Feb 25, 2026 (MarketLine via COMTEX) --
Green hydrogen is seen as essential to the climate transition, particularly as a fuel and energy carrier for heavy transport and industry.
Green hydrogen is considered an important piece of the puzzle in the global climate transition, especially as a fuel and energy carrier for heavy transport and industry. However, large-scale green hydrogen production requires sustainable ways to manage water resources, to avoid water shortages and conflicts with agriculture. This is shown by a unique study from Chalmers, which links local water availability with scenarios for future European hydrogen demand.
Replacing fossil fuels with hydrogen in the heavy vehicle sector and industry would significantly reduce emissions of the greenhouse gas carbon dioxide. This is especially true if the hydrogen is green, i.e. produced through so-called electrolysis, where water is split into hydrogen and oxygen using renewable electricity. A new study from Chalmers shows that planning for where the hydrogen will be produced, and the use of new technical solutions, is important to avoid large-scale production of green hydrogen leading to local water shortages in parts of Europe.
In the study, published in Nature Sustainability, the researchers used an advanced model to explore different scenarios for how Europe's hydrogen production could affect water resources, electricity prices and land use in 2050 – a year when many countries have agreed to reduce their emissions, which could mean widespread use of hydrogen technology.
– Water is a resource that is often taken for granted in the energy transition. Our study is unique in its kind because we connect the local perspective with the European one. We can show that even though hydrogen production overall requires little water compared to, for example, agriculture, the local effects can be significant because proximity to industries or the possibility of producing renewable electricity means that one wants to produce hydrogen in areas with stressed water resources. The conclusion is not that hydrogen should be avoided, but that we must understand and cooperate on many levels between authorities, industry and local communities, to plan for effects in the transition, says Joel Löfving, doctoral student at the Department of Transport, Energy and Environment at Chalmers.
Sörmland and Roslagen risk areas
If hydrogen were to be used widely in industry and the transport sector, water availability could be greatly affected in several regions if one chooses to produce the hydrogen locally, which on the other hand is advantageous for cost reasons, among other reasons. For Sweden, water availability in, for example, Sörmland and Roslagen is estimated to be severely strained even without hydrogen production by 2050.
– In Sörmland there are both a steel mill and a refinery. If they were to switch to hydrogen and use local water to produce it, it could worsen the projected water shortage. We also see in Roslagen that it may be difficult to obtain local water for the production of green hydrogen, and in Bohuslän, Västra Götaland and parts of Norrland, large-scale hydrogen production could increase water use by more than 50 percent. Although the water supply there is considered good, there is a risk of causing a significant impact on the natural environment.
The study analyzed over 700 water catchment areas in Europe, and similar patterns to those in Sweden are seen in several places. In southern and central Europe, where the conditions for generating electricity with solar and wind power make green hydrogen production particularly attractive, water availability is estimated to be very limited by 2050, as water resources are already strained and vulnerable to climate change. Large industrial clusters in, for example, Spain, Germany, France and the Netherlands may therefore face an aggravated resource conflict with, for example, agriculture.
– There are many potential conflicts around water as a resource, but also many solutions, such as seawater desalination or reuse of water from treatment plants. There are also interesting synergy effects, since the oxygen left over from hydrogen production could be used in the processes that purify wastewater. Hydrogen has great potential to contribute to the climate transition, but we need to find sustainable ways to manage water resources, both for fuel production and for agriculture, says Joel Löfving.
Electricity prices are affected less than expected
In addition to water use, the researchers have also studied how a large-scale hydrogen economy could affect Europe's electricity prices. By linking the hydrogen model to Chalmers Energy Technology's Multinode model – a model developed to cost-optimize Europe's energy system under different scenarios – they were able to calculate changes in electricity prices between different regions.
The results show that the electricity demand increases significantly in line with the amount of hydrogen produced, since a lot of electricity is used to replace the energy in fossil fuels. Despite this, the results show that the average electricity prices in Europe are affected relatively little. In regions with good access to renewable energy sources, such as northern Europe, the price impact will be the smallest. In southern Europe, where some regions depend on a larger share of electricity from, for example, gas or nuclear power, larger price increases can be seen.
– Electricity prices are a sensitive issue, but our calculations show that increased investments in electricity for hydrogen production do not necessarily lead to high prices for consumers. This is an important message to decision-makers – to manage the energy transition, all fossil-free energy sources are needed and we must dare to invest in new, green electricity production, says Joel Löfving.
Large patterns and local consequences
Large-scale green hydrogen production would require a major expansion of solar and wind power. But the expansion would only take up a few percent of the land currently used for agriculture, according to the study. This is significantly less than what would be required to replace the same amount of energy with biofuels.
The researchers believe that the results together provide an important holistic perspective on Europe's energy transition. Previous studies have often focused on either local effects or overall system levels, but rarely combined both.
– That was precisely the connection we wanted to make. In order to build the energy system of the future, we need to understand both the big patterns and the local consequences. By calculating risks, we can manage them, and in this way create security for investments in green technology, says Joel Löfving.
This is green hydrogen
Produced through a process called electrolysis, where water is split into hydrogen and oxygen using electricity. The electricity used must come from renewable sources such as solar, wind or hydroelectric power for the process to be considered "green",
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