Switzerland

The Swiss Federal Council adopted the postulate report “Hydrogen: Assessment and Action Options for Switzerland” in November 2023. The report outlines the potential role of hydrogen in Switzerland’s future energy system and explores questions related to its origin, transportation, and market deployment conditions.

Until a European hydrogen network is established and global production is ramped up, Switzerland’s hydrogen demand will need to be met through domestic production. Hydrogen can be produced at existing power plants or industrial facilities, which can either use the hydrogen on-site or transport it elsewhere. Large gas  storage facilities, not yet available in Switzerland, are needed for storage, or hydrogen can be converted into liquid synthetic energy carriers. However, in the long term, imports from the EU and third countries are expected to be cheaper than domestic production, leading to a gradual increase in the proportion of hydrogen imports.

Hydrogen transportation occurs through converted or newly built gas pipelines and by road. It is anticipated that from around 2035, the transport and distribution infrastructure in Europe will be expanded sufficiently to allow imports into Switzerland.

The successful deployment of hydrogen in Switzerland requires close collaboration between the economy, federal government, cantons, cities, and municipalities. Various incentives for developing a domestic market are already provided for in the Federal Act on Secure Electricity Supply with Renewable Energies, the Climate Protection and Innovation Act, the revision of the CO2 Act, and the acceleration initiative for renewable energy production.

The report states that “for domestic production of hydrogen and its downstream products to emerge, there must be reliable domestic demand. It is therefore up to the industry, the associations and the energy suppliers to clarify what quantities of these energy sources will be required in future and in which areas, and what the plans are for the expansion of production capacities and the construction and operation of electrolysers. A reliably identified volume framework makes it possible to estimate the dimensions of the domestic market and the associated costs for the development and expansion of the value chain (technologies, production, storage, transport and distribution) and to ensure the appropriate measures are taken to guarantee stable framework conditions. The federal government is supporting this process with existing energy and climate policy instruments and by developing a national hydrogen strategy for 2050, which should be available in 2024.”

Thus, the report provides the basis for a national hydrogen strategy, and it already outlines a first roadmap for the establishment of a Hydrogen Economy in Switzerland until and beyond 2035. Additional framework conditions will be examined to support the development of a hydrogen market in Switzerland, including ensuring Switzerland’s connection to the future European hydrogen network.