Thirteen leading energy, transport and industry companies have launched a global initiative in Davos to voice a united vision and long-term ambition for hydrogen to foster the energy transition.
Meeting in Davos for the first time on Tuesday, the Hydrogen Council currently comprises 13 CEOs and Chairpersons from various industries and energy companies committed to help achieve the ambitious goal of reaching the 2 ˚C target as agreed in the 2015 Paris Agreement. The international companies currently involved are: Air Liquide, Alstom, Anglo American, BMW GROUP, Daimler, ENGIE, Honda, Hyundai, Kawasaki, Royal Dutch Shell, The Linde Group, Total and Toyota. The Council is led by two Co-Chairs from different geographies and sectors, currently represented by Air Liquide and Toyota. The members of the Hydrogen Council collectively represent total revenues of €1.07 trillion and 1.72 million employees around the world.
The Hydrogen Council is determined to position hydrogen among the key solutions of the energy transition. Hydrogen technologies and products have significantly progressed over past years and are now being introduced to the market. The Council will work with, and provide recommendations to, a number of key stakeholders such as policy makers, business and hydrogen players, international agencies and civil society to achieve these goals.
During the launch, members of the Hydrogen Council confirmed their ambition to accelerate their significant investment in the development and commercialization of the hydrogen and fuel cell sectors. These investments currently amount to an estimated total value of €1.4 billion/year. This acceleration will be possible if the key stakeholders increase their backing of hydrogen as part of the future energy mix with appropriate policies and supporting schemes.
The 2015 Paris Agreement to combat climate change is a significant step in the right direction but requires business action to be taken to make such a pledge a reality. The Hydrogen Council brings together some of the world’s leading industrial, automotive and energy companies with a clear ambition to explain why hydrogen emerges among the key solutions for the energy transition, in the mobility as well as in the power, industrial and residential sectors, and therefore requires the development of new strategies at a scale to support this. But we cannot do it alone. We need governments to back hydrogen with actions of their own—for example through large-scale infrastructure investment schemes. Our call today to world leaders is to commit to hydrogen so that together we can meet our shared climate ambitions and give further traction to the emerging Hydrogen ecosystem.—Benoît Potier, CEO, Air Liquide
The Hydrogen Council will exhibit responsible leadership in showcasing hydrogen technology and its benefits to the world. It will seek collaboration, cooperation and understanding from governments, industry and most importantly, the public. At Toyota, we have always tried to play a leading role in environmental and technological advances in the automotive industry, including through the introduction of fuel cell vehicles. Moreover, we know that in addition to transportation, hydrogen has the potential to support our transition to a low carbon society across multiple industries and the entire value chain. The Hydrogen Council aims to actively encourage this transition.—Takeshi Uchiyamada, Chairman, Toyota
A report entitled How Hydrogen empowers the energy transition—commissioned by the Hydrogen Council—further details this future potential that hydrogen is ready to provide, and sets out the vision of the Council and the key actions it considers fundamental for policy makers to implement, to fully unlock and empower the contribution of hydrogen to the energy transition.
|The report argues that hydrogen has seven major roles to play in decarbonizing major sectors of the economy. Click to enlarge.|
The report makes three major recommendations to policymakers:
Provide long-term and stable policy frameworks to guide the energy transition in all sectors (energy, transport, industry, and residential). We will bring in our expertise on the feasibility of decarbonization solutions in each sector.
Develop coordination and incentive policies to encourage early deployment of hydrogen solutions and sufficient private-sector investments. These policies should complement sector policies and provide tools to capture the benefits of hydrogen.
In the transport sector, ensure strong coordination among governments (to give direction), car manufacturers (to produce and commercialize FCEVs), infrastructure providers (to invest in supply and distribution infrastructure), and consumers (to purchase FCEVs).
Ensure the energy market reforms effectively in terms of feed-in tariffs, curtailment management, seasonal balancing capacity remuneration and taxation, while taking into account the benefits hydrogen can deliver to the energy system.
Provide financial instruments to leverage private investment with the support ofpublic guarantees, to mitigate risk for early movers.
Facilitate harmonization of industry standards across regions and sectors to enable hydrogen technologies and take advantage of scale effects and decrease costs.