February - March 2021 - n°65

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                 HYDROGEN IN EUROPE

H        ydrogen is a highly abundant com-         accelerate the deployment of hydrogen-based        calling on the Commission to further
         ponent of the universe and is cur-        applications. Two other important challenges       elaborate and operationalise the EU Hydrogen
         rently enjoying unparalleled mo-          are to make clean hydrogen economically            Strategy while the European Parliament is
mentum in Europe and around the world.             viable by lowering the costs of the electrolysis   expected to adopt its position in Spring. This
With its ambition to achieve climate neutrality    process and developing hydrogen transport          may lead to intense – but interesting none-
by 2050, Europe needs to speed up its energy       infrastructure.                                    theless – political debates.
transition and reduce by at least 55% its
greenhouse gas emissions over the coming              Europe is at a turning point to make the           In this edition of the European Files, we
decade.                                            hydrogen economy a reality. With the pub-          explore the potential for a hydrogen-powered
                                                   lication of its Strategy for Hydrogen last         future in Europe through the perspective of
  The transition towards a low-carbon              summer, the EU laid out its vision to support      policymakers and businesses. Their contri-
economy is both an imperative challenge and        the growth of clean hydrogen, outlined a           butions analyse the existing economic and
a great opportunity to build a better future       number of key actions, and presented three         political hurdles and recommend policy
for our society. Clean hydrogen, whether blue      strategic phases in the timeline up to 2050.       incentives that will enable the upscaling of
or green, can indeed play a critical role in the                                                      clean hydrogen technologies and support the
decarbonisation path.                                Hydrogen, which currently accounts for less      transition towards a low-carbon economy.
                                                   than 2% of Europe’s energy mix, is expected to
  Hydrogen can enable economic sectors,            represent around 14% by 2050. The roadmap                                              Editorial by
                                                                                                                  Laurent Ulmann & Cyrille Mai Thanh
in particular power generation, industries,        aims at establishing a framework that will
transport, and buildings to substantially          enable a functioning hydrogen market.
reduce their carbon footprint. Today, hydrogen                                                                                   Editor-in-Chief
production has a high environmental footprint        The launch of the Clean Hydrogen Alliance                                 LAURENT ULMANN
because it mostly comes from fossil fuels.         which gathers together major players from
According to the International Energy Agency,      the whole value chain – from production
hydrogen is responsible for around 830             to application – will facilitate the necessary
million tonnes of carbon dioxide per year.         investment to help the scaling up of hydrogen
                                                   technologies across the continent.
  The challenge is to scale up clean hydrogen
produced from zero-emission electricity              Regarding the legislative process, the
such as renewable and nuclear energy, and          Council adopted its conclusion in December

    Management: The European Files / Les Dossiers Européens - 19 rue Lincoln, 1180 Brussels
    www.europeanfiles.eu - ISSN 1636-6085 - email: ulmann@europeanfiles.eu
    Publication Director and Editor-in-Chief: Laurent ULMANN
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    Copyright: Shutterstock
Renewable Hydrogen:                                                     Low-carbon electrolytic hydrogen: a win-win for
A Key Driver for Europe’s Energy Transition                       6    climate and energy system integration                           22
Kadri Simson, European Commissioner for Energy                          Jean-Bernard Lévy, Chairman and CEO of EDF
From Ambition to Action: Enabling Europe to Become a                    The switch from natural gas to green hydrogen, and its
Global Leader in Hydrogen Technologies                            7    importance for climate change promises                24
Thierry Breton, European Commissioner for Internal Market               Morten Helveg Petersen, MEP (Renew Europe – Denmark),
                                                                        Vice-Chair ITRE Committee
The New Decarbonised Hydrogen Economy:
a Growth Engine in a Post-Covid Europe                            8    A Danish perspective on a clever deployment of Hydrogen 25
Bruno Le Maire, French Minister of Economy,                             Kristoffer Böttzauw, Director General of the
Finance and Recovery                                                    Danish Energy Agency

The Portuguese Hydrogen Strategy to Decarbonise its                     The International Dimensions of the
Economy: The Project to Produce Green Hydrogen by                       European Hydrogen Strategy                                      26
Electrolysis                                                      9    Hildegard Bentele, MEP (EPP Group),
João Pedro Matos Fernandes, Portuguese Minister of                      Member of the ITRE Committee
Environment & Climate Action
                                                                        Natural Gas and Hydrogen: Bridging the Regulatory Gap 27
How Renewable Hydrogen Will Help Descarbonise the                       Dr James Watson, Secretary General Eurogas
European Economy The Case for Spain                              10
Teresa Ribera, Vice-President Government of Spain and                   Towards greater hydrogen production capacity in Europe 28
Minister for the Ecological Transition and                              François-Régis Mouton de Lostalot-Lassalle,
the Demographic Challenge                                               International Association of Oil & Gas Producers,
                                                                        Regional Director Europe
Global cooperation is essential for realising hydrogen’s                Olav Aamlid Syversen, Vice President Political and Public
huge potential                                                    12   Affairs – Global Head of EU Affairs / Country Manager Belgium,
Fatih Birol, Executive Director of the International Energy Agency      Equinor Energy Belgium NV

