{"id":17100,"date":"2025-01-15T12:01:48","date_gmt":"2025-01-15T12:01:48","guid":{"rendered":"https:\/\/www.westwoodenergy.com\/?p=17100"},"modified":"2025-04-16T10:22:22","modified_gmt":"2025-04-16T09:22:22","slug":"hydrogen-compass-january-2025","status":"publish","type":"post","link":"https:\/\/www.westwoodenergy.com\/subsectors\/hydrogen\/hydrogen-compass-january-2025","title":{"rendered":"Hydrogen Compass &#8211; January 2025"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][nectar_animated_title heading_tag=&#8221;h6&#8243; style=&#8221;color-strip-reveal&#8221; color=&#8221;Accent-Color&#8221; text=&#8221;JANUARY 2025&#8243;][vc_column_text css=&#8221;&#8221; text_direction=&#8221;default&#8221;]In December last year, the hydrogen market continued to decelerate as major players scaled back investments, faced development hurdles, or cancelled projects. The final quarter of 2024 closed with limited progress, although a slight positive shift emerged just before the holiday season with further funding announcements and key milestones reached by European renewable hydrogen projects. This slightly briefer edition of <em>Hydrogen Compass<\/em> sets the stage for our upcoming <em>Westwood Insight<\/em>, which outlines the key themes we believe will shape Europe\u2019s hydrogen industry in 2025.<\/p>\n<p>The next edition of Hydrogen Compass will be published in February. In the meantime, if you have any comments or feedback, please do reach out to <strong>Jun Sasamura<\/strong> (<a href=\"mailto:jsasamura@westwoodenergy.com\">jsasamura@westwoodenergy.com<\/a>).<\/p>\n<h4><strong>Continued deceleration for European hydrogen<\/strong><\/h4>\n<p>In Germany, political instability brought a key part of the country\u2019s hydrogen market development to a standstill. The collapse of the government coalition forced Energy and Climate Minister Robert Habeck to abandon the Power Plant Security Act in mid-December. This initiative, which aimed to develop 12.5GW of hydrogen-ready power plants and 500MW of long-term storage capacity, was halted after the opposition Christian Democrats (CDU) indicated they would not support it following the withdrawal of the neo-liberal Free Democrats (FDP) from the coalition government.<\/p>\n<p>The Netherlands also encountered setbacks, in this case to the development timeline of its hydrogen pipeline network. Gasunie, the Dutch gas network operator, announced in December that the completion of its network has been delayed by three years to 2033. The delay has been attributed to a stringent permitting process and the requirement for more extensive public consultations under the Dutch Environment and Planning Act which came into force in January 2024. Infrastructure development, a key enabler of the hydrogen market, has faced challenges more generally, with market and regulatory uncertainty, and high hydrogen prices deterring investment from both producers and offtakers. However, according to Gasunie, the Rotterdam section of the network remains on track for a 2026 completion, with efforts to improve on the 2033 timeline by seeking government support to expedite the permitting process.<\/p>\n<p>UK-based technology firm Johnson Matthey faced scrutiny from its largest shareholder, Standard Investments, which called for a strategic review of its hydrogen business in an open letter written in December. Standard Investments urged the company to limit further hydrogen investments until a clear path to profitability is determined, even suggesting a partial or complete sale of the company. This pressure follows Johnson Matthey\u2019s May 2024 decision to delay start-up of its catalyst-coated membrane factory in Royston, England. The call for reduced investment reflects a broader trend among European technology providers, where downsizing hydrogen investment has become necessary to align with the market\u2019s slow growth.<\/p>\n<h4><strong>A positive shift to close out 2024?<\/strong><\/h4>\n<p>As 2024 drew to a close, a series of funding announcements across Europe signalled a positive swing for hydrogen. The EU launched its \u20ac2bn European Hydrogen Bank second auction, while Denmark secured approval for a \u20ac1.7bn subsidy auction to support e-methane and renewable biogas production. The initiative will provide a green premium to developers meeting RFNBO regulations, with 20-year supply contracts available to its winners.