Investments in Green Hydrogen and Biomethane market by 2030 in the European Union
European Union leaders have decided to rebuild the gas system. The goal is to reduce natural gas consumption with green hydrogen and biomethane. Accelerating these changes could shorten the duration of natural gas as a transition fuel in the energy transition and increase the importance of green hydrogen and biomethane in the European Union’s energy mix at a faster pace than anticipated.
Green hydrogen and biomethane are renewable gases that are produced through 100% green processes. As a result, they contribute to energy transformation and reduce environmental pollution. The attributes of these renewable gases make them one of the key energy sources needed in fossil fuel phase-out. This is important in the European Union, which has high ambitions to increase the share of renewables in the energy sector, but where coal and natural gas still play an important role.
The current level of green hydrogen and biomethane production in the EU is not high. What’s more, in the case of biomethane, one can also see deficiencies in the regulation of this sector encouraging investment in biomethane infrastructure. However, the current decisions of the European Union leaders can contribute to the rapidly increasing production of these renewable gases and introducing more business-oriented regulations.
As a result of the EU leaders’ decision, investments will be made to prepare the infrastructure for renewable gases. Investments will include both a pipeline system to prepare for the use of green hydrogen and biomethane as well as hydrogen storage.
Companies involved in the infrastructure and production of green hydrogen and biomethane can achieve dynamic growth in contracts and revenue. Consequently, green hydrogen and biomethane companies may become increasingly interesting for stock market investors.
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