Hydrogen Is Not About Subsidies, but About Demand
50 ǀ POSITIV HYDROGEN
VODÍK
Hydrogen Is Not About Subsidies,
but About Demand
A subsidy for the equipment alone will not solve the queson of how to get hydrogen
to customers at a reasonable price. Karel Havlíček, 1st Deputy Prime Minister and Minister
of Industry and Trade, discusses this issue. In the interview, he also explains why the Moravian-
Silesian Region has a chance to become Europe’s rst ‘hydrogen valley’ among coal regions.
He also discusses plans for a separate licence for hydrogen infrastructure, disnct
from the licensing framework for the gas sector.
You launched the Czech
Republic’s Hydrogen Strategy as
Minister back in 2021. Looking back
today, what do you consider its greatest
successes, and where, by contrast, have
expectations not been met?
I consider the greatest achievement
to be that we began addressing
hydrogen systematically, from research
and production through infrastructure
to its use in industry and transport. Even
then, I also saw it as an opportunity
for Czech companies. We have technical
universities, research and development
centres, and industrial companies capable
of supplying their own technologies. This
is precisely where the added value that
the Czech economy needs is created.
Where expectations have not been met
is the speed of the transition to normal
commercial operation. It has become clear
just how difficult it is to secure affordable
electricity, hydrogen production, transport
and a customer willing to purchase
it over the long term at an acceptable price, all
at the same time. A subsidy for the equipment
alone will not solve this problem.
Today, I would therefore measure success
primarily by how many projects have
secured customers and a sustainable
business model. We need to gain experience
from real-world operations and adjust
our next steps accordingly. With new
technology, we need ambition, but also
the ability to assess the results realistically.
The Moravian-Silesian Region wants
to become the first ‘hydrogen valley’
among Europe’s coal regions. Does
the state share this ambition, and what
specifically will it do to support it?
The Moravian-Silesian Region has very
good conditions for the development
of hydrogen. It has an industrial base,
technical education, research facilities
and people with experience in demanding
industrial operations. The transformation
of a region like this must generate new
contracts and skilled jobs. Hydrogen
technologies can contribute to this.
For me, a hydrogen valley is first
and foremost about effective cooperation.
Producers need to know who they will sell
their hydrogen to, industrial companies
need to know the price, and transport
operators need to be confident that they
will be able to refuel every day. Bringing
these needs together within a single
region can make economic sense.
I see the role of the state in three specific
areas: establishing clear rules, speeding
up permitting processes and designing
support so that production, infrastructure
and consumption are genuinely
interconnected. Alongside investment,
we also need to support the development
and testing of technologies.
For the Moravian-Silesian Region, the key
question will be how many of these
opportunities local companies and their
employees are able to take advantage of.
Your ‘Czechia: Country for the Future
2.0’ strategy focuses on industrial
competitiveness. What role does
hydrogen play in it?
Hydrogen has a place in this strategy
as an industrial and technological
opportunity. There are two important
aspects. The first is its use in areas
where it can help reduce emissions
and where other options are technically
or economically limited. The second
is the ability of Czech companies
to develop and manufacture equipment,
components and control systems
for the hydrogen economy.
I consider the second aspect particularly
important. Czech companies can also
benefit from the development of hydrogen
as suppliers of technology or specialist
services. This creates opportunities
for mechanical engineering, electrical
engineering and research, followed
by exports.
At the same time, we must take into account
the realities of the Czech energy sector.
Producing hydrogen through electrolysis
requires large amounts of electricity,
and its price has a fundamental impact on
the viability of the entire project. The idea
that hydrogen could replace natural gas
across the board in the short term is not
realistic. I want to focus on specific
applications where we can demonstrate
the technical benefits, justify the cost
and ensure long-term viability.
| Text: Monika Ševčíková, foto: Ministerstvo průmyslu a obchodu ČR