<\/p>\n<p>Germany and the Netherlands also made significant commitments under the H2Global double auction scheme, pledging \u20ac2.7bn and \u20ac300mn, respectively. The programme aims to enhance supply chain resilience and flexibility through global and regional auctions for hydrogen and derivative production projects. Finalised timelines, eligibility criteria, and the applications process should be published in the first half of this year.<\/p>\n<p>France also launched its first clean hydrogen tender under a Contracts for Difference (CfD) scheme, offering up to \u20ac4\/kg of renewable hydrogen for industrial use over 15 years. The tender targets electrolytic projects between 5MW and 100MW, with a cumulative cap of 200MW, and will close applications on 14 March 2025. Up to 12 projects will be selected, with projects targeting hydrogen for heating, natural gas networks, electricity, or transport excluded from consideration. While subsidy specifics remain unclear, the initiative is part of a planned \u20ac4bn programme to support 1GW of renewable or nuclear hydrogen.<\/p>\n<p>In the UK, signing of the first three CfDs under the Hydrogen Production Business Model marked a much-needed milestone for the sector. After more than a year of delays and uncertainty, the news brought some relief to the UK hydrogen industry, signalling that the first of the 11 projects offered contracts under the Hydrogen Allocation Round (HAR) 1 could proceed. While the remaining projects are expected to sign final contracts early this year, the initial projects include H2 Energy and Trafigura\u2019s West Wales projects, Scottish Power and Storegga\u2019s Cromarty Hydrogen project, and Scottish Power\u2019s Whitelee Green Hydrogen project.<\/p>\n<p>HAR 2, which opened in January 2024, has also garnered significant interest with 87 applications totalling more than 2.8GW of potential projects \u2013 far greater than the planned 875MW of projects this round is expected to support. While this progress is a critical step forward, uncertainty remains. The true test for 2025 will be whether hurdles faced by project developers in the challenging HAR process are addressed in time for subsequent rounds, or whether the industry\u2019s momentum will again be stifled. There is hope, but significant work remains to ensure these early wins translate to sustained growth.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][nectar_animated_title heading_tag=&#8221;h6&#8243; style=&#8221;color-strip-reveal&#8221; color=&#8221;Accent-Color&#8221; text=&#8221;Key European Project Watch&#8221;][vc_column_text css=&#8221;&#8221; text_direction=&#8221;default&#8221;]Key project announcements and developments in December[\/vc_column_text][vc_table][align-left]Project,[align-left]Update|[align-left]Zeevonk%202%20Hydrogen%20Project,[align-left]The%20Zeevonk%20joint%20venture%2C%20formed%20by%20Vattenfall%20and%20Copenhagen%20Infrastructure%20Partners%20(CIP)%2C%20has%20secured%20rights%20to%20develop%20the%202GW%20Ijmuiden%20Ver%20Beta%20offshore%20wind%20project%20in%20the%20Netherlands.%20This%20energy%20park%20will%20integrate%20wind%2C%20solar%20and%20electrolytic%20hydrogen%20production%2C%20featuring%20a%2050MW%20floating%20offshore%20solar%20farm%20and%20a%201GW%20electrolyser%20at%20the%20Maasvlakte%20section%20of%20the%20Port%20of%20Rotterdam%20to%20produce%20hydrogen%20for%20the%20decarbonisation%20of%20Dutch%20industry.%20Front-end%20engineering%20and%20design%20for%20the%20project%20is%20set%20to%20begin%20this%20year%2C%20with%20a%20final%20investment%20decision%20(FID)%20expected%20in%202026%20and%20commercial%20operations%20to%20begin%20in%202029.|[align-left]Pembroke%20Hydrogen,[align-left]RWE%20has%20received%20full%20planning%20approval%20for%20its%20Pembroke%20Green%20Hydrogen%20plant%2C%20set%20to%20become%20the%20country%E2%80%99s%20first%20major%20electrolytic%20hydrogen%20facility.