Letter on hydrogen: Storage matters

Europe must accelerate the development of large-scale hydrogen storage to ensure reliable supplies as demand for the energy vector grows

Europe has a network of natural gas storage facilities that enables it to manage the seasonality of demand and to provide a cushion against supply shocks such as the recent Russian import disruption. It must develop a similar network for hydrogen, and quickly. This is because imports are expected to account for at least half of the continent’s hydrogen supply. The potential level of hydrogen demand seasonality remains unclear as its role in heating is still under discussion, but it could be significant. And fluctuations in domestic green hydrogen supply, as producers trade the arbitrage between hydrogen and renewable power prices, will certainly need to be managed with flexible storage. Germ