* Priority is renewable hydrogen from wind and solar
* Transitional 'blue hydrogen' needed in near term
(Updates with quotes from EU Commissioner, details)
By Marine Strauss
BRUSSELS, July 8 (Reuters) - The European Commission on
Wednesday mapped out its vision to promote renewable hydrogen, a
sector expected to lure up to 470 billion euros ($530.72
billion) in investment as the European Union strives for net
zero emissions by 2050.
European industry already uses around 8 million tonnes of
hydrogen annually, but most is so-called grey hydrogen, which is
made from natural gas through a process that produces
planet-warming emissions.
The EU's priority is to develop carbon-neutral or green
hydrogen for use from 2030-50 in sectors, such as the steel
industry, that are hard to decarbonise, or where electrification
is difficult or impossible.
Climate Commissioner Frans Timmermans said the bloc needed
progressively to grow "a small niche market" to one of scale.
He acknowledged the need for a transitional phase, requiring
blue hydrogen, which is made from fossil fuel, but the carbon
generated is captured and stored.
In a first phase from now to 2024, he said production
capacity would be increased six-fold through the installation of
hydrogen electrolysers with the capacity to produce up to one
million tonnes of green hydrogen.
A second phase, from 2025-30, would allow production of up
to 10 million tonnes.
Investments in renewable hydrogen, meanwhile, could reach
between 180 billion and 470 billion euros by 2050, the
Commission, the EU executive, has said.
To further bolster green hydrogen, the European Commission
on Wednesday launched the European Clean Hydrogen Alliance,
bringing together industry leaders, civil society, ministers and
the European Investment Bank.
Industry is keen on hydrogen as a way of moving towards a
net zero economy that can use existing infrastructure.
"Next to being an alternative fuel and energy carrier,
hydrogen can become an important low-carbon building block for
the chemical industry's production processes," Marco Mensik,
director general of the chemical industry association Cefic,
said.
Wednesday's policy outline should be followed by firm
legislative proposals next year, the Commission said.
($1 = 0.8866 euros)
(Reporting by Marine Strauss @StraussMarine; editing by Barbara
Lewis)
