The building of a Hydrogen Ecosystem in Europe

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The global challenge of climate change is coming rapidly to the points where it is forcing governments, businesses and knowledge organisations all over the world to mobilise behind carbon-reducing innovations, e.g. large-scale renewable energy implementation and electrification.

When it comes to innovation and leading the energy transition, Europe is showing clear leadership and in one specific and important technology, a global leader in electrolysis technology required to produce green hydrogen. The challenge today is to convert that leading position into a sustaining best of class one, that leads the world in electrolyzer expertise, production and research.

Today, Europe has a promising start, but it has significant challenges to break down the silo’s of knowledge and expertise and seize this opportunity to learn how to collaborate and build a thriving, robust and collaborative ecosystem around the building of a world-leading position in the electrolyzer market space.

At this time though, despite a promising outlook for the use of the eölectrolyzer for hydrogen, water electrolysis technology is not sufficiently mature to fit that purpose. It still is at a limited scale and is not yet at the point of the expectations building up around it. An enormous challenge lies ahead in upscaling currently available technologies to GW-scale factories required to drive forward the energy transition.

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The power of ecosystem thinking

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“Opening up our thinking towards ecosystems will have a powerful effect,
it alters the way we will approach problems today and in the future”

Our whole understanding of innovation is changing; we are evaluating and changing our existing focus from closed (internal orientation) into open and far more collaborative innovation (external orientation) with our collective thinking offering the acceleration into improving our innovation performances, leading to higher chances of achieving greater impact and success.

The search is seemingly on to find greater value, which will increasingly coalesce around different innovation ecosystems.  We need to form in many different ways significantly more relationships that increasingly matter to each organization, that add value, insight, and bring external expertise inside to work on ‘greater’ innovation solutions.

We are creating the potential to deliver innovative products and services that would not be delivered by only having the one organization attempting it. Complexity is on the rise, offering discrete products is on the wane.

Firstly why are business ecosystems emerging as a real competitive force?

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The future of managing will be through ecosystems and platforms

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I am constantly drawn to ecosystems and platforms as the connecting mechanism that can drive the need for greater collaboration, sharing, and exchanging, and for this, we need to learn a new form of ’emerging’ management practice

Collaborating in collective ways helps break down complexity. To be ready to respond we must be ready to seek out unexpected outcomes, to be increasingly exposed to new opinions, experiences, and to learn from all those adjacencies and external connections, so as to help us add and define new potential within our domain of expertise.

In our past management practices, we have operated and exploited the linear world for ever-increasing efficiencies and effectiveness. This relied on stability, predictability, and a willing end-user, ready to accept ‘our’ offer of product or service. All three of these conditions are increasingly absent from our world today and will increasingly be challenged in the future.

Our increasing connectivity, brought about by our digital world is giving us increasing volume, richness at increasing speed. We are in a hyper-connected world, potentially global for all of us and increasingly we will operate in interdependent ecosystems that allow us to collaborate and share, driving up awareness and performance.

What will be rewarded in this connecting world is the agility to respond, the ability to absorb and learn quickly, and the nimbleness to translate and adapt new learning into insights and eventual outcomes, that build out our businesses, keeping them healthy, growing, and sustainable.

Classic models of management get broken down in any ecosystem approach, that is why I believe we must search for ways to adapt to this new world of ecosystem and platform collaboration.

It requires some very different management thinking, let me offer some thoughts:

Our world is shifting from scalable efficiency to scalable learning

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The ecosystem relationship of a rain forest is also how innovation can work effectively  

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Firstly I would argue that innovation, to be managed well, needs to operate like an ecosystem, the same as a tropical rainforest.

Ecosystems to flourish need to experience critical feeds, in the rain forest this is high average temperatures and significant rainfall.

Well for innovation to thrive needs critical aspects; it needs a real focus, well above average and significant attention  to be well maintained and flourish.

We argue for diversity within our innovation teams, in our thinking, in our environment and that is no different from the high levels of biodiversity in tropical rain forests.

We need this ‘richness’ of thinking, of approaches, of discovery.  We search constantly for ideas, we experiment, and we are subjected to change. We are always looking for that certain something still undiscovered.

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What makes up a winning innovation ecosystem of design?

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So what can be gained by adopting a more innovation ecosystem approach?

As we recognize and push out through more open networking and relationships, we are opening up to new learning. We sharpen our minds and attain smarter resources as this exposes ‘us’ to new fields of expertise and knowledge that we can absorb and translate into new innovation opportunities.

