Despite the challenges of war, Ukrhydroenergo plans to advance the foundations of hydrogen energy in Ukraine
Ukrhydroenergo is working on a "green" hydrogen pilot project, an important step toward decarbonising Ukraine's energy sector. This project aims to strengthen the country's energy independence, gradually integrate Ukraine into the global hydrogen market, and align with the European energy system.
This was stated by Valentyn Gvozdiy, Chairman of the Supervisory Board of Ukrhydroenergo, during European Hydrogen Week. At the "Investing in Ukraine's Hydrogen Future: Minimizing Risks and Ensuring Tomorrow's Energy Market" event, Gvozdiy emphasised the importance of developing the hydrogen sector to secure Ukraine's energy independence. He outlined the plans to launch pilot hydrogen projects, establish research centres for hydrogen storage technologies, and create incentive programs to attract investments in hydrogen infrastructure.
Against the backdrop of relentless missile and drone attacks by russian forces on Ukraine’s energy infrastructure, Ukrhydroenergo prioritizes restoring damaged hydropower plants, safeguarding hydropower facilities, and ensuring the energy system's flexibility. In this context, the production of green hydrogen as an alternative energy source has become more critical than ever.
According to Valentyn Gvozdiy, developing hydrogen energy requires overcoming significant barriers, particularly the high cost of equipment and the lack of a developed consumption market:
"The hydrogen energy sector faces challenges due to the high cost of production equipment, especially electrolyzers, which range from $800,000 to $1.2 million per megawatt of capacity. The absence of a mature consumption market also complicates the economic feasibility of such projects. It would be prudent to explore ways to reduce these barriers, such as through international financing or technical innovations. We view hydrogen as a product and a means of energy storage, enabling us to avoid energy losses and use it efficiently."
Despite these challenges, Ukrhydroenergo emphasises the necessity of attracting investments and international financing. The company has progressed by negotiating with international financial institutions and potential investors and establishing partnerships with European counterparts to secure financial support for hydrogen projects. Valentyn Gvozdiy also noted that limited state guarantees pose a significant hurdle for project implementation. However, the company actively seeks solutions with international partners, including exploring risk insurance through international financial institutions and creating joint investment platforms with European partners to ensure stable financing.