Building an investment case for hydrogen                        14     Why Europe Needs Targets for Hydrogen Energy
Ambroise Fayolle, Vice President of the European Investment Bank        Infrastructure Rollout                                          30
                                                                        Christian Ehler, MEP, EPP ITRE Coordinator
Deploying Clean Hydrogen Energy for a
climate-neutral Future                                           16    Hydrogen valleys driving growth and jobs                        31
Jens Geier, MEP (S&D, Germany), Rapporteur on the                       Bart Biebuyck, Executive director of the Fuel Cells and
Hydrogen Strategy, Member of the ITRE Committee,                        Hydrogen Joint Undertaking (FCH JU)
European Parliament
                                                                        The scaling up of hydrogen, a European task                     32
Hydrogen - Making Europe a leader in each segment                       Niels Fuglsang, MEP (S&D group),
of this strategic value chain                                    18    Member of the ITRE committee
Didier Holleaux, Executive Vice President ENGIE
                                                                        The future of Hydrogen under the Green Deal ambitions 33
Directing Public and Private Investments Towards                        Maria Spyraki, MEP (EPP – ND Greece) Member of ITRE
Hydrogen Production                                              20    Committee, European Parliament
Angelika Niebler, MEP (EPP Group), Shadow rapporteur on
the Hydrogen Strategy, Member of the ITRE Committee
                      HYDROGEN IN EUROPE

Hydrogen : Time to scale up !                              34   When hydrogen partners with electrons:
Matthieu Giard, Executive Vice-President                         clean heating for all                                       50
Member of the Executive Committee AIR LIQUIDE                    Maximilian Viessmann, Co-CEO Viessmann Group and
                                                                 CEO Viessmann Climate Solutions
Changing the ground for a competitive
hydrogen ecosystem in Europe                              36    Hydrogen blending standards: is harmonisation needed? 52
Jorgo Chatzimarkakis, Secretary General of Hydrogen Europe       Alberto Pototschnig, Florence School of Regulation -
                                                                 Robert Schuman Centre for Advanced Studies at the European
Full speed ahead:                                                University Institute
Developing European Infrastructure for Hydrogen            38
Torben Brabo, Chief Executive Officer, Energinet Gas TSO         Andris Piebalgs, Florence School of Regulation
and President of Gas - Infrastructure Europe (GIE)               Robert Schuman Centre for Advanced Studies at the European
                                                                 University Institute
Towards a Continent Powered by Clean Electricity:
Leading the Charge on Hydrogen                             39   Clean Hydrogen as A Major Enabler for
Kristian Ruby, Secretary General of Eurelectric                  Making Carbon-Free Ammonia and Fertilizers                  54
                                                                 Dr Antoine Hoxha, Technical Director, Fertilizers Europe
Hydrogen Strategies and The Importance of Solving the
Dual CO2 And Methane Performance Challenge                 40   Unlocking the Green Hydrogen Economy through
Nicolás González Casares, MEP (S&D, Spain),                      Business Model Innovation                                   56
Member of the ITRE Committee, European Parliament                Diego Pavia, CEO of EIT InnoEnergy

Hydrogen’s role to decarbonise the European gas grid       42   EU Hydrogen at a crossroads: how to gear up?                58
Jan Ingwersen, General Director of ENTSOG                        Dominique Riquet, Vice-President of Renew Europe
                                                                 Co-chair of the intergroup on long-term & sustainable
Hydrogen as One of the Solutions for the                         investments & Competitive European Industry
Decarbonisation of Transport                               44
Elsi Katainen, MEP (Renew Europe, Finland), Member of the        Innovation – a key driver of the EU Hydrogen Economy        60
TRAN Committee, European Parliament                              Stephen Quest, Director-General Joint Research Centre,
                                                                 European Commission
Green Hydrogen - The dream of energy transition or
just a fade? What does it take to meet the high                  How can carbon-free hydrogen become more competitive? 61
expectations of a European hydrogen market?                45   Christophe Grudler, MEP (Renew Europe Group),
Jan-Christoph Oetjen, MEP (Renew Europe Group),                  Member of the ITRE Committee
Vice Chair of TRAN Committee                                     Clean Hydrogen costs in 2030 and 2050:
Hydrogen:                                                        a review of the known and the unknown                       62
Promising Zero-Carbon Technologies for Future Aircraft 46       Piero Carlo dos Reis, Research Associate -
Axel Krein, Executive Director - Clean Sky 2 Joint Undertaking   Florence School of Regulation
                                                                 Jean-Michel Glachant, Director -
Hydrogen – the Great Unifier?                              48   Florence School of Regulation
Bertrand Piccard, President of the Solar Impulse Foundation
                                                                 Hydrogen will not be the new oil of the XXI century         64
Green Hydrogen for a carbon neutral transport sector       49   Jean-Marc Jancovici, President - The Shift Project
Ismail Ertug, MEP (S&D, Germany),                                Matthieu Auzanneau, Director - The Shift Project
Member of TRAN & ITRE Committees, European Parliament
6 | The European Files                            |   Unlocking the full potential of hydrogen in Europe

                                                   Renewable Hydrogen:
                                                   A Key Driver for Europe’s
                                                   Energy Transition
              KADRI SIMSON
     European Commissioner for Energy

