Green Hydrogen value-chains unpacked

A comprehensive mapping and analysis of the potential of Green Hydrogen across multiple European markets helped to frame our client’s strategic focus and investment decision-making.

Client Requirements

The process of extracting hydrogen from water using renewable energy results in a clean alternative power source, called Green Hydrogen. To understand how Green Hydrogen could be sustainably applied at-scale requires a detailed picture of the power-usage and competitive dynamics of major end-markets and industrial sectors.

EIT InnoEnergy asked us to identify commercial opportunities for the large-scale application of Green Hydrogen across Europe. This included end-markets such as steel-production, shipping and heavy goods vehicles.
The client wanted to develop an understanding of where Green Hydrogen could play a role in these sectors, by gaining a better understanding of their value-chains and commercial contexts.  

Baringa's Role

Baringa drew on its deep experience in Europe’s energy markets to assess the value chain of each sector, in the context of Green Hydrogen opportunities. This included:

• A detailed mapping of existing Green H2 projects of material importance across Europe, and identifying those opportunities with significant decarbonisation potential.
• A detailed mapping of the value-chain, competitive dynamics and an assessment of the decarbonisation policy of each sector, across multiple EU markets.
• An assessment of where carbon intensity is greatest in each of those sectors. (We selectively deployed Carbon Chain, a unique carbon emissions accounting software toolbox to build a picture of use-cases).
• Identifying the critical success factors for Green H2 opportunities in each sector. This provided our client with a template against which to gauge individual opportunities.
• Identifying the main drivers of change from an industry-perspective, and highlighting those participants most likely to be open to change.

In addition, we conducted stakeholder interviews and prepared an executive summary of our key findings, which included prioritising target markets on the basis of decarbonisation and the scale of opportunity.  

Client Outcome

EIT gained a substantiated target-list of priority markets and opportunities for Green Hydrogen deployment, and a robust evidence-base from which to inform its executive board, as well as future partnership discussions around the launch of its new Green H2 initiative, the European Green Hydrogen Acceleration Center.

"Green Hydrogen will be key for decarbonizing heavy industries and achieving climate neutrality in Europe. To identify the best approach, in the context of large industrial projects, detailed insight into value chains and their stakeholder ecosystems is indispensable. Baringa’s analysis has proved an excellent foundation for this critical endeavour.”

Jacob Ruiter, CEO, EIT InnoEnergy, Benelux

“As a decarbonisation tool, Green Hydrogen represents a large-scale growth opportunity. The critical catalyst is a joined-up understanding of the application roadmap, so the H2 ecosystem builds at a commercially attractive pace. EIT InnoEnergy is at the forefront of this agenda, and we have been delighted to assist them.”

Erik Rakhou, Project Manager, Baringa Partners

For more information on Baringa's work in helping organisations transition to a Low Carbon Future,
visit our webpage.

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