The money will be invested in technologies that are currently too expensive to scale-up, starting with green hydrogen, sustainable aviation fuels, direct air capture and long term energy storage. The involvement of Breakthrough Energy Catalyst will send a signal to private investors that clean energy is a safe bet - and will bring returns in the next few years, according to the industry.

“[It] will definitely give a push to capital markets to look into investments in hydrogen technologies, especially linked to the upscale of renewable energy,” said Jorgo Chatzimarkakis, secretary general of the industry association, Hydrogen Europe. “The psychological effect of this announcement will go far beyond the $1 billion.”

Right now, investors have been sitting on their money and waiting for a signal, said Chatzimarkakis. They know Gates does not invest in projects that are not profitable within three to four years and his involvement will unleash more private finance. “Through this partnership, Europe will lay solid ground for a net zero future in which clean technologies are reliable, available, and affordable for all,” Gates said.

Half the money for the new venture with Gates’ decarbonisation project will come from the EU research programme, Horizon Europe, and the Innovation Fund. The other half will be raised by Breakthrough Energy from private and philanthropic funds. If all goes well, the partnership also hopes to attract funding from member states. “We expect even more of these announcements when - in the course of the coming months - concrete and bankable projects will be presented,” said Chatzimarkakis.

While Europe may be a leader in hydrogen innovation, it will not be the main producer of the gas. Northern Africa and the Gulf region have cheap solar power which will be used to produce green hydrogen in the future. Europe cannot compete on this front. But the electrolysers used to split water into hydrogen and oxygen will be European.

Read the full article on sciencebusiness.net (source)