T       he European Green Deal and achieving
        carbon-neutrality by 2050 has been
        the main priority of the von der Leyen
Commission since taking office at the end of
2019. Despite the challenges of the Covid-19
                                                   sustainable for the long-term. But if we can
                                                   scale up renewable hydrogen, there is every
                                                   chance it can make a significant contribution
                                                   to the clean energy transition and strengthen
                                                   European industrial competitiveness at the
                                                                                                     only need to scale up individual plants, but to
                                                                                                     develop the associated hydrogen ecosystem
                                                                                                     and supply chains for storing, transport, and
                                                                                                     delivering hydrogen to the end-consumers.
                                                                                                     Investments will be needed to transform
pandemic, 2020 was the year of laying down         same time.                                        our industrial processes, to build larger elec-
the path towards our 2050 target.                     To decarbonise our energy system, we need      trolysers and to develop the hydrogen trucks,
   Perhaps the most significant step was the       more energy efficiency, more renewables and       boats and planes of the future. This creates an
agreement by EU leaders that the EU should         more electrification. However, we also need       enormous industrial opportunity for the EU.
reduce greenhouse gas emissions 55% by             more renewable fuels and gases. In many              Our Member States are already responding
2030 (relative to 1990 levels) – as proposed       sectors of industry and transport, electrifi-     to this challenge. National strategies have
by the Commission. This is a political com-        cation has the potential to respond to the        been launched by France, Germany, Neth-
mitment, which ties the EU into raising our        challenge. However, there will be areas, such     erlands, Portugal and Spain, with draft
ambitions for the coming decade. Our services      as long-distance and maritime transport as        strategies in preparation by Austria, Italy,
in the Commission are now preparing a range        well as aviation - or certain industrial pro-     Poland and others. Furthermore, 22 Member
of proposals for this summer, so that the EU       cesses (such as steel production) – where         States have signed a collaboration agreement
can be “fit for 55%”.                              electrification is simply not an option as it     to jointly develop and support innovative
   At the same time, the Commission provided       is not available or not cost effective. This is   cross-border hydrogen projects. A recent
a number of other key building blocks in 2020      where renewable fuels and gases are needed.       agreement signed by Portugal and the Neth-
aimed at achieving our medium and long-            And this is why renewable hydrogen can            erlands to transport renewable hydrogen
term goals. Within the remit of energy policy,     potentially hold the key to eliminate emissions   from Portugal to the Netherlands shows the
these include strategies on energy system          in these hard-to-decarbonise sectors. Fur-        commitment towards a common approach.
integration, renovation, offshore renewable        thermore, hydrogen will be important to              At the same time, clean hydrogen offers
energy, and methane emissions. In legislative      help balance a renewables-based electricity       new opportunities to re-design our energy
terms, we also proposed a revision of the          system by providing long-term storage and         partnerships with our neighbouring countries
rules for the trans-European networks for          buffering of renewable energy.                    and regions, and as a way to contribute to
energy and produced a detailed assessment             I am frequently asked if I think Europe can    their clean energy transition. In particular,
of how Member States intend to meet their          emerge as a leader in a global shift towards      North Africa has great potential to supply
targets in the coming decade through their         clean hydrogen. I have no doubt that we can.      cost-competitive renewable hydrogen to the
respective national energy & climate plans         Already today, the EU is leading in the devel-    EU if the renewable power generation in these
(NECPs).                                           opment of electrolysers, a key technology         countries accelerates. I am therefore pleased
   While all of these initiatives combine to set   needed to convert renewable electricity into      that the European Commission and Morocco
us on the decarbonisation pathway, the most        hydrogen. At the same time, the EU has the        are jointly facilitating a new collaborative
exciting element for many is the Hydrogen          right policy framework in place to accelerate     platform on renewable hydrogen under the
Strategy, published last July. Its aim – to        the large amount of low-cost renewables           International Renewable Energy Agency.
kickstart investments to scale up the pro-         needed to produce hydrogen. The EU is also           The European Green Deal provides us with
duction and use of clean hydrogen and fulfil       the first region with the objective of climate    a holistic approach to tackle the climate
its potential as one of the key drivers in the     neutrality, which gives our industry the          challenge. We are applying the same prin-
green energy transition.                           market and investment certainty.                  ciples to our hydrogen strategy. Hydrogen
   Although hydrogen is already used in               So where do we stand at present? Today,        is part of our growth strategy, it fits within
the EU, it is for the moment primarily             around 60 MW of electrolysers have been           a holistic vision of an integrated energy
used as a feedstock and less in the energy         tested and demonstrated in the EU. By the         system, it is based on a collaborative and joint
sector– accounting for only 2% of Europe’s         end of 2024, we aim to have 6 GW of elec-         approach among our Member States, and it
present energy consumption – 96% of this           trolysers – a hundred-fold increase, and          provides an opportunity to shape the global
hydrogen is produced with natural gas,             40 GW of electrolysers by 2030 with the aim       energy transition.
emitting significant amounts of CO2 in             to produce 10 million tonnes of renewable            For more information, see Commission
the process. This form of hydrogen is not          hydrogen. To achieve these objectives, we not     webpage on hydrogen
Unlocking the full potential of hydrogen in Europe               | The European Files | 7

