Hydrogen is an essential element for a sustainable future. It is a missing piece of the puzzle to unlock the electrification of the global economy. It is a key enabler of the global transition towards carbon neutrality. In the present geopolitical architecture, it is a factor of peace, security and risk mitigation. In the European context, hydrogen is key to reaching the EU Green Deal targets[1] and a more resilient and competitive[2] European Union.
The Hydrogen Ecosystem North Adriatic, originating as a bottom-up, industry initiative, represents an unprecedented opportunity to boost the competitiveness of the entire area of the North Adriatic. For these territories, this means becoming a first mover: taking the lead in the green transition to the benefit of their inhabitants, institutions and industries, as well as for their neighbours and Europe as a whole.
For the first mover to fully express a unique proposition for businesses, talent and finance, dedicated resources are required to sustain the maturation of piloted solutions in order to reach industrial scale and their full integration into the Ecosystem. To seize the first-mover advantage, the Ecosystem actors must get ready for success.
Why it matters
Croatia, Friuli-Venezia Giulia and Slovenia decided to create together a hydrogen ecosystem in the participative logic of the Quadruple Helix (academia – industry – policy-makers – citizens). Coordinated action enables connectivity between regions, countries and overseas territories, and opens possibilities for standardisation and technology transfer. A collaborative, transnational approach has already produced significant results: the first transnational hydrogen valley in the EU, and a number of EU-funded and commercial initiatives to follow, converging towards a foreseeable long-term coordinative mechanism between the four components of the Quadruple Helix actors. Above all, the signalling effect has activated a number of innovators who are developing solutions based on novel technologies to bring hydrogen to the market and deploy it in a number of emerging value chains, starting from the needs of industries in hard-to-abate sectors, energy and transportation, to urban mobility, heating, cooling and other uses.
Croatia, Friuli-Venezia Giulia and Slovenia together represent a market of 7.3 million people, with a total GDP of €181.25 billion (comparable to Hungary, and close to Greece) with Italy being the EU’s fourth largest economy and second industrial force. The three territories are advantageously positioned in the heart of Europe at important land and maritime transportation crossroads, with easy access to main industrial clusters with diversified, export-orientated industries well-integrated into the European and global value chains. The territories offer a dozen university, research and innovation hubs testifying scientific and innovation excellence.
North Adriatic as a first mover
The Hydrogen Ecosystem North Adriatic represents an unprecedented opportunity to boost the competitiveness of the entire area by leveraging on incumbent competencies and by jointly designing specific advantages which can express a unique proposition for businesses, talent and finance. Willingness for the joint action was demonstrated at the first Hydrogen Ecosystem North Adriatic Conference in 2021 in Nova Gorica and Gorizia. This was supported by a Letter of Intent signed by the representatives of the three Governments which determined the North Adriatic as a first mover in the green transition, embracing a transformative path of innovation at an ecosystem level [3] to the benefit of their inhabitants, institutions and industries, as well as for their neighbours and Europe as a whole.
Following an initial expansion of the Hydrogen Ecosystem North Adriatic, thanks to the substantial support of the European Union and public and private institutions of the three target territories, supported by substantial financial commitments estimated to reach 1.4 million euro, a growing portfolio of technology-based solutions and horizontal support projects have been emerging from these actions. Dedicated resources are required for mature piloted solutions to reach an industrial scale.
Seizing the first mover advantage
First-mover status can confer advantages, but it does not do so categorically[4]. Much depends on the circumstances. Typically, it brings the advantage of capturing the largest portion of a newly emerging market. In the case of renewable hydrogen, this refers to a vast array of market situations which open new possibilities for a more sustainable and inclusive social progress, while decoupling the environmental impacts of improved wellbeing from economic growth. However, the position of a first mover does not come without risk. First, assuming the current situation stipulated by the general technology readiness to adopt hydrogen in the coming years, significant research and innovation resources will have to be made available, on top of those already engaged, in order to benefit from the first-mover advantage, which comes along with additional investments. Second, a large-scale production, distribution and storage capacity for hydrogen will be required. This opens even more opportunities for investments in the Hydrogen Ecosystem North Adriatic. In order to seize these opportunities, the Ecosystem actors must now get ready for success.
Our message
The Hydrogen Ecosystem North Adriatic Conference is now becoming the Hydrogen Investment Platform, undertaking the role of organiser, moderator and facilitator of an even more engaging and prolonged coordinated action needed for all Ecosystem actors to perform. The Conference continues to hold space as a focal meeting point, ensuring matchmaking between the Ecosystem actors to evolve transparently, and moderating the discourse to mutual benefit, taking into account the wider framework of EU innovation strategies.
The aim is to arrive at a fully functional hydrogen ecosystem, which is run on affordable clean hydrogen, to the benefit of all its actors; to the citizens, thanks to their wide participation in the transformative innovation process through the logic of the Quadruple Helix[5]; to a more competitive economy set to contribute to the decoupling of human progress from environmental impact by decreasing carbon emissions through affordable clean power; to entrepreneurs and innovators; investors and financial intermediaries; policymakers and innovation multipliers; talents and academia; and to Europe as a whole.
Now is the time. We are encouraging you to join the first movers. This is possible through close collaboration and active participation. We are inviting you to invest, to share knowledge and experience, engage with other actors, display your results, and contribute to the evolution of our common, hydrogen-driven innovation marketplace.
The organisers
Hydrogen Ecosystem North Adriatic Conference
November 2024
_______________________
[1] Making Europe the first climate-neutral continent in the world is a binding commitment under EU Climate Law. The European Green Deal set the blueprint for this transformational change – a change which will bring with it many benefits, from creating new opportunities for innovation, investment and green jobs, to improving our health and wellbeing.
All 27 EU Member States have committed to transforming the EU into the first climate neutral continent by 2050. To get there, they have pledged to reduce emissions by at least 55% by 2030, compared to 1990 levels.
The EU now has legally binding climate targets covering all key sectors of the economy. The overall package includes:
- Emissions reduction targets across a broad range of sectors
- A target to boost natural carbon sinks
- An updated emissions trading system to cap emissions, put a price on pollution and generate investments in the green transition
- Social support for citizens and small businesses.
See here for more: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en
[2] See here for The Future of European Competitiveness: A report by Mario Draghi: https://commission.europa.eu/topics/strengthening-european-competitiveness/eu-competitiveness-looking-ahead_en
[3] The Letter of Intent was signed by the representatives of the Slovenian Ministry of Infrastructure, the Croatian Ministry of Economy and Sustainable Development, and the Friuli Venezia Giulia (FVG) Autonomous Region of Italy, to jointly contribute to the European Green Deal and European Hydrogen Strategy goals. With this Letter of Intent the three signatories jointly committed to implementing a common innovation agenda and collaborative projects to accelerate the deployment of hydrogen-based solutions, strengthening local hydrogen ecosystems and building inter-regional value chains. The three territories which constitute the first transnational hydrogen valley on the globe – the NAHV – Croatia, FVG (Italy), and Slovenia, have been considered by the European Hydrogen Backbone as one part of the larger pan-European hydrogen supply and import corridors, which will connect industrial clusters, ports, and hydrogen valleys to regions of abundant hydrogen supply.
[4] See here for more: Fernando F. Suarez, Gianvito Lanzolla: The Half-Truth of First-Mover Advantage. Harward Business Review, April 2005
[5] The Quadruple Helix involves representatives from all members of society: public authorities, industry, academia and citizens.