Ireland recently signed a joint declaration on green hydrogen development co-operation with Germany, which will play an important role in decarbonising and expanding our energy system. What do you need to know?
Background
The Irish Climate Action Plan 2021 (Plan) outlined how green hydrogen can support decarbonisation across several sectors, electricity generation, heavy goods transport, and industry. Specific actions relating to assessing the potential for production, infrastructure deployment, storage and use of green hydrogen were set out in the Plan. In parallel, the Irish National Energy Security Framework (Framework) was developed and published in April 2022, identifying a hydrogen strategy for Ireland as one of the key priorities in addressing Ireland’s long-term security needs for affordable energy. This sits against the backdrop of the EU’s hydrogen strategy, including green hydrogen, published in 2020.
Irish National Hydrogen Strategy
In July 2022, the Department for the Environment, Climate and Communications (Department) opened a stakeholder Consultation to develop a National Hydrogen Strategy for Ireland (Strategy), which is due to be finalised shortly. The Strategy will set out Ireland’s vision for producing, deploying and using hydrogen (including green hydrogen derived from renewables) and becoming an energy exporter to the EU, exploring questions of appropriate regulation, safety frameworks, environmental impact and other standards to be applied. This will see Ireland become part of the European Hydrogen Backbone (EHB) and further enable it to meet its various decarbonisation and renewables regulatory targets.
Joint Declaration between Ireland and Germany on green hydrogen co-operation
A Joint Declaration of Intent on co-operation in the field of green hydrogen between the Irish Department of the Environment, Climate and Communications and the German Federal Research Ministry was recently signed. Key features:
- The availability of renewable energy is one of the main challenges to producing green hydrogen. Ireland has one of the EU’s best offshore renewable energy resources, creating major opportunities for Irish green hydrogen production.
- In addition to the 5GW offshore energy target by 2023, the Irish Government has targeted an additional 2 GW (gigawatts) of offshore wind to produce green hydrogen. The Department notes that this can provide 6TWh (Terawatt Hour) of zero-carbon energy, delivering just over 10% of the electricity sector’s total final energy needs, 21% of industry needs or 6-7% of total transport needs.
- The co-operation aims to help accelerate Ireland and the EU’s energy transition and lead to a more energy-secure Europe. Ireland’s proven track record of delivering renewables, trusted reputation in the business and international community, close alignment and coherence on energy policy, market and regulations due to Ireland’s longstanding EU Membership are all identified as creating the right conditions for German-Irish cooperation in the development of green hydrogen to flourish.
Contact Us
Ireland is pursuing co-operation with EU partners such as Germany in developing its green hydrogen strategy. For developers, investors, funders and purchasers of high energy users such as data centres, pharmaceuticals and life science companies, distilleries and transport sector operators, developing infrastructure which can harness green hydrogen to assist in energy security and de-carbonisation creates interesting opportunities to be considered and explored. For more information or advice on infrastructure, renewables and energy contracts, including developments on green hydrogen, please contact Cassandra Byrne, Jarleth Heneghan, Fergus Devine or your usual William Fry contact.
