2.2.2 Increasing number of upcoming projects source renewable electricity

About 54% of announced electrolyser projects in the EU disclose their electricity sourcing strategy. Wind energy is the preferred source announced for 39% of green hydrogen projects (77% of capacity).

The increasing deployment of renewable electricity generation is creating a favourable environment to kick off engagements between renewable electricity providers and green hydrogen projects.77, 78 About 54% of announced electrolyser projects in the EU also announce their electricity sourcing plans (Figure 2.23).47 Wind technology leads—it has been announced as source for 39% of green hydrogen projects (77% of capacity).79 Solar represents the second most preferred source, announced for 18% of green hydrogen projects (14% of announced capacity).47 In addition, combinations of wind and solar, often allowing for a higher capacity factor, cover 22% of announced projects (7% of capacity).
The development of renewable electricity procurement for hydrogen production will also depend on the outcome of the RED II Article 27 Delegated Act, which will establish requirements for eligible renewable electricity sources.80 Provisionsmaybeextendedfromeligiblefuels in the transport sector to all green hydrogen and renewable fuels of non-biological production regardlessoftheirenduse.

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