The European Hydrogen Energy Association (EHEA) and 16 other European associations have called on the European Commission to revise the EU’s hydrogen policy.
Specifically, the organization called for a “reality check” on hydrogen policy and urged the Commission to address the following issues:
A more pragmatic and technology-neutral approach to cost-competitive hydrogen production;
A rapid impact assessment of the current Renewable Fuel from Non-Biological Sources (RFNBO) standard’s impact on production costs, greenhouse gas (GHG) emission savings, and energy system impacts;
Adopt the Low Carbon Fuel Authorization Regulation in the same pragmatic, technology-neutral and fair manner;
Ensure that financial incentives are consistently available to reduce the cost of hydrogen;
Supporting long-term planning security by revising the European Hydrogen Strategy;
Accelerate, reduce risk and smarten infrastructure – associations call for an EU-level action plan for the hydrogen grid;
Facilitating the creation of markets for products produced from RFNBO and low carbon fuels;
Improving European demand-side incentives;
Strengthening the EU’s role in creating a global market for hydrogen energy by developing an international branch of the EU Hydrogen Bank.
The Commission has been asked to implement these recommendations through (but not limited to) upcoming initiatives such as the Clean Industry Agreement, the Affordable Energy Action Plan and the Grid Package.
As a reminder, at the end of 2024, the European Council adopted the conclusions of the special report of the Court of Auditors on the EU’s renewable hydrogen energy industrial policy. The report was welcomed, with the Council calling for the “swift” implementation of the EU regulatory framework, encouraging the development of interconnected transportation networks and calling on the Commission to adopt measures to support the competitiveness of EU industry and the security of investments.
It is worth noting that in 2024, the European Commission officially launched the second round of auctions under the European Hydrogen Bank through the Innovation Fund (IF24), allocating €1.2 billion from the EU Emissions Trading System (ETS) revenues to support RFNBO hydrogen producers located in the European Economic Area (EEA). The auction was launched in the first week of the new term of the European Commission and will close on February 20, 2025.
More than €250 million in funding from the Connecting Europe Facility (CEF) will also be allocated to 21 hydrogen infrastructure development studies. It was disclosed that the funding will help mitigate the investment risks associated with this emerging market and complement the hydrogen policy framework introduced in the Gas and Hydrogen Package. Formal adoption of the award decision will reportedly take place in the coming weeks. The European Climate, Infrastructure and Environment Executive Agency (CINEA) will then prepare funding agreements with the beneficiaries.