EHB Supply Corridor Presentation Full Version

Five hydrogen supply
corridors for Europe in 2030

EUROPEAN HYDROGEN BACKBONE
MAY 2022
© 2022 European Hydrogen Backbone,
all rights reserved
TABLE OF CONTENTS 2
1. Executive Summary
2. Five emerging supply corridors

Corridor A: North Africa & Southern Europe
Corridor B: Southwest Europe & North Africa
Corridor C: North Sea
Corridor D: Nordic and Baltic regions
Corridor E: East and South-East Europe
3. Detailed methodology
EXECUTIVE SUMMARY © 2022 European Hydrogen Backbone,
all rights reserved
Who we are 3
& EHB Mission
Who we are
2021 Member States
New member
EHB Mission
– Accelerate decarbonisation
of the European energy
system
– Define the critical role of
hydrogen infrastructure
– Support development
of a competitive and liquid
European hydrogen market
– Foster cross-border
collaboration between
Europe and its neighbors
CMYK PA N TO N E
10 0 / 75 / 2 0 / 10 2 81 C
CMYK PA N TO N E
6 0 / 0 / 10 0 / 0 369 C
CMYK PA N TO N E
12 / 0 / 10 / 5 0 4 31 C
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Europe’s accelerated 2030 climate targets 4
define an aggressive role for hydrogen
Europe has defined a bolder and more ambitious 2030 Hydrogen Targets
hydrogen target of 20 MT by 2030 in response to the MT of hydrogen
RePowerEU plan to phase out Russian fossil fuel imports (TWh in brackets)
well before 2030 20
(665 TWh)
This includes a 10 MT target of domestic EU hydrogen
supply, as well as a 10 MT target of hydrogen imports
from outside the EU.¹
These targets are strengthened by accelerated
national climate ambitions as well as the accelerated 10
(333 TWh)
development of the European hydrogen market.
Note: This study’s underlying analysis was largely

completed prior to the publication of the detailed 20
RePowerEU plan and its 2030 hydrogen targets. As
such, this study’s supply and demand estimates were
not intended to align with the 20 MT target by 2030. 10
(333 TWh)
Domestic supply target Imports targets Total 2030 Target
1 The RePowerEU target of 10 MT of imports includes 6 MT of renewable hydrogen and 4 MT

of imported ammonia / derivatives.
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The EHB initiative has identified sufficient hydrogen 5
supply to exceed the 2030 domestic targets
EHB identified 12 MT of domestic supply, 2030 Target 2030 Hydrogen Supply ¹, ², ³, ⁴ 2030 Hydrogen Demand⁵
exceeding the RePowerEU domestic target MT of hydrogen
(TWh in brackets)
by 20% and supporting European energy
independence and security of supply. 20
(665 TWh)
EHB also identified 5.4 MT of supply from 5.4
non-EU neighboring countries, for a total of (180 TWh)
17.4 MT of supply. Green imports
2.5
Accelerated demand
due to RePowerEU
(non-EHB)
EHB also identified 14.7 MT of demand based

Import
target 10 12 2.1 Power
(400 TWh) 2.2
on a bottom-up assessment of demand by sector 0.8
& Buildings
and country. Blue 1.1

Transport 3.6
We expect this demand estimate to increase Green
grid-based
3.2 17.4 MT
and accelerate further in response to the
(580 TWh) 14.7 MT
(490 TWh)
RePowerEU plan. Domestic
target 10 Green Industry 8.9
dedicated 7.7
These supply and demand estimates represent
tangible and achievable projections based
on national targets, market developments and 2030 Domestic EU supply Non-EU Supply Demand identified
Hydrogen Target by EHB
announced projects, primarily prior to the
release of the RePowerEU plan. +20%
higher than RePowerEU
1 EHB did not analyse ship imports of hydrogen or derivatives like ammonia and methanol. To meet the 20 MT target, an additional 2.6 MT of hydrogen or derivative imports would be needed.
2 The 5.4 MT of non-EU supply includes 2.5 MT (~80 TWh) of green hydrogen imports from non-EHB countries (Morocco, Algeria, Tunisia and Ukraine), along with 2.1 MT of blue hydrogen and 0.8 MT of grid-based hydrogen from EHB, non-EU countries
(the UK and Norway). Blue hydrogen potential, and its economic viability, is subject to the evolution of gas markets, regulations and the uncertainty of natural gas prices.
3 Estimates of national green hydrogen supply for European countries are based on projections of renewable energy scaling up above and beyond supply levels needed to meet electricity demand.
4 Other imports may include pipeline or ship imports from other regions not analysed in this study.
5 Demand includes all EU countries and the UK and Norway. Demand estimates do not include domestic EU consumption of ammonia for shipping or other derivates. For comparison, RePowerEU considered 4 MT of demand for ammonia and other derivatives.
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Regional differences in supply and demand show the 6
importance of connecting regions across Europe

255
Across different regions in Europe, there are significant Regional Supply and Demand, 127
171
differences in the hydrogen supply-demand balance. 81
2030 and 2040
(TWh)¹, ², ³ 502
Some regions are characterised by a net supply of low- 2030 2040
cost, hydrogen resources. These regions benefit from / Supply (2030/2040)

/ Demand (2030/2040)
vast renewable energy potential, high capacity factors and 257
substantial land availability. 135
65 727
Other regions will require hydrogen imports from other
European or neighboring regions to meet their hydrogen 2030 2040
demand.
Hydrogen pipeline infrastructure can bridge these 287
regional supply-demand differences across Europe in a 197
cost-effective manner. 82
The EHB vision delivers the infrastructure needed 2030 2040 179
438 113
to connect hydrogen supply and demand across 30 37
Europe. 273
2030 2040
129
84
216
2030 2040
1 Aggregated demand and supply are based on the 2030 figures determined in this study. Supply figures 77 102
include imports from North Africa and Ukraine. Note: Demand and supply figures may increase further in 26
response to more ambitious national policies and measures following the RePowerEU plan.
2 This analysis estimates ~490 TWh of demand and ~580 TWh of supply in 2030 and does not attempt to
determine how hydrogen supply and demand will balance out across Europe, nor which hydrogen supply 2030 2040
sources – or from which regions – will be used to meet demand.
3 Demand and supply figures may not align with figures presented in the rest of the report based on
aggregation of countries into regions and due to rounding.
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Five supply corridors are key to the EHB vision and can deliver 7
D
access to abundant and low-cost hydrogen supply by 2030
To deliver the 2030 hydrogen demand targets set by the

RePowerEU plan, five large-scale pipeline corridors are envisaged.
The corridors will initially connect local supply and demand in Oslo Helsinki
different parts of Europe, before expanding and connecting Europe

C
Talinn
Stockholm
with neighboring regions with export potential.

Göteborg
Certainty about the deployment of this infrastructure will enable Riga
market actors to develop supply and demand more rapidly Edinburgh

Copenhagen
Gdansk Vilnius
The five hydrogen supply corridors are: Hamburg

Manchester
– Corridor A: North Africa & Southern Europe

Dublin
Berlin
Rotterdam
Cork Warsaw
– Corridor B: Southwest Europe & North Africa London

Cologne
Leipzig
Frankfurt Prague Krakow
– Corridor C: North Sea

– Corridor D: Nordic and Baltic regions
Paris Munich
Vienna Bratislava
Budapest
– Corridor E: East and South-East Europe Lyon

Ljubljana
Milan
Venice
Bordeaux Bucharest
Bilbao
E
These five corridors span across both domestic and import Marseille Sofia
B
supply markets, consistent with the three import corridors
Rome
Porto
Barcelona
identified by the RePowerEU plan, including a corridor via Madrid
Valencia
the Mediterranean (Corridors A and B), via the North Sea Lisbon
Palermo
(Corridor C) and via Ukraine (Corridor E)

A
Athens
Almeria
Tarifa
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These five corridors represent the collective vision of the 8
31 gas infrastructure companies part of the EHB initiative
Corridor A Corridor B Corridor C Corridor D Corridor E

North Africa Southwest Europe North Sea Nordic and East and South-East
& Southern Europe & North Africa Baltic regions Europe
CMYK PA N TO N E
10 0 / 75 / 2 0 / 10 2 81 C
CMYK PA N TO N E
6 0 / 0 / 10 0 / 0 369 C
CMYK PA N TO N E
12 / 0 / 10 / 5 0 4 31 C
Note: Since all corridors terminate in Germany, OGE and ONTRAS are presented in each corridor grouping.
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Each corridor has a unique regional role in enabling the scale up of low-cost 9
hydrogen supply and the decarbonisation of energy demand
Corridor A Corridor B Corridor C Corridor D Corridor E

North Africa Southwest Europe North Sea Nordic and East and South-East
& Southern Europe & North Africa Baltic regions Europe
Corridor A would transport Corridor B would Corridor C includes hydro Corridor D would transport Corridor E would connect
large quantities of cost- transport green hydrogen gen supply from ongoing green hydrogen supply high supply potential
competitive green hydro supply from the Iberian and planned offshore potential from onshore regions such as Romania,
gen potential from Tunisia peninsula and North wind, blue hydrogen and and offshore wind from Greece, and Ukraine¹
and Algeria through Italy to Africa, and gain access large-scale integrated countries surrounding the – leveraging vast land
central Europe leveraging to underground storage hydrogen projects in the Baltic Sea. availability and high-
existing gas infrastructure. sites in France to deliver North Sea. Corridor D would be built capacity factors for solar
Corridor A would decar stable hydrogen supply. Corridor C would meet around regional networks and wind.
bonise existing industries Corridor B would decar demand from industrial around industrial clusters, Corridor E would deliver
along the route in Italy bonise regional industry clusters and ports in the serving numerous new green hydrogen to off-takers
and Central Europe as and transport clusters in UK, the Netherlands, steel, e-fuel, fertilizer and in Central Europe and
well as in Germany. Portugal, Spain, France Belgium and Germany. green chemicals projects Germany.
and Germany. in the Nordics as well
as decarbonizing existing
industry in the Nordics,
Baltics, Poland and Germany
along the corridor route.
1 While Ukraine is expected to be a hydrogen exporting region, there is significant uncertainty related to Russia’s invasion of Ukraine and its impact on Ukraine’s gas infrastructure and economic development.
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These five supply corridors will enable the creation 10
D
of a pan-European hydrogen market by 2030
– Connect substantial hydrogen supply and demand across

European regions and leverage underground storage to
deliver stable supply Oslo Helsinki
– Access vast volumes of cost-competitive domestic hydrogen

C
Talinn
Stockholm
supply and hydrogen imports from neighboring regions

Göteborg
– Foster the creation of a liquid, pan-European, hydrogen Riga
trading market Edinburgh

Copenhagen
Gdansk Vilnius
Hamburg
Manchester
– Accelerate the deployment and integration of renewable Dublin
Berlin
energy resources Cork

Rotterdam
Warsaw
London Leipzig
Cologne
– Support scale-up of green, innovative European industries Frankfurt Prague Krakow
Paris Munich
Vienna Bratislava
Budapest
– Increase the resiliency of Europe’s energy system Ljubljana

Lyon
Milan
– Contribute to European energy independence and Bordeaux
Venice
Bucharest
diversity of supply. Bilbao
E
Marseille Sofia
B
Rome
Porto
Barcelona
Madrid
Valencia
Lisbon
– Deliver substantial and cost-effective emission reductions

Palermo
A
Athens
Almeria
Tarifa
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To ensure the development of each corridor by 2030, 11
there is a need for clear and concrete actions
Corridor A Fostering development of new and repurposed hydrogen infrastructure, for example, by unbundling rules
North Africa
& Southern Europe facilitating the efficient use of TSO expertise and services and by allowing the adoption of different vertical unbundling
models in the EU, as is the case with natural gas
Corridor D
Nordic and
Baltic regions
Unlock financing to fast-track hydrogen infrastructure deployment by applying regional regulatory flexibility and
other pragmatic financing solutions (including incentivizing the adoption of hydrogen by demand sectors)
Corridor B
Southwest Europe
& North Africa
Simplify and shorten planning and permitting procedures for the full value chain of renewable energies and
hydrogen infrastructure projects.
Facilitate integrated energy system planning of hydrogen, natural gas, and electricity infrastructure supporting
the accelerated deployment and integration of renewable energy resources
Corridor E
Corridor C East and South-East
North Sea Europe Intensify energy partnerships with exporting, non-EHB countries (e.g., with Morocco, Algeria, Tunisia, Ukraine)
providing financing support to reduce the cost of capital in export countries and identifying a common certification
system for hydrogen exchanges
However, speed will be of essence!

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The EHB initiative stands ready to deliver the hydrogen infrastructure 12
needed to achieve Europe’s 2030 hydrogen targets
We have identified a large We analysed and These five supply corridors To ensure the Ultimately, to realise
share of the demand and studied five large- have the potential to development of these the hydrogen pipeline
supply needed to meet scale, hydrogen supply provide Europe with supply corridors on time, infrastructure required by
the RePowerEU targets. corridors that will be access to abundant we have identified five 2030, action is needed
critical in transporting and low-cost hydrogen key concrete actions now.
the required amounts of supply by 2030.
hydrogen.
The EHB initiative and its members are ready to deliver

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Our recommendation: Establish hydrogen supply corridors 13
as enabler for hydrogen market creation
Answering to RePowerEU EHB recommends introducing

the establishment of hydrogen
This reports shows how all supply & import corridors as
31 members are able to front-running infrastructure,
accelerate the hydrogen including all infrastructure require-
infrastructure development ments, as a political objective.
to enable the 20 MT of renew-
able hydrogen by 2030
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TABLE OF CONTENTS 14

INTRODUCTION TO THE CORRIDORS © 2022 European Hydrogen Backbone,
all rights reserved
This report analyses each of the five hydrogen corridors 15
D
and their roles in enabling a pan-European backbone
Sections Questions answered

1 Hydrogen – How will hydrogen demand and supply evolve
over time in this corridor?
Oslo
Demand
Helsinki
C
Talinn
– Which countries and sectors will drive the Stockholm
& Supply
development of hydrogen demand in this Göteborg
corridor? Riga
– How will the hydrogen supply mix change Edinburgh

Copenhagen
over time?
Gdansk Vilnius
Hamburg
2 Costs & Cost – How competitive will hydrogen from this corridor
Manchester
Dublin
Berlin
Competitiveness be with fossil alternatives? Cork

Rotterdam
Warsaw
– What cost-levers can lower hydrogen cost? London

Cologne
Leipzig
Frankfurt Prague Krakow
3 National – What is the state of national hydrogen strategies Paris Munich

Vienna Bratislava
Strategies and regulation in the countries of this corridor? Budapest
& Regulations
Ljubljana
Lyon
Milan
Venice
Bordeaux Bucharest
4 Actions
Bilbao
– What near-term regulatory and planning
E
Marseille Sofia
Needed actions are required to support the development

B
Rome
Porto
of this corridor?
Barcelona
Madrid
Valencia
Lisbon
Palermo
A
Athens
Almeria
Tarifa
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This study builds on previous EHB reports and findings, 16
and incorporates new corridor-specific analysis
Key study inputs Major study uncertainties Out of scope
Inputs are defined primarily over the 2030-2050 – Uncertainty on near- and long-term European – This study does not incorporate detailed
timeframe, building on the most recently published natural gas prices and supply mix. infrastructure planning associated with the
EHB reports and maps: – Uncertainty related to Russia’s invasion repurposing of existing natural gas pipelines,
– Hydrogen demand forecasts by country, of Ukraine and its impact on Ukraine’s gas storage facilities, or gas import / export
sector and year. infrastructure, economic recovery and terminals.
– Realisable hydrogen supply potential by development of a hydrogen market. – This study does not account for ship imports
country and year; – Uncertainty regarding the development of of hydrogen or hydrogen-derivatives like
hydrogen pipeline infrastructure across ammonia and methanol into Europe.
– Existing gas pipeline infrastructure (onshore
and offshore) and storage facilities; Europe, which is subject to developments
in European and national energy policy,
– Hydrogen infrastructure development plans regulations and funding.
by country; and
– Uncertainty regarding future hydrogen demand
– Costs assumptions associated with green and and supply, which may accelerate and increase
blue hydrogen supply and pipeline repurposing. further as a result of additional regulatory measures
adopted in response to the RePowerEU plan.
Methodology Section: Refer to the Section 3: Methodology for a description of the general supply and demand approach, key inputs, data sources, calculations, etc.
all rights reserved
Since some corridors transit through the same countries, 17
key metrics – like corridor length, supply and demand – overlap
In this study, when a corridor transit through a Total corridor length (km)² 10,000 28,000
given country, even if only partially, it becomes 13,500
part of the analysis of the corridor, including its
hydrogen demand, supply and transport infrastructure.
All five corridors of this study either: (1) transit
through some of the same countries, or (2)
terminate in the same country¹. 12,000
For example:
– Corridor B (Southwest Europe and North Africa) and 10,000
Corridor C (North Sea) both transit through sections
of the Netherlands, Belgium and Germany.
11,000
– Corridor D (Nordic and Baltic regions) and
Corridor E (East and South-East Europe) both transit
through section of Germany, Czechia and Poland.
This means that all corridors partially overlap with
other corridors. As a result, key metrics – like
corridor length, supply and demand – overlap
and are not mutually exclusive.
This is illustrated on the right for corridor lengths.
Corridor A Corridor B Corridor C Corridor D Corridor E 2030
1 Since the largest demand clusters in Europe are concentrated in and around Germany,
all five corridors terminate – and thus, overlap – in Germany
2 The basis for these determining corridor lengths is the most recent publication of the
EHB maps (April 2022). Note: Since all corridors partially overlap, summing all individual corridor lengths – without adjusting for overlaps – adds up to ~56,000km, which is two times the combined length of 28,000 km in 2030².
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CORRIDOR A © 2022 European Hydrogen Backbone,
all rights reserved
North Africa 19
& Southern Europe
Agenda
1. Corridor Summary
2. Hydrogen Demand & Supply
3. Supply Costs & Cost-Competitiveness
4. National Strategies & Regulation
5. Actions Needed
CORRIDOR A / FACTSHEET Corridor A / North Africa & Southern Europe
North Africa 20
Corridor emerges in Southern Europe providing access to low-cost

& Southern Europe hydrogen supply from North Africa to demand clusters along the corridor
Italy Drivers & Major driver of development is the need to meet hydrogen demand from
Switzerland industry, transport and power in Italy, Central Europe and Germany. Key
Opportunities
Slovenia opportunities include the high repurposing potential of gas pipelines from Italy
Hungary to Central Europe, and pipeline interconnections with Algeria and Tunisia.
Croatia H₂ supply potential¹ Emissions
Hydrogen Supply 2030 2040
Czechia (TWh/year) 340 TWh Reductions
Austria & Decarbonization
(MtCO₂/year vs. 2019; -55 Mt
Slovakia Potential % reduction) (6%)
97 TWh
Germany -160 Mt
2030 2040 (18%)
Supply Costs Cost of H₂ Cost competitiveness²

production¹ 2.1–3.8 Hydrogen 73
& Cost-
69
72
1.4–2.8 delivered price
(€/kg of H₂) 62
Competitiveness vs. 59
42
natural gas price
high/low,
© 2022 European Hydrogen Backbone, all rights reserved

(€/MWh)
2030 2040 2030 2040
Actions Needed – Fostering development of new and repurposed hydrogen infrastructure

– Unlock financing to fast-track hydrogen infrastructure deployment
– Simplify and shorten planning and permitting procedures
– Facilitate integrated energy system planning of hydrogen, natural gas, and
electricity infrastructure
– Intensify energy partnerships with exporting, non-EHB countries like Tunisia and Algeria
1 Figures reported reflect outputs for all countries included in the corridor. Even if a country is only partially in the corridor, results for the full country are included (e.g., supply potential and costs,
demand, transmission network length).
2 Savings are based on the corridor’s case study of hydrogen delivered in 2030 and 2040. The cost of natural gas includes CO₂ prices. Refer to Subsection 3 (Supply Costs & Cost-Competitiveness)
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North Africa 21
& Southern Europe
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR SUMMARY Corridor A / North Africa & Southern Europe
Corridor offers access to low-cost hydrogen supply from North Africa 22
to demand centers in Italy, Central Europe and Germany
Drivers & – The major driver behind the development of this corridor is – A major opportunity of the corridor is the ability to repurpose a
the adoption of hydrogen associated with the decarbonisation large share of existing gas pipeline infrastructure across Italy,
Opportunities
of industry, transport and power in Italy, Central Europe and Austria, Slovakia, and Czechia. Another key opportunity is the potential
Germany. The speed of hydrogen adoption in these regions may repurposing of the Trans-Mediterranean pipeline connecting Tunisia
be even faster than anticipated driven by increasing CO₂ prices to Italy via Sicily, giving the corridor access to the abundant solar and
in the EU and the RePowerEU ambitions to replace natural gas wind resources of Northern Africa.
consumption. – Recently, RePowerEU identified the development of a new subsea
– In the near term, the corridor offers access to abundant low- pipeline connecting Spain and Italy, expected to be available for
cost, renewable production from Italy and Tunisia. In the hydrogen transport by 2030.
longer term, this corridor may also provide access to hydrogen – The corridor would be stood up by 2030, covering 11,000 km of
imports from Algeria (via Tunisia) and additional supply from large-scale hydrogen pipelines across all countries of the corridor, of
Central and South-Central Europe. which approximately 60% will be repurposed pipelines.
Hydrogen Demand – Total hydrogen demand in the corridor reaches ~140 TWh by – Hydrogen adoption across all countries of the corridors enables an
2030, increasing substantially to ~550 TWh by 2040. Up to emissions reduction of ~220 MtCO₂/yr. by 2050, equivalent to a
& Supply