%20Strategically%20located%20next%20to%20Pembroke%20Power%20Station%2C%20the%20100MWe%20electrolyser%20will%20produce%20green%20hydrogen%20and%20connect%20directly%20to%20nearby%20industries%2C%20potentially%20cutting%2093%2C000%20tonnes%20of%20carbon%20emissions.%20The%20project%20is%20expected%20to%20be%20commissioned%20in%202027%20as%20part%20of%20the%20South%20Wales%20Industrial%20Cluster.|[align-left]Lingen%20Green%20Hydrogen,[align-left]BP%20has%20taken%20the%20FID%20to%20develop%20its%20first%20fully%20owned%20large-scale%20green%20hydrogen%20facility%2C%20the%20100MW%20Lingen%20Green%20Hydrogen%20plant%20in%20Lower%20Saxony%2C%20Germany.%20The%20project%20is%20scheduled%20to%20begin%20construction%20in%202025%20and%20come%20online%20in%202027%2C%20the%20plant%20will%20produce%20up%20to%2011%2C000%20tonnes%20of%20green%20hydrogen%20annually.%20This%20hydrogen%20will%20primarily%20replace%20grey%20hydrogen%20at%20BP%E2%80%99s%20Lingen%20refinery%20and%20serve%20other%20industrial%20customers%20through%20Germany&#8217;s%20upcoming%209%2C040km%20hydrogen%20core%20network.%20This%20project%20is%20supported%20by%20%E2%82%AC87.6mn%20from%20Germany%E2%80%99s%20federal%20government%20and%20%E2%82%AC37.5mn%20from%20the%20State%20of%20Lower%20Saxony%20under%20the%20IPCEI%20Hy2Infra%20programme.%20Renewable%20energy%20for%20the%20plant%20will%20initially%20be%20sourced%20from%20an%20offshore%20wind%20power%20purchase%20agreement.[\/vc_table][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]If you have any project updates that you would like to share with Westwood&#8217;s Hydrogen team, please contact Jun using the contact details below.<\/p>\n<p><strong>Jun Sasamura,<\/strong> <em>Manager \u2013 Hydrogen<\/em><br \/>\n<a href=\"mailto:jsasamura@westwoodenergy.com\">jsasamura@westwoodenergy.com<\/a>[\/vc_column_text][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;1&#8243; divider_color=&#8221;default&#8221; custom_height=&#8221;60&#8243;][divider line_type=&#8221;No Line&#8221;][vc_column_text]<strong>View all issues of Hydrogen Compass here:<\/strong>[\/vc_column_text][nectar_btn size=&#8221;medium&#8221; button_style=&#8221;regular&#8221; button_color_2=&#8221;Accent-Color&#8221; icon_family=&#8221;none&#8221; text=&#8221;Hydrogen Compass Listing&#8221; url=&#8221;https:\/\/www.westwoodenergy.com\/subsectors\/hydrogen\/hydrogen-compass&#8221;][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; bg_color=&#8221;#3756a5&#8243; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; id=&#8221;form&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221; gradient_type=&#8221;default&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;padding-3-percent&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; 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css=&#8221;&#8221;]JTNDc2NyaXB0JTIwY2hhcnNldCUzRCUyMnV0Zi04JTIyJTIwdHlwZSUzRCUyMnRleHQlMkZqYXZhc2NyaXB0JTIyJTIwc3JjJTNEJTIyJTJGJTJGanMtZXUxLmhzZm9ybXMubmV0JTJGZm9ybXMlMkZlbWJlZCUyRnYyLmpzJTIyJTNFJTNDJTJGc2NyaXB0JTNFJTBBJTNDc2NyaXB0JTNFJTBBJTIwJTIwaGJzcHQuZm9ybXMuY3JlYXRlJTI4JTdCJTBBJTIwJTIwJTIwJTIwcG9ydGFsSWQlM0ElMjAlMjIxNDU2NTQxNDclMjIlMkMlMEElMjAlMjAlMjAlMjBmb3JtSWQlM0ElMjAlMjIyN2RjYWU4ZC01YTY0LTRiZDktOWVkMy1iOGY2NGM1YWFmNzMlMjIlMkMlMEElMjAlMjAlMjAlMjByZWdpb24lM0ElMjAlMjJldTElMjIlMEElMjAlMjAlN0QlMjklM0IlMEElM0MlMkZzY3JpcHQlM0U=[\/vc_raw_html][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>Westwood\u2019s monthly digest covering Europe\u2019s latest hydrogen market and project developments<\/p>\n","protected":false},"author":13,"featured_media":16531,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[353,430,555,791,551],"tags":[605,354,774,606,816,604,660,879,509],"class_list":{"0":"post-17100","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all_articles","8":"category-energy-transition","9":"category-hydrogen","10":"category-jun-sasamura","11":"category-new-energies","12":"tag-blue-hydrogen","13":"tag-energy-transition","14":"tag-europe","15":"tag-green-hydrogen","16":"tag-h2","17":"tag-hydrogen","18":"tag-hydrogen-scale-up","19":"tag-projects","20":"tag-renewable"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hydrogen Compass - January 2025 - Westwood<\/title>\n<meta name=\"description\" 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