Skip to main content

Articles

Archive / Current Issue

EU to quadruple hydrogen use to avoid Russian gas

The European Commission has proposed doubling the EU’s target for domestic hydrogen production and dramatically increasing imports as part of a plan to make Europe independent of Russian gas well before 2030.

The Commission says full implementation of its ‘Fit for 55' proposals—currently in the legislative process—would lead to 5.6mn t/yr of hydrogen production capacity being built within the region and a reduction in annual fossil fuel consumption of 30pc by 2030.

But a new plan—known as RepowerEU—released this week foresees an additional 15mn t/yr of green hydrogen use on top of this 5.6mn t/yr, replacing 25-50bn m³/yr of imported Russian gas by 2030.

Of this 15mn t/yr, 5mn t/yr would come from production in the EU and 10mn t/yr from imports.

The plan is likely to require an additional 80GW of renewables by 2030, according to the Commission proposal.

5.6mn t/yr – Green hydrogen production foreseen under ‘Fit for 55’ proposals

“The quicker we switch to renewables and hydrogen, combined with more energy efficiency, the quicker we will be truly independent and master our energy system,” says European Commission president Ursula von der Leyen.

The Commission will also develop the regulatory framework to promote a European market for hydrogen and support the development of an integrated gas and hydrogen infrastructure, hydrogen storage facilities and port infrastructure.

The Commission will assess state aid notification for hydrogen projects as a priority and has committed to complete the assessment of the first Important Projects of Common European Interest on hydrogen within six weeks of the submission a complete notification by participating member states.

Additionally, the Commission will work with partners to conclude green hydrogen partnerships and with the industry to establish a Global European Hydrogen Facility, as well as supporting a Mediterranean Green Hydrogen Partnership.

Lengthy administrative procedures have been identified as among the key obstacles for investments in renewables and hydrogen infrastructure. The Commission will publish in May a recommendation on faster permitting for renewable energy projects, addressing the key barriers and good practice solutions to tackle them.

The Commission will also bring forward the implementation of the Innovation Fund in order to support the switch to electrification and hydrogen, including through an EU-wide scheme for carbon contracts for difference, and to enhance the EU’s manufacturing capabilities to develop innovative low-carbon solutions such as electrolysers.

All the proposals need to be agreed by the Council of the EU and the European Parliament—a process that can take 3-6 months.


Author: Tom Young