2030, most hydrogen demand is driven by the industrial sector 25% emissions reduction.
in Germany and Italy, along with some use of hydrogen in power – The corridor enables access to hydrogen supply potential of
generation. From 2040 to 2050, hydrogen demand expands into ~100 TWh by 2030, increasing to roughly 340 TWh by 2040.
the transport sector and continues to ramp up in industry and Major sources of supply include hydrogen imports from North Africa
power generation. and green hydrogen from Italy.
CORRIDOR SUMMARY Corridor A / North Africa & Southern Europe
To successfully stand up this corridor by 2030, actions are needed 23
to support infrastructure planning, financing and development
Costs & Cost- – By 2030, the corridor provides access to hydrogen ranging in – Based on a case-study of hydrogen supply and transport from Tunisia
production costs from 2.1 to 3.8 €/kg. By 2040, as supply to Germany, the cost of delivered hydrogen – inclusive of transport
Competitiveness
options increase, technology costs decrease, and increased and storage costs – can be lowered to achieve cost levels
imports from North Africa become available, hydrogen comparable to production costs by 2040. Lowering delivery costs
production costs decrease to 1.4 to 2.8 €/kg. can be achieved through various cost levers including optimised
– Already by 2030, this corridor’s lowest-cost supply options are operation of the system and cost of capital reductions.
imports from North Africa.
National Strategies – Most countries have developed – or are in the process – In select countries, substantial funding has been allocated to
of developing – national strategies. Moving forward, the support the development of the hydrogen market including funding
& Regulation
development of hydrogen regulation in all countries will be key for gas network infrastructure.
in enabling investment in infrastructure.
Actions Needed To support the buildout of this corridor by 2030, clear and concrete – Simplify and shorten planning and permitting procedures for the
actions related to infrastructure planning, financing and development full value chain of renewable energies and hydrogen infrastructure

have been identified: projects.
– Fostering development of new and repurposed hydrogen – Establish integrated energy system planning of hydrogen, natural
infrastructure. gas, and electricity infrastructure.
– Unlock financing to fast-track hydrogen infrastructure deploy – Intensify energy partnerships with exporting, non-EHB countries
ment by applying regional regulatory flexibility and other prag like Tunisia and Algeria.
matic financing solutions.
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North Africa 24
& Southern Europe
Agenda
1. Corridor Summary
5. Actions Needed
HYDROGEN DEMAND & SUPPLY / SECTION INTRODUCTION Corridor A / North Africa & Southern Europe
This section explores the development of demand, supply and 25
transport infrastructure in the corridor from 2030 to 2050
2030 Corridor Hydrogen demand

Snapshot By 2030, the corridor connects all major industrial clusters from Italy to
(Supply, Demand, Germany. From 2030 to 2040, the corridor expands to all demand centers
and Infrastructure) along its route, increasing demand from 140 to ~550 TWh.
Hydrogen supply
By 2030, the corridor enables access to low-cost supply from Italy and
Pipelines
Repurposed
Tunisia. By 2040, the corridor gains access to supply from Algeria (via
New
Import / Export
Tunisia), Central and South-Central Europe
Subsea
Demand per sector

In 2030, hydrogen supply is ~100 TWh, of which more than 70% is imports.
Hydrogen supply increases significantly by 2040, reaching 340 TWh.
40 / 30 / 20 / 10 / 1 TWh
Efuels production
Industrial energy 97 TWh (2030)
Industrial feedstock

Power
Supply in MWh/km² Imports Grid-based Dedicated green Blue

<1
1 – 25
25 – 100
100 – 250 Hydrogen Infrastructure
250 – 500
> 500
By 2030, the buildout of pipeline infrastructure across all countries of the
Storages
Salt cavern corridor reaches 11,000 km of large-scale pipelines. Corridor benefits from a
Aquifer
Depleted field very large share of repurposed infrastructure.
Rock cavern
Other items
Existing or planned
gas-import-terminal 60% (Repurposed pipelines) 40% (New pipelines) 11,000 km (2030)
Energy island for
H₂ production
HYDROGEN DEMAND & SUPPLY Corridor A / North Africa & Southern Europe
Corridor connects major hydrogen clusters across Italy and 26
Central Europe by 2030, expanding to all demand centers by 2040
2030 2040
Pipelines Pipelines
Repurposed Repurposed
New New
Import / Export Import / Export
Subsea Subsea

Demand per sector Demand per sector
40 / 30 / 20 / 10 / 1 TWh 40 / 30 / 20 / 10 / 1 TWh
Efuels production Efuels production
Industrial energy Industrial energy
Industrial feedstock Industrial feedstock
Power Power
Storages Storages
Salt cavern Salt cavern
Aquifer Aquifer
Depleted field Depleted field
Rock cavern Rock cavern
Other items Other items

Existing or planned Existing or planned
gas-import-terminal gas-import-terminal
Energy island for Energy island for
H₂ production H₂ production
Hydrogen demand increases rapidly from 2030 to 2040, largely driven 27
by Germany and Italy. Demand continues increasing to 2050
Country¹ 2030 2040 2050 Hydrogen demand – across all countries of

the corridor – increases significantly from
Total demand per country (TWh/y)
2030 to 2050. Demand reaches 140 TWh by
Italy
2030, increasing to 840 TWh by 2050.
23 89 187
Hydrogen demand may accelerate and
Croatia 2 8 11 increase further as a result of additional
regulatory measures adopted in response to
Slovenia 1 5 7 the RePowerEU plan.
– Up to 2030, most hydrogen demand is
General H₂ flow
Hungary 4 15 25 driven by the industrial sector in Germany

and Italy, along with some use of hydrogen
Czechia 5 17 27 in transport and power generation.
– From 2040 to 2050, hydrogen demand
Austria 8 36 52
expands into the transport sector and continues

to ramp up in industry and power generation.
Slovakia 7 20 26
Germany 90 364 505
Total 140 553 840
1 Switzerland is not included in the demand figures because as a non-EU member, Switzerland is not included in the datasets used to estimate hydrogen demand in 2030, 2040 and 2050.
Note: Does not include grey hydrogen demand. Numbers represent total demand by country, even if only parts of the country are included in the corridor.
Hydrogen adoption enables a reduction in emissions 28
of 25% by 2050 across all countries of the corridor
Emissions reductions
(vs. 2019 emissions¹) -6 % -18% -25 % Hydrogen adoption across all demand
sectors enables an emission reduction of
~220 MtCO₂/yr. by 2050, equivalent to a
Decarbonisation
in Mt CO₂ / year
25% reduction².
240 – Up to 2030, the decarbonisation of
221 industry – largely the steel sector and
220
refining – contributes 75% of the total
200 emissions reductions.
180 – By 2040, emissions reductions from power
159 generation and transport (road, shipping and
160
aviation) increase substantially and combined
140 account for 50% of emissions reductions.
120 – By 2050, most incremental emissions re
ductions are associated with hydrogen

100
adoption in the power and transport sectors.
80
60 54
40
20 Industry
Power
Buildings
0 Transport 1 CO₂-Emissions from countries and sectors included in corridor (0.89 bn t CO₂ / year),
Source: EEA
2030 2040 2050 2 Emissions reductions are calculated compared to the baseline fossil fuel used in each
sectors. For example, emissions reductions associated with the adoption of hydrogen by the
primary steel sector are relative to the use of coal. Similarly, emissions reductions , for e-fuels
© 2022 European Hydrogen Backbone, all rights reserved production are relative to the use of fossil fuels in domestic transport, shipping and other uses.
Corridor enables access to supply from Italy and Tunisia by 2030, 29
expanding to supply from Central and South-Central Europe by 2040
2030* 2040*
Pipelines
Repurposed
New
Import / Export
Subsea Pipelines
Repurposed
Supply in MWh/km² New
<1 Import / Export

1 – 25 Subsea
25 – 100
100 – 250 Supply in MWh/km²
250 – 500 <1
> 500 1 – 25
25 – 100
Storages 100 – 250
Salt cavern 250 – 500
Aquifer > 500
Depleted field
Rock cavern Storages
Salt cavern
Other items Aquifer
Existing or planned Depleted field
gas-import-terminal Rock cavern
Energy island for
H₂ production Other items
Existing or planned
Total hydrogen supply shown per NUTS-2 region. MWh gas-import-terminal
adjusted by the area of each NUTS-2 region in km². Energy island for
* Note: Supply numbers do not include grey hydrogen. H₂ production
Hydrogen supply increases significantly from 2030 to 2040, largely 30
driven by green hydrogen supply from North Africa and Italy
Country 2030 2040 2050 Hydrogen supply includes a mix of supply

options including grid-based green hydrogen²
Supply Net¹ Supply Net¹ Supply Net¹
and dedicated green hydrogen.
Imports
(TN, ALG)
70 150 375 – By 2030, hydrogen supply reaches
70 150 375
~100 TWh, largely from grid-based
Italy
7
-16
40 9
-40
82 11
-94 hydrogen.
Croatia -2 4 7 – By 2040, hydrogen supply increases sub
0.1 11 18 stantially to ~340 TWh, of which 90%
Slovenia -1 -1 -3 is from dedicated green hydrogen. The
General H₂ flow
0 4 4
remaining share is grid-based hydrogen.
Hungary -4 -5 7
0.4 10 1 31 1 – By 2050, hydrogen supply increases
further to ~730 TWh. Dedicated green
Czechia -4 -17 -27
0.1 0.1 0.1 supply continues to account for the largest
share at roughly 95%.

Austria -5 -31 -45
3.7 5 7
Hydrogen supply may accelerate and
Slovakia
0.4 0.2
-6
6
-14
12 1
-13 increase further as a result of additional
regulatory measures adopted in response to the
Germany -75 -261 -313
14.6 81 21 165 27 RePowerEU plan.
Total -43 -214 -106
70 26 303 37 687 47
1 Net represents excess supply after subtracting demand;

2 Grid-based is estimated using national 2030 electrolyser targets which, by 2030, are assumed to be largely Dedicated green
grid-connected rather than dedicated. Grid-based increases over 2030-2050 with increasing RES adoption; Blue
3 Switzerland is not included in the demand figures because as a non-EU member, Switzerland is not included Grid-based
in the datasets used to estimate hydrogen demand in 2030, 2040 and 2050. 2050 technical potential Note: Hydrogen supply volumes do not include hydrogen imports by ship.
Tunisia and Algeria may become a potential sources 31
of hydrogen imports to Europe as early as 2030
State of – North Africa connects to Italy via Tunisia with one interconnector: the Hydrogen supply potential (TWh)¹
Enrico Mattei – Transmed pipeline via Sicily (525km, 30 bcm/year)
Gas Infra- – Two existing Algerian LNG export terminals: Arzew/Bethouia
(20.8 mln tonne per year) and Skikda (7.7mln tonnes per year)
structure – Hydrogen export potential via this corridor focuses primarily on hydrogen Tunisia + Algeria
supply from Tunisia and Algeria via the Transmed pipeline. 375
Market – Abundant renewable energy potential particularly solar PV and onshore

wind
Attractive- – Partnerships: Germany has established partnerships with both Tunisia and 150
Algeria exploring the potential of green hydrogen exports
ness – Market developments: 70
– Tunisia is taking part in the HyDeal project, which could see 1.4Mt/year
produced in the country and an investment of over 20bn €.
– Availability of Algerian hydrogen exports to Europe highly depends on 2030 2040 2050
repurposing natural gas pipelines between Algeria and Tunisia.
Market – Limited renewable energy infrastructure, low renewables penetration in

own energy system and strong reliance on hydrocarbons today

Barriers – Inadequate financing mechanisms on a state and local level for renewable
projects
– Future growth in domestic hydrogen demand may impose limit on exports.
1 Supply figures estimated based on hydrogen supply potential combined for Tunisia and Algeria. Export potential is dependent on development of
demand and infrastructure. Note: The high potential import from Algeria and Tunisia depends on development of both demand and infrastructure
all rights reserved
North Africa 32
& Southern Europe
Agenda
1. Corridor Summary
5. Actions Needed
SUPPLY COSTS & COST-COMPETITIVENESS / SECTION INTRODUCTION Corridor A / North Africa & Southern Europe
This section explores the costs of hydrogen production and delivery 33
for this corridor and their competitiveness with fossil fuels
Hydrogen production cost Hydrogen delivered costs Comparison with fossil alternatives
Key Questions What is the range of production costs Based on a case-study of hydrogen supply How competitive is hydrogen supply
Answered achieved by the corridor in 2030 and from Tunisia to Germany: from this corridor compared to fossil fuel
2040? – What are the full costs of firm hydrogen alternatives?
delivery after accounting for transport
and storage costs?
– What cost levers are available to lower the
cost of hydrogen delivery?
Content SUPPLY COSTS & COST-COMPETITIVENESS
By 2040, hydrogen supply options increase and scale up

Corridor A / North Africa & Southern Europe
35
SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY
Hydrogen delivered costs, including transport and storage

36
SUPPLY COSTS & COST-COMPETITIVENESS
Hydrogen costs are cost-competitive with all fossil fuel

37
Material
leading to production costs ranging from 1.4 to 2.8 €/kg costs, can be kept low by applying cost reduction levers alternatives by 2030, and materially lower by 2040

1
Hydrogen Production Cost Range [2040]¹, ², ³ This analysis assesses a case study of hydrogen supply from Tunisia to Corridor Case 2030 2040
industrial offtakers in southern Germany to explore how the costs of firm By 2030, the low range of hydrogen
InLevelised
2030, the corridor offers access to hydrogen 34 Study Route
hydrogen delivery can be lowered. Production Cost of fossil Production Cost of fossil production costs are competitive
cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) costs fuel alternatives costs fuel alternatives
with natural gas and coal, and
production ranging in costs from 2.1 to 3.8 €/kg lower than oil alternatives.
2
€/MWh 114 89‒115 €/MWh
To assess the full cost of firm delivery to Germany, transport and storage Pipelines
(=3.8 €/kg)
costs are added to the cost of hydrogen production from Tunisia. Repurposed By 2040, the low range of
a
ly
va aly
aly
tia
an
an
an
an
ric
ar
New Fuel cost

It a
oa
hydrogen costs are materially

It
, It
ng
m
m
Af
Import / Export uncertainty 83‒95

Cr
kia
er
er
er
er
Hu
th
Subsea
G
G
or
3.0 85‒88 lower than all fossil alternatives,

Slo
Hydrogen Production Cost Range [2030]¹ ² ³

N
, , 2.8 84 (=2.8 €/kg)

+ + = Case study while the medium-to-high range
2.5 Production Transport Storage Delivered 59‒73 Delivered are cost competitive.
63‒69 72 €/MWh 62‒69
Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) Costs Costs Costs Costs cost of H₂
2.0 1.4 €/kg Hydrogen delivered costs from the
63 (=2.1 €/kg)
Tunisia-Germany case study are
1.5 3 Several cost reduction levers can be applied to lower firm delivery
costs, including optimised system operation, battery storage use, cost of
Case study
Delivered competitive to natural gas in 2030
a
ia
kia
42 €/MWh
an
ric
str
cost of H₂ (22% higher) and lower in 2040

va
m
Af
1.4
Au
42
Slo
capital reductions, among others. (=1.4 €/kg)

er
th
2.4 €/kg
G
(32% lower).

or
1.0
ly,
4.0
N
Ita
3.8

0.5 3.5 Natural gas prices are still
3.0
uncertain due to recent price
0 spike as a result of the Russian
H₂ production Natural Steam Oil H₂ production Natural Steam Oil
4
2.5 invasion of Ukraine.
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 2040 These cost reduction levers achieve sufficient cost savings to cost-range Gas Coal cost-range Gas Coal
Imports
2.0
Wind offshore Solar PV Case study (see next slide) High 2.1
keep firm hydrogen delivery costs low and cost-competitive at Higher Cost H₂ Fuel cost Fuel uncertain
Blue hydrogen Wind onshore
1.5
Grid-connected Low
2.4 €/kg in 2030 and 1.4 €/kg in 2040. Lower Cost H₂ CO₂ cost Note: For comparison purposes, cost of H₂ has been converted from
“per kg” to “per MWh”

– 1 €/kg = 30 €/MWh (based on LHV of 33.3 kWh/kg)
1.0 Competitiveness of hydrogen highly dependant on CO₂-prices as they

Note: Prices for fossil alternatives (2030/2040): Natural gas (pre-invasion): 28/13 [€/MWh], Coal: 123/5.6 [€/MWh], Oil: 52/24 [€/MWh]. Natural gas price levels are based on market conditions before Russia’s invasion of Ukraine. While natural gas prices make up a significant part of fossil fuel costs.
have skyrocketed since, there remains significant uncertainty on near- and medium-term European price trends and supply options. As a result, our analysis adopts the IEA’s Outlook 2021 price forecast pre-invasion developed pre-invasion. Prices in 2040 – CO₂ price 2030: 130 €/t
1-3 See previous slide 0.5 are significantly lower than in 2030 because of demand-supply conditions. By 2040, decreased demand for fossil fuels would lower prices. [Source: International Energy Agency, Outlook 2021 (IEA)] and fuel-cost uncertainty is shown with +50% range] – CO₂ price 2040: 205 €/t
0.0
0 10 20 30 40 50 60 70 80 90 100 2030
Imports Wind offshore Solar PV Case study (see next slide) High
Blue hydrogen Wind onshore Grid-connected Low
1 Cost curves are based on a bottom-up estimate of supply volumes per country and hydrogen production type. No transport or storage / firming cost are included.
2 Dedicated hydrogen production costs are based on renewable technology and electrolyser costs, and country-specific capacity factors and discount rates.
3 Grid-connected hydrogen production costs are determined based on costs of a mix of dedicated green hydrogen (solar, onshore wind, offshore wind) and adjusted for grid-connection costs.
Key Findings – By 2030, the corridor provides access – Several cost reduction levers can be – Hydrogen costs are competitive with
& Results to hydrogen production costs of 2.1 to applied to lower the costs of hydrogen fossil fuel alternatives by 2030, and
3.8 € / kg. delivery. lower by 2040.
– By 2040, hydrogen production costs – For the Tunisia-to-Germany case study, – Fossil fuel costs are subject to significant
decrease to the range of 1.4 to 2.8 € / kg. these levers achieve delivery costs that uncertainty.
are low and cost-competitive.
SUPPLY COSTS & COST-COMPETITIVENESS Corridor A / North Africa & Southern Europe
In 2030, the corridor offers access to hydrogen 34
production ranging in costs from 2.1 to 3.8 €/kg
Hydrogen Production Cost Range [2030]¹, ², ³
Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg)
ia
kia
an
ric
str
va
m
Af
Au
Slo
er
th
G
or
ly,
4.0
N
Ita
3.8
3.5
3.0
2.5
2.0
2.1
1.5

1.0
0.5
0.0
0 10 20 30 40 50 60 70 80 90 100 2030
By 2040, hydrogen supply options increase and scale up 35
leading to production costs ranging from 1.4 to 2.8 €/kg
a
ly
va taly
tia
an
an
an
an
tal
ric
ar
It a
oa
ng
I
,I
m
m
Af
Cr
kia
er
er
er
er
Hu
th
G
or
3.0
Slo
N
2.8
2.5
2.0
1.5
1.4

1.0
0.5
0
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 2040
1-3 See previous slide

SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY Corridor A / North Africa & Southern Europe
Hydrogen delivered costs, including transport and storage 36
costs, can be kept low by applying cost reduction levers
1 This analysis assesses a case study of hydrogen supply from Tunisia to

industrial offtakers in southern Germany to explore how the costs of firm
Corridor Case
Study Route
hydrogen delivery can be lowered.
2 To assess the full cost of firm delivery to Germany, transport and storage
costs are added to the cost of hydrogen production from Tunisia.
Pipelines
Repurposed
New
Import / Export
Subsea
+ + =
Production Transport Storage Delivered
Costs Costs Costs Costs
3 Several cost reduction levers can be applied to lower firm delivery

capital reductions, among others.

4 These cost reduction levers achieve sufficient cost savings to
keep firm hydrogen delivery costs low and cost-competitive at
2.4 €/kg in 2030 and 1.4 €/kg in 2040.
Hydrogen costs are cost-competitive with all fossil fuel 37
alternatives by 2030, and materially lower by 2040
2030 2040
By 2030, the low range of hydrogen
Production Cost of fossil Production Cost of fossil production costs are competitive
costs fuel alternatives costs fuel alternatives
€/MWh 114 (=3.8 €/kg) 89‒115 €/MWh lower than oil alternatives.
Fuel cost
By 2040, the low range of
uncertainty 83‒95 hydrogen costs are materially
85‒88 lower than all fossil alternatives,
84 (=2.8 €/kg)
Case study while the medium-to-high range

59‒73 Delivered are cost competitive.
63‒69 72 €/MWh 62‒69
cost of H₂
1.4 €/kg Hydrogen delivered costs from the
63 (=2.1 €/kg)
Case study
Tunisia-Germany case study are
Delivered competitive to natural gas in 2030
42 €/MWh
cost of H₂
42 (=1.4 €/kg) (22% higher) and lower in 2040
2.4 €/kg
(32% lower).

Natural gas prices are still
spike as a result of the Russian
cost-range Gas Coal cost-range Gas Coal invasion of Ukraine.
Higher Cost H₂ Fuel cost Fuel uncertain
Lower Cost H₂ CO₂ cost Note: For comparison purposes, cost of H₂ has been converted from
Competitiveness of hydrogen highly dependant on CO₂-prices as they
Note: Prices for fossil alternatives (2030/2040): Natural gas (pre-invasion): 28/13 [€/MWh], Coal: 123/5.6 [€/MWh], Oil: 52/24 [€/MWh]. Natural gas price levels are based on market conditions before Russia’s invasion of Ukraine. While natural gas prices make up a significant part of fossil fuel costs.
are significantly lower than in 2030 because of demand-supply conditions. By 2040, decreased demand for fossil fuels would lower prices. [Source: International Energy Agency, Outlook 2021 (IEA)] and fuel-cost uncertainty is shown with +50% range] – CO₂ price 2040: 205 €/t
all rights reserved
North Africa 38
& Southern Europe
Agenda
1. Corridor Summary
5. Actions Needed
NATIONAL STRATEGIES & REGULATIONS Corridor A / North Africa & Southern Europe
Most countries have developed, or are developing, national strategies. Moving 39
forward, the development of regulation is key to enable infrastructure investment.