                                                    From Ambition to
                                                    Action: Enabling Europe
                                                    to Become a Global
                                                    Leader in Hydrogen
             THIERRY BRETON
 European Commissioner for Internal Market

W             e have the ambition to become
              the first climate-neutral continent
              by 2050 and reduce emission
by at least 55% by 2030. This will not be
possible without a deep decarbonisation of
                                                    meet 24% of world energy demand by 2050,
                                                    with annual sales in the range of €630 billion.
                                                    And as investment cycles in many of the con-
                                                    cerned industries and in the energy sector are
                                                    around 20-30 years, and as the interest in
                                                                                                       responsible for the alliance’s operational
                                                                                                       work. They are in charge of building a project
                                                                                                       pipeline and an investment agenda in their
                                                                                                       area, while ensuring coherent implementation
                                                                                                       along the clean hydrogen value chain. When
our industry, our mobility ecosystem and our        clean hydrogen is growing globally, we have        relevant to their mission, they may also flag
energy system.                                      no time to lose.                                   obstacles and bottlenecks for the upscaling of
   Renewable and low-carbon hydrogen can               But most of all, we need to strengthen          clean hydrogen, provide input to the work on
help us to decarbonise the most polluting           partnerships and collaboration among               regulations, standardisation, and research and
industries like steel, chemicals and heavy          industry, EU, Member States and the relevant       innovation priorities.
transport e.g. trucks or aircrafts, where           stakeholders.                                         At the same time, it is clear that public
reducing carbon emissions is both urgent and           Europe has leading players at each              support is necessary for large-scale
hard to achieve. For instance, when conditions      segment of the clean hydrogen value chain,         investments to kick-start the clean hydrogen
are right, clean hydrogen could help to reduce      but the challenges of scaling up production        value chain. The Commission has already
emissions in the steel sector by almost 95%.        and boosting demand require a systemic             identified clean hydrogen and renewables
   Today, the amount of hydrogen used in the        approach along the whole value chain. That         as a flagship for the recovery, due to their
EU remains limited, and is largely produced         is why in July last year the Commission            huge potential for energy transition, job
from fossil fuels. The aim of the EU action is      launched the European Clean Hydrogen               creation and cross-border investment. We are
to deploy mature clean hydrogen across all of       Alliance, which brings together industry,          encouraging Member States to do the nec-
the most emitting sectors of our economy by         national and local public authorities, civil       essary investments and reforms as part of
the middle of this century, and to become the       society and other stakeholders. The Alliance       their national Recovery and Resilience Plans.
first fully fledged clean hydrogen market in        has already attracted a lot of interest, with         We also hope to see concrete projects
the world. That is the main message sent by         more than 1000 organisations - majority of         resulting from the manifesto on Important
the Hydrogen Strategy for a climate neutral         them companies, joining since its launch.          Projects of Common European Interest on
Europe, which the Commission published last         Together with the few thousand participants        hydrogen, prepared by the German Presidency
year.                                               of the European Hydrogen Forum organised           and signed in December by 23 European
   What is needed however is to create              in November, this points to a very big interest    countries, which makes clean hydrogen a
scale to bring down the costs, especially by        from the hydrogen ecosystem. In my dis-            truly European endeavour.
building a competitive clean hydrogen value         cussions with CEOs at the European Hydrogen           The EU has supported research and inno-
chain in Europe. This of course requires            Forum, leading EU companies confirmed solid        vation on hydrogen for many years, giving
big investments for the scaling up the              commitment to objectives of the Alliance.          it a head start on the development of clean
production of renewable and low-carbon                 Industrial alliances are built to transform     hydrogen and establishing EU leadership for
hydrogen, boosting its applications in industry     this type of commitment into real action.          technologies such as electrolysers, hydrogen
and mobility as well as in the necessary            The European Clean Hydrogen Alliance will          refuelling stations and large fuel cells.
infrastructure.                                     establish an investment agenda and support            By supporting the development of clean
   Cumulative investments in renewable              the scaling up of the hydrogen value chain         hydrogen, we have shown that we are
hydrogen in Europe could be up to €180-470          across Europe. It will play a crucial role in      serious about decarbonising our industry and
billion by 2030, and in the range of €3-18          facilitating and implementing the European         attaining our climate neutrality ambitions.
billion for low-carbon fossil-based hydrogen.       Hydrogen Strategy. It is also a political signal   Now we need to consolidate this EU lead-
Combined with EU’s leadership in renewables         of EU’s commitment to invest in technologies       ership to ensure this technology benefits our
technologies, the emergence of a hydrogen           enabling climate neutrality.                       economy and society at large.
value chain serving a multitude of industrial          The work of the European Clean Hydrogen
sectors and other end uses could employ             Alliance is entering a new phase. Following an
up to 1 million people, directly and indirectly.    open call for applications, we are now kicking-
Analysts estimate that clean hydrogen could         off the work of the six thematic roundtables
8 | The European Files                              |    Unlocking the full potential of hydrogen in Europe

                                                     The New Decarbonised
                                                     Hydrogen Economy:
                                                     a Growth Engine in a
                                                     Post-Covid Europe
             BRUNO LE MAIRE
         French Minister of Economy,
            Finance and Recovery

