The analysis “Geoeconomics of Green Hydrogen: Assessing the EU’s current position in resilience and export potential” examines the current geoeconomic situation of the European Union in the emerging global market for green hydrogen and its precursors. Key parameters are the dependence on imports and the possibility for European companies to participate in growing markets. The possible short-term development in the context of changing market conditions is also examined. In this context, the EU has established a variety of policy instruments to reduce import dependencies and enable additional value creation in the EU by establishing the upstream hydrogen value chain. This analysis highlights key elements of these.
The current geo-economic situation of the European green hydrogen economy is characterized by a high and in some cases little diversified dependency on imports, for example for raw materials for the production of electrolysers. At the same time, it is currently possible to meet almost all domestic demand for wind turbines through domestic production. However, additional value creation potential in a growing market appears to be limited, as European companies are at a cost disadvantage in global competition.
