Hungary Hydrogen Technology

The Hungarian government adopted a Hydrogen Strategy in May 2021 and classifies hydrogen as not only fuel but also as an energy storage solution. Low-carbon energy production is steadily increasing in Hungary, with today’s 2600mW solar capacity already exceeding the 2000mW capacity of the Paks Nuclear Power Plant.

The target is to increase solar generation to 2,600mW by 2030, which will make Hungary’s electricity generation 90% carbon-free, with hydrogen playing a role in this clean energy production plan. While hydrogen is currently produced using fossil fuels, there are a few environmentally friendly ways of producing it. One such example is to use renewable energy to break down water, a process known as electrolysis, which actually “turns water into carbon.”

The hydrogen economy will also generate major engineering challenges, thus creating thousands of new jobs, ultimately contributing to the domestic GDP. One of these challenges is the cost of producing hydrogen. While current costs are very high, these are expected to fall rapidly soon, similar to what happened with other renewable energies. 

The current technology gaps reflects the need for significant Research & Development investments. Demonstration projects are needed to test how hydrogen behaves in different mediums. Beyond demonstration projects, substantial government support is needed to bring these solutions to fruition. It is important to provide incentives to market players at an early stage. 

For additional information, please contact Agnes.Armour@trade.gov.