WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 98
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1.
Benoît Calatayud
Director, Energy Transition & Utilities,
Capgemini Invent
François Dedieu
Head of Strategy, H2V
Florent Andrillon
Sustainability Services and Group Head of
Climate Tech
The Hydrogen Recalibration: A strategic shift from a
universal decarbonization tool to a niche player, primarily
focusing on sectors like heavy industry (representing 42%
of the targeted low-carbon hydrogen use by 2030 under
the EU's RED III) and heavy-duty transportation (5.5% of
fuels used in transport shall be biofuels or RFNBO by 2030,
with a minimum 1% RFNBO), where electrification faces
significant challenges.
2. Deployment Challenges and Varying Willingness to Pay:
An in-depth look at the obstacles hindering hydrogen
deployment, including securing cost-competitive lowcarbon electricity and addressing infrastructure limitations.
We also examine the disparity in willingness to pay across
sectors, with aviation and shipping potentially leading due
to limited alternatives and rising carbon costs.
3. The Role of Regulation: An analysis of how regulatory
schemes, particularly in the EU, are shaping the hydrogen
market through incorporation targets and incentives like the
French TIRUERT, driving the adoption of greener solutions
Introduction
The hydrogen landscape is undergoing a profound
transformation, marked by a significant recalibration of
expectations. Once envisioned as a panacea for decarbonization
across all sectors, hydrogen is now finding its strategic niche
in hard-to-abate industries. It’s a « realistic » moment for the
Hydrogen sector.
In this note, we delve into the complexities of the hydrogen
market, examining the factors that have led to a 50% reduction
in the International Energy Agency's (IEA) projected low-carbon
hydrogen demand for 2030. From escalating production costs
and competition with electrification to regulatory frameworks
and the varying willingness to pay across sectors, we provide a
comprehensive overview of the hydrogen landscape.
WEMO 2024
Key Points
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