Pre-
RePowerEU
National Hydrogen strategy (NHS) Network regulation & policy Funding¹ (bn €) Highlights targets²
Italy – NHS preliminary. 2% H₂ share at final energy 2030 (20% in 2050) in – Public consultation process in relation to pilot projects – Focus on transport sector and hydrogen
transport, industry, refineries, blen. to optimise the innovative uses of existing natural gas 5.0 valleys for demand (industry) and production
– 5 GW electrolyser installed until 2030 transmission and distribution networks – Funding mainly to increase production of H₂
– Hydrogen valleys / industrial clusters – 99% of infrastructure is ready to transport H₂
Switzerland – The parliament currently developing national strategy – N/A – Hydrogen strategy is being developed
– Explicitly mentioned import strategy for H₂ – Energy plan: Industry & heavy duty transport
Slovenia – In NECP is set indicative target to have 10 % of renewable methane or – TSO is obliged to prepare the plan for acceptance of H₂ – Foreseen demand sectors: Transport (2030), followed by
hydrogen in the network (2030) industry & buildings (NECP)
Croatia – Foresees demand in industry, buildings, transport and power, with a supply – N/A – First production site by 2025
potential of 1.3 GW electrolysers
Hungary – Production of 36k tons/a (incl. low carbon H₂) – Min. 2% volume blending to natural gas grid – H₂ infrastructure in focus. Funding for storage is available
– 240 MW of electrolyser capacity 0.1 and blending to natural gas grid is envisioned
– Use to decarbonize industry and transport
Czech Republic – Focus Transport, then energy & chemical industry – N/A – H₂-Readiness of gas transmission system is urged, due to
– Green H₂ production potential focal role in H₂ transport (south to north and east to
– Import and transit country for H₂ west)

Austria – NHS is still in discussion; known elements are: 1 – 2 GW electrolyser capacity – H₂ mixtures of up to 10 % within Austria and 4-5 % on entry/ – Production of green H₂ is subsidised
(2030), use in industry exit points are allowed 0.5 – Preferred use to decarbonise industry
– Focus: Transport sector and underground H₂ storage
Slovakia – H₂ used in the chemicals, petrochemicals, steel and heating industries as well – N/A – Use H₂ in industries/areas impossible or not cost-effective to
as in transport directly use electricity
Germany – National production & import focus due to supply gap – H₂ network potentially opt-in regulated and vertically unbundled – Strong focus on international cooperation to ensure
– In place since 2020, currently reviewed towards increasing its ambition – First rules and standards for high pressure pipelines are 9 sufficient supply
– 10 GW (2030) electrolyser in coalition plans formulated – National funding
Note: Sequencing of countries follows the general corridor direction but does not represent the hydrogen flows.
1 Cumulative public funding amount by the respective state until 2030 General funding Network
2 Strategies and funding is under evaluation of meeting latest targets Supply Demand
all rights reserved
North Africa 40
& Southern Europe
Agenda
1. Corridor Summary
5. Actions Needed
ACTIONS NEEDED Corridor A / North Africa & Southern Europe
This corridor plays a fundamental role in achieving 41
a European backbone by 2040
2040
The need for this corridor
– The development of this corridor ensures access to abundant, low-cost
hydrogen supply from Italy and Tunisia by 2030, and by 2040 additional
supply from Algeria (via Tunisia) and from Central and South-Central Europe. Pipelines
Repurposed
New
– The decarbonisation of the largest hydrogen demand centers along Import / Export
Subsea
this corridor – in Italy, Central Europe and Germany – is dependent on Demand per sector
the buildout of this corridor by 2030, and its expansion towards 2040.
40 / 30 / 20 / 10 / 1 TWh
Actions required Efuels production

Industrial energy
– The buildout of this corridor by 2030 requires national governments to Power
take clear and concrete actions across. Supply in MWh/km²

<1
1 – 25
25 – 100
– This includes actions associated with infrastructure development and 100 – 250
250 – 500
planning, the development of cross-national initiatives and securing > 500

access to early funding and long-term, low-cost financing. Storages
Salt cavern
Aquifer
Depleted field
Rock cavern
Other items
Existing or planned
gas-import-terminal
Energy island for
H₂ production
ACTIONS NEEDED Corridor A / North Africa & Southern Europe
To ensure the development of this corridor by 2030, 42
Fostering development Unlock financing to Simplify and shorten Intensify energy partner Facilitate integrated
of new and repurposed fast-track hydrogen planning and permitting ships with exporting, energy system planning
hydrogen infrastructure, infrastructure deploy procedures for renewable non-EHB countries of hydrogen, natural
for example, by unbund ment by applying regional energy and hydrogen like Algeria and Tunisia, gas, and electricity
ling rules facilitating the regulatory flexibility and infrastructure projects. and providing financing infrastructure supporting
efficient use of TSO other pragmatic financing support to reduce their the accelerated deploy
expertise and services and solutions (including cost of capital ment and integration
by allowing the adoption incentivizing the adoption of renewable energy
of different vertical un of hydrogen by demand resources
bundling models in the sectors)
EU, as is the case with
natural gas

all rights reserved

CORRIDOR B © 2022 European Hydrogen Backbone,
all rights reserved
Southwest Europe 44
& North Africa
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR B / FACTSHEET Corridor B / Southwest Europe & North Africa
Southwest Europe 45
Corridor emerges in Southwest Europe providing access to low-cost

& North Africa hydrogen supply from the Iberian peninsula, and potentially Morocco.
Portugal Drivers & Major driver of development is the need to meet hydrogen demand from
Spain industry, transport and power in the Iberian peninsula, France and Germany.
Opportunities Key opportunities include the development of a new Spain-France interconnector
France
Belgium and underground storage in France, and access to imports from Morocco.
Luxembourg H₂ supply potential¹ Emissions
Hydrogen Supply 2030 2040
Germany (TWh/year) 569 TWh Reductions
& Decarbonization
Potential % reduction) (7%)
164 TWh
-211 Mt
2030 2040 (21%)

& Cost-
69
1.4–2.7 delivered price 62
(€/kg of H₂) 59 62
Competitiveness vs.
natural gas price
45
high/low,

(€/MWh)
2030 2040 2030 2040

– Intensify energy partnerships with exporting, non-EHB countries like Morocco and Algeria
1 Figures reported reflect outputs for all countries included in the corridor. Even if a country is only partially in the corridor, results for the full country are included
(e.g., supply potential and costs, demand, transmission network length).
all rights reserved
Southwest Europe 46
& North Africa
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR SUMMARY Corridor B / Southwest Europe & North Africa
Corridor offers access to low-cost hydrogen supply from the 47
Iberian peninsula to demand centers in France and Germany
Drivers & – The major driver behind the development of this corridor is the – A major opportunity of the corridor is the potential development of a
adoption of hydrogen associated with the early decarbonisation new interconnection between Spain and France through the East
Opportunities
of the industry, transport and power in the Iberian Peninsula, Pyrenees. The development of this interconnection would allow both
France and Germany. The speed of hydrogen adoption in these countries to benefit from the complementary nature of low-cost, high-
regions will accelerate driven by increasing CO₂ prices in the EU volume Spanish and Portuguese hydrogen production and French
and the RePowerEU ambitions to replace natural gas consumption. underground storage sites to help provide stable supply for off-takers
– The corridor offers access to low-cost, renewable production in the region. This development of this new interconnection would in turn
from the Iberian peninsula, currently the source of Europe’s require infrastructure reinforcements along the corridor.
lowest renewable auction prices. In the longer term, this corridor – A key longer-term opportunity is the potential repurposing of the
may also provide access to hydrogen imports from Morocco currently-underutilised, Maghreb-Europe subsea interconnector
and potentially Algeria. to enable low-cost hydrogen supply from Morocco and Algeria.
– Recently, RePowerEU identified the development of a new subsea
pipeline connecting Spain and Italy, expected to be available for
hydrogen transport by 2030.
– The corridor would be stood up by 2030, covering 10,000 km of

large-scale hydrogen pipelines across all countries of the corridor, of
which approximately 60% will be repurposed pipelines.
Hydrogen – Total hydrogen demand in the corridor reaches 200 TWh by – Hydrogen adoption across all countries of the corridors enables an
2030, increasing substantially to ~720 TWh by 2040. Up to emissions reduction of c.300 MtCO₂/yr. by 2050, equivalent to a
Demand
2030, the major demand sector is industry, with hydrogen being 29% emissions reduction.
& Supply used as feedstock and for energy needs. From 2040 onwards, – The corridor enables access to hydrogen supply potential of ~160 TWh
most hydrogen demand is for e-fuels production and the power by 2030, increasing to ~570 TWh by 2040. Major sources of supply
sector. include green hydrogen from the Iberian Peninsula and France by 2030,
with a potential role for Moroccan imports by 2040.
CORRIDOR SUMMARY Corridor B / Southwest Europe & North Africa
Key needs for action identified to successfully stand up 48
the hydrogen supply corridor until 2030
Costs & Cost- – By 2030, the corridor provides access to hydrogen production – Based on a case-study of hydrogen supply and transport from
costs ranging from a production cost of 2.0 to 3.8 €/kg. By Spain to Germany, the cost of delivered hydrogen – inclusive of
Competitiveness
2040, as supply options increase and technology costs decrease, transport and firming costs – can be lowered to achieve cost levels
hydrogen production costs decrease to 1.4 to 2.7 €/kg. comparable to production costs. Lowering delivery costs can be
– In the long term, this corridor’s lowest-cost supply options are achieved through various cost levers including optimised operation of
imports from Morocco and solar PV hydrogen from Spain and the system and cost of capital reductions.
Portugal.
National Strategies – National hydrogen strategies have been developed by all – In select countries, substantial funding has been allocated to
countries in the corridor, providing clear direction and supply support the development of the hydrogen market including funding
& Regulation
targets. for gas network infrastructure.
Actions Needed Low-cost H₂ supply/demand, but for realization and build-out of this – Simplify and shorten planning and permitting procedures for the
corridor until 2030, key needs for action has been identified: full value chain of renewable energies and hydrogen infrastructure
– Fostering development of new and repurposed hydrogen projects.

infrastructure. – Establish integrated energy system planning of hydrogen, natural
– Unlock financing to fast-track hydrogen infrastructure gas, and electricity infrastructure.
deployment by applying regional regulatory flexibility and other – Intensify energy partnerships with exporting, non-EHB countries
pragmatic financing solutions. like Morocco and Algeria.
Source: Guidehouse analysis

all rights reserved
Southwest Europe 49
& North Africa
Agenda
1. Corridor Summary
5. Actions Needed
HYDROGEN DEMAND & SUPPLY / SECTION INTRODUCTION Corridor B / Southwest Europe & North Africa
This section explores the development of hydrogen demand, 50
supply and transport infrastructure across the corridor
2030
Hydrogen Demand
By 2030, the corridor connects all major industrial clusters from Spain to
Corridor Snapshot (Supply, Germany. From 2030 to 2040, the corridor expands to all demand centers
Demand, and Infrastructure) along its route, increasing demand from 200 to ~720 TWh.
Hydrogen supply
By 2030, the corridor enables access to low-cost supply from parts of the
Pipelines
Repurposed
Iberian peninsula. By 2040, the corridor gains access to supply from most
New
Import / Export of the peninsula and low-cost imports from Morocco.
Subsea
Demand per sector

In 2030, hydrogen supply is ~160 TWh, of which 65% of supply is from
dedicated green hydrogen. Hydrogen supply increases significantly by 2040,
40 / 30 / 20 / 10 / 1 TWh reaching 570 TWh.
Efuels production
Industrial energy
Industrial feedstock 164 TWh (2030)

Power
Supply in MWh/km²
<1 Grid-based Dedicated green Blue
1 – 25
25 – 100
100 – 250
250 – 500
> 500
Hydrogen Infrastructure
Storages
Salt cavern
Aquifer
Depleted field
corridor reaches 10,000 km of large-scale pipelines. Corridor benefits from a
Rock cavern
large share of repurposed infrastructure.
Other items
Existing or planned
Energy island for
H₂ production
HYDROGEN DEMAND & SUPPLY Corridor B / Southwest Europe & North Africa
Corridor connects substantial hydrogen demand by 2030, 51
expanding to all major demand centers by 2040
2030 2040
Pipelines Pipelines
New New
Subsea Subsea

40 / 30 / 20 / 10 / 1 TWh 40 / 30 / 20 / 10 / 1 TWh
Power Power
Storages Storages
Aquifer Aquifer

Hydrogen demand increases rapidly from 2030 to 2040, 52
with most demand from Germany and Spain
Country 2030 2040 2050 Hydrogen demand – across all countries of

2030, increasing to roughly 1,100 TWh by 2050.
Portugal 5 20 28
increase further than forecasted as a result
Spain 46 156 261 of additional regulatory measures adopted in
response to the RePowerEU plan.
General H₂ flow
France 33 97 161 – Up to 2030, most hydrogen demand is

driven by the industrial sector in Spain,
Belgium 25 78 109
France and Germany with hydrogen being
used as feedstock and for energy needs.
– From 2040 to 2050, most new hydrogen
Luxembourg 1 3 7
demand is for e-fuels production and for

power generation.
Germany 90 364 505
Total 200 718 1,071
Hydrogen adoption in all countries of the corridor 53
enables an emissions reduction of 29% by 2050
(vs. 2019 emissions¹) 7 % 21% 29 % Hydrogen adoption across all demand
sectors enables an emissions reduction of
Decarbonisation
in Mt CO₂ / year
29% reduction².
297
300 – Up to 2030, the industrial sector contributes
75% of the total emissions reductions, largely
driven by the decarbonisation of the steel
250 sector.
211 – By 2040, emissions reductions from transport
(road, shipping and aviation) increase
200
substantially and combined with industry,
account for 80% of emissions reductions. The
150
power sector account for the remaining 20%
of reductions.

– By 2050, the transport sector alone accounts
100 for over 50% of emissions reductions.
73
50
Industry
Power
Buildings
Source: EEA
sectors. For example, emissions reductions associated with the adoption of hydrogen by
the primary steel sector are relative to the use of coal. Similarly, emissions reductions , for
© 2022 European Hydrogen Backbone, all rights reserved e-fuels production are relative to the use of fossil fuels in shipping, aviation and other uses.
Corridor enables access to supply from parts of the Iberian 54
peninsula by 2030, and potentially from North Africa, by 2040
2030* 2040*
Pipelines
Repurposed
New
Import / Export Pipelines
Subsea Repurposed
New
Supply in MWh/km² Import / Export

<1 Subsea
1 – 25
100 – 250 <1
250 – 500 1 – 25
> 500 25 – 100
100 – 250
Salt cavern > 500
Aquifer
Depleted field Storages
Rock cavern Salt cavern
Aquifer
Other items Depleted field
Existing or planned Rock cavern
gas-import-terminal
Energy island for Other items
H₂ production Existing or planned
gas-import-terminal
Total hydrogen supply shown per NUTS-2 region. MWh adjusted by the area of each NUTS-2 region in km². Energy island for
Hydrogen supply increases significantly from 2030 to 2040, 55
largely driven by green hydrogen supply from Spain
Country 2030 2040 2050 Hydrogen supply includes a mix of supply

options including grid-based green hydrogen³,
dedicated green hydrogen, and blue
Imports² hydrogen⁴.
0 46 115
(Morocco)
0 46 115 By 2030, hydrogen supply reaches
~160 TWh, largely from dedicated green
Portugal 12 35 45
15 1 53 2 72 2 hydrogen and grid-based hydrogen.
Spain 44 68 113
By 2040, hydrogen supply increases
substantially to ~570 TWh, of which roughly
General H₂ flow
66 8 213 11 359 15
85% is from dedicated green hydrogen. The
France 5 16 13 remaining 15% is from grid-based and blue
25 8 5 94 8 10 150 24
hydrogen supply. Grid-based supply increases
Belgium -4 -50 -98 slightly from 2030 due to the increasing
15 6 20 8 11 decarbonization of the electricity grid mix.

Luxembourg -1 -3 -7 By 2050, hydrogen supply increases further
0 0 0 to ~1,000 TWh. Dedicated green supply
Germany -75 -261 -313
continues to account for the largest share at
15 81 21 165 27 roughly 90%. Blue hydrogen supply is not
included in 2050 due to assumed target of zero
Total -35 -149 -132
emissions and de-fossilisation of Europe by 2050.
107 23 34 488 28 53 861 78
1 Net represents excess supply after subtracting demand

2 No imports are reported for Morocco in 2030 as the interconnection with Morocco would likely not be available until after 2030. Dedicated green
3 Blue hydrogen supply volumes will be subject to the evolution of gas markets and the development of low carbon hydrogen regulation in different Blue
country. As a result, some countries may have additional blue hydrogen supply which could be used to satisfy local demand. Grid-based
4 Grid-based green hydrogen is estimated based on the oversupply of electricity (demand less supply) in each country of the corridor from 2030 to 2050. 2050 technical potential Note: Hydrogen supply volumes do not include hydrogen imports by ship.
Morocco may become a potential source of hydrogen 56
imports to Europe by 2040, and potentially Algeria
State of – North Africa connects to Spain through Morocco via the Maghred-Europe Hydrogen supply potential (TWh)
offshore pipeline, currently used for natural gas exports to Europe. Morocco’s
Gas Infra- national hydrogen roadmap identified the potential to repurpose the Morocco only
Maghreb-Europe pipeline for hydrogen export¹.
structure – Morocco is in currently in preparatory stages ahead of upgrades to its
existing port infrastructure for LNG imports. Morocco
– Hydrogen export potential via this corridor focuses primarily on hydrogen 115
supply from Morocco, however, there is also potential for hydrogen exports
from Algeria to contribute to this corridor.
Market – Abundant renewable energy potential, particularly solar PV

– Partnerships: Hydrogen cooperation agreement with Germany (June 2020) to
46
Attractive- develop the hydrogen sector in Morocco².

– Market developments:
ness – HEVO Ammonia: 183k t/yr. of green ammonia by 2026 (Vitol, Fusion –
Fuel)³
2030 2040 2050
– Cluster Maroc Hydrogen: Organization aiming to mediate between the
different market actors to create a hydrogen cluster in Morocco.

Market – Limited transparency and slow decision-making and procedures when
dealing with Government entities
Barriers – Recent political disputes with neighboring countries (Algeria) and international
partners (Germany)
Algeria
1 MEM – Green Hydrogen Roadmap (2021)
2 HEVO Ammonia (https://energy-utilities.com/fusion-fuel-and-ccc-to-develop-850m-morocco-green-news113290.html; and stakeholder interviews) Note: Note:
3 Due to political tension as a result of the Western Sahara sovereignty, Morocco halted the agreement in 2021, however, it is currently looking to Supply potential based on Reference scenario from National Green Hydrogen supply from Algeria has not been incorporate into the supply
restore ties as of 2022. Hydrogen Roadmap for Morocco¹ figures of this corridor. Rather, it is reported under Corridor A.
all rights reserved
Southwest Europe 57
& North Africa
Agenda
1. Corridor Summary
5. Actions Needed
SUPPLY COSTS & COST-COMPETITIVENESS / SECTION INTRODUCTION Corridor B / Southwest Europe & North Africa
This section explores corridor’s hydrogen production and delivery 58
costs and their cost-competitiveness with fossil-fuel alternatives
Key Questions What hydrogen production costs does the What are the full costs of delivered How cost-competitive are hydrogen costs
Answered corridor provide access to by 2030 and by hydrogen accounting for transport and compare to fossil fuel alternatives?
2040? storage costs?
What cost levers are available to lower the
cost of delivery costs?