   2020 has witnessed growing interest for the           Fairer                                           the innovation race for the development of
tiniest and lightest atom: hydrogen. Hydrogen               The economic crisis is also an oppor-         hydrogen technologies and its uses, but we
technologies and uses have found their way               tunity for us to rethink our economic model      need massive investments for that. In France,
in European Recovery Plans, and hydrogen                 and the kind of society we call for. Beyond      we have earmarked EUR 7 bn for the decarboni-
strategies are at the heart of many Member               the question of sovereignty, relocation of       sation of hydrogen production and the design of
States’ decarbonation path.                              industrial production is also a matter of        a hydrogen industry. EUR 2 bn of them are to be
                                                         preserving jobs in our regions. We have the      invested in 2021 and 2022 already, in the frame
Why is it the right time?                                expertise and the talents required in Europe     of our stimulus plan “France Relance”.
   In the wake of the COVID-19 crisis, our top           to develop new technologies; we need to
priority is to get back on our feet swiftly. Indu-       invest in them. Massive public intervention      Why should we have a European
bitably, bouncing back will require fortitude            and support will provide the right impetus for   approach?
and innovation. It also requires that we invest,         businesses to move forward.                         This battle must be fought together with
already now, in our future – and that we have                                                             our European partners, in order to compete
a clear idea of the future we call for. We want      Why should we support hydrogen?                      with the American and Chinese powers, which
to come out of the crisis stronger, cleaner and         Decarbonised hydrogen technologies support        can rely on substantial domestic markets
fairer.                                              all three goals. They offer the opportunity to       and a single leadership. The European Single
                                                     create, on the European soil, an industrial eco-     Market is a powerful asset to establish a com-
  Stronger                                           system key to the continent’s future economic        petitive economic area and attract necessary
     We need a more competitive economy.             sovereignty. They contribute to shape a              investments. But we need investments on a
  The Covid-19 crisis proved that we depend          competitive and fair economy: we expect the          scale that no single Member States can match.
  too heavily on imports in certain market           hydrogen sector will create 50 000 to 150 000           I was very proud to sign, on December 17th
  segments. It can undermine our ability to          direct and indirect jobs in France over the next     and along with 22 other Member States, the
  address major societal issues by our own           ten years. Decarbonised hydrogen technologies        Manifesto on Hydrogen. We agreed to work on
  means, such as protecting the health of our        also give us tools to tackle the great challenge     large-scale joint investment projects in order
  citizens, disposing of the means to defend         of the 21st century: the decarbonation of our        to support the development and deployment
  ourselves, or securing our ability to undertake    economies.                                           of hydrogen technologies and systems, and
  the green transition. We should not rely on           In France, we have set for ourselves a clear,     to grasp the possibility to shape together
  massive equipment imports to decarbonize           unifying goal: to launch a green hydrogen            an Important Project of Common European
  our economy – unlike what we previously did        aircraft by 2035. I trust it can be reached.         Interest (IPCEI) that would support the rise
  with photovoltaic panels. I believe in break-      However, applications for hydrogen tech-             of our industries in hydrogen technologies
  through technologies as a leverage to deepen       nologies are manifold. Hydrogen is an alter-         throughout the value chain. The IPCEI is a
  our economic sovereignty.                          native to fossil fuels for vehicles (terrestrial,    unique opportunity for Member States to coor-
                                                     airborne, waterborne), and hydrogen tech-            dinate their efforts to foster both economic
  Cleaner                                            nologies can be seen as complementary to the         investments and the green transition, and share
     In Europe, we have made a commitment            battery technology. Hydrogen can also be used        the benefits of their cooperation.
  to tackle climate and environmental-related        as a feedstock for industries, such as refining,        Yet this is only the beginning of the hydrogen
  challenges. We have already started to mod-        ammonia or steel making. Eventually, hydrogen        path. The IPCEI scheme must be complemented
  ernize and transform the economy with the          could also serve as energy storage and facilitate    by an ambitious European industrial strategy,
  aim of reaching climate neutrality by 2050.        the integration of renewable energy in our elec-     a long-term framework for supercharging
  We have agreed on a 55% GHG emissions              tricity mixes.                                       the twin green and digital transition and rein-
  reduction intermediary target for 2030. We            It is now up to public authorities to share       forcing industrial value chains for technologies
  now need to accelerate the pace on environ-        the risks with researchers and industrialists        key to our strategic autonomy. I stand ready
  mental issues. We should move swiftly to           in order to come up with new and innovative          to implement it together with our European
  give momentum to our stimulus plans and            solutions. I am convinced that the EU has the        partners.
  foster new investments in clean technologies.      potential to place itself at the forefront of
Unlocking the full potential of hydrogen in Europe               | The European Files | 9

                                                   The Portuguese Hydrogen
                                                   Strategy to Decarbonise
                                                   its Economy: The Project
                                                   to Produce Green
    Portuguese Minister of Environment &
              Climate Action
                                                   Hydrogen by Electrolysis

