Hydrogen market in Austria

Austria is one of the 27 member states of the European Union. Their gross domestic product (GDP) per capita is around $70,820. The economy is characterized as a free market economy with a strong social focus.

Austria is committed to international climate targets as well as proactive climate protection and energy policy. Key industrial sectors include food and drinks, mechanical and steel engineering, chemical and automotive, electrics and electronics as well as wood, pulp and paper.

Austria is strategically positioning hydrogen as a pivotal element in its energy transition, aiming for climate-neutral hydrogen production to decarbonize energy-intensive industries. The focus is on power-to-gas technology, utilizing surplus wind and solar power for hydrogen production and so-called sector coupling. Austria's hydrogen strategy outlines plans to build 1 GW of electrolysis capacity by 2030 (13,2 MW installed as of May 2023), replace fossil fuel-based hydrogen, and establish collaborative platforms like Hydrogen Partnership Austria (HyPA) and WIVA P&G for industry stakeholders and regional hydrogen initiatives. Austria currently uses some 132,000 tonnes of hydrogen per annum. Most of the current consumption - which is mainly used for fertilizer production and refining - is based on natural gas, so-called "grey hydrogen". In addition to developing new areas of application, these quantities need to be replaced by "green hydrogen" (i.e. hydrogen produced through electrolysis of renewable energies) as a matter of priority within the next few years.

Key opportunities for Canadian cleantech companies in Austria

• Austria targets climate-neutral hydrogen production to decarbonize energy-intensive industries, particularly in sectors with challenging electrification (e.g. steel making).
• The focus is placed on power-to-gas technology, storing surplus summer renewable energy (especially wind and solar) for winter use.
• Austria's national hydrogen strategy outlines ambitious goals, including building 1 GW of electrolysis capacity by 2030.
• Around € 125 million will be provided by the EU Resilience fund to promote integrated projects along the hydrogen value chain, especially covering hydrogen production, storage and applications.^{Footnote 1}
• Collaborative platforms such as the Hydrogen Partnership Austria (HyPA) serve as fora for diverse stakeholder input and disseminate information on the latest developments in the hydrogen field.

Notable challenges for Canadian renewable energy companies in Austria

• Integration into the Austrian energy industry can be challenging because of long-established partnerships.
• Successful project development is often closely linked to the availability of government funding.
• In terms of commercialization, there is a gap indicated by the low TRL of some technologies related to hydrogen.

Austrian business landscape

• Austria is one of the 10 richest countries in the European Union with a strong purchasing power.
• Conditions for foreign investment are excellent given the high level of social security and political stability.
• Austria is identified as industrially strong and a hub for energy transport, providing international companies with opportunities to leverage the country's industrial capabilities and infrastructure.
• Austria is the perfect testbed for a wide range of key solutions for a climate-neutral future powered by hydrogen.
• International companies entering the Austrian market can access funding opportunities.
• Leading Austrian companies investing in hydrogen are OMV, VERBUND, Salzburg AG (in German only), TIWAG (in German only).

Notable projects and developments

• Two "Hydrogen Valleys" are currently in development and will trial the creation of an integrated value chain - from hydrogen production and storage to distribution and consumption - under real-life conditions. Numerous partners from industry and research are collaborating on the project to drive forward efforts to develop a hydrogen industry in Austria.
• The HyTruck project aims to have 2000 H2 trucks on Austrian roads by 2030 and a nationwide filling station infrastructure with electrolysis systems.^{Footnote 2}
• The project "Underground Sun Storage 2030", led by RAG Austria, in Rubensdorf will test the seasonal storage of 100% green hydrogen in an underground natural gas storage facility under real conditions for the first time.^{Footnote 3}
• "MPREIS Hydrogen" is the leading project at the international level since it contains all elements of a regional green hydrogen economy with a first green hydrogen logistic including a PAE and hydrogen storage as part of the Demo4Grid European project (demonstration of power grid balancing services under real operating and market conditions).^{Footnote 4}

Summary

For more information, please contact:

susanne.knobloch@international.gc.ca
Tel.: +43 1 531 38 3354
Susanne Knobloch | LinkedIn