand, and infrastructure is crucial."
A national hydrogen strategy has long been mooted by Government and after delays, and is due to be published by June.
Cork has been earmarked by Government and business leaders as a potentially leading region for green hydrogen production, with Environment Minister Eamon Ryan extolling the region as suited to lead the way because of existing and natural infrastructure.