Green Hydrogen: Driving Industrial Transformation and Policy Innovations

Ocearis Team
Jan 11
4 min read

Hydrogen technology is emerging as a pivotal solution for decarbonizing industries and transforming energy systems worldwide. While its association with transportation is well-known, hydrogen’s potential to reshape energy-intensive industries such as steel, cement, and shipping is equally groundbreaking.

Complementing these technological advancements, robust policies and international strategies—such as the EU Hydrogen Strategy and the Draghi Report—are laying the foundation for hydrogen's large-scale adoption.

Hydrogen's Role in Industrial Decarbonization

Cement and steel production collectively account for 12% of global greenhouse gas emissions. Both industries are notoriously hard to electrify due to their reliance on high-heat processes powered by fossil fuels. Hydrogen, especially green hydrogen produced using renewable electricity, offers a viable path to reduce emissions.

In Europe, companies are piloting hydrogen-powered steel plants where hydrogen replaces coal in processes like direct reduction of iron ore. This breakthrough emits only water vapor instead of carbon dioxide, drastically cutting emissions. Similarly, the cement industry is exploring hydrogen to fuel kilns, reducing reliance on natural gas while maintaining operational efficiency.

Beyond heavy industry, hydrogen can serve as a reliable energy source for data centers, grid-scale backup power, and high-demand applications. Unlike batteries, hydrogen fuel cells provide continuous operation with quick refueling, making them ideal for critical infrastructure.

Hydrogen and Maritime Energy

The advancements in industrial hydrogen applications provide lessons for the maritime sector. Ports, key nodes in global supply chains, can evolve into hydrogen production and distribution hubs. By producing green hydrogen locally, ports could fuel both ships and nearby factories, fostering a sustainable energy ecosystem.

Hydrogen’s high energy density and quick refueling capabilities make it an attractive alternative to batteries for shipping. Batteries, though efficient for smaller vessels, face weight and range limitations that hydrogen can overcome. With centralized infrastructure at ports, hydrogen-powered vessels could transition seamlessly to cleaner energy, reducing the carbon footprint of maritime transport.

The EU Hydrogen Strategy: A Bold Vision

Recognizing hydrogen's potential to drive decarbonization, the European Union launched its EU Hydrogen Strategy in 2020 as a cornerstone of the European Green Deal. The strategy aims to make green hydrogen a central pillar of the energy transition, with clear goals for production, infrastructure, and adoption.

Key Elements of the EU Hydrogen Strategy:

Scaling Production: By 2030, the EU aims to install 40 gigawatts of electrolyzer capacity to produce up to 10 million metric tons of green hydrogen annually.
Infrastructure Development: The strategy emphasizes building a comprehensive hydrogen transport and storage network across member states, with a focus on repurposing existing natural gas pipelines for hydrogen.
Sector Integration: Hydrogen adoption is prioritized in hard-to-abate sectors, such as steelmaking, heavy transport, and maritime shipping.
International Collaboration: The EU seeks partnerships with countries in North Africa and the Middle East to produce green hydrogen for export to Europe, creating a global hydrogen economy.

The EU has also committed over €9 billion to fund hydrogen projects, with significant allocations through programs like the Innovation Fund and Horizon Europe. These investments aim to bridge the gap between innovation and commercialization, accelerating the hydrogen transition.

Insights from the Draghi Report

The Draghi Report, authored by former Italian Prime Minister Mario Draghi, underscores the importance of hydrogen in Europe’s energy transformation. It highlights hydrogen as a “critical enabler” of industrial decarbonization and calls for coordinated investments in infrastructure and research.

Key recommendations from the Draghi Report include:

Prioritizing Green Hydrogen: To align with climate goals, the report emphasizes scaling green hydrogen production rather than gray or blue hydrogen (derived from fossil fuels).
Regional Hubs: The report advocates for the creation of hydrogen hubs in strategic locations, such as ports and industrial clusters, to concentrate investments and maximize efficiency.
Cross-Border Collaboration: Unified regulatory frameworks are necessary to ensure seamless hydrogen trade across Europe, enabling economies of scale and reducing costs.

The Draghi Report’s alignment with the EU Hydrogen Strategy reinforces the urgency of action and the potential for hydrogen to reshape Europe’s energy landscape.

Global Policy Support: The U.S. and Beyond

While the EU is leading the charge, other regions are also making significant strides. In the U.S., the Biden administration has allocated $7 billion for regional hydrogen hubs as part of its broader climate agenda. These hubs aim to produce, store, and distribute hydrogen, with a focus on creating jobs and fostering innovation.

Similarly, Japan and South Korea are investing heavily in hydrogen technologies, with national strategies targeting both production and adoption. These global efforts underscore the international momentum behind hydrogen as a solution for decarbonization.

Unlocking Hydrogen’s Potential

At Ocearis, we are committed to leading this transition by developing innovative solutions to electrify the maritime industry. Our vision includes integrating hydrogen fuel systems into vessels and collaborating with ports to establish the necessary infrastructure for green hydrogen production and distribution. By addressing key challenges like energy storage and refueling logistics, we aim to make sustainable shipping a reality.