Ukraine’s appeal lies in both its existing and potential gas infrastructure. Ukraine was the only European country that was mentioned in Germany’s hydrogen strategy of January 2020 and plays a major role in Germany’s H2 Global government initiative. It is not surprising that German stakeholders have recognised Ukraine’s potential, not just in compensation for the Nord Stream-2 deal. Even more cautious estimates have concluded an annual German hydrogen import demand of 340 TWh. It will be impossible to meet short to medium-term energy needs without imports from other countries. By comparison, the entire electricity production in Germany in 2019 was 511 TWh, of which less than half was provided by renewables. The German government projects a hydrogen requirement of 90-110 terawatt-hours (TWh) by 2030 and as much as 1,800-2,500 TWh annually by 2050. Meanwhile, blue hydrogen, which uses natural gas and can reduce emissions by up to 85% compared to normal, natural gas consumption, is well-placed as a bridge to cover European energy needs over the next decades. Hydrogen is the only realistic technological option for hard-to-abate sectors of energy-intensive industries – though green hydrogen demands renewable energy capacities that do not yet exist.

But it points to a more important role that Ukraine can play in the long term: that of a major supplier of environmentally friendly energy – particularly hydrogen.īoth blue hydrogen and green hydrogen are a key part of Europe’s future energy mix. This does little to compensate for its lost annual revenues of $2bn from being a transit country for Russian gas. Together with the US, Germany committed to a Green Fund for Ukraine, with the objective of attracting at least $1 billion in investments into the Ukrainian energy sector. But recent developments could be a blessing in disguise for the energy security of Ukraine and Europe. The decision by the US government this summer to greenlight the Nord Stream 2 pipeline caused predictable furore across international media. Recent developments point at the important role Ukraine can play in the long term: that of a major supplier for the EU of environmentally friendly energy – particularly hydrogen, writes Dr Frank Umbach.ĭr Frank Umbach is research director at the European Cluster for Climate, Energy and Resource Security ( EUCERS) at the University of Bonn.

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