Reports & Analysis

The Ready4H2 project has released its latest research report, presenting the key findings of its 2024 (Phase 3) activities - and shedding light on the critical role of distribution system operators (DSOs) in the energy transition. Developed by Ready4H2 members with assistance from its partners, the report outlines the project’s mission and highlights key findings from its 2024 research supporting the key messages:

• The energy transition in Europe is only achievable with the use of gas distribution grids - at least half the hydrogen forecast in all sectors will need to be transported via distribution pipelines.
• Repurposing gas distribution grids for hydrogen offers a cost effective, faster way to deliver green gases.
• Distribution grids offer faster regional development using remote green hydrogen by connecting remote production with consumers without the need for transmission infrastructure.
• The prerequisites for gas DSO transformation to hydrogen are in place, but supporting regulatory and financial frameworks are needed to confirm the value proposition of a hydrogen market. 

Ready4H2 joined DVGW to launch two brochures on the role of hydrogen and gas infrastructure in reducing the CO2 footprint from energy:

• Hydrogen reduces the CO2 footprint - in many ways: outlines the different ways in which hydrogen can be produced and their different CO2 footprint reactions. The key message is that hydrogen can be produced in a climate-friendly manner, especially and green hydrogen that is virtually climate neutral.
• Largely H2-ready now: grids, storage facilities, components: outlines the history of gas grids in Germany having been transformed several times in the past, to accommodate different gas qualities and how the distribution grid is largely hydrogen-ready. Hydrogen ready means being able to swap from natural gas to hydrogen without operational restrictions.

The Ready4H2 Alliance’s third report which presents a roadmap towards fully decarbonized gas distribution grids across Europe. By utilizing the gas distributions companies existing organizations and infrastructure it is possible to facilitate a hydrogen market development, convert the networks to hydrogen distribution and make sure local producers and consumers of hydrogen are connected. 

Key insights from the report:

• Local gas distribution network can convert their networks to hydrogen and offer access to a European market for hydrogen producers and consumers.
• Hydrogen networks can deliver pilot projects in the local communities which can develop into full hydrogen infrastructure systems 
• A fit for purpose policy and regulatory framework will be needed to enable local gas distribution networks to transition to hydrogen and help achieve REPowerEU goals
• European policy can enable the transformation of local gas distribution networks and create a big hydrogen market across our continent, with local hydrogen distribution networks providing the essential connections between producers and consumers. This will have major benefits in a large-scale hydrogen economy, including:
  • Reducing CO2 emissions by over 500 million tonnes a year.
  • Creating almost 1 million European jobs.
  • Reducing imports of fossil gas and oil substantially and improving security of supply.
  • Supporting European manufacturing to decarbonize and thereby remain in Europe. 

Key insights from the report:

• Gas infrastructure provides the means to cope with rapidly growing shares of variable wind and solar power
• As 99% of industrial and commercial gas end-users are connected to local gas networks, we are crucial to bring the European hydrogen backbone to life and deliver large volumes of hydrogen to millions of customers
• Analysis shows that in a decarbonisation scenario including significant volumes of hydrogen and green methane, investment in the combined power and gas infrastructure is estimated to save 41 bn EUR/year compared to a power dominated scenario
   

Key insights from the report:

• European local gas networks deliver cost-effective and safe energy to consumers.
• Hydrogen is key to net zero, and local networks are crucial to accelerate deployment.
•  Over 1 million km of distribution pipelines are ready for hydrogen.
•  Countries are starting to provide support, but it needs to be accelerated.