P      ortugal was the first country in the
       world to assume the goal of being
       carbon neutral in 2050. Working
towards that objective our last coal-fired
power station will be closed this year. We
                                                   share of renewables in gross final energy
                                                   consumption. During the next decade we aim
                                                   to achieve 2 to 2,5 GW of installed capacity
                                                   to produce hydrogen, to have between 10% to
                                                   15% of hydrogen injected into the natural gas
                                                                                                        The environmental ambition of the EU
                                                                                                      Green Deal will not be accomplished if Europe
                                                                                                      acts isolated. Climate change is global and is
                                                                                                      not limited by national borders. All EU actions
                                                                                                      and policies will have to contribute to the
believe 2021 will be a decisive one in driving     grid and build between 50 to 100 hydrogen          achievement of the objectives. The challenges
the European economy towards recovery              refuelling stations. These objectives amount       are complex and interconnected.
and growth, preparing for the future, namely       to an investment of around 7 to 9 billion euros.
through the two-fold – green and digital - tran-                                                        We believe that a country from southern
sition and strengthening society’s resilience.       The hydrogen production in Portugal will         Europe like Portugal can have an active role
Within the Portuguese Presidency of the            reduce imports and energy dependency,              and push forward the broad use of hydrogen,
Council of the EU we look forward to conclude      strengthening ours and European Union’s            particularly green hydrogen, becoming a
the negotiation of the European Climate Law        energy security. This will strengthen the          key element in accomplishing Europe’s
with the European Parliament, enshrining           position Portugal as an exporter of green          decarbonization goals. As an ambitious and
climate neutrality and an ambitious emission       energy while decarbonising the industry,           innovative country with a robust track-record
reduction target for 2030 of at least 55%          transport and heating. It stimulates industry      in renewables, we bring forward our com-
when compared to 1990.                             and gives new uses to the natural gas infra-       mitment and our current state of play in the
                                                   structure that the country already has in          hydrogen field and contribute to the global
   Hydrogen will play a very important role in     place. This will be not only a major industrial    market.
decarbonization. It will be key, particularly to   project, but also an economic and social devel-
transform the more “hard to abate” sectors. To     opment project which will create or re-qualify
achieve its full potential, it is very important   existing jobs by calling for new skills and
to make progress, taking the necessary steps       increase research and development – namely
to make its price competitive and create a         on electrolysis with waste and salt water. The
market, while maintaining investment in            green hydrogen production project is focused
research and innovation, to develop the            on leveraging solar energy, but also wind
essential infrastructures and implement            energy, on-shore and off-shore, as factors of
measures of certification of origin. Fur-          competitiveness, industrial transformation
thermore, following up on the excellent work       and opportunity to increase exports.
done by the German Presidency, Portugal will
strive to keep hydrogen as a central priority in      Decentralising production is one of Por-
the energy sector.                                 tugal’s priorities. With that in mind, the Por-
                                                   tuguese green hydrogen production plans
  Portugal aims to start the green hydrogen        are not limited to the Sines region and there
production project on an industrial scale as       will be projects of different scale, scattered
soon as possible. We are in a good position to     throughout the territory. Together with the
do so, considering our strategic advantages:       new legislation on energy communities,
a well-equipped deep-water harbour in Sines;       decentralized hydrogen production is an
a solar power price among the lowest in the        opportunity to attract investment to the
world; public land available to install the        interior of the country, allowing each ter-
hydrogen industrial complex and a modern           ritory to make the best use of its endogenous
natural gas supply network. We will combine        resources and actively participate in the
these advantages with our ambitious decar-         energy transition, showing - as we have
bonization targets for 2030: a 55% reduction       always said - that decarbonization, while chal-
in greenhouse gas emissions and a 47%              lenging, is above all an opportunity.
10 | The European Files                           |   Unlocking the full potential of hydrogen in Europe

                                                 How Renewable
                                                 Hydrogen Will Help
                                                 Descarbonise the
                                                 European Economy
                                                 The Case for Spain
             TERESA RIBERA
  Vice-President Government of Spain and
  Minister for the Ecological Transition and
         the Demographic Challenge

E      nergy efficiency and renewable-
       based electrification are long since
       the cornerstone of global action
towards decarbonisation. While the Inter-
governmental Panel on Climate Change has
                                                    If renewable hydrogen is the best tech-
                                                 nology available for the 2050-horizon,
                                                 it seems important we concentrate our
                                                 financial and regulatory resources on
                                                 renewable hydrogen, swiftly and decisively,
                                                                                                at a time key international actors such as
                                                                                                China, South Korea and Japan are solidly
                                                                                                committing to climate neutrality and the
                                                                                                U.S. Biden administration has made a strong
                                                                                                pledge for the energy transition. These
made remarkably clear the need to focus          from the very start. We must avoid investing   countries are in the works of releasing
on reducing greenhouse gas emissions, a          in non-renewable technologies that risk        ambitious national hydrogen strategies, in
number of institutions have filled in the        becoming stranded assets in the medium-        which they show their clear determination
details regarding which technologies can         term. We cannot afford squandering our         to become leaders on cutting-edge tech-
support on this endeavour. For example – the     resources on technologies that will not be     nologies such as electrolysers or fuel-cell
International Renewable Energy Agency has        with us in thirty years.                       components. If the EU intends to become
estimated that renewable energy and energy                                                      a global frontrunner in this strategic, clean
efficiency solutions together offer over 90%       The international competition on             industrial ecosystem, which will be essential
of the mitigation measures needed to reduce      renewable hydrogen is expected to be fierce,   for our future climate-neutral energy
energy-related emissions.

