Hydrogen as a Pillar of Europe’s Energy Transition: Infrastructure Planning and Sectoral Integration

The urgent need to address climate change has driven the European Union to commit to ambitious targets for achieving a netzero economy by 2050. With the energy sector responsible for nearly 75% of the EU’s greenhouse gas emissions, transitioning to a carbonneutral energy system is essential, with renewable energy sources playing a pivotal role. In this context, renewable hydrogen has emerged as a key solution for decarbonizing hardtoabate sectors and enhancing sector coupling through industrial clusters. However, several challenges, ranging from high production costs to regulatory uncertainties and the development of a European hydrogen infrastructure, continue to hinder the establishment of a robust European hydrogen market. The thesis investigates the transformation pathways and policy mechanisms needed to integrate renewable hydrogen into the European energy system. It also addresses the financial and economic challenges surrounding hydrogen production, focusing on electrolysis within industrial clusters and exploring revenue strategies to maximize profitability. By analyzing evolving regulatory frameworks, particularly the European Commission’s Renewable Energy Directive and the rules for Renewable Fuels of NonBiological Origin production, the research highlights how locationspecific characteristics and energy hub planning influence hydrogen production competitiveness and sectoral integration potential. Additionally, the thesis assesses the infrastructure buildouts for scaling hydrogen production and distribution across Europe, offering strategic insights into both shortterm goals and longterm pathways needed to develop a fully integrated hydrogen market by 2050. By applying a combined micro and macro methodological framework, the thesis quantifies hydrogen’s potential for effective integration into the European energy system. It examines the intersection of technological readiness, regulatory developments, market dynamics, and infrastructure needs, providing a comprehensive view of the future hydrogen economy in Europe.