Adopting Green Hydrogen by Finnish and Italian Companies: Drivers and Barriers

Abstract

In today’s world, prioritising environmental sustainability is not a choice but a necessity, espe cially since the global energy sector plays a significant role in pollution. The urgency to take im mediate action to reduce greenhouse gas emissions has never been clearer, and one effective approach among strategies is shifting toward energy sources like green hydrogen. This eco friendly energy source, produced from renewable materials that emit no pollutants, serves as a key tool in supporting the development of sustainable industrial sectors and is also crucial for improving the quality of life. Beyond reducing energy consumption and pollution, the hydrogen economy boosts economic growth by creating new job opportunities and driving innovation. Despite the recognised advantages of green hydrogen, there is still a notable lack of awareness about the factors influencing companies to adopt this technology within the EU market. To ad dress this gap, this thesis aims to explore the main drivers and barriers to the adoption of green hydrogen among EU companies. Drawing on existing literature and incorporating institutional theory, a comprehensive framework of these drivers and barriers is developed to provide a deeper understanding of the dynamics at play. The study uses qualitative data collected from four experts across the energy industry, two Finn ish companies and one Italian company. The findings reveal several key insights. While falling renewable energy costs, technological advancements, and a supportive regulatory environment facilitate the adoption of green hydrogen, significant challenges remain. These include high ini tial investments, infrastructure complexities, and limited public awareness and acceptance of hydrogen technologies. This research deepens our understanding of the factors impacting green hydrogen acceptance and offers practical recommendations for policymakers and industry leaders. For example, Sorgenia is cautious about committing to green hydrogen because of the high initial costs and the challenges of integrating it with the current energy infrastructure. In contrast, Vaisala Oyj in Finland recognises the obstacles to investing but strategically establishes its presence in the green hydrogen sector by leveraging its knowledge of measurement and monitoring technolo gies. By evaluating the cost and environmental impact of hydrogen as a substitute for traditional en ergy sources, this report underscores the significant potential of hydrogen in achieving net-zero emissions in the future and effectively combating climate change. The transition to sustainable energy solutions highlights the critical role of green hydrogen in this transformative journey.