   Completing this picture, hydrogen has
been widely acknowledged as a key energy
carrier to decarbonise those sectors of the
economy where electrification is not feasible
or cost-effective. Examples of these sectors
are parts of the energy-intensive industry,
long-haul high load transport, maritime
shipping or aviation. Its potential to storing
energy and contributing to balancing out
our power system is also extraordinary.
Hydrogen can certainly play a pivotal role
in helping the world – and the EU – achieve
climate neutrality by 2050, only if we make
sure hydrogen is developed in line with this

  The European Commission published
in July 2020 the excellent EU Hydrogen
Strategy, which made a giant step in moving
towards achieving EU climate and energy
objectives. This Strategy set the development
of renewable hydrogen – produced through
electrolysis from renewable sources – as the
unquestionable priority for the EU, recog-
nising it is the most compatible option with
the EU’s climate neutrality and zero pollution
goal in the long term and the most coherent
with an integrated energy system.
Unlocking the full potential of hydrogen in Europe              | The European Files | 11

system, every minute counts. There is no          fossil-based hydrogen production – which          should plan no new additional investments in
time for transition solutions.                    amounts to 500,000 tonnes per year in             natural gas infrastructure, as they risk locking
                                                  Spain – by renewable hydrogen production.         us into fossil fuels for decades, diverting us
   Fully harnessing the potential for             Refining, fertilisers and other chemical          from climate neutrality. The geography of
renewable hydrogen production within the          products are good candidates for such a thing.    hydrogen is likely to be significantly different
EU, while building a strong, competitive EU       Simultaneously, high-temperature industrial       from existing natural gas corridors.
value chain, must be our priority. For one        processes in steel or construction-material
reason – the EU has the capacity to succeed       manufacturing have a significant potential to        Following this vision, Spain has recently
in it. According to the International Energy      abate emissions by shifting in the short-term     approved a National Hydrogen Roadmap,
Agency, only between 2020 and 2025, the           to renewable hydrogen. Likewise, we see           reinforcing Spain’s commitment to renewable
increase in renewables-based generation           valuable opportunities in the mobility sector,    hydrogen. The Roadmap foresees an installed
in Europe is expected to be more than nine        for example in maritime shipping, aviation or     capacity of at least 4GW electrolysers
times the rise in electricity demand. Also        hard-to-electrify railways.                       by 2030 – 10% of what expected by the
importantly, strategic autonomy and energy                                                          European Commission throughout the UE
self-sufficiency are valuable assets the EU is       In a first stage, Spain is devising the pro-   by that year – for which 8.9 billion EURO are
in a position to guarantee for the future if we   motion of renewable hydrogen clusters, which      expected to be mobilised, while foreseeing an
make the right decisions now.                     can bring closer producers and consumers          intermediate milestone of 300-600 MW by
                                                  while creating a synergies-fuelled ecosystem      2024. Spain’s rich renewable resources and
   R&D&i is going to be an important pillar       to kick-start the market. Building renewable      solid value chains will be the warrants of this
across the whole renewable hydrogen value         hydrogen production capacity back-to-back         development. Indeed, together with our Por-
chain, most particularly for reducing costs       to existing hydrogen demand will prevent          tuguese friends, we have the potential to build
and making renewable hydrogen a cheap,            unnecessary transmission and distribution         a strong Iberian hub of renewable hydrogen
viable alternative to fossil-based hydrogen.      infrastructure, reducing investment costs         in the medium- and long-term, while first
To that end, an Important Project of Common       and carbon footprint. In a later stage, we        prioritising domestic production and demand,
European Interest (IPCEI) on renewable            will promote a more distributed production        expanding renewable hydrogen clusters and
hydrogen can be crucial to facilitate chan-       by using electrolysers to facilitate the inte-    minimizing carbon footprint and transport
nelling the necessary public funds to swiftly     gration of increasing shares of renewable         costs.
achieving technology maturity for renewable       electricity, following the guidance provided
hydrogen production, while strengthening          by the EU Energy System Integration Strategy         The post-COVID19 recovery is an excep-
cross-border cooperation and creating a           and, namely, the principle of energy efficiency   tional opportunity. Let us harness it as a
genuine EU value chain.                           first. Before designing any new infrastructure    catalyser to inject the impetus renewable
                                                  or repurposing existing gas infrastructure        hydrogen needs to develop its full potential
  The vision of Spain is to develop the           for dedicated renewable hydrogen, we              and significant benefits.
industrial ecosystem of renewable hydrogen        should ensure the existence of sustainable
by focusing first on replacing existing           and reliable demand. Notwithstanding, we
12 | The European Files                            |   Unlocking the full potential of hydrogen in Europe

                                                  Global cooperation
                                                  is essential for
                                                  realising hydrogen’s
                                                  huge potential
               FATIH BIROL
           Executive Director of the
         International Energy Agency

H        ydrogen has for too long been
         ignored by the energy sector, despite
         the important role it can play in
addressing our environmental challenges
like climate change and air pollution – and
                                                  its data and policy expertise to support gov-
                                                  ernments in this critical phase.

