The Spatial Evolution of a European Hydrogen Economy

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Abstract

Green hydrogen has outgrown the testing stage: over the next few years, consortia across Europe will be investing large sums to build the supply chains of tomorrow. However, Europe as a whole will only be successful if it aligns the development of supply chains with the potentials of its regions and exploits the advantages of a European division of labour. This article examines the spatial distribution of hydrogen frontrunner projects in light of regional heterogeneity. It reveals a pattern that exhibits clear core regions but is only partly consistent with the localisation of current production and usage potentials. For a rapid ramp-up of hydrogen markets, European policymakers should make greater efforts to incentivise capacity formation in regions with high potential, by harmonising national levies affecting hydrogen supply chains and promoting the build-up of a cross-regional hydrogen transport infrastructure. Moreover, public investment support provided by various institutions and programmes should be better aligned to the common target of capacity upscaling.

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APA

Wolf, A. (2023). The Spatial Evolution of a European Hydrogen Economy. Intereconomics, 58(2), 111–118. https://doi.org/10.2478/ie-2023-0022

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