As we connect and integrate this learning, we are all becoming co-creators that can arrive at different defining and shape potential. By reaching out, we operate differently, we become more engaged and open.

Let me offer four connecting themes that are shifting our ways to operate and innovate that provide a far greater set of dynamics by ’embracing’ an ecosystem collaborative design approach.

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The Evolving Platform Strategies in the Industrial Space

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There is far more focus on the consumer platform market where Facebook, Alibaba, Google, etc. all get the publicity and consequential high valuations to their business models. Yet, the size of the Industrial Platform market will be bigger, perhaps not in “eyeballs” but far more in economic value and growth to those that commit to these changes by collaborating through a networked designed platform ecosystem.

Redesigning a specific industry space to adapt and adjust to a platform business model is hard work. The investment in years of building internal systems is rapidly becoming worrying “legacy” issues. The new way to perform in business is through open, collaborative networks of collaborators that achieve far more growth potential by participating in an ecosystem of partners.

Strategic Industrial relationships are radically changing

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Are innovation spillovers about to accelerate the course of the energy transformation?

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Achieving clean energy technology innovations will be vital if we want to meet the goals of net-zero emissions in the next fifty years.

Innovation is central to the energy transition through new technology solutions.

Innovation can accelerate and achieve rapid reductions in emissions of greenhouse gases to anything near the net-zero goals set in the Paris Agreement of 2015 to hold the global average temperature to below 2oC of pre-industrial levels.

We need significant development and diffuse new technology solutions to displace existing energy assets to move towards a global economy based on clean energy.

As we look at any clean energy scenarios, it is highly reliant on moving concepts, through prototyping into a commercial demonstration. Presently many of the clean energy solutions rely on technologies that are present only in a prototype or early smaller demonstration-scale and will not come to a commercial scale without significant new R&D efforts.

There are also numerous concepts indicating promising technology solutions that have not been, as yet, commercially deployed in any mass-market way. Some scenarios looking out over the next thirty or more years are suggesting these critical technologies can make up to 75% of solving any cumulative CO2 emissions.

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Exploring the Innovation Technology in the Clean Energy Ecosystem

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Anyone involved in the Energy world knows how complex it has become.

It seemed as we look back at the past; we had simply one power provider, using one fossil fuel, maximizing their dedicated infrastructure and transmission lines, to then deliver to their dedicated substations and then onto the eventual consumer or customer the needed electricity or heat supply. It is radically different today for numerous reasons.

Reality is, we need to undertake a radical redesign of our entire energy ecosystem.

The consensus is that over the next twenty to thirty years, we must undergo a drastic change in our whole energy systems.

Do we understand what this means? Can we grasp the complexity of this undertaking?

I think we have some real help in understanding this through how the International Energy Agency is going about tackling the complexity will significantly help; they have mapped the entire energy system.

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Needing three distinct Ecosystems within any Business Design

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I believe ecosystems are the new organism of the business world to innovative, network, and connect. Organize these correctly and you have a really powerful collaborative force

The three ecosystems of knowledge, innovation, and business mutually reinforce each other, it is all their interacting parts, their interdependence to each other, and how one part fits and reacts with the others, gives this great power.

We need to recognize business ecosystems are emerging as a real competitive force?

We all need to recognize that the world is changing. It is a highly connected one, built on some incredible technological advances. What is emerging as crystal clear, is that the single industry and one business-specific approach are seeing massive change, are being placed increasingly under threat of not even surviving. We require different business models to compete and it is through an ecosystem design you can extract greater value.

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Recognizing a Unique Part of the Hydrogen Ecosystem

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Can you imagine a Hydrogen Ecosystem being created and organized, that needs to influence and shape national strategies for energy, provide education and understandings, suggest and provide regulations, standardization, infrastructure, and incentive suggestions and encourage solutions that need to scale?

Enter the Hydrogen Council to galvanize change within the Energy Transition and bring its promise to realization; to make our transition away from fossil fuel dependence into clean ones based on Hydrogen?

A shift to a high level of dependence on a critical energy vector is undoubtedly no easy task in a short period of giving the required momentum over the next 10 to 20 years. Our world is under such global warming threat we need to urgently make some real changes to our energy systems.

The Hydrogen Council has designated the current decade as “the H2 decade” to provide Hydrogen with the momentum, the pathway to scaling, and focus it needs, so it can be an irreversible force by 2030, to gain global recognition and adoption.

The building of a unique ecosystem in design is the formation of the Hydrogen Council.

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