Corridor B / Southwest Europe & North Africa
60
Corridor offers access to low-cost hydrogen supply from the

61

62
Material
leading to production costs ranging from 1.4 to 2.7 €/kg Iberian peninsula to demand centers in France and Germany alternatives by 2030, and significantly lower by 2040

1
Hydrogen Production Cost Range [2040]¹, ², ³ Our analysis assesses a case study of hydrogen supply from southern Corridor Case 2030 2040
Spain to industrial offtakers in Germany to explore how hydrogen – By 2030, the low range of
InLevelised
2030, the corridor offers access to hydrogen production 59 Study Route
delivered costs can be lowered. Cost of H₂ Cost of fossil Cost of H₂ Cost of fossil hydrogen production costs are
cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) production fuel alternatives production fuel alternatives
competitive with natural gas
ranging in costs from 2.0 to 3.8 €/kg and coal, and lower than oil
2
€/MWh €/MWh
To assess the full cost of hydrogen delivery to Germany, transport 114 89‒115
Pipelines
(=3.8 €/kg)
alternatives.
and storage costs are added to the cost of hydrogen production Repurposed
4
co
& gal
ain
G ain
ce
ce
ce
lg ,
y
G ain
ain
l
– By 2040, the low range
ga
Be nce
ium
an
an
an
an
New
an
an
an
oc
Sp
Sp
Sp
Sp
rtu
rtu
Fuel cost
m
from Spain. Import / Export

a
Fr
Fr
Fr
or
er
er
er
er
Fr
Po
Po
Subsea uncertainty 83‒95 of hydrogen costs are
M
3.5
Hydrogen Production Cost Range [2030]¹, ², ³ 85‒88
materially lower than all
Case study
3.0 fossil alternatives, while the
2.7
+ + = 59‒73 Delivered
Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) – 2030 Production Transport Storage Delivered
62‒69
66 (=2.7 €/kg)
62‒69 cost of H₂ medium-to-high range are cost
2.5 1.5 €/kg
Large uncertainty on
Costs Costs Costs Costs 62 €/MWh competitive.
2.0 blue hydrogen costs 4 60 (=2.0 €/kg) – Hydrogen delivered costs from
the Spain-Germany case study
3 Several cost reduction levers are applied to lower firm delivery costs, 45 €/MWh
lg ,
ium
Fr l
ce
ain
ain
ce
ce
ce
ium
ain
l
ga
ga
Be nce
an
1.5
an
an
an
an
Sp
Sp
Sp
rtu
rtu
are competitive to natural gas in
m
lg
Case study
a
Fr
Fr
Fr
including optimised system operation, battery storage use, cost of capital

er
42
Fr
Be
Po
Po
(=1.4 €/kg)
G
Delivered

1.4
1.0 4.0 3.8
reductions, among others. cost of H₂ 2030 (5% higher) and lower in
3.5 2.1 €/kg 2040 (28% lower).
0.5
– Natural gas prices are still
3.0
0 uncertain due to recent price
2.5 H₂ production Natural Steam Oil H₂ production Natural Steam Oil spike as a result of the Russian
0 50 100 150 200 250 300 350 400 450 500 550 2040 cost-range Gas Coal cost-range Gas Coal
invasion of Ukraine
Imports
Blue hydrogen
2.0
Wind offshore
Wind onshore
Solar PV
Grid-connected
Case study (see next slide) High
Low 2.0
Higher Cost H₂
Lower Cost H₂
Fuel cost
CO₂ cost
Fuel uncertain
Note: For comparison purposes, cost of H₂ has been converted from
1.5

2.1 €/kg in 2030 and 1.5 €/kg in 2040. – 1 €/kg = 30 €/MWh (based on LHV of 33.3 kWh/kg)
1.0 Competitiveness of hydrogen highly dependent on CO₂-prices as they
Note: Prices for fossil alternatives (2030/2040): Natural gas (pre-invasion): 28/13 [€/MWh], Coal: 123/5.6 [€/MWh], Oil: 52/24 [€/MWh]. Natural gas prices levels are based on market conditions before Russia’s invasion of Ukraine. While natural gas prices will make up alternatives costs major part.
0.0

0 20 40 60 80 100 120 140 160 180 2030
1 Cost curves are based on a bottom-up estimate of supply volumes per country and hydrogen production type. No transport or storage / firming cost are included. 4 Blue hydrogen costs are subject to significant uncertainty in natural gas prices. Our analysis adopts natural gas price levels based on market conditions
2 Dedicated hydrogen production costs are based on renewable technology and electrolyser costs, and country-specific capacity factors and discount rates. before Russia’s invasion of Ukraine. While natural gas prices have skyrocketed since, there remains significant uncertainty on near- and medium-term
3 Grid-connected hydrogen production costs are determined based on costs of a mix of dedicated green hydrogen (solar, onshore wind, offshore wind) and adjusted European price trends and supply options. As a result, our analysis adopts the IEA’s Outlook 2021 price forecast developed pre-invasion, with costs of 28 €/
for grid-connection costs. MWh in 2030 and 13 €/MWh in 2040.
Key Findings – Corridor provides access to hydrogen – Several cost reduction levers can be – Hydrogen costs are competitive with
& Results production costs of 2.0–3.8 €/kg by applied to lower the costs of hydrogen fossil fuel alternatives by 2030, and
2030 delivery. lower by 2040.
– The scale-up of hydrogen supply leads to – For the Spain-to-Germany case study, – Fossil fuel costs are subject to significant
reductions to 1.4–2.7 €/kg in 2040 these levers achieve delivery costs that uncertainty.
SUPPLY COSTS & COST-COMPETITIVENESS Corridor B / Southwest Europe & North Africa
In 2030, the corridor offers access to hydrogen production 59
ranging in costs from 2.0 to 3.8 €/kg
Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) – 2030
blue hydrogen costs 4
lg ,
ium
Fr l
ce
ain
ain
ce
ce
ce
ium
ain
l
ga
ga
Be nce
an
an
an
an
an
Sp
Sp
Sp
rtu
rtu
m
lg
a
Fr
Fr
Fr
er
Fr
Be
Po
Po
G
4.0 3.8
3.5
3.0
2.5
2.0
2.0
1.5

1.0
0.5
0.0
0 20 40 60 80 100 120 140 160 180 2030
4
& gal
ain
G ain
ce
ce
ce
lg ,
y
G ain
ain
l
co
ga
Be nce
ium
an
an
an
an
an
an
an
oc
Sp
Sp
Sp
Sp
rtu
rtu
m
m
a
Fr
Fr
Fr
or
er
er
er
er
Fr
Po
Po
M
G
3.5
3.0 2.7
2.5
2.0
1.5

1.4
1.0
0.5
0
0 50 100 150 200 250 300 350 400 450 500 550 2040

SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY Corridor B / Southwest Europe & North Africa
Corridor offers access to low-cost hydrogen supply from the 61
Iberian peninsula to demand centers in France and Germany
1 Our analysis assesses a case study of hydrogen supply from southern

Spain to industrial offtakers in Germany to explore how hydrogen
Corridor Case
Study Route
delivered costs can be lowered.
2 To assess the full cost of hydrogen delivery to Germany, transport

and storage costs are added to the cost of hydrogen production
Pipelines
Repurposed
New
from Spain. Import / Export
Subsea
+ + =
3 Several cost reduction levers are applied to lower firm delivery costs,

reductions, among others.

2.1 €/kg in 2030 and 1.5 €/kg in 2040.
alternatives by 2030, and significantly lower by 2040
2030 2040
– By 2030, the low range of
Cost of H₂ Cost of fossil Cost of H₂ Cost of fossil hydrogen production costs are
production fuel alternatives production fuel alternatives
€/MWh €/MWh and coal, and lower than oil
114 89‒115
(=3.8 €/kg)
alternatives.
Fuel cost – By 2040, the low range
uncertainty 83‒95 of hydrogen costs are
85‒88
Case study
Delivered fossil alternatives, while the
59‒73
62‒69
66 (=2.7 €/kg)
62‒69 cost of H₂ medium-to-high range are cost
1.5 €/kg
62 €/MWh competitive.
60 (=2.0 €/kg) – Hydrogen delivered costs from
45 €/MWh the Spain-Germany case study
Case study 42 (=1.4 €/kg) are competitive to natural gas in
Delivered

cost of H₂ 2030 (5% higher) and lower in
2.1 €/kg 2040 (28% lower).
H₂ production Natural Steam Oil H₂ production Natural Steam Oil spike as a result of the Russian
cost-range Gas Coal cost-range Gas Coal
invasion of Ukraine
Lower Cost H₂ CO₂ cost
Competitiveness of hydrogen highly dependent on CO₂-prices as they
Note: Prices for fossil alternatives (2030/2040): Natural gas (pre-invasion): 28/13 [€/MWh], Coal: 123/5.6 [€/MWh], Oil: 52/24 [€/MWh]. Natural gas prices levels are based on market conditions before Russia’s invasion of Ukraine. While natural gas prices will make up alternatives costs major part.
all rights reserved
Southwest Europe 63
& North Africa
Agenda
1. Corridor Summary
5. Actions Needed
NATIONAL STRATEGIES & REGULATION Corridor B / Southwest Europe & North Africa
All countries have developed national strategies and targets. Moving forward, 64
the development of regulation is key to enable infrastructure investment.

Pre-
RePowerEU
National Hydrogen strategy Network regulation & policy Funding¹ (bn €) Highlights targets²
Portugal – 5% share of hydrogen at final energy consumption, 2 GW – Expected to come with EU regulations – Mixed focus on national consumption
electrolyser 2030 and export to central Europe
– 10 – 15% H₂ injection to gas grid by 2030 1.1 – Production for export with 1 GW in Sines
planned
Spain – Replacing 25% of industrial grey hydrogen – Expected to come with EU regulations – Decarbonisation of grey hydrogen use by
– Installation of 4 GW electrolyser capacity 1.6 industry
– Setting up H₂ refuelling stations across Spain – H₂ in heavy transport (fuelling stations)
France – Implementation of local hydrogen hubs pre 2030 – Hydrogen injections to gas grid are possible, – Strong investments in transport sector (heavy
– Focus on demand (e.g. heavy transport) and generation below threshold of technical restrictions duty) and hydrogen production for industry
7.2
(6.5 GW electrolyser in 2030) – Need to accelerate strategy and policy around
– No strategy on H₂ infrastructure yet exports and imports
Belgium – Focus: Industry, (freight) transport, electricity storage – 2026: 100-160 new km pipelines – The NHS sees Belgium as an import hub of
– 150 MW for electrolysis production by 2026 – Open access H₂ backbone by 2030 renewable molecules for Europe
0.1
– Import and transit of H₂ and its derivatives via existing connecting ports, industrial clusters, and – Strong focus on national and cross-country

network and additional infrastructure neighboring countries hydrogen network infrastructure
Luxembourg – Focus on renewable hydrogen – Goal to regulate transmission, storage & – Strong need for imports, hence cross border
– Prioritized use in industry, sector coupling & transport distribution infrastructure in line with ambitions H₂ infrastructure & national networks to meet
– Dedicated H₂ network explicitly mentioned of the EU industry & transport demand
Germany – National production & import focus due to supply gap – H₂ network potentially opt-in regulated and – Strong focus on international cooperation to
– In place since 2020, currently reviewed towards vertically unbundled 9 ensure sufficient supply
increasing its ambition – First rules and standards for high pressure – National funding
– 10 GW (2030) electrolyser in coalition plans pipelines are formulated
all rights reserved
Southwest Europe 65
& North Africa
Agenda
1. Corridor Summary
5. Actions Needed
ACTIONS NEEDED Corridor B / Southwest Europe & North Africa
2040
– The development of this corridor ensures access to abundant, low-
cost hydrogen supply from Spain and Portugal by 2030, and by 2040
additional supply from Morocco and potentially Algeria. Pipelines
Repurposed
New
– The decarbonisation of the largest hydrogen demand centers along Import / Export
Subsea
this corridor – in Spain, France, and Germany – is dependent on the Demand per sector
buildout of this corridor by 2030, and its expansion towards 2040.

40 / 30 / 20 / 10 / 1 TWh
Actions required Efuels production

Industrial energy
– The buildout of this corridor by 2030 requires national governments to Power
take clear and concrete actions across. Supply in MWh/km²

<1
1 – 25
25 – 100
250 – 500
planning, the development of cross-national initiatives and securing > 500

access to early funding and long-term, low-cost financing. Storages
Salt cavern
Aquifer
Depleted field
Rock cavern
Other items
Existing or planned
gas-import-terminal
Energy island for
H₂ production
ACTIONS NEEDED Corridor B / Southwest Europe & North Africa
Fostering development Unlock financing to Simplify and shorten Intensify energy Facilitate integrated
of new and repurposed fast-track hydrogen planning and permitting partnerships with energy system planning
hydrogen infrastructure, infrastructure procedures for renewable exporting, non-EHB of hydrogen, natural
for example, by deployment by applying energy and hydrogen countries like Morocco, gas, and electricity
unbundling rules regional regulatory infrastructure projects. and other countries infrastructure supporting
facilitating the efficient flexibility and other in North Africa, and the accelerated
use of TSO expertise and pragmatic financing providing financing deployment and
services and by allowing solutions (including support to reduce their integration of renewable
the adoption of different incentivizing the adoption cost of capital energy resources
vertical unbundling models of hydrogen by demand
in the EU, as is the case sectors)
with natural gas

all rights reserved

CORRIDOR C © 2022 European Hydrogen Backbone,
all rights reserved
North 69
Sea
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR C / FACTSHEET Corridor C / North Sea
North 70
Corridor emerges in the North Sea providing access to low-cost, blue

Sea and green hydrogen supply to demand clusters in northwestern Europe
Norway Drivers & Major driver of development is the need to meet demand from large industrial &
Ireland transport clusters in the UK, Netherlands, Belgium, France and Germany. Key opportu-
Opportunities
Netherlands nities include the repurposing potential of onshore/offshore infrastructure, integra-
Denmark tion of North Sea wind resources and the portfolio of planned import terminals
United Kingdom
Hydrogen Supply H₂ supply potential¹ Emissions 2030 2040
Luxembourg 852 TWh
(TWh/year) Reductions
Belgium & Decarbonization
France Potential % reduction) (8%)
249 TWh
Germany
-254 Mt
2030 2040 (21%)

1.6–3.5 73
production¹ Hydrogen 69
& Cost- 1.5–2.6 delivered price 66 62
54
(€/kg of H₂) vs. 59
Competitiveness natural gas price
high/low,

(€/MWh)
2030 2040 2030 2040

all rights reserved
North 71
Sea
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR SUMMARY Corridor C / North Sea
Corridor offers access to low-cost, North Sea blue & green hydrogen 72
supply to demand clusters in the UK and northwestern Europe
Drivers & – The major driver behind the development of this corridor – A major opportunity for this corridor relates to the large portfolio
is hydrogen adoption associated with the decarbonisation of ongoing and planned hydrogen infrastructure projects in the
Opportunities
of industry, transport and power in the UK and northwestern region – including large-scale offshore wind developments, large-
Europe. The speed of hydrogen adoption in these regions may scale integrated hydrogen projects, and a growing list of planned
be even faster than anticipated driven by increasing CO₂ prices import terminals for hydrogen and hydrogen-derivatives – in the
in the EU and the RePowerEU ambitions to replace natural gas Netherlands, Belgium, Germany and France.
consumption. – This corridor emerges as a highly-integrated supply corridor that
– In the near term, the corridor offers access to abundant, low- can leverage extensive offshore gas infrastructure in the North
cost blue hydrogen supply from the North Sea. In the longer Sea, planned national and regional hydrogen backbones in the
term, this corridor also provide access to significant green Netherlands (by 2027), and in Belgium and Germany by 2030 –
hydrogen potential leveraging strong onshore and offshore connecting all major demand clusters in north-western Europe – as well
wind resources in the North Sea, offering an opportunity to as potential hydrogen storage at salt cavern locations northwest Europe.
integrate even higher capacities of offshore wind. – The corridor would be stood up by 2030, covering 12,000 km of
large-scale hydrogen pipelines across all countries of the corridor,
of which approximately 70% will be repurposed pipelines. The

corridor’s high repurposing potential of existing infrastructure offers
an opportunity to keep the cost of hydrogen transport relatively low.
Hydrogen Demand – Total hydrogen demand in the corridor reaches ~260 TWh by – Hydrogen adoption across all countries of the corridors enables an
2030, increasing substantially to ~900 TWh by 2040. Up to 2030, emissions reduction of ~360 MtCO₂/yr. by 2050, equivalent to a
& Supply
most hydrogen demand is driven by large industrial clusters in the 29% emissions reduction.
UK and northwestern Europe. Hydrogen use in the transport sector – The corridor enables access to hydrogen supply potential of ~250 TWh
also contributes a significant share of hydrogen demand. From 2040 by 2030, increasing to roughly 850 TWh by 2040. Major sources of
to 2050, hydrogen demand increases substantially in the transport supply include North Sea blue hydrogen potential in 2030, expanding to
and power sectors and continues to ramp up in industry. green hydrogen from onshore and offshore wind resources in the North Sea.
CORRIDOR SUMMARY Corridor C / North Sea
Costs & Cost- – By 2030, the corridor provides access to hydrogen ranging – Based on a case-study of green hydrogen supply and transport from
in production cost from 1.6 to 3.5 €/kg. By 2040, as supply the North Sea to North Rhine Westphalia (Germany), the cost of
Competitiveness
options increase and technology costs decrease, hydrogen delivered hydrogen – inclusive of transport and firming costs – can
production costs decrease to 1.5 to 2.6 €/kg. be lowered to achieve cost levels comparable to production
– In the long term, this corridor’s lowest-cost hydrogen supply costs both in 2030 and 2040. Lowering delivery costs can be
options are onshore and offshore wind resources from the achieved through various cost levers including optimized operation
North Sea. of the system and cost of capital reductions.
National Strategies – Most countries have developed – or are in the process of – In select countries, substantial funding has been allocated to
developing – national strategies. Further, in most high-demand support the development of the hydrogen market including funding
& Regulation
countries, hydrogen regulation is also already in place, if not for gas network infrastructure.
currently under development. The development of hydrogen
regulation in all other countries will accelerate investment in
infrastructure.

– Unlock financing to fast-track hydrogen infrastructure
deployment by applying regional regulatory flexibility and other
pragmatic financing solutions.
all rights reserved
North 74
Sea
Agenda
1. Corridor Summary
5. Actions Needed
HYDROGEN DEMAND & SUPPLY / SECTION INTRODUCTION Corridor C / North Sea
2030 Corridor Snapshot Hydrogen demand

(Supply, Demand and Infrastructure) By 2030, the corridor connects all major industrial clusters in the UK and
northwest Europe. From 2030 to 2040, the corridor expands to all demand
centers along its route, increasing demand from 260 to ~900 TWh.
Hydrogen supply¹
By 2030, the corridor enables access to low-cost, blue hydrogen supply
Pipelines from the North Sea. By 2040, the corridor diversifies its supply with green
Repurposed
New hydrogen from offshore wind resources in the North Sea.
Import / Export
Subsea
In 2030, hydrogen supply is ~250 TWh, of which over 40% is blue hydrogen.
Demand per sector
Hydrogen supply increases significantly by 2040, reaching 850 TWh.
40 / 30 / 20 / 10 / 1 TWh
Efuels production 249 TWh (2030)
Industrial energy

Power Grid-based Dedicated green Blue
Supply in MWh/km²
<1
Hydrogen Infrastructure
1 – 25
25 – 100
100 – 250
250 – 500
> 500 By 2030, the buildout of pipeline infrastructure across all countries of the
Storages corridor reaches 12,000 km of large-scale pipelines. Corridor benefits from
Salt cavern
Aquifer a very large share of repurposed infrastructure.
Depleted field
Rock cavern
Other items 70% (Repurposed pipelines) 30% (New pipelines) 12,000 km (2030)
Existing or planned
gas-import-terminal
Energy island for
H₂ production 1 Ship imports of hydrogen and hydrogen-derivatives are not included.
HYDROGEN DEMAND & SUPPLY Corridor C / North Sea
Corridor connects major industrial clusters in the UK and northwest 76
Europe by 2030, expanding to all demand centers by 2040
2030 2040
Pipelines Pipelines
New New
Subsea Subsea

40 / 30 / 20 / 10 / 1 TWh 40 / 30 / 20 / 10 / 1 TWh
Power Power
Storages Storages
Aquifer Aquifer

Hydrogen demand increases rapidly from 2030 to 2040, largely 77
driven by the UK, Belgium, the Netherlands, France and Germany

Norway
2030, increasing to roughly ~900 TWh by 2050.
8 17 24
Ireland 3 17 30 increase further than forecasted as a result
of additional regulatory measures adopted in
United Kingdom 27 171 248 response to the RePowerEU plan.
Denmark 27 52 67 driven by large industrial clusters in the
General H₂ flow
UK, Belgium, the Netherlands, France and

Netherlands 46 109 153 Germany. Hydrogen use in power generation
also accounts for a significant share of
Luxembourg 1 3 7 demand.

– From 2040 to 2050, hydrogen demand
Belgium 25 78 109
expands into the transport sector and
continues to ramp up in industry and power
France 33 97 161
generation.
Germany 90 363 505
Total 260 907 1,303
Hydrogen adoption enables a reduction in emissions 78
of 29% by 2050 across all countries of the corridor
Decarbonisation
in Mt CO₂ / year
29% reduction².
357 just under 70% of the total emissions reductions,
350 largely driven by the decarbonisation of the
steel sector. Notably, roughly 20% of emissions
300
reductions are from the transport sector.
254
– By 2040, emissions reductions from trans
250 port (road, shipping and aviation) increase
200
account for 80% of emissions reductions.
The power sector account for the remaining

20% of reductions.
150
– By 2050, the transport sector alone accounts
100
94 for over 50% of emissions reductions.
50
Industry
Power
Buildings
Source: EEA
primary steel sector are relative to the use of coal. Similarly, emissions reductions , for e-fuels
© 2022 European Hydrogen Backbone, all rights reserved production are relative to the use of fossil fuels in domestic transport, shipping and other uses.
Corridor enables access to North Sea blue hydrogen by 2030, 79
expanding to hydrogen supply from abundant offshore wind by 2040
2030* 2040*
Pipelines
Repurposed
New
Import / Export
Subsea Pipelines
Repurposed
<1 Import / Export

1 – 25 Subsea
25 – 100
250 – 500 <1
> 500 1 – 25
25 – 100
Aquifer > 500
Depleted field
Salt cavern
Other items Aquifer
Energy island for
Existing or planned
Hydrogen supply increases significantly from 2030 to 2040, driven 80
by a scale up in supply across multiple countries in the corridor
Country 2030 2040 2050 Hydrogen supply includes a mix of supply options
including grid-based green hydrogen², dedi
cated green hydrogen, and blue hydrogen³.
Norway 39 134 88 – By 2030, hydrogen supply reaches
30 16 33 100 18 94 18
~250 TWh, roughly 40% blue hydrogen
Ireland
9
6
46
30
70
40 and 30% each for dedicated green and
grid-based hydrogen.
United Kingdom 12 33 50
30 10 160 30 14 279 18 – By 2040, hydrogen supply increases
Denmark 12 48 75 substantially to ~850 TWh, of which 70%
General H₂ flow
25 15 80 21 115 27
is from dedicated green hydrogen. Blue
Netherlands -6 -1 41 hydrogen accounts for just under 20%, while
23 9 8 73 23 11 179 15
grid-based hydrogen for the remaining 10%.
Luxembourg -1 -3 -7
0 0 0 – By 2050, hydrogen supply increases further
to ~1,190 TWh. Dedicated green supply

Belgium -4 -50 -98
15 6 20 8 11 account for the largest share at 90%, while
France 5 16 13 grid-based hydrogen account for the remaining
25 8 5 94 8 10 150 24
10%. Blue hydrogen supply is not included in
Germany -75 -261 -313 2050 due to assumed target of zero emissions
15 81 21 165 27
and de-fossilisation of Europe by 2050.
Total -11 -55 -111
69 106 74 568 181 103 1,052 140 Hydrogen supply may accelerate and increase
further as a result of additional regulatory mea-
1 Net represents excess supply after subtracting demand;
2 Grid-based is estimated using national 2030 electrolyser targets which, by 2030, are assumed to be largely grid-connected rather than dedicated. Dedicated green sures adopted in response to the RePowerEU plan.
Grid-based increases over 2030-2050 with increasing RES; Blue
3 Blue hydrogen supply volumes will be subject to the evolution of gas markets and the development of low carbon hydrogen regulation in different Grid-based
country. As a result, some countries may have additional blue hydrogen supply which could be used to satisfy local demand. 2050 technical potential Note: Hydrogen supply volumes do not include hydrogen imports by ship.
The scale up in supply is supported by the development 81
of several hydrogen import terminals in the North Sea
Rotterdam Hamburg
– In feasibility study, strategy ready – Ambitions to establish H₂ terminal
– Planning to import 0.3 – 0.4 mio. – Onsite H₂-project H₂Global
tons of hydrogen by 2030
Stade
Amsterdam – LNG-terminal underway
– During proof of concept, – Comes ready with fuel switch
strategy ready Netherlands option to H₂
– Planning to scale up imports to
1 mio. ton of hydrogen starting Wilhelmshaven
2030 Germany – Working on feasibility study,
strategy ready
Eemshaven / Groningen – LNG-terminal underway
– Planning to import H₂ with NORTH₂ – Planning to import and produce
Project with 410 MW electrolyser onsite
0.3 mio. tons by 2030
Brunsbuettel
– LNG-terminal underway
– Comes ready with fuel switch

option to H₂
Dunkerque Zeebrugge
– Ambitions to establish H₂ terminal – Large scale LNG-terminal present,
– Onsite H₂-strategy to decarbonise France Belgium ambitions to accommodate H₂
harbour with integrated heat, CCS and – Planning to import 0.5 mio tons of
hydrogen use for transport hydrogen by 2030
Note: Ship imports of hydrogen or hydrogen-derivatives are not included in the analysis of Corridor C.
Infrastructure shown for 2030.
Strategy ready indicates that the terminal announced to import H₂ Strategy ready Strategy in progress Strategy ambitions
all rights reserved
North 82
Sea
Agenda
1. Corridor Summary
5. Actions Needed
SUPPLY COSTS & COST-COMPETITIVENESS / SECTION INTRODUCTION Corridor C / North Sea
This section explores the costs of hydrogen production and 83
delivery for this corridor and their competitiveness
Key Questions What is the range of production costs Based on a case-study of hydrogen How competitive is hydrogen supply
Answered achieved by the corridor in 2030 and supply from the North Sea to Germany: from this corridor compared to fossil fuel
and storage costs?
– What cost levers are available to lower
the cost of hydrogen delivery?
By 2040, as hydrogen supply options increase and scale up,

Corridor C / North Sea
85
Hydrogen delivered costs, incl. transport and storage costs,

86
Hydrogen costs are cost-competitive with all fossil

87
Material
production costs decrease to a range from 1.5 to 2.6 €/kg can be kept low and comparable to hydrogen production costs alternatives by 2030, and lower by 2040.

