European energy transition planners face a critical challenge in deploying hydrogen infrastructure efficiently. A new optimization study using the REMix-Eur model—which simulates the continent's energy system with hourly granularity across 57 regions and over 100 technologies—provides crucial guidance on infrastructure priorities for achieving carbon neutrality by 2050.
The research compares cost-optimal hydrogen deployment against 24 constrained scenarios where pipeline and storage networks are deliberately restricted. Results reveal substantial penalties for inflexibility: a rigid hydrogen system increases total annual costs by €36 billion, or approximately 10 percent above the optimal solution. Notably, most costs stem from network restrictions rather than storage limitations, emphasizing the importance of transmission infrastructure.
In the cost-optimal scenario, Europe requires approximately 120 TWh of hydrogen cavern storage, with more than half repurposed from decommissioned natural gas facilities. Electrolyser capacity ranges from 330 GW to over 500 GW depending on infrastructure flexibility. Most significantly, optimized infrastructure reduces the levelised cost of hydrogen from €64/MWh in inflexible cases to €51/MWh in flexible systems—a 20 percent reduction.
These findings have immediate implications for policy and investment decisions. The study demonstrates that hydrogen's value as a flexible resource depends critically on adequate transmission and storage capacity. Early-stage infrastructure planning cannot achieve cost efficiency through storage alone; cross-border pipeline connectivity is equally essential.
The research identifies the North Sea region as a priority for early development, given existing natural gas infrastructure and its geographic centrality to European energy markets. By retrofitting existing storage sites and establishing international corridors before hydrogen demand peaks, Europe can minimize stranded assets and optimize system costs.
As member states develop hydrogen strategies, this analysis provides quantitative justification for infrastructure investment decisions that extend beyond individual national borders. Coordinated European planning prioritizing network flexibility will be essential to realizing hydrogen's role in the carbon-neutral energy system.
