Logistics: the key factor in developing the hydrogen market from local ecosystems

Mar 10, 2022

Logistics: the key factor in developing the hydrogen market from local ecosystems

Addressed to all stakeholders in the hydrogen market - industry, energy suppliers, producers and exporters, public and institutional stakeholders, associations, infrastructure operators and academic experts – this first consultation shows that the vast majority of stakeholders want to underline the importance of logistics in responding to their challenges (security, flexibility, competitiveness). The planning of those logistics, with proposals for a grid connected as appropriate to storage facilities, even came up in territorial workshops as the most effective way of creating and cementing the links between potential supply and demand.

On 1st June 2021, GRTgaz and Teréga launched a national consultation of stakeholders in the market to find out how they see a hydrogen market developing, their requirements in terms of hydrogen transport and decarbonisation, and also their expectations with respect to gas transporters. The 133 contributions received, the 70 bilateral exchanges and the 3 territorial workshops, taken together, all attest to the interest shown by the parties involved in this process, whose main findings have been fed back in a report.

The consultation confirms there is a significant need for hydrogen among stakeholders to
decarbonise their use, chiefly in industry and transport.

In the short to medium term, demand for hydrogen will be driven by greening of the hydrogen currently used in industrial processes and new industrial uses. More than 80% of industrial contributors to the consultation include this energy carrier in their decarbonisation strategy alongside carbon capture, utilisation and storage solutions. Hydrogen is also expected to play an increasing role in heavy transport, in the medium term. The challenge of decarbonising the aviation industry also emerges as a growth area for the market by 2040-2050, revealing a massive need for hydrogen as a fuel.