1
Hydrogen Production Cost Range [2040]¹, ², ³ This analysis assesses a case study of hydrogen supply from the North Corridor Case 2030 2040
Sea to North Rhine Westphalia (Germany) to explore how the costs of – By 2030, the low range of
InLevelised
firm hydrogen delivery costs can be lowered. Production Cost of fossil Production Cost of fossil hydrogen production costs
are lower than all fossil
ranging in costs from 1.6 to 3.5 €/kg alternatives.
2
€/MWh €/MWh
To assess the full cost of hydrogen delivery to Germany, transport and 89‒115
– By 2040, the low-to-medium
storage costs are added to the cost of hydrogen production from
lan ,
nm m,
d lg s,
gd m,
lan ,
105
Ire om
er any
g d
ce
om
ds
(=3.5 €/kg)
range of hydrogen costs are
ite Be land
ar
ar
an
an
wa
Kin nite
Kin iu
De do
an
nm
gd
Fuel cost
eth m
m
the North Sea.

or
Fr
U
er
N er
er
er
Kin
De

N
uncertainty
eth
83‒95
G
G
3.0
d
Case study
N
Pipelines
ite
85‒88
Repurposed
fossil alternatives, while the
Un
Un
2.6 New Delivered

lan ,
Ire way
medium-to-high range are cost

d
Import / Export 78 (=2.6 €/kg) cost of H₂

2.5 + + =
or
Subsea 59‒73 1.8 €/kg

N
Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) Production Transport Storage Delivered
UK 63‒69 62‒69 competitive.
66 €/MWh
2.0 Large uncertainty on
Costs Costs Costs Costs – Hydrogen delivered costs from
blue hydrogen costs 4 54 €/MWh the North Sea-to-Germany case
1.5 study are competitive to natural
gd s,
lg ,
Case study
y
ium
nm y,
k
N nd,
y
ite er ce,
gd s,
om
ce
y
Be om
Kin nd
ar
ar
ar
an
wa
wa
48
De wa
Kin d
1.5 (=1.6 €/kg)

an
nm
nm
d lan
Un eth ran
45 gas in 2030 (12% higher) and

la
m
d rla
Delivered (=1.5 €/kg)

or
or
or
Fr

Ire
er
ite e
De
De
N
N F
N
Un Neth
cost of H₂

1.0 4.0
reductions, among others. 2.2 €/kg lower in 2040 (13% lower).

3.5
0.5 3.5 – Natural gas prices are still
3.0
0 spike as a result of the Russian
0 100
2.5
200 300 400 500 600 700 800 2040 cost-range Gas Coal cost-range Gas Coal invasion of Ukraine
Imports
Blue hydrogen
2.0
Wind offshore
Wind onshore
Solar PV
Grid-connected
Low
Higher Cost H₂
Lower Cost H₂
Fuel cost
CO₂ cost
Fuel uncertain
1.5 “per kg” to “per MWh”

1.6 2.2 €/kg in 2030 and 1.8 €/kg in 2040. – 1 €/kg = 30 €/MWh (based on LHV of 33.3 kWh/kg)

Note: Prices for fossil alternatives (2030/2040): Natural gas (pre-invasion): 28/13 [€/MWh], Coal: 123/5.6 [€/MWh], Oil: 52/24 [€/MWh]. Natural gas prices levels are based on market conditions before Russia’s invasion of Ukraine. While natural gas prices make up a significant part of fossil fuel costs.
0.0
0 25 50 75 100 125 150 175 200 225 250 2030
1 Cost curves are based on a bottom-up estimate of supply volumes per country and hydrogen production type. No transport or storage / firming cost are included. 4 Blue hydrogen costs are subject to significant uncertainty in natural gas prices. Our analysis adopts natural gas prices levels based on market conditions
3.5 €/kg. delivery. lower by 2040.
– By 2040, hydrogen production costs – For the North Sea-to-Germany case study, – Fossil fuel costs are subject to significant
decrease to the range of 1.5 to 2.6 €/kg. these levers achieve delivery costs that uncertainty.
SUPPLY COSTS & COST-COMPETITIVENESS Corridor C / North Sea
blue hydrogen costs 4
ng s,
lg ,
y
nm y,
N d,
ng s,
ium
ite er ce,
ce
y
y
m
Be om
Ki nd
ar
ar
ar
an
wa
wa
De wa
Ki d
do
lan
an
nm
nm
d lan
Un eth ran
d
m
d rla
or
or
or
Fr
Ire
er
ite he
De
De
N
N F
N
G
Un Net
4.0
3.5
3.5
3.0
2.5
2.0
1.5

1.6
1.0
0.5
0.0
0 25 50 75 100 125 150 175 200 225 250 2030
1 Cost curves are based on a bottom-up estimate of supply volumes per country and hydrogen production type. No transport or storage / firming cost are included. 4 Blue hydrogen costs are subject to significant uncertainty in natural gas prices. Our analysis adopts natural gas prices levels based on market conditions
By 2040, as hydrogen supply options increase and scale up, 85
production costs decrease to a range from 1.5 to 2.6 €/kg
lan ,
nm m,
d lg s,
gd m,
rla y,
Ire om
ce
y
ng d
s
om
he an
ite Be land
nd
ar
ar
an
an
wa
Ki nite
Kin iu
De do
an
nm
gd
et m
m
m
or
Fr
U
er
N er
er
er
Kin
De
N
eth
G
G
G
d
3.0
N
ite
Un
Un
2.6
lan ,
Ire way
d
2.5
or
N
2.0
1.5
1.5

1.0
0.5
0
0 100 200 300 400 500 600 700 800 2040

SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY Corridor C / North Sea
Hydrogen delivered costs, incl. transport and storage costs, 86
can be kept low and comparable to hydrogen production costs
1 This analysis assesses a case study of hydrogen supply from the North
Sea to North Rhine Westphalia (Germany) to explore how the costs of
Corridor Case
Study Route
firm hydrogen delivery costs can be lowered.
2 To assess the full cost of hydrogen delivery to Germany, transport and

storage costs are added to the cost of hydrogen production from
the North Sea.
Pipelines
Repurposed
New
Import / Export
+ + = Subsea
UK


2.2 €/kg in 2030 and 1.8 €/kg in 2040.
Hydrogen costs are cost-competitive with all fossil 87
alternatives by 2030, and lower by 2040.
2030 2040
Production Cost of fossil Production Cost of fossil hydrogen production costs
are lower than all fossil
€/MWh €/MWh alternatives.
89‒115
– By 2040, the low-to-medium
105 (=3.5 €/kg)
Fuel cost range of hydrogen costs are
uncertainty
83‒95
Case study
85‒88
Delivered fossil alternatives, while the
59‒73
78 (=2.6 €/kg) cost of H₂ medium-to-high range are cost
1.8 €/kg
63‒69 62‒69 competitive.
66 €/MWh
– Hydrogen delivered costs from
54 €/MWh the North Sea-to-Germany case
Case study study are competitive to natural
48 (=1.6 €/kg)
Delivered 45 (=1.5 €/kg)
gas in 2030 (12% higher) and
cost of H₂

2.2 €/kg lower in 2040 (13% lower).
spike as a result of the Russian
cost-range Gas Coal cost-range Gas Coal invasion of Ukraine
all rights reserved
North 88
Sea
Agenda
1. Corridor Summary
5. Actions Needed
NATIONAL STRATEGIES & REGULATIONS Corridor C / North Sea
Most countries have developed national strategies and targets. Moving forward, 89

Pre-
RePowerEU
Norway – 2025: H₂ hubs for maritime, industrial & product. – N/A – Focus on maritime applications and H₂ hubs
– 2030: Network of spread hydrogen hubs 0.1 – Assessment of CCFDs for industrial projects
Ireland – Government plans NHS in July, 2022 – N/A – Early stage policy developments only
United – 2030: 10 GW of low-carbon hydrogen production – Initial network regulatory and legal framework not expected – More clarity on H₂ funding & strategy for ind. cluster
Kingdom – Mix of green and blue hydrogen incl. funding before 2025 2.3 application & H₂ production
– Blending of 20% vol. to gas network foreseen – Policy decision on heat due in 2026
Denmark – Focus on green H₂ (4-6 GW) and Efuels, and export of Efuels and PtX – Proposition: Allow TSO & DSO to own and operate H₂ – Transport infrastructure is seen as key to enable role as PtX
technologies to demand hubs (DE, NL, etc.) infrastructure 0.2 producer and exporter
Netherlands – Focus: Production & network to supply industry – Unbundling of natural gas and H₂ grid operation and – Production and transport infrastructure
– Build dedicated national hydrogen grid production 1.5 – €750 m funding for national hydrogen transmission
– 3 – 4 GW electrolyser capacity in 2030 – Integrated network planning network.
Luxembourg – Focus on renewable hydrogen – Goal to regulate transmission and distribution infrastructure in – Strong need for imports, hence cross border H₂
– Prioritized use in industry, sector coupling & transport line with ambitions of the EU infrastructure & national networks to meet industry &
– Dedicated H₂ network explicitly mentioned transport demand

Belgium – Focus: Industry, (freight) transport, electricity storage – 2026: 100-160 new km pipelines – The NHS sees Belgium as an import hub of renewable
– 150 MW for electrolysis production by 2026 – Open access H₂ backbone by 2030 connecting ports, 0.1 molecules for Europe
– Import and transit of H₂ and its derivatives via existing network and additional industrial clusters, and neighboring countries – Strong focus on national and cross-country hydrogen
infrastructure network infrastructure
France – Implementation of local hydrogen hubs pre 2030 – Hydrogen injections to gas grid are possible, below threshold – Strong investments in transport sector (heavy duty) and
– Focus on demand (e.g. heavy transport) and generation (6.5 GW electrolyser of technical restrictions 7.2 hydrogen production for industry
in 2030) – Need to accelerate strategy and policy around exports and
– No strategy on H₂ infrastructure yet imports
Germany – National production & import focus due to supply gap – H₂ network potentially opt-in regulated and vertically – Strong focus on international cooperation to ensure
– In place since 2020, currently reviewed towards increasing its ambition unbundled 9 sufficient supply
– 10 GW (2030) electrolyser in coalition plans – First rules and standards for high pressure pipelines are – National funding
formulated
all rights reserved
North 90
Sea
Agenda
1. Corridor Summary
5. Actions Needed
ACTIONS NEEDED Corridor C / North Sea
2040
– The development of this corridor ensures access to abundant, low-
cost blue hydrogen supply from the North Sea by 2030, and by 2040
diversifying its supply with green hydrogen from offshore wind resources in Pipelines
Repurposed
the North Sea. New
Import / Export
Subsea
– The decarbonisation of the largest hydrogen demand centers along Demand per sector
this corridor – in the UK, the Netherlands, Belgium, northern France

and western Germany – is dependent on the buildout of this corridor by 40 / 30 / 20 / 10 / 1 TWh
2030, and its expansion towards 2040. Efuels production

Industrial energy
Power
Actions required Supply in MWh/km²

<1
1 – 25
– The buildout of this corridor by 2030 requires national governments to 25 – 100
100 – 250
take clear and concrete actions across. 250 – 500
> 500

– This includes actions associated with infrastructure development and Storages
Salt cavern
planning, the development of cross-national initiatives and securing Aquifer
Depleted field
access to early funding and long-term, low-cost financing. Rock cavern
Other items
Existing or planned
gas-import-terminal
Energy island for
H₂ production
ACTIONS NEEDED Corridor C / North Sea
Fostering development Unlock financing to Simplify and shorten Facilitate integrated

of new and repurposed fast-track hydrogen planning and permitting energy system planning
hydrogen infrastructure, infrastructure deploy procedures for renewable of hydrogen, natural
for example, by un ment by applying regional energy and hydrogen gas, and electricity
bundling rules facilitating regulatory flexibility and infrastructure projects. infrastructure supporting
the efficient use of TSO other pragmatic financing the accelerated deploy
expertise and services and solutions (including ment and integration
natural gas

all rights reserved

CORRIDOR D © 2022 European Hydrogen Backbone,
all rights reserved
Nordics 94
& Baltics
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR D / FACTSHEET Corridor D / Nordics & Baltics
Nordics 95
Corridor emerges in the Nordics and Baltics providing access to low-cost

& Baltics hydrogen supply from vast onshore and offshore wind resources
Finland Drivers & Major drivers of development are early national decarbonisation targets of Nordic
Sweden countries and hydrogen adoption in heavy industry and transport. Key opportunities
Opportunities
Estonia include the early development of new H₂ infrastructure in the Bothnian Bay, and
Lithuania regional opportunities for offshore pipelines and salt cavern storage.
Latvia
Denmark 501 TWh
(TWh/year) Reductions
Poland & Decarbonization
Germany Potential 184 TWh % reduction) (12%)
Czechia
-228 Mt
2030 2040 (30%)

2.1–3.8 73
production¹ Hydrogen 75 69
& Cost- 1.5–2.7 delivered price 60
(€/kg of H₂) vs. 59 63
Competitiveness natural gas price
high/low,

(€/MWh)
2030 2040 2030 2040

all rights reserved
Nordics 96
& Baltics
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR SUMMARY Corridor D / Nordics & Baltics
Corridor offers access to low-cost supply from the Nordics to 97
demand centers along the corridor to Poland and Germany
Drivers & – The major driver behind the development of this corridor is – A major opportunity of this corridor is the early and accelerated
the adoption of hydrogen associated with the decarbonisation development of new hydrogen infrastructure in the Bothnian
Opportunities
of industry, transport and power in the Nordics, the Baltics, Bay, one of the earliest, greenfield hydrogen infrastructure projects in
Poland and Germany. Initially, the development of the corridor Europe. The early buildout of hydrogen infrastructure also offers an
will be driven by new green steel and e-fuel projects and early opportunity to pilot and operationalise new regulatory, planning
national decarbonisation targets in Sweden and Finland. The and permitting processes aiming to accelerate and streamline the
speed of hydrogen adoption in these regions may be even faster rollout of hydrogen infrastructure.
than anticipated driven by increasing CO₂ prices in the EU and – Another set of opportunities includes the development of offshore
the RePowerEU ambitions to replace natural gas consumption. pipelines connecting Nordic offshore wind resources to demand
– In the near term, the corridor offers access to abundant low- centers in Germany and Central Europe, as well as the potential
cost, onshore wind and grid-based hydrogen supply from the development of salt cavern hydrogen storage.
Nordics. In the longer term, the corridor also provides access – The corridor would be stood up by 2030, covering 13,500 km of
to hydrogen supply from offshore wind in the Nordics and the large-scale hydrogen pipelines across all countries of the corridor,
Baltics. of which approximately 45% will be repurposed pipelines.

Hydrogen Demand – Total hydrogen demand in the corridor reaches ~220 TWh – Hydrogen adoption across all countries of the corridors enables an
by 2030, increasing substantially to ~725 TWh by 2040. Up emissions reduction of ~290 MtCO₂/yr. by 2050, equivalent to a
& Supply
to 2030, most hydrogen demand is driven by the steel sector in 39% emissions reduction. Emissions reductions are notoriously
Germany and the Nordics, along with some hydrogen adoption higher than other corridors due to the high emissions reduction
in transport. From 2040 to 2050, hydrogen demand expands potential in the steel sector.
further in industry and transport and plays a more meaningful role – The corridor enables access to hydrogen supply potential of ~185 TWh
in power generation. by 2030, increasing to roughly 500 TWh by 2040. Major sources
of supply include hydrogen from onshore and offshore wind in the
Nordics, along with grid-based green hydrogen, leveraging the vast,
low-cost hydropower potential of the Nordics.
CORRIDOR SUMMARY Corridor D / Nordics & Baltics
to support infrastructure planning, financing and development.
Costs & Cost- – By 2030, the corridor provides access to hydrogen ranging in – Based on a case-study of hydrogen supply and transport from the
production costs from 2.1 to 3.8 €/kg. By 2040, as supply Bothnia Bay region of Finland to Germany, the cost of delivered
Competitiveness
options increase and technology costs decrease, hydrogen hydrogen – inclusive of transport and storage costs – can be
production costs decrease to 1.5 to 2.7 €/kg. lowered significantly and be cost-competitive with fossil fuel
– In the long term, this corridor’s lowest-cost hydrogen supply alternatives. Lowering delivery costs can be achieved through
options are onshore and offshore wind from the Nordics. various cost levers including optimised operation of the system and
cost of capital reductions.
National Strategies – Most countries have developed – or are in the process – In select countries, substantial funding has been allocated to
of developing – national strategies. Moving forward, the support the development of the hydrogen market including funding
& Regulation
development of hydrogen regulation in all countries will be key for gas network infrastructure.
in enabling investment in infrastructure.

– Unlock financing to fast-track hydrogen infrastructure
deployment by applying regional regulatory flexibility and other
all rights reserved
Nordics 99
& Baltics
Agenda
1. Corridor Summary
5. Actions Needed
HYDROGEN DEMAND & SUPPLY / SECTION INTRODUCTION Corridor D / Nordics & Baltics
2030 Corridor Snapshot Hydrogen demand

(Supply, Demand and Infrastructure) By 2030, the corridor connects all major industrial clusters from the Nordics
to Germany. By 2040, the corridor expands to all demand centers along its
route, increasing demand from 220 to 725 TWh.
Hydrogen supply
By 2030, the corridor enables access to low-cost, hydrogen supply from
Pipelines
Repurposed
parts of the Nordics. By 2040, the corridor expands access to supply across
New
Import / Export
the Nordics and into the Baltics.
Subsea
Demand per sector

In 2030, hydrogen supply is ~185 TWh, of which nearly 70% is dedicated green
hydrogen. Hydrogen supply increases significantly by 2040, reaching 500 TWh.
40 / 30 / 20 / 10 / 1 TWh
Efuels production

Power
Supply in MWh/km² Grid-based Dedicated green Blue

<1
1 – 25
25 – 100
250 – 500
> 500
Storages
Salt cavern corridor reaches 13,500 km of large-scale pipelines. Notably, this corridor
Aquifer
Depleted field includes a large share of new pipeline infrastructure.
Rock cavern
Other items
Existing or planned
Energy island for
H₂ production
HYDROGEN DEMAND & SUPPLY Corridor D / Nordics & Baltics
Corridor connects major hydrogen clusters from the Nordics to 101
Germany by 2030, expanding to all major demand centers by 2040
2030 2040
Pipelines Pipelines
New New
Subsea Subsea

40 / 30 / 20 / 10 / 1 TWh 40 / 30 / 20 / 10 / 1 TWh
Power Power
Storages Storages
Aquifer Aquifer

largely driven by Germany, Poland and the Nordics

2030 to 2050. Demand reaches ~220 TWh by
Finland
2030, increasing to roughly 970 TWh by 2050.
25 53 66
Early national decarbonisation targets
Sweden 50 100 123 in Sweden (2045) and Finland (2035) also
contribute to early adoption.
Estonia 0 2 2 Hydrogen demand may accelerate and
Latvia 0 1 3 of additional regulatory measures adopted in
General H₂ flow

Lithuania 5 15 20
driven by the industrial sector in Sweden
Denmark 27 52 67
and Germany – primarily related to the

adoption of hydrogen in the steel sector.
Poland 22 120 155
Germany 90 363 505 demand is for e-fuels production and
for power generation, with demand in
Czechia 5 17 27
Finland, Denmark and Poland contributing an
increasing share.
Total 224 725 969
Hydrogen adoption in all countries of the corridor 103
enables an emissions reduction of 39% by 2050
Decarbonisation
in Mt CO₂ / year
39% reduction².
300 292 Emissions reductions are notoriously higher
than other corridors due to the high emissions
reduction potential in the steel sector.
250
70% of the total emissions reductions, largely
driven by the steel sector in Sweden and
200
Germany.
– By 2040, emissions reductions from trans
150 port (road, shipping and aviation) increase

account for 80% of emissions reductions.
91
100 The power sector account for the remaining
20% of reductions.
50 – By 2050, emissions reductions from the
transport and power sector continue rising.
Industry
Power
Buildings
Source: EEA
primary steel sector are relative to the use of coal. Similarly, emissions reductions, for e-fuels
© 2022 European Hydrogen Backbone, all rights reserved production are relative to the use of fossil fuels in shipping, aviation and other uses.
Corridor enables access to supply from parts of the Nordics 104
by 2030, expanding to supply from the Baltics by 2040
2030* 2040*
Pipelines
Repurposed
New
Import / Export
Subsea Pipelines
Repurposed
<1 Import / Export

1 – 25 Subsea
25 – 100
250 – 500 <1
> 500 1 – 25
25 – 100
Aquifer > 500
Depleted field
Salt cavern
Other items Aquifer
Energy island for
Existing or planned
Hydrogen supply increases significantly from 2030 to 2040, 105
largely driven by green hydrogen supply from the Nordics
Country 2030 2040 2050 The hydrogen supply mix includes grid-based
green hydrogen² and dedicated green
hydrogen.
Finland 36 40 73 – By 2030, hydrogen supply reaches
51 10 79 14 121 18
~185 TWh, largely from dedicated green
Sweden
52 12
14
107 18
24
143 23
42 hydrogen and grid-based hydrogen.
– By 2040, hydrogen supply increases
Estonia 1 18 33
1 0.1 19 0.1 35 0.1 substantially to ~500 TWh, of which roughly
85% is from dedicated green hydrogen.
Latvia -0.4 7 18
General H₂ flow
0 9 20 The remaining 15% is from grid-based

Lithuania -5 -7 -5
hydrogen supply. Grid-based supply increases
1 9 15 slightly from 2030 due to the increasing
Denmark 12 48 75 decarbonization of the electricity grid mix.
25 15 80 21 115 27 – By 2050, hydrogen supply increases
further to ~820 TWh. Dedicated green

Poland -19 -77 -42
3 39 4 115 27
supply continues to account for the largest
Germany -75 -261 -313 share at roughly 90%.
15 81 21 165 27
Hydrogen supply may accelerate and
Czechia -4 -17 -27
0.1 0.1 0.1 increase further as a result of additional
Total -41 -223 -146
regulatory measures adopted in response to
130 54 423 78 722 101 the RePowerEU plan.
Dedicated green
1 Net represents excess supply after subtracting demand. Blue
2 Grid-based is estimated using national 2030 electrolyser targets which, by 2030, are assumed to be largely Grid-based
grid-connected rather than dedicated. Grid-based increases over 2030-2050 with increasing RES. 2050 technical potential Note: Hydrogen supply volumes do not include hydrogen imports by ship.
all rights reserved
Nordics 106
& Baltics
Agenda
1. Corridor Summary
5. Actions Needed
SUPPLY COSTS & COST-COMPETITIVENESS / SECTION INTRODUCTION Corridor D / Nordics & Baltics
Answered achieved by the corridor in 2030 and from the Bothnian Bay (Finland) to Germany: from this corridor compared to fossil fuel
and storage costs?
– What cost levers are available to lower the
cost of hydrogen delivery?

