Politically and strategically, hydrogen is clearly set. With its hydrogen strategy, the European Union is pursuing the goal of becoming climate-neutral by 2050.
Hydrogen is considered one of the great hopes of the European energy transition. Hardly any other technology is currently so strongly linked to the decarbonization of industry, transport and energy supply. Expectations are high: green hydrogen is to replace fossil fuels, ensure security of supply and make Europe strategically more independent.
But there is still a considerable gap between these expectations and practical implementation. The path from a political target to an industrially secure reality is complex, expensive – and fraught with risk. This is precisely why the success of the hydrogen economy is not only determined by production volumes or expansion targets, but also by the question of whether Europe can integrate hydrogen into its energy systems safely, controllably and reliably. Project-related risk management is a key factor for success.
Hydrogen as an essential energy carrier for decarbonisation
Politically and strategically, hydrogen is clearly set. With its hydrogen strategy, the European Union is pursuing the goal of becoming climate-neutral by 2050. The development of a European hydrogen network – for example through initiatives such as the European Hydrogen Backbone – is intended to connect industrial centres, storage facilities and production sites. The first pipeline sections are to go into operation as early as the second half of the 2020s.
These target images create the impression that hydrogen is primarily a scaling task: more plants, more lines, more electricity from renewable sources. However, this is exactly where the problematic shortening begins.
Hydrogen is not the same as natural gas
From a technical point of view, hydrogen is not a “normal” energy carrier. Its physical and chemical properties fundamentally distinguish it from natural gas – with direct consequences for safety, operation and insurability.
Hydrogen is extremely light, colorless and odorless, its flame is barely visible, and the necessary ignition energy is very low. At the same time, hydrogen can embrittle metals, penetrate plastics and exploit even the smallest leaks. These properties make hydrogen highly efficient – but also highly demanding to handle.
The reality of many projects shows:
- Not every material is suitable for hydrogen.
- Not every existing natural gas infrastructure can be easily converted.
- Not every organization is operationally prepared for safe handling.
In addition, there are high investment costs, long delivery times for specialized components and a still young supply chain. Hydrogen is therefore not a “plug-and-play” solution, but a system technology with an increased risk profile.
The crucial gap: security is often thought of downstream
A central problem of many hydrogen projects is the timing of the handling of risks. Safety, explosion protection, material issues or emergency concepts are often only considered in depth when planning and investment decisions are already well advanced.
From the point of view of risk management, this is a structural error. Because with hydrogen, many risks cannot be “organized away” retrospectively. Material selection, system layout, spacing, ventilation, detection, redundancies and interfaces must be correctly designed from the outset.
- In the planning phase, materials, pipes, valves and seals must be selected in a targeted manner.
- Interfaces to existing natural gas networks are particularly critical and require separate assessments.
- In addition to the main plant, peripherals, logistics, spare parts availability and operator experience are also risk-relevant.
- Without a holistic view, systems emerge that function technically, but are operationally fragile – with direct consequences for availability, security and insurability.
Why early risk management is essential
Risk management from the start of the project is not a brake on the energy transition, but its prerequisite. It fulfils three central functions:
Technical controllability
Risk Engineering ensures that hydrogen plants are designed to detect leaks, limit spread, and prevent escalations. Detection systems, explosion protection concepts, material tests and redundancies are integral components – not optional extras.
Operational stability
Regular maintenance, clear operating instructions, training and emergency plans not only reduce the risk of accidents, but also business interruptions. This will be crucial, especially in a future hydrogen economy that depends on reliability.
Insurability and investment capability
Insurers are increasingly assessing hydrogen projects in a differentiated way. Technical design, operator experience, independent inspections and maintenance concepts are central criteria. If these are missing, there is a risk of exclusions, high deductibles or limited coverage – a considerable locational disadvantage for Europe.
Hydrogen as a climate protection technology – but only with a safety culture
Hydrogen can be an effective instrument against climate change. But only if it is not understood as a short-term beacon of hope, but as a long-term infrastructure technology. This means:
- Security is not a cost factor, but an investment in system stability.
- Risk analysis begins before the groundbreaking ceremony, not before commissioning.
- Technology, operation, insurance and regulation must be thought of together.
Hydrogen economy, which relies on reliability, safety and acceptance, will permanently establish itself as a supporting pillar of Europe’s energy future.
Conclusion: From hype to maturity
The hype around hydrogen is necessary to mobilise political attention and investment. Now we are in the phase of turning projects into reality.
The successful and safe decarbonisation of Europe requires a clear focus on engineering planning and risk control.
Early risk management determines whether hydrogen is not only climate-friendly, but also safe, insurable and socially accepted – and thus actually reliable for Europe’s energy future.
Sabine Bradac
Risk Consultant
GrECo Risk Engineering
T +43 664 962 39 57
