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Image header Agence Europe
Europe Daily Bulletin No. 13766
Contents Publication in full By article 13 / 37
SECTORAL POLICIES / Energy

Faced with project delays, Europe’s renewable hydrogen sector defends “targeted” measures

In a declaration adopted on Thursday 4 December at the Renewable Hydrogen Summit in Brussels, the Renewable Hydrogen Coalition called on the European Union to implement its binding targets for renewable hydrogen as quickly as possible.

Currently, around 600 MW of electrolyser projects are operational and 3 GW are under construction across Europe, while the EU Hydrogen Strategy adopted in 2020 set a target of 6 GW of electrolysers installed by 2024.

The reality of the delays and the difficulty in developing demand is recognised both by industry and by the Agency for the Cooperation of Energy Regulators (ACER), which pointed out in a new report published on 2 December that renewable hydrogen, known as “green” hydrogen, is currently four times more expensive than fossil or “grey” hydrogen (see EUROPE 13764/8).

Although we have made some progress, we are concerned that these plans are too ambitious and far removed from the reality on the ground”, acknowledged François Beaude, Head of Strategy Delivery and Communications at ACER.

To close this gap, the Renewable Hydrogen Coalition has put forward a series of suggestions in its declaration.

Among other things, it is calling for a “targeted” revision of the ‘RFNBO’ delegated act defining renewable fuels of non-biological origin, including renewable hydrogen (see EUROPE 13220/35), in particular by extending the transitional phase for additionality (the increase in hydrogen production must go hand in hand with new renewable electricity production capacity). 

The declaration also calls on legislators to establish “binding minimum quotas” in public procurement in so-called “priority” sectors, such as vehicle manufacturing and defence.

It also calls for investment in the fiscal field, by reducing taxes and levies on renewable electricity and renewable hydrogen throughout Europe, and for policymakers to “maintain and enhance” the European Hydrogen Bank, which has just opened its third auction (see other news).

 Hydrogen grid infrastructure. A week ahead of the European Commission’s presentation of the European Action Plan for Grids scheduled for 10 December, the industry is calling for support for “integrated planning” to prioritise connections between renewable energy hubs and industrial hubs requiring hydrogen across Europe.

For Kitti Nyitrai, Head of Unit at the European Commission, “planning at all levels, for all energy carriers, all energy systems, hydrogen and natural gas” remains essential.

According to the Renewable Hydrogen Coalition’s declaration, this hydrogen infrastructure should be considered of “overriding public interest”, including through fast-track permitting.

The Commission recently presented a list of 235 new priority projects for energy interconnections between countries (see EUROPE 13763/9). Of these projects, 100 are dedicated to hydrogen grids.

This announcement has been criticised by a number of NGOs and scientists, who believe that the production and use of hydrogen should be carried out in a targeted way within integrated industrial clusters, with minimal long-distance transport infrastructure. (Original version in French by Pauline Denys)

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