Corridor D / Nordics & Baltics
109
Hydrogen delivered costs, incl. transport and storage costs,

110

111
Material
leading to production costs ranging from 1.5 to 2.7 €/kg can be kept low by applying cost reduction levers alternatives by 2030, and materially lower by 2040.

1
Hydrogen Production Cost Range [2040]¹, ², ³ This analysis assesses a case study of hydrogen supply from onshore Corridor Case 2030 2040
wind in the Bothnian Bay (Finland) to industrial offtakers in Germany to – By 2030, the low range of
InLevelised
2030, the corridor offers access to hydrogen 108 Study Route
explore how the costs of firm hydrogen delivery can be lowered. Production Cost of fossil Production Cost of fossil hydrogen production costs are
production ranging in costs from 2.1 to 3.8 €/kg and coal, and lower than oil
2
€/MWh €/MWh
To assess the full cost of firm hydrogen delivery to Germany, transport
114 (=3.8 €/kg) 89‒115 alternatives.
k
De de ,
nm n,
k
en
en
Es nd,
nia
en

Sw land
ar
ar
ar
an
an
an
an
lan
lan
ed
ed
ed
Pipelines
to
nm
nm
la
m
from the Bothnian Bay.

Fin
Po
e
Fin
Fin
Sw
Sw
Sw
er
er
er
er
Repurposed
De
De
Fuel cost
hydrogen costs are materially
G
3.0
New
uncertainty Case study
83‒95
Hydrogen Production Cost Range [2030]¹, ², ³ 2.7
Import / Export
85‒88 Delivered lower than all fossil alterna-
nia
Subsea
cost of H₂
ua
81 tives, while the medium-to-high

+ + =
(=2.7 €/kg)
Lith
2.5 2.0 €/kg

59‒73 63‒69
Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) Production Transport Storage Delivered 75 €/MWh 63‒69 range are cost competitive.
2.0 Costs Costs Costs Costs – Hydrogen delivered costs from
60 €/MWh
63 (=2.1 €/kg) the Bothnian Bay-to-Germany
1.5 Case study case study are competitive
k
e ,
nm ,
k
en
en
Lith y
nia
d
Sw nd
De den
ar
ar
ar
an
Delivered
lan
lan
lan
1.5
ed
ed
ua
nm
nm
to natural gas in 2030 (27%

la
m
Fin
Fin
Po
45
Fin
(=1.5 €/kg)
Sw
Sw
er
cost of H₂
De
De

1.0 4.0 3.8 reductions, among others. 2.5 €/kg higher) and lower in 2040 (5%

3.5 lower).
0.5
3.0
0 uncertain due to recent price
2.5 H₂ production Natural Steam Oil H₂ production Natural Steam Oil spike as a result of the Russian
0 100 200 300 400 500 2040 cost-range Gas Coal cost-range Gas Coal
invasion of Ukraine
Imports
Blue hydrogen
2.0
Wind offshore
Wind onshore
Solar PV
Grid-connected
Low 2.1 4 These cost reduction levers achieve sufficient cost savings to
Higher Cost H₂
Lower Cost H₂
Fuel cost
CO₂ cost
Fuel uncertain
1.5

2.5 €/kg in 2030 and 2.0 €/kg in 2040. – 1 €/kg = 30 €/MWh (based on LHV of 33.3 kWh/kg)
0.0
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 2030
3.8 €/kg. delivery. lower by 2040.
– By 2040, hydrogen production costs – For the Bothnian Bay-to-Germany case – Fossil fuel costs are subject to significant
decrease to the range of 1.5 to 2.7 €/kg. study, these levers achieve delivery uncertainty.
costs that are low and cost-competitive.
SUPPLY COSTS & COST-COMPETITIVENESS Corridor D / Nordics & Baltics
In 2030, the corridor offers access to hydrogen 108
production ranging in costs from 2.1 to 3.8 €/kg
k
ed ,
y
nm ,
k
en
en
ia
d
d
De en
Sw and
ar
ar
ar
an
lan
lan
lan
an
ed
ed
nm
nm
hu
Fin
Fin
Po
l
Fin
Sw
Sw
er
De
De
Lit
G
4.0 3.8
3.5
3.0
2.5
2.0
2.1
1.5

1.0
0.5
0.0
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 2030
k
y
De de ,
en
en
en
d
nm n,
Es nd,
nia
Sw land
ar
ar
ar
an
an
an
an
lan
lan
ed
ed
ed
to
nm
nm
la
m
m
Fin
Po
e
Fin
Fin
Sw
Sw
Sw
er
er
er
er
De
De
G
3.0
2.7
ia
an
hu
2.5
Lit
2.0
1.5
1.5

1.0
0.5
0
0 100 200 300 400 500 2040

SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY Corridor D / Nordics & Baltics
Hydrogen delivered costs, incl. transport and storage costs, 110
can be kept low by applying cost reduction levers
1 This analysis assesses a case study of hydrogen supply from onshore

wind in the Bothnian Bay (Finland) to industrial offtakers in Germany to
Corridor Case
Study Route
explore how the costs of firm hydrogen delivery can be lowered.
2 To assess the full cost of firm hydrogen delivery to Germany, transport

Pipelines
from the Bothnian Bay. Repurposed
New
Import / Export
Subsea
+ + =


2.5 €/kg in 2030 and 2.0 €/kg in 2040.
alternatives by 2030, and materially lower by 2040.
2030 2040
Production Cost of fossil Production Cost of fossil hydrogen production costs are
€/MWh €/MWh and coal, and lower than oil
114 (=3.8 €/kg) 89‒115 alternatives.
Fuel cost
uncertainty 83‒95
Case study hydrogen costs are materially
85‒88 Delivered lower than all fossil alterna-
cost of H₂
81 (=2.7 €/kg)
2.0 €/kg tives, while the medium-to-high
59‒73 63‒69
75 €/MWh 63‒69 range are cost competitive.
– Hydrogen delivered costs from
60 €/MWh
63 (=2.1 €/kg) the Bothnian Bay-to-Germany
Case study case study are competitive
Delivered
cost of H₂ 45 (=1.5 €/kg) to natural gas in 2030 (27%

2.5 €/kg higher) and lower in 2040 (5%
lower).
H₂ production Natural Steam Oil H₂ production Natural Steam Oil spike as a result of the Russian
invasion of Ukraine
Lower Cost H₂ CO₂ cost
all rights reserved
Nordics 112
& Baltics
Agenda
1. Corridor Summary
5. Actions Needed
NATIONAL STRATEGIES & REGULATIONS Corridor D / Nordics & Baltics
Most countries have developed, or are developing, national strategies. Moving 113
forward, the development of regulation is key to enable infrastructure investment.

Pre-
RePowerEU
Finland – H₂ strategy part of National Climate & Energy Plan, with focus on production – Act on Guarantees of Origin for Energy extended to gas & – Recommended to build 1st dedicated H₂ pipelines
(via wind resources) and industrial use of green H₂ H₂ 0.2 – Significant additional potential for wind power and e-fuels
production, chemicals and fertilisers.
Sweden – Focus on industry & heavy-duty vehicles – National H₂ strategy requests regulator to have commissioned – •Funding is provided to various hydrogen projects for
– Electrolyser capacity 5 GW (2030) & 15 GW (2045) revenue framework by 2023 0.1 demand and supply by the Swedish Energy Agency
Estonia – Intention to create national hydrogen strategy – N/A – Potential for local production and export
Latvia – No specific national hydrogen strategy – N/A – Most potential is seen in transport sector
Lithuania – National hydrogen strategy is in progress – Legal framework allows issue guarantees of origin for – Potential for production, transit and export
hydrogen 0.16
Denmark – Focus on green H₂ and export of PtX technologies to demand hubs (GER, – Proposition: Allow TSO & DSO to own and operate H₂ – Transport infrastructure is seen as key to enable role as PtX
NL, etc.) infrastructure 0.2 producer and exporter

Poland – Focus: Power/heat sector, transport, industry, production, network, creating – Creation of regulatory framework mentioned in H₂ strategy – Gas network to be adapted & new build: “Hydrogen
regulatory framework Highway” (North-South)
Germany – National production & import focus due to supply gap – H₂ network potentially opt-in regulated and vertically – Strong focus on international cooperation to ensure
– In place since 2020, currently reviewed towards increasing its ambition unbundled 9 sufficient supply
– 10 GW (2030) electrolyser in coalition plans – First rules and standards for high pressure pipelines are – National funding
formulated
– Production also CCS and nuclear potential role in H₂ transport from south to north and from
– Import and transit country for H₂ from the south east to west
all rights reserved
Nordics 114
& Baltics
Agenda
1. Corridor Summary
5. Actions Needed
ACTIONS NEEDED Corridor D / Nordics & Baltics
2040
supply from parts of the Nordics by 2030, expanding to supply from the
Baltics by 2040. Pipelines
Repurposed
– The decarbonisation of the largest hydrogen demand centers along New
Import / Export
this corridor – in the Nordics, Baltics, Poland and Germany – is Subsea
dependent on the buildout of this corridor by 2030, and its expansion Demand per sector
towards 2040. 40 / 30 / 20 / 10 / 1 TWh

Efuels production
Actions required Industrial energy

Power
– The buildout of this corridor by 2030 requires national governments to Supply in MWh/km²
take clear and concrete actions across. <1

1 – 25
25 – 100
100 – 250
> 500
planning, the development of cross-national initiatives and securing

Storages
access to early funding and long-term, low-cost financing. Salt cavern
Aquifer
Depleted field
Rock cavern
Other items
Existing or planned
gas-import-terminal
Energy island for
H₂ production
ACTIONS NEEDED Corridor D / Nordics & Baltics
Fostering development Unlock financing to Simplify and shorten Facilitate integrated

of new and repurposed fast-track hydrogen planning and permitting energy system planning
hydrogen infrastructure, infrastructure deploy procedures for renewable of hydrogen, natural
for example, by unbund ment by applying regional energy and hydrogen gas, and electricity
ling rules facilitating the regulatory flexibility and infrastructure projects. infrastructure supporting
efficient use of TSO other pragmatic financing the accelerated deploy
natural gas

all rights reserved

CORRIDOR E © 2022 European Hydrogen Backbone,
all rights reserved
East and 118
South-East Europe
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR E Corridor E / East and South-East Europe
East and 119
Corridor emerges in Eastern & South-Eastern Europe providing access

South-East Europe to low-cost hydrogen supply to demand centers along the corridor
Greece Slovenia Austria Drivers & Major driver of development is the need to meet hydrogen demand from
Bulgaria Croatia Germany industry, transport and power across Eastern and South-Eastern Europe.
Opportunities
Romania Slovakia Poland Key opportunities include leveraging the abundant renewables potential in
Hungary Czechia Eastern Europe and gaining access to hydrogen imports from Ukraine
(TWh/year) 346 TWh Reductions
& Decarbonization
Potential % reduction) (7%)
50 TWh
-195 Mt
2030 2040 (21%)

& Cost- 1.7–3.1 delivered price
75 69
(€/kg of H₂) 62
54
Competitiveness vs. 59
natural gas price
high/low,

(€/MWh)
2030 2040 2030 2040

– Intensify energy partnerships with exporting, non-EHB countries like Ukraine
1 Figures reported reflect outputs for all countries included in the corridor. Even if a country is only partially in the corridor, results for the full country are included (e.g., supply potential and costs,
demand, transmission network length).
all rights reserved
East and 120
South-East Europe
Agenda
1. Corridor Summary
5. Actions Needed
CORRIDOR SUMMARY Corridor E / East and South-East Europe
Corridor offers access to low-cost hydrogen supply from Eastern 121
and South-Eastern Europe to demand centers along the corridor
Drivers & – The major driver behind the development of this corridor is the – A major opportunity of the corridor is to leverage the abundant
adoption of hydrogen associated with the decarbonisation of renewables potential in Eastern Europe with its vast land availability
Opportunities
industry, transport and power across Eastern and South-Eastern and high-capacity factors for solar and onshore wind, particularly in
Europe, particularly new green steel projects and existing industry relation to the high hydrogen export potential of Ukraine. Another
along the corridor through Greece, Romania, Hungary, Austria major opportunity relates to the potential for hydrogen storage
and Germany. The speed of hydrogen adoption in these regions provided by depleted fields along the corridor in Greece,
may be even faster than anticipated driven by increasing CO₂ Czechia, Austria and Germany.
prices in the EU and the RePowerEU ambitions to replace natural – The corridor would be stood up by 2030, covering 10,000 km of
gas consumption. large-scale hydrogen pipelines across all countries of the corridor, of
– In the near term, the corridor offers access to low-cost, which approximately 60% will be repurposed pipelines.
hydrogen supply from Eastern and South-Eastern
Europe – including hydrogen imports from Ukraine, Poland,
Greece, and Romania among the larger sources of supply. In the
longer term, this corridor gains further access to hydrogen supply
across the entire region.

Hydrogen Demand – Total hydrogen demand in the corridor reaches ~165 TWh – Hydrogen adoption across all countries of the corridors enables an
by 2030, increasing substantially to ~660 TWh by 2040. Up emissions reduction of ~260 MtCO₂/yr. by 2050, equivalent to a 28%
& Supply
to 2030, the major driver of hydrogen adoption is the industrial emissions reduction.
sector, with hydrogen being used as feedstock. From 2040 – The corridor enables access to hydrogen supply potential of
onwards, most new hydrogen demand is for the transport and the ~50 TWh by 2030, increasing to roughly 350 TWh by 2040.
power sectors. Major sources of supply include grid-connected hydrogen production
by 2030, with a huge potential role for Ukrainian imports by 2040.
CORRIDOR SUMMARY Corridor E / East and South-East Europe
Costs & Cost- – By 2030, the corridor provides access to hydrogen ranging in – Based on a case-study of hydrogen supply and transport from
production costs from 2.5 to 4.5 €/kg. By 2040, as supply South-Eastern Romania to Germany, the cost of delivered
Competitiveness
options increase, technology costs decrease, and imports from hydrogen – inclusive of transport and storage costs – can be
Ukraine scale up, hydrogen production costs decrease to 1.7 to lowered significantly and be cost-competitive with fossil fuel
3.1 €/kg. alternatives. Lowering delivery costs can be achieved through
– In the long term, this corridor’s largest amounts of low-cost supply various cost levers including optimised operation of the system and
options are hydrogen imports from Ukraine. cost of capital reductions.
National Strategies – Some countries have developed national strategies, while – In select countries, substantial funding has been allocated to
in others they are under development. Moving forward, the support the development of the hydrogen market including funding
& Regulation
development of hydrogen regulation in all countries will be key in for gas network infrastructure. However, most countries are yet to
enabling investment in infrastructure. define and earmarked funds.

infrastructure. gas, and electricity infrastructure
– Unlock financing to fast-track hydrogen infrastructure – Intensify energy partnerships with exporting, non-EHB countries
deployment by applying regional regulatory flexibility and other like Ukraine.
all rights reserved
East and 123
South-East Europe
Agenda
1. Corridor Summary
5. Actions Needed
HYDROGEN DEMAND & SUPPLY / SECTION INTRODUCTION Corridor E / East and South-East Europe
2030 Corridor Hydrogen demand

Snapshot By 2030, the corridor connects major demand clusters across Eastern and
(Supply, Demand South-Eastern Europe. From 2030 to 2040, the corridor expands to all
and Infrastructure) demand centers along its route, increasing demand from 165 to ~660 TWh.
Hydrogen supply
By 2030, the corridor enables access to low-cost supply from parts of Eastern
Pipelines
Repurposed
and South-Eastern Europe and Ukraine. By 2040, the corridor gains additional
New
Import / Export
access expanding across the region.
Subsea
Demand per sector

In 2030, hydrogen supply is ~50 TWh, of which 65% of supply is from grid-based
hydrogen. Hydrogen supply increases significantly by 2040, reaching ~350 TWh.
40 / 30 / 20 / 10 / 1 TWh
Efuels production

Power
Supply in MWh/km² Imports Grid-based Dedicated green Blue

<1
1 – 25
25 – 100
250 – 500
> 500
Storages
Salt cavern corridor reaches 10,000 km of large-scale pipelines. Corridor benefits from a
Aquifer
Depleted field large share of repurposed infrastructure.
Rock cavern
Other items
Existing or planned
Energy island for H₂
production
HYDROGEN DEMAND & SUPPLY Corridor E / East and South-East Europe
Corridor connects hydrogen clusters from South-Eastern Europe to 125
Germany by 2030, expanding to major demand centers by 2040
2030 2040
Pipelines Pipelines
New New
Subsea Subsea

40 / 30 / 20 / 10 / 1 TWh 40 / 30 / 20 / 10 / 1 TWh
Power Power
Storages Storages
Aquifer Aquifer

largely driven by Germany and Poland

Greece 7 27 42 2030, increasing to roughly 920 TWh by 2050.
Bulgaria 5 17 23
Romania 14 34 46 of additional regulatory measures adopted in
Hungary 4 15 25
– Up to 2030, most hydrogen demand
General H₂ flow
Slovenia 1 5 7 is driven by the industrial sector in the

Croatia 2 7 11
destination countries – Germany and Poland.
Slovakia 7 20 26
demand is for e-fuels production and for
Czechia 5 17 27 power generation.

