A State-of-the Art in Austria on Green and Low Carbon Hydrogen Policies
In 2022, the Austrian federal government introduced a national hydrogen strategy aimed at propelling the growth of the country’s hydrogen sector. The objective of this strategy is to integrate hydrogen production seamlessly into the energy framework.
Climate-neutral hydrogen and its derivatives are primarily earmarked for sectors lacking viable decarbonization alternatives, such as electrification. In addition to “green” hydrogen, the concept of “climate-neutral hydrogen” encompasses hydrogen produced from natural gas with full carbon capture and storage once the technology reaches sufficient maturity (“blue hydrogen”), as well as that generated through pyrolysis (“turquoise hydrogen”).
By 2030, the goal is to establish 1 GW of electrolysis capacity and replace most fossil fuel-derived hydrogen with its climate-neutral counterpart in energy-intensive industrial sectors. The strategy also aims to develop essential hydrogen infrastructure and foster international partnerships for climate-neutral hydrogen initiatives. Furthermore, research and technological advancements across the entire hydrogen value chain are envisioned to bolster Austria’s position as a leading technology hub and business destination.
The Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK) and the Federal Ministry of Labour and Economy (BMAW) is pooling Austria’s strengths to deliver its national hydrogen strategy.
The Hydrogen Partnership Austria (HyPA) Platform is conducting an overarching dialogue process in order to incorporate views from business and industry leaders, researchers and civil society representatives into the design of regulations and funding mechanisms in a productive way. HyPA is supplying facts and information on the latest developments in the hydrogen field, organising events and providing an international showcase and an overview of funding opportunities. Its other services include giving initial and funding advice to companies and organisations, running study tours to trial sites and facilitating participation in trade fairs. The initiative is assisted by a high-calibre advisory board that draws up recommendations for the attention of the competent ministries, thus lending efficient and effective support to efforts to ramp up Austria’s hydrogen industry.
The Austrian hydrogen strategy centers on two primary approaches to hydrogen production: renewable hydrogen, generated through methods such as water electrolysis using renewable electricity or sustainable biomass processes, and climate-neutral hydrogen, derived from methane via reformation with carbon capture, utilization, and storage (CCUS), or via pyrolysis. This ensures no greenhouse gas emissions and excludes the use of nuclear energy.
Regarding gas infrastructure, the primary emphasis lies in repurposing existing natural gas pipelines, with hydrogen blending considered unfeasible due to the limited availability of renewable hydrogen. However, there is a consideration to explore increasing the current limit of hydrogen within the natural gas grid.
Timeline
Local specifics
Hydrogen Industry Valley Austria: Hydrogen Valley with a strong focus in the industry as the consumer, placed in the centre of Austria.
h2v.eu/hydrogen-valleys/hydrogen-industry-valley-austria
The HyWest Hydrogen Research Centre was established in 2016 on the initiative of the Tyrolean start-up FEN Systems together with the Codex Partnership of the Green Energy Center Europe and later incorporated into FEN Research GmbH. Since then, numerous international and national hydrogen projects have been developed in this environment for the establishment of a green hydrogen economy in Central Europe, some of which have already been implemented in the real economy.
The central project in this context is the €23 million Austrian R&D flagship project ‘WIVA P&G HyWest’.
Public subsidies
Austria’s commitment to hydrogen is reflected in its Austrian Hydrogen Strategy, which emphasizes both renewable and climate-neutral hydrogen. The government supports this strategy through financial incentives for research, development, and infrastructure projects, along with initiatives for converting natural gas pipelines to hydrogen. Programs like the Climate and Energy Fund and initiatives such as WIVA P&G are crucial in advancing hydrogen technologies and applications within Austria.
Support schemes in place to encourage the roll-out of fuel cell electric vehicles (FCEVs): purchase subsidies, tax benefits, and non economic benefits.