Austria 8 36 52
Germany 90 363 505
Poland 22 120 155
Total 165 662 920
Hydrogen adoption enables a reduction in emissions of 127
28% by 2050 across all countries of the corridor
(vs. 2019 emissions¹) -7 % -21% -28 % Hydrogen adoption across all demand sectors
enables an emissions reduction of ~260
MtCO₂/yr. by 2050, equivalent to a 28%
Decarbonisation
in Mt CO₂ / year
reduction².
258
85% of the total emissions reductions.
240
220
– By 2040, emissions reductions from transport
195
(road, shipping and aviation) increase
200
180 account for 75% of emissions reductions. The
160
power sector account for the remaining 25%
of reductions.
140
– By 2050, most incremental emissions
120
reductions are associated with hydrogen

100 adoption in the power and transport sectors.
80
65
60
40
20 Industry
Power
Buildings
Source: EEA
sectors. For example, emissions reductions associated with the adoption of hydrogen by
the primary steel sector are relative to the use of coal. Similarly, emissions reductions , for
© 2022 European Hydrogen Backbone, all rights reserved e-fuels production are relative to the use of fossil fuels in shipping, aviation and other uses.
Corridor enables access to supply from Eastern & South-Eastern Europe 128
and Ukraine by 2030, expanding across the region by 2040
2030* 2040*
Pipelines
Repurposed
New
Import / Export
Subsea Pipelines
Repurposed
<1 Import / Export

1 – 25 Subsea
25 – 100
250 – 500 <1
> 500 1 – 25
25 – 100
Aquifer > 500
Depleted field
Salt cavern
Other items Aquifer
Energy island for
Existing or planned
Hydrogen supply increases significantly from 2030 to 2040, largely 129
driven by imports from Ukraine and South-Eastern Europe
Country 2030 2040 2050 The hydrogen supply mix includes grid-based
green hydrogen² and dedicated green
hydrogen.
Imports
12 50 100 – By 2030, hydrogen supply reaches
(Ukraine) 12 50 100
Greece 4 26 44 50 TWh, largely from grid-based green

11 39 15 67 20
hydrogen.
Bulgaria -3 -7 16
1.6 7 2 36 3
– By 2040, hydrogen supply increases sub
Romania -9 15 37 stantially to ~350 TWh, of which roughly
2.2 3 45 5 77 6
Hungary -4 -5 7 85% is from dedicated green hydrogen. The

General H₂ flow
0.4 10 1 31 1
remaining 15% is from grid-based hydrogen
Slovenia -1 -1 -3
0 4 4 supply.
Croatia -2 4 7 – By 2050, hydrogen supply increases
0.1 11 18
Slovakia -6 -14 -13 further to ~690 TWh. Dedicated green

0.4 6 1 12 1
supply continues to account for the largest

Czechia -4 -17 -27
0.1 0 0 share at roughly 90%, while grid-based
Austria -5 -31 -45 hydrogen increases only slightly.
4 5 7
Germany -75 -261 -313 Hydrogen supply may accelerate and

15 81 21 165 27
increase further as a result of additional
Poland -19 -77 -42
2.9 39 4 108 5 regulatory measures adopted in response to
Total -113 -316 -232 the RePowerEU plan.
14 38 292 54 618 70
Dedicated green
1 Net represents excess supply after subtracting demand. Blue
2 Grid-based is estimated using national 2030 electrolyser targets which, by 2030, are assumed to be largely grid-connected rather than dedicated. Grid- Grid-based
based increases over 2030-2050 with increasing RES. 2050 technical potential Note: Hydrogen supply volumes do not include hydrogen imports by ship.
XXXXX
Ukraine may become a potential 130
source of imports by 2030
Supply – Supply potential estimated based on Hydrogen Europe’s 2x40 GW Green Hydrogen supply potential (TWh)¹
Hydrogen Initiative report¹.
potential – This analysis assumes a delay compared to the 2x40 GW report – due to the
war in Ukraine – resulting in more moderate hydrogen export volumes².
100
State of – Ukraine is approaching H₂ as an export opportunity and is actively

investigating retrofitting existing gas pipelines to hydrogen. 50
Gas Infra- – The Ukrainian Ministry of Energy highlighted the potential of using existing
gas pipelines for the domestic use and for exports to Romania, Slovakia,
structure Hungary and Poland³. 12
Market – Technical green hydrogen potential is substantial. Based on an estimated

2030 2040 2050
technical potential of ~500-800 GW of renewable energy capacity, the supply
Attractive- potential ranges between ~1,000-1500 TWh.
– Ukraine has a well-developed ammonia and steel production industries
ness (applicable for green hydrogen).
– Ukraine’s Naftogaz joined the European Clean Hydrogen Alliance with the
ambition of becoming a leader in hydrogen export to EU countries.
– Partnerships:
– TSO’s of Slovakia, Austria and Germany–as part of an international
consortium–are investigating the establishment of necessary capacities for

transporting hydrogen from Ukraine via Slovakia and Austria to Germany for
accessing storage facilities in Central Europe
– Ukraine’s, Czech Republic, Slovakia and Germany’s gas TSOs collaborate to
investigate the technical feasibility of establishing a 120GWh/day corridor
from Ukraine to Germany
Market Mayor uncertainties relate to the current war

– The operational state of Ukraine’s natural gas infrastructure
Barriers – The speed of economic recovery and infrastructure investment
– The development of a hydrogen market and related supply chains in Ukraine.
1 Hydrogen Europe (2021). 2x40 GW Green Hydrogen Initiative. https://hydrogeneurope.eu/wp-content/uploads/2021/11/

Hydrogen-Europe_2x40-GW-Green-H2-Initative-Paper.pdf
2 This report estimates 12 TWh of exports in 2030 based on of 5.5 GW of export capacity (vs. 8 GW in Hydrogen Europe’s estimations).
Export volumes assume an onshore wind capacity factor of 35% and an electrolyser efficiency of 70%. Note: Export projections to Europe from 2030 to 2040-2050 are based on an assumed four-fold increase in exports by 2040 and two-fold increase from
3 UNECE – Draft Roadmap for Production & Use of Hydrogen in Ukraine (2021) 2040 to 2050. These assumptions are informed by scale up projections from other export countries of this study and Hydrogen Europe’s 2x40 GW report.
all rights reserved
East and 131
South-East Europe
Agenda
1. Corridor Summary
5. Actions Needed
SUPPLY COSTS & COST-COMPETITIVENESS / SECTION INTRODUCTION Corridor E / East and South-East Europe
Answered achieved by the corridor in 2030 and from South-Eastern Romania to Germany: from this corridor compared to fossil fuel
and storage costs?
– What cost levers are available to lower
the cost of hydrogen delivery?
By 2040, as supply options increase and scale up,

Corridor E / East and South-East Europe
134
Hydrogen delivered costs, including transport and storage

135
SUPPLY COSTS & COST COMPETITIVENESS
Hydrogen costs are cost-competitive with fossil fuel

136
Material
production costs decrease to a range from 1.7 to 3.1 €/kg costs, can be kept low by applying cost reduction levers alternatives by 2030, and lower by 2040

1
Hydrogen Production Cost Range [2040]¹, ², ³ This analysis assesses a case study of hydrogen supply from South- Corridor Case 2030 2040
Eastern Romania to industrial offtakers in Germany to explore how the By 2030, the low range of hydrogen
InLevelised
costs of firm hydrogen delivery can be lowered. Production Cost of fossil Production Cost of fossil production costs are competitive
ranging in costs from 2.5 to 4.5 €/kg 135 (=4.5 €/kg) lower than oil alternatives.
2
€/MWh €/MWh
To assess the full cost of firm hydrogen delivery to Germany, transport Pipelines
and storage costs are added to the cost of hydrogen production Repurposed By 2040, the low-to-medium
ine
ia
G d
e
ia
an
an
an
an
ar
ec
ec
ec
New
lan
lan
an
an
89‒115
ra
ng
m
from Romania.
re
re
re
m
Import / Export
Po
Po
Uk
er
er
er
er
Hu
G
Ro
Ro
Subsea
G
3.5 materially lower than all fossil

Hydrogen Production Cost Range [2030]¹ ² ³ , ,
3.1
Fuel cost
83‒95
3.0
uncertainty 93 (=3.1 €/kg)
85‒88
Case study alternatives, while the medium-to-
Delivered
+ + = cost of H₂ high range are cost competitive.
2.5 Levelised cost of hydrogen production (€/kg) and Supply per country (TWh) Cost range (€/kg) Production Transport Storage Delivered 59‒73 1.8 €/kg
Costs Costs Costs Costs 63‒69 75 €/MWh 62‒69 Hydrogen delivered costs from the
75 (=2.5 €/kg)
Romania-to-Germany case study are
(firming costs)
2.0
54 €/MWh competitive to natural gas in 2030
3 Several cost reduction levers are applied to lower firm delivery costs, Case study
ia
ine
ce
ia
Ro kia
ia
an
1.5
an
an
str
(27% higher) and 2040 (13% lower).

e
1.7
va
ra
51
re
Delivered (=1.7 €/kg)

Au
m
Slo
Uk
er

G
Ro
G

cost of H₂

5.0
1.0
4.5 reductions, among others. 2.5 €/kg Natural gas prices are still un-

4.5 certain due to recent price spike
0.5
4.0 as a result of the Russian invasion
0 3.5 of Ukraine.
0 50 3.0 100 150 200 250 300 350 2040 cost-range Gas Coal cost-range Gas Coal
Imports
Blue hydrogen
2.5
Wind offshore
Wind onshore
2.0
Solar PV
Grid-connected
Low 2.5 4 These cost reduction levers achieve sufficient cost savings to
Higher Cost H₂
Lower Cost H₂
Fuel cost
CO₂ cost
Fuel uncertain

1.5 2.5 €/kg in 2030 and 1.8 €/kg in 2040. – 1 €/kg = 30 €/MWh (based on LHV of 33.3 kWh/kg)
1.0 have skyrocketed since, there remains significant uncertainty on near- and medium-term European price trends and supply options. As a result, our analysis adopts the IEA’s Outlook 2021 price forecast pre-invasion developed pre-invasion. Prices in 2040 – CO₂ price 2030: 130 €/t
1-3 See previous slide are significantly lower than in 2030 because of demand-supply conditions. By 2040, decreased demand for fossil fuels would lower prices. [Source: International Energy Agency, Outlook 2021 (IEA)] and fuel-cost uncertainty is shown with +50% range] – CO₂ price 2040: 205 €/t
0.5
0.0
0 5 10 15 20 25 30 35 40 45 50 2030
& Results to hydrogen production costs of 2.5 to applied to lower the costs of hydrogen fossil fuel alternatives both in 2030 and
4.5 €/kg. delivery. 2040.
– By 2040, hydrogen production costs – For the Romania-to-Germany case study, – Fossil fuel costs are subject to significant
decrease to the range of 1.7 to 3.1 €/kg. these levers achieve delivery costs that uncertainty.
SUPPLY COSTS & COST-COMPETITIVENESS Corridor E / East and South-East Europe
ia
ine
ce
ia
Ro ia
ia
an
an
an
str
ak
e
ra
m
re
ov
Au
m
Uk
er
G
Ro
Sl
G
5.0
4.5
4.5
4.0
3.5
3.0
2.5
2.5
2.0

1.5
1.0
0.5
0.0
0 5 10 15 20 25 30 35 40 45 50 2030
SUPPLY COSTS & COST-COMPETITIVENESS Corridor E / East and South-East Europe
By 2040, as supply options increase and scale up, 134
production costs decrease to a range from 1.7 to 3.1 €/kg
ine
ia
G d
ce
ia
an
an
an
an
ar
ec
ec
lan
lan
an
an
e
ra
ng
m
m
m
re
re
re
m
Po
Po
Uk
er
er
er
er
Hu
G
Ro
Ro
G
G
G
3.5
3.1
3.0
2.5
2.0
1.5 1.7

1.0
0.5
0
0 50 100 150 200 250 300 350 2040

SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY Corridor E / East and South-East Europe
Hydrogen delivered costs, including transport and storage 135
costs, can be kept low by applying cost reduction levers
1 This analysis assesses a case study of hydrogen supply from South-

Eastern Romania to industrial offtakers in Germany to explore how the
Corridor Case
Study Route
costs of firm hydrogen delivery can be lowered.
2 To assess the full cost of firm hydrogen delivery to Germany, transport

Pipelines
Repurposed
New
from Romania. Import / Export
Subsea
+ + =
(firming costs)


2.5 €/kg in 2030 and 1.8 €/kg in 2040.
SUPPLY COSTS & COST COMPETITIVENESS Corridor E / East and South-East Europe
Hydrogen costs are cost-competitive with fossil fuel 136
alternatives by 2030, and lower by 2040
2030 2040
By 2030, the low range of hydrogen
Production Cost of fossil Production Cost of fossil production costs are competitive
€/MWh 135 (=4.5 €/kg)
€/MWh lower than oil alternatives.
By 2040, the low-to-medium
89‒115
Fuel cost materially lower than all fossil
83‒95
uncertainty 93 (=3.1 €/kg)
85‒88
Case study alternatives, while the medium-to-
Delivered
cost of H₂ high range are cost competitive.
59‒73 1.8 €/kg
63‒69 75 €/MWh 62‒69 Hydrogen delivered costs from the
75 (=2.5 €/kg)
Romania-to-Germany case study are
Case study
54 €/MWh competitive to natural gas in 2030
Delivered 51 (=1.7 €/kg) (27% higher) and 2040 (13% lower).
cost of H₂

2.5 €/kg Natural gas prices are still un
certain due to recent price spike
as a result of the Russian invasion
of Ukraine.

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East and 137
South-East Europe
Agenda
1. Corridor Summary
5. Actions Needed
NATIONAL STRATEGIES & REGULATION Corridor E / East and South-East Europe
A selection of countries have developed national strategies. Moving forward, 138

Pre-
RePowerEU
Greece – In 2020, the government formed a Committee to work on NHS. The final – N/A – H₂ in shipping, power, production from
draft of the NHS is expected in Q2 2022. renewable electricity and H₂ related R&D
Bulgaria – No specific national hydrogen strategy, but consideration of role for – N/A – 20 MW H₂ refuelling stations are planned and a demand
hydrogen in NECP of 32 GWh in transport by 2030
Romania – Hydrogen strategy to be published in 2022 – N/A – Project with 2 x 20 MW electrolysers powered by solar-PV
parks is under development
Hungary – 240MW of electrolyser capacity – Min. 2% volume blending to natural gas grid – Low carbon and renewable H₂ planned
– Demand seen in industry and transport sector – €5.3 m for project to store H₂ underground
Slovenia – In NECP is set indicative target to have 10 % of renewable methane or – TSO is obliged to prepare the plan for acceptance of H₂ – Foreseen H₂ demand sectors: Transport (2030), buildings,
hydrogen in the network (2030) industry (NECP)
Croatia – Foresees demand in industry, buildings, transport and power, with a supply – N/A – First production site by 2025
potential of 1.3 GW electrolysers
Slovakia – H₂ used in the chemicals, petrochemicals, steel and heating industries as – N/A – Use H₂ in industries/areas impossible or not cost-effective to
well as in transport directly engage electricity

– Production also CCS and nuclear potential role in H₂ transport from south to north and from
– Import and transit country for H₂ from the south east to west
Austria – NHS is still in discussion; known elements are: 1 – 2 GW electrolyser – H₂ mixtures of up to 10 % within Austria and 4-5 % on entry/ – Production of green H₂ is subsidised
capacity (2030), use in industry exit points are allowed 0.5 – Preferred use to decarbonise industry
– Focus: Transport sector and underground H₂ storage
Germany – National production & import focus due to supply gap – H₂ network potentially opt-in regulated and vertically unbundled – Strong focus on international cooperation to ensure sufficient
– In place since 2020, currently reviewed towards increasing its ambition – First rules and standards for high pressure pipelines are 9 supply
– 10 GW (2030) electrolyser in coalition plans formulated – National funding
Poland – Focus: Power/heat sector, transport, industry, production, network, creating – Creation of regulatory framework mentioned in H₂ strategy – Gas network to be adapted & new build: “Hydrogen
regulatory framework Highway” (North-South)
all rights reserved
East and 139
South-East Europe
Agenda
1. Corridor Summary
5. Actions Needed
ACTIONS NEEDED Corridor E / East and South-East Europe
2040
hydrogen supply from parts of Eastern and South-Eastern Europe and
Ukraine by 2030, and by 2040 expanding access to additional supply Pipelines
Repurposed
from the region. New
Import / Export
Subsea
– The decarbonisation of the largest hydrogen demand centers along Demand per sector
this corridor – in Greece, Romania, Bulgaria, Hungary, Austria and

further towards Germany and Poland – is dependent on the buildout of 40 / 30 / 20 / 10 / 1 TWh
this corridor by 2030, and its expansion towards 2040. Efuels production
Industrial energy
Power
Actions required Supply in MWh/km²

<1
1 – 25
– The buildout of this corridor by 2030 requires national governments to 25 – 100
100 – 250
take clear and concrete actions across. 250 – 500
> 500

– This includes actions associated with infrastructure development and Storages
Salt cavern
planning, the development of cross-national initiatives and securing Aquifer
Depleted field
access to early funding and long-term, low-cost financing. Rock cavern
Other items
Existing or planned
gas-import-terminal
Energy island for
H₂ production
ACTIONS NEEDED Corridor E / East and South-East Europe
Fostering development Unlock financing to Simplify and shorten Intensify energy partner Facilitate integrated
of new and repurposed fast-track hydrogen planning and permitting ships with exporting, energy system planning
hydrogen infrastructure, infrastructure deploy procedures for renewable non-EHB countries like of hydrogen, natural
for example, by unbund ment by applying regional energy and hydrogen Ukraine, and providing gas, and electricity
ling rules facilitating the regulatory flexibility and infrastructure projects financing support to infrastructure supporting
efficient use of TSO other pragmatic financing reduce their cost of capital the accelerated deploy
of different vertical of hydrogen by demand resources
unbundling models in the sectors)
natural gas

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DETAILED METHODOLOGY / SECTION INTRODUCTION © 2022 European Hydrogen Backbone,
all rights reserved
This section describes the methodology used to define hydrogen 143
demand, supply,decarbonisation potential and cost competitiveness
H₂ demand H₂ supply & decarbonisation H₂ cost competitiveness
Objective Forecast and localise future hydrogen Forecast and localise future hydrogen Calculate the cost of delivered hydrogen
demand. supply and determine the emissions for different corridor case studies
reductions impact of hydrogen
adoption
Content HYDROGEN DEMAND
Detailed approach:
HYDROGEN DEMAND
all rights reserved
149Backbone,
© 2022 European Hydrogen
all rights reserved
HYDROGEN DECARBONIZATION & SUPPLY
Overall approach:
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151
HYDROGEN COST-COMPETITIVENESS
Methodology:
all rights reserved
155
Material
Demand Detailed
HYDROGENapproach:
forDEMAND
power generation
148Backbone,
all rights reserved
Definitions of hydrogen supply options Calculation of hydrogen delivery cost
Demand Detailed
HYDROGENapproach:
forDEMAND
industrial heat © 2022 European Hydrogen147Backbone,
all rights reserved
Sub sectorDemand Detailed

HYDROGENapproach:
forDEMAND
e-fuels
Category of H₂ use Approach
146Backbone,
all rights reserved
H₂ supply type
HYDROGEN DECARBONIZATION & SUPPLY
Sub sector Approach
all rights reserved SUPPLY COSTS & COST-COMPETITIVENESS / CASE STUDY
Cost components of Potential cost reduction levers
Cost factor
Sub sectorDemand
Fertilizer Overallfor
approach:
industrial
Category
of H₂ use
feedstock Approach
Includes hydrogen replacing natural gas in gas fired powered plants, as included EHB analysis
145
Dedicated Green Overall approach:
Onshore wind Dedicated green hydrogen refers to hydrogen production via electrolysis using electricity generated from
152 hydrogen delivered Hydrogen delivered
Production costs per kg of hydrogen:
costs, including transport and storage
Power electronics: Removing the inverter of the solar PV modules, enabling a reduction of 11% in
36
Sub sectorLocalisation of hydrogen demand Hydrogen supply forecasting &ground)

localisation costs, can by be CAPEX,
kept low bytheapplying
production costs. cost reduction levers
report (June 2021)¹. renewable energy resources dedicated exclusively for hydrogen supply. This includes electricity from solar
Primary steel
Fertilizer Solar Annualised costs of system setup, divided which reduces
Category
Industrial of H₂
feedstock use Approach
Includes hydrogen replacing natural gas for medium temperature (150-500°C) and high PV (rooftop and and wind (onshore and offshore).
total produced hydrogen per year.
Refineries¹
Primary steel Demand temperature
numbers (>500°C)
are based industrial
on EHBheatinganalysis processes
report (Junein all2021)¹.
industrial sectors (cement/lime,
Adjustments have been made ceramics, Hybrid¹ Leveraging foreign investment: Foreign investment will reduce the Weighted Average Cost of
Fertilizer Category of H₂
Sub sector E-fuels Industrial feedstockfor ause
few countriesApproach
Includes
paper/pulp, e-kerosene
secondary
due for aviation,
steelmaking,
to country-specifics. e-methanol
rockwool etc.). for shipping and hydrogen use for bio, waste and
Transportation costs per kg of hydrogen: Capital. This reduces annualised CAPEX and total production costs². CAPEX
Cement/Lime
Refineries¹ syn-methanol/naphtha production for High Value chemicals (HVCs). HVCs are mostly used for Offshore wind
Paper/Pulp
Primary steel
(Bio)-CCUS
Fertilizer
Demand sector Sub sector
E-fuels Industrial feedstock Demand
Localisation,
Category
Includes
production
numbers
hydrogen
of H₂ use
hydrogen
ofdemand
plastics.
are based demand Approach
in
on EHB analysis
is allocated refineries
report
per country for
over desulphurisation
(June
the 2021)¹. of fossils,
Adjustments
plants based on theirhave fertilisers (ammonia) and
been made
relative
H₂ supply type Sub sector Blue hydrogen refers to hydrogen production primarily via steam methane reforming using natural gas
Approach
as feedstock. Other production methods using natural gas as feedstock include autothermal reforming
Depends on type of pipelinesThisused
analysis
industrial
combination with full load hours
1
in assesses a case study of hydrogen supply from Tunisia to
UsingGermany
offtakers in southern
on that integrated electrolysis:
to explore Increasing
how the costs oftotal
Corridor Case
firmenergy efficiency dueStudy
to reduction
Routeof conversion
Cement/Lime
Refineries¹ primary due steeltoproduction (as reducing agent of iron ore).
for in
a few countries country-specifics.
Primary steel
Industry Fertilizer capacity MW². Dedicated Green Onshore wind (blue hydrogen) and methane pyrolysis
previous(turquoise hydrogen) pipeline.delivery can inefficiencies
hydrogen be lowered. (DC/AC and AC/DC steps) ³. Also enabling to replace electrical infrastructure for H₂
(Bio)-CCUS
Industrial feedstock Start from previous EHB analysis database, which includes installation specific Start from EHB analysis / ENSPRESO database, estimate potential by NUTS 2 region using pipeline and the length of the
OtherPaper/Pulp
Industry E-fuels Demand numbers are largely based on EHB analysis report (June 2021)¹. Addition is e-methanol pipeline, also reducing the peak capacity cost component of the infrastructure ⁴
Industrial heat pathways andanalysis
their locations/coordinates, Blue/Turquoise Existing SMR
Cement/Lime
Refineries¹ (Bio)-CCUS Primary steel Demand
for shipping
Localisation, numbers
(adds
hydrogen ~80 TWh
demand are based
is H₂ on per
in 2050),
allocated EHBwhile
country for to report¹,
HVCs basedadjusted foradjust
onplants
recent new some assumptions
announcements
announcements the by
(rate/pace
Solar
previous EHB assumptions, correct for national electricity demand & supply, curtailment, grid losses and
newthe different based on their
OtherPaper/Pulp
Biomass Industry
Cement/Lime Refineries¹ Industrial heat
E-fuels relativeshare fertilizer
refineries,
and steel
of syn-methanol/naphtha
emissions intensity
as in the
companies,
in 2019²
EHB
per
of decarbonisation,
while for
is reduced
temperature
analysis report¹,
steel
vs the level also
share
hydrogen
perof
announcements
using
country.
demand
the Process
bio/waste Market
for
etc.)
fuelsState and Trends
(reduces
emissions
fossil fuels is
~100
are TWh
reduced
report².
to 0
H₂ For
over
New ATR
Hybrid¹
max electricity transmission capacities on country-level.² Offshore wind supply is allocated to the NUTS2
Grid-based green hydrogen refers
region with to hydrogen
closest proximity. production viaselected
Validated with electrolysis using renewable
stakeholder interviewselectricity
with e.g. project developers.
Firming costs: Reflecting the additional
To assess
to deliver at 8,000 full-loadcosts
hours.are 2
the cost
full cost of Battery
It isadded
assumed
firm delivery
to the reduces
energy
cost of hydrogen
to Germany,
storage:transport
Including and
production from
storage
battery
Tunisia.
energy storage increases Pipelines
full load hours, and with that
Repurposed
(Bio)-CCUS
in 2050). Note that the latter (bio/waste) also requires
excluded to calculate these shares. Note that 2019 is chosen as “pre-covid” year. hydrogen. the transport and firming costs. New
Gas-fired OtherPaper/Pulp
Industry E-fuels Start from previous EHB H₂ demand for e-fuels production, add additional from the power grid. that with 4,000 full load hours of hydrogen Import / Export
Biomass Cement/Lime Industrial heat time. Methane pyrolysis Subsea Full Load
Power generation Offshore wind production, 1.25 €/kg is added to the total
Localisation at current refining e-methanol demandand shipping, spread over existing
(Spain,refineries
Portugal,and cement/ Corridor-specific analysis on blue hydrogen incl. review of projects and announcement. To be validated System optimisation: Optimising electrolyser size and installed capacity of solar and wind to increase
(Bio)-CCUS
installations (75%)², for selected countries Hours
Gas-fired costs¹. After adding the firming costs, the total + full load hours, + which reduces = transport and firming costs. System optimisation also reduces production
Aviation¹ BiomassOther Industry Paper/Pulp Industrial heat
Power generation Nordics) also partly at (biogenic)paper/biomass
Localisation based on plant locations
carbon from
sources plants
databases
for EUtl³, Eurofer⁴,
CCU: Biomass Fertilizers
power plants³, Europe⁵
Paper and and CIEP. with TSOs.
In the bubble maps(25%).
for visualisation, thecountries
hydrogenalso demand in refineries for desulphurisation of cost of hydrogen reflect hydrogen delivered at
Production Transport
costs.
Storage Delivered
Shipping¹ ;²
Gas-fired Other Industry Pulp, Cement and Lime⁴ The selected are allocated a larger share of the Grid Costs Costs Costs Costs
Aviation¹ Biomass Industrial
fossils heat
is not included in theAllocate hydrogen
industrial feedstock demand
sector. from EHB 2021 over plants based on country, Hydrogen imports refers to green hydrogen production from export countries analysed in this report. 8,000 full-load hours to offtakers.
hydrogen demand in the refineries, only minor change on non-selected countries. Blue/Turquoise Existing SMR
Road Shipping¹
(freight) ; ² Gas-fired DSO levelPower generation plant’s CO₂ emissions and process temperature level. This includes North Africa (Morocco, Tunisia and Algeria) and Ukraine. Optimise generator capacity off offshore wind turbine based on hydrogen production: Energy
Aviation¹ Power Biomass
DSO levelPower generation
New ATR Corridor-specific analysis on green hydrogen project/announcement basis per country, localised in NUTS 3
Several cost reduction Increasing
levers cantotalbe applied to lower
firm delivery
energy output, leveraging flexibility in transmission capacity of H₂ infrastructure ⁵ output
Heat Road Shipping¹
(freight) ; ² Gas-fired Imports 2 based on where relatively most demand sits (weighted average; more H₂ demand in a NUTS 2 means
Aviation¹ Methane pyrolysis capital reductions, among others.
Power generation Allocated hydrogen demand from EHB 2021 over plants based on country more grid-based hydrogen supply). To be validated with TSOs.

Heat Road Shipping¹
(freight) ;² DSO level
Transport Aviation¹ and plant capacity in MW. 1 1.25 €/kg is based on the cost of 5 € to store 1kg of hydrogen for a year, assuming an average of 2 storage cycles. Source: U.S. Department of Energy (2019). 3 Resulting in 2% more energy output due to reduction of conversion inefficiencies and 3% CAPEX reduction due to avoiding of electrical infrastructure.
Sources: 2 A reduction in WACC is only applied to select corridors; for example, a reduction of 10% to 8% is applied to imports from Tunisia in Corridor A and supply from Romania in Corridor E, while a re- 4 Resulting in a 12.4% reduction of offshore infrastructure costs in comparison with full-electric infrastructure.
1 EHB analysis report (June 2021),
Heat Road (freight)
2 JRC power plant database (2019)
Shipping¹; ² DSO level duction of 8% to 6% is applied to imports from Spain in Corridor B. No cost reductions are applied to Corridors C and D because the credit rating of its supply countries are already relatively high. 5 Resulting in a 5% higher energy yield, based on increasing the generator capacity from 15GW to 16GW.
Note: Grid Literature review (strategies, targets, announcements, studies) and export country stakeholder interviews,
Sources: For Paper and Pulp, Cement and lime, if a location is selected as e-fuel production location no hydrogen demand is included for industrial heat – as efuels will provide for significant
Road (freight)
2 EUtl database (2019); DSO level
demand numbers already. No localisation of demand / keep at country level; for relevant countries localise based on entry point in EHB network
Sources:
Heat
3 JRC power plant database (2019);
4 EUtl database (2019), company announcements, stakeholder
Note:
(UK, DE), based on external data/literature/announced projects/TSO inputs
In the bubble maps for visualisation, the efuels category also includes hydrogen demand in refineries for desulphurisation of fossils. For Paper and Pulp, Cement and lime, if a location is
Buildings
2 Clingendael International Energy Program (CIEP) (2017);
Heat interviews. selected as e-fuel production location no hydrogen demand is included for industrial heat – as efuels will provide for significant demand numbers already
Imports
Sources:
1 EHB analysis report (June 2021); 4 Eurofer; 2.4 €/kg in 2030 and 1.4 €/kg in 2040.
2 GfC Market state and trends report (2021) EUtl database (2019); 5 Fertilzers Europe; Company announcements, Stakeholder
3 JRC power plant database (2019); interviews.
1 Hybrid means any combination of renewables technologies which can lead to more load hours as wind and solar resources are often complementing, most common example being solar PV+ onshore wind.
1 Hydrogen demand for e-fuels were allocated to refineries in previous EHB analyses, for this analysis a different approach is used: localisation based on potential sources of biogenic CO₂ locations. 2 In the previous EHB analysis not all data input was on NUTS 2 level; where no NUTS 2-level data is available weighted averages will be used: for instance for electricity demand; the electricity demand data is
2 Ammonia as shipping fuel assumed to be imported on country level and will be allocated to NUTS 2 regions based on their relative supply potential.
Using the iterative process the working groups provided
Overall Presenting initial Update methodology Generating Present and Finalized

Process methodology based on feedback results discuss results results
all rights reserved
144
Detailed methodology
1. Hydrogen demand
2. Hydrogen supply & decarbonisation
3. Hydrogen cost-competitiveness
HYDROGEN DEMAND © 2022 European Hydrogen Backbone,
all rights reserved
Overall approach: 145
Localisation of hydrogen demand
Demand sector Sub sector Category of H₂ use Approach
Industry Fertilizer Industrial feedstock Start from previous EHB analysis database, which includes installation specific
Primary steel pathways and their locations/coordinates, adjust some assumptions (rate/pace
of decarbonisation, new announcements etc.)
Refineries¹
E-fuels Start from previous EHB H₂ demand for e-fuels production, add additional
Cement/Lime (Bio)-CCUS e-methanol demand shipping, spread over existing refineries and cement/
Paper/Pulp paper/biomass plants
Other Industry Industrial heat Allocate hydrogen demand from EHB 2021 over plants based on country,
plant’s CO₂ emissions and process temperature level.
Power Biomass
Gas-fired
Power generation Allocated hydrogen demand from EHB 2021 over plants based on country
Transport Aviation¹ and plant capacity in MW.
Shipping¹; ²
Road (freight) DSO level No localisation of demand / keep at country level; for relevant countries
(UK, DE), based on external data/literature/announced projects/TSO inputs
Buildings Heat
1 Hydrogen demand for e-fuels were allocated to refineries in previous EHB analyses, for this analysis a different approach is used: localisation based on potential sources of biogenic CO₂ locations.
2 Ammonia as shipping fuel assumed to be imported
all rights reserved
Detailed approach: 146
Demand for industrial feedstock
Sub sector Category of H₂ use Approach
Fertilizer Industrial feedstock Includes hydrogen demand in refineries for desulphurisation of fossils, fertilisers (ammonia) and
Primary steel primary steel production (as reducing agent of iron ore).
Refineries¹ Demand numbers are based on EHB analysis report¹, adjusted for new announcements by
E-fuels fertilizer and steel companies, while for steel also using the Market State and Trends report². For
Cement/Lime (Bio)-CCUS refineries, as in the EHB analysis report¹, hydrogen demand for fossil fuels is reduced to 0 over
Paper/Pulp time.
Other Industry Industrial heat Localisation based on plant locations from databases EUtl³, Eurofer⁴, Fertilizers Europe⁵ and CIEP.
In the bubble maps for visualisation, the hydrogen demand in refineries for desulphurisation of
Biomass fossils is not included in the industrial feedstock sector.
Gas-fired
Power generation
Aviation¹
Shipping¹; ²
Road (freight) DSO level
Heat
Sources:
1 EHB analysis report (June 2021); 4 Eurofer;
2 GfC Market state and trends report (2021) EUtl database (2019); 5 Fertilzers Europe; Company announcements, Stakeholder
3 JRC power plant database (2019); interviews.
all rights reserved
Demand for e-fuels
Fertilizer Industrial feedstock Includes e-kerosene for aviation, e-methanol for shipping and hydrogen use for bio, waste and
Primary steel syn-methanol/naphtha production for High Value chemicals (HVCs). HVCs are mostly used for
production of plastics.
Refineries¹
E-fuels Demand numbers are largely based on EHB analysis report (June 2021)¹. Addition is e-methanol
Cement/Lime (Bio)-CCUS for shipping (adds ~80 TWh H₂ in 2050), while for HVCs based on recent announcements the
Paper/Pulp share of syn-methanol/naphtha is reduced vs the share of bio/waste fuels (reduces ~100 TWh H₂
in 2050). Note that the latter (bio/waste) also requires hydrogen.
Other Industry Industrial heat
Localisation at current refining installations (75%)², and for selected countries (Spain, Portugal,
Biomass Nordics) also partly at (biogenic) carbon sources for CCU: Biomass power plants³, Paper and
Gas-fired Pulp, Cement and Lime⁴ (25%). The selected countries also are allocated a larger share of the
Power generation hydrogen demand in the refineries, only minor change on non-selected countries.
Aviation¹
Shipping¹; ²
Heat
Sources: 3 JRC power plant database (2019); Note:

1 EHB analysis report (June 2021), 4 EUtl database (2019), company announcements, stakeholder In the bubble maps for visualisation, the efuels category also includes hydrogen demand in refineries for desulphurisation of fossils. For Paper and Pulp, Cement and lime, if a location is
2 Clingendael International Energy Program (CIEP) (2017); interviews. selected as e-fuel production location no hydrogen demand is included for industrial heat – as efuels will provide for significant demand numbers already
all rights reserved
Demand for industrial heat
Fertilizer Industrial feedstock Includes hydrogen replacing natural gas for medium temperature (150-500°C) and high
Primary steel temperature (>500°C) industrial heating processes in all industrial sectors (cement/lime, ceramics,
paper/pulp, secondary steelmaking, rockwool etc.).
Refineries¹
E-fuels Demand numbers are based on EHB analysis report (June 2021)¹. Adjustments have been made
Cement/Lime (Bio)-CCUS for a few countries due to country-specifics.
Paper/Pulp
Localisation, hydrogen demand is allocated per country to the different plants based on their
Other Industry Industrial heat relative emissions intensity in 2019² per temperature level per country. Process emissions are
excluded to calculate these shares. Note that 2019 is chosen as “pre-covid” year.
Biomass
Gas-fired
Power generation
Aviation¹
Shipping¹; ²
Heat
Note:
Sources: For Paper and Pulp, Cement and lime, if a location is selected as e-fuel production location no hydrogen demand is included for industrial heat – as efuels will provide for significant
1 EHB analysis report (June 2021), 2 EUtl database (2019); demand numbers already.
all rights reserved
Demand for power generation
Fertilizer Industrial feedstock Includes hydrogen replacing natural gas in gas fired powered plants, as included EHB analysis
Primary steel report (June 2021)¹.
Refineries¹ Demand numbers are based on EHB analysis report (June 2021)¹. Adjustments have been made
E-fuels for a few countries due to country-specifics.
Cement/Lime (Bio)-CCUS
Paper/Pulp Localisation, hydrogen demand is allocated per country over the plants based on their relative
capacity in MW².
Other Industry Industrial heat
Biomass
Gas-fired
Power generation
Aviation¹
Shipping¹; ²
Heat
Sources:
1 EHB analysis report (June 2021), 2 JRC power plant database (2019)
all rights reserved
150
1. Hydrogen demand
HYDROGEN DECARBONIZATION & SUPPLY © 2022 European Hydrogen Backbone,
all rights reserved
Definitions of hydrogen supply options
H₂ supply type Sub sector Approach
Dedicated Green Onshore wind Dedicated green hydrogen refers to hydrogen production via electrolysis using electricity generated from
renewable energy resources dedicated exclusively for hydrogen supply. This includes electricity from solar
Solar
PV (rooftop and ground) and wind (onshore and offshore).
Hybrid¹
Offshore wind Blue hydrogen refers to hydrogen production primarily via steam methane reforming using natural gas
as feedstock. Other production methods using natural gas as feedstock include autothermal reforming
(blue hydrogen) and methane pyrolysis (turquoise hydrogen)
Blue/Turquoise Existing SMR
New ATR Grid-based green hydrogen refers to hydrogen production via electrolysis using renewable electricity
from the power grid.
Methane pyrolysis
Grid Hydrogen imports refers to green hydrogen production from export countries analysed in this report.
This includes North Africa (Morocco, Tunisia and Algeria) and Ukraine.
Imports
all rights reserved
Hydrogen supply forecasting & localisation
H₂ supply type Sub sector Approach
Dedicated Green Onshore wind Start from previous EHB analysis / ENSPRESO database, estimate potential by NUTS 2 region using
previous EHB assumptions, correct for national electricity demand & supply, curtailment, grid losses and
Solar
max electricity transmission capacities on country-level.² Offshore wind supply is allocated to the NUTS2
Hybrid¹ region with closest proximity. Validated with selected stakeholder interviews with e.g. project developers.
Offshore wind Corridor-specific analysis on blue hydrogen incl. review of projects and announcement. To be validated
with TSOs.
Blue/Turquoise Existing SMR
New ATR Corridor-specific analysis on green hydrogen project/announcement basis per country, localised in NUTS
2 based on where relatively most demand sits (weighted average; more H₂ demand in a NUTS 2 means
Methane pyrolysis
more grid-based hydrogen supply). To be validated with TSOs.
Grid Literature review (strategies, targets, announcements, studies) and export country stakeholder interviews,
localise based on entry point in EHB network
Imports
1 Hybrid means any combination of renewables technologies which can lead to more load hours as wind and solar resources are often complementing, most common example being solar PV+ onshore wind.
2 In the previous EHB analysis not all data input was on NUTS 2 level; where no NUTS 2-level data is available weighted averages will be used: for instance for electricity demand; the electricity demand data is
on country level and will be allocated to NUTS 2 regions based on their relative supply potential.
all rights reserved
Emissions reductions calculation
Demand sector Sub sector Approach
Industry Fertilizer CO₂-Emission by transforming methane (80% market share) and coal (20%) to hydrogen for ammonia production, resulting in 13.10 tons
CO₂ saved by using 1 ton of green hydrogen.
Primary steel Using direct-reduction-plants instead of common blast-furnaces 26 tons of CO₂ can be saved by 1 ton of green hydrogen.
Refineries By using 1 ton green hydrogen for Hydrocracking or Hydrotreating, Steam-Methane-Reforming is not longer necessary which
concludes in 10.92 tons CO₂ saved.
Energy A 2.4 times higher calorific value of hydrogen in comparison with methane, which emits 182 g CO₂/ kWh by burning, conclude to
0.43 t CO₂ saved using one ton of hydrogen.
Power Gas-fired One ton of hydrogen saves 0.74 ton CO₂ in 2030, 0.46 ton CO₂ in 2040 and 0.27 ton CO₂ in 2050, depending on the total
emissions of the electricity mix in that year.
Transport Mobility Direct hydrogen use for heavy transport (e.g. 25 t truck) saves 4.375 litres diesel per kg hydrogen, which equals to 11.55 tons CO₂
saved by 1 ton of hydrogen.
Efuels Depending on the FLH of synthesis plant (e.g. 4000 h/year) 10.89 tons CO₂ can be saved by using 1 ton of hydrogen considering a
diesel engine with 2.64 kg CO₂/ litre diesel as status-quo.
Buildings Heat A 2.4 times higher calorific value of hydrogen in comparison with methane, which emits 182 g CO₂/ kWh by burning, conclude to
0.43 t CO₂ saved using one ton of hydrogen.
all rights reserved
154
1. Hydrogen demand
HYDROGEN COST-COMPETITIVENESS © 2022 European Hydrogen Backbone,
all rights reserved
Methodology: 155
Calculation of hydrogen delivery cost
Cost components of Potential cost reduction levers Cost factor

hydrogen delivered
Production costs per kg of hydrogen: Power electronics: Removing the inverter of the solar PV modules, enabling a reduction of 11% in
Annualised costs of system setup, divided by CAPEX, which reduces the production costs.
total produced hydrogen per year.
Leveraging foreign investment: Foreign investment will reduce the Weighted Average Cost of
Transportation costs per kg of hydrogen: Capital. This reduces annualised CAPEX and total production costs². CAPEX
Depends on type of pipelines used in
combination with full load hours on that Using integrated electrolysis: Increasing total energy efficiency due to reduction of conversion
pipeline and the length of the pipeline. inefficiencies (DC/AC and AC/DC steps) ³. Also enabling to replace electrical infrastructure for H₂
pipeline, also reducing the peak capacity cost component of the infrastructure ⁴
Firming costs: Reflecting the additional cost
Battery energy storage: Including battery energy storage increases full load hours, and with that
to deliver at 8,000 full-load hours. It is assumed
reduces the transport and firming costs.
that with 4,000 full load hours of hydrogen Full Load
production, 1.25 €/kg is added to the total System optimisation: Optimising electrolyser size and installed capacity of solar and wind to increase Hours
costs¹. After adding the firming costs, the total full load hours, which reduces transport and firming costs. System optimisation also reduces production
cost of hydrogen reflect hydrogen delivered at costs.
8,000 full-load hours to offtakers.
Optimise generator capacity off offshore wind turbine based on hydrogen production: Energy
Increasing total energy output, leveraging flexibility in transmission capacity of H₂ infrastructure ⁵ output
1 1.25 €/kg is based on the cost of 5 € to store 1kg of hydrogen for a year, assuming an average of 2 storage cycles. Source: U.S. Department of Energy (2019). 3 Resulting in 2% more energy output due to reduction of conversion inefficiencies and 3% CAPEX reduction due to avoiding of electrical infrastructure.
2 A reduction in WACC is only applied to select corridors; for example, a reduction of 10% to 8% is applied to imports from Tunisia in Corridor A and supply from Romania in Corridor E, while a re- 4 Resulting in a 12.4% reduction of offshore infrastructure costs in comparison with full-electric infrastructure.
duction of 8% to 6% is applied to imports from Spain in Corridor B. No cost reductions are applied to Corridors C and D because the credit rating of its supply countries are already relatively high. 5 Resulting in a 5% higher energy yield, based on increasing the generator capacity from 15GW to 16GW.

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Five hydrogen supply

corridors for Europe in 2030

2. Five emerging supply corridors

& EHB Mission

Europe’s accelerated 2030 climate targets 4

define an aggressive role for hydrogen

Note: This study’s underlying analysis was largely

Domestic supply target Imports targets Total 2030 Target

1 The RePowerEU target of 10 MT of imports includes 6 MT of renewable hydrogen and 4 MT

The EHB initiative has identified sufficient hydrogen 5

supply to exceed the 2030 domestic targets

EHB also identified 14.7 MT of demand based

and country. Blue 1.1

Regional differences in supply and demand show the 6

importance of connecting regions across Europe

cost, hydrogen resources. These regions benefit from / Supply (2030/2040)

To deliver the 2030 hydrogen demand targets set by the

different parts of Europe, before expanding and connecting Europe

with neighboring regions with export potential.

Certainty about the deployment of this infrastructure will enable Riga

market actors to develop supply and demand more rapidly Edinburgh

The five hydrogen supply corridors are: Hamburg

– Corridor A: North Africa & Southern Europe

– Corridor B: Southwest Europe & North Africa London

Frankfurt Prague Krakow

– Corridor C: North Sea

– Corridor E: East and South-East Europe Lyon

identified by the RePowerEU plan, including a corridor via Madrid

(Corridor C) and via Ukraine (Corridor E)

These five corridors represent the collective vision of the 8

31 gas infrastructure companies part of the EHB initiative

Corridor A Corridor B Corridor C Corridor D Corridor E

hydrogen supply and the decarbonisation of energy demand

Corridor A Corridor B Corridor C Corridor D Corridor E

These five supply corridors will enable the creation 10

– Connect substantial hydrogen supply and demand across

– Access vast volumes of cost-competitive domestic hydrogen

supply and hydrogen imports from neighboring regions

– Foster the creation of a liquid, pan-European, hydrogen Riga

trading market Edinburgh

energy resources Cork

– Increase the resiliency of Europe’s energy system Ljubljana

diversity of supply. Bilbao

– Deliver substantial and cost-effective emission reductions

To ensure the development of each corridor by 2030, 11

there is a need for clear and concrete actions

However, speed will be of essence!

The EHB initiative stands ready to deliver the hydrogen infrastructure 12

needed to achieve Europe’s 2030 hydrogen targets

The EHB initiative and its members are ready to deliver

Our recommendation: Establish hydrogen supply corridors 13

as enabler for hydrogen market creation

Answering to RePowerEU EHB recommends introducing

2. Five emerging supply corridors

This report analyses each of the five hydrogen corridors 15

Sections Questions answered

– Which countries and sectors will drive the Stockholm

– How will the hydrogen supply mix change Edinburgh

Compe­titive­ness be with fossil alternatives? Cork

– What cost-levers can lower hydrogen cost? London

Frankfurt Prague Krakow

3 National – What is the state of national hydrogen strategies Paris Munich

Strategies and regulation in the countries of this corridor? Budapest

Needed actions are required to support the development

Competitiveness be with fossil alternatives? Cork

Market – Limited renewable energy infrastructure, low renewables penetration in