                                                     Hydrogen technologies are not the only
                                                  ones we need to reach our energy and
                                                                                                    own choices for this important technology
                                                                                                    opportunity. As we pointed in our 2019
                                                                                                    report, the coming decade will be critical for
                                                                                                    hydrogen’s long-term success.

in enhancing energy security. Momentum            climate goals. We will need a wide range of         To help the world keep track of progress
behind it continues to grow, but IEA analysis     clean energy technologies – from renewables,      on this front, the IEA will start publishing a
shows there is still a huge amount of work        nuclear power and energy efficiency to bat-       new Global Hydrogen Review this year. This
to be done for it to reach a scale that would     teries, carbon capture and bioenergy. But         report will serve as hydrogen’s North Star,
make a key difference to efforts to reach         hydrogen is a critical part of any ambitious      assessing the impact of all government and
international energy and climate goals.           clean energy transition strategy.                 industry plans. It will examine how actual on-
                                                                                                    the-ground progress compares with stated
  Much has happened since the IEA released           The use of hydrogen will need to expand        ambitions from around the world, and help
our landmark report on hydrogen at the            across many parts of the global energy            decision-makers to fine-tune their strategies
G20 Energy Ministers Meeting in Japan in          sector – from road transport to shipping and      to drive real progress in investment.
June 2019. Over the past two years, around        aviation, from iron and steel production to the
80 megawatts (MW) of electrolysers, which         power sector. In fact, if the world is to reach     And I am very pleased that Noé van Hulst,
produce hydrogen from electricity, were           net-zero emissions as outlined in the IEA’s       the former Hydrogen Envoy of the Neth-
installed worldwide, boosting global capacity     Sustainable Development Scenario, hydrogen        erlands and now the Chair of the International
to around 250 MW. The largest electrolyser        could account for as much as 13% of total         Partnership for Hydrogen and Fuel Cells in
plant to date was opened last year in             final energy consumption.And practically all      the Economy (IPHE), has agreed to act as a
Fukushima, Japan. And two large projects          hydrogen production by then would need to         special adviser to the IEA on hydrogen-related
to produce hydrogen from natural gas with         be low carbon, either through the use of fossil   matters and ensure that we work with all
carbon capture became operational in 2020.        fuels with carbon capture, utilisation and        hydrogen stakeholders to advance the cause.
They will capture 1.5 million tonnes of CO2 per   storage – or through the use of electrolysers.
year. In 2019, 12 500 fuel cell vehicles were     Around 3 300 gigawatts of electrolysers             The time for hydrogen may have finally
sold, double the amount of 2018.                  would be needed. In practical terms, this         come, and countries around the world have to
                                                  requires bringing the equivalent of today’s       be ready to seize the opportunity. The IEA is
  Governments around the world are                largest electrolyser into operation every hour    ready to do all it can to support this.
stepping up their efforts. Since early 2019,      for the next few decades.
12 countries and the European Commission
have set out ambitious hydrogen strategies or        This is why the IEA is deepening and
roadmaps. And at least another nine are due       expanding its work on hydrogen to support its
to be released very soon.                         continued development. This includes closely
                                                  collaborating with the Japanese government
  These encouraging trends show the energy        on the Hydrogen Energy Ministerial Meeting
world’s high expectations for hydrogen. But       this year. The IEA is proud to be able to con-
the progress gives us no cause for com-           tribute its expertise and convening power to
placency – much more has to be done. The          the event, since international cooperation
ambition of the strategies that governments       will be essential for successfully tapping into
are setting out is impressive. The challenge      hydrogen’s huge clean energy potential
now is to design and implement the policies,
regulations and investment plans that will          Hydrogen is a big opportunity for many
turn those ambitions into reality. The IEA is     countries. The IEA is committed to help gov-
ready to play a significant role by providing     ernments and industries in making their very
Unlocking the full potential of hydrogen in Europe       | The European Files | 13

Hydrogen – a key pillar for reaching energy & climate goals

                            Global hydrogen use by sector in the Sustainable Development Scenario, 2019-2070

                                                                                                                 Ammonia production

                                                                                                                 Synfuel production





                                          2019         2030       2040       2050       2060       2070

       Global hydrogen use grows sevenfold by 2070 compared to today in the Sustainable Development Scenario, with
                              demand growth almost completely met by low-carbon hydrogen.
IEA 2020. All rights reserved.

Renewables hydrogen costs are set to decline
                                                 Long-term hydrogen production costs from solar & wind systems

  The declining costs of solar PV and wind could make them a low-cost source for hydrogen production in regions with
                                            favourable resource conditions.
IEA 2020. All rights reserved.
14 | The European Files                               |   Unlocking the full potential of hydrogen in Europe

                                                     Building an investment
                                                     case for hydrogen

                Vice President
      of the European Investment Bank

L      ow-carbon hydrogen could be the
       missing piece needed finally to wean
       our energy systems off fossil fuels.
Like oil and gas, low-carbon hydrogen can be
stored and used when needed. Low-carbon
                                                     Hydrogen’s moment
                                                        While low-carbon hydrogen’s potential has
                                                     been talked about for over 20 years now, the
                                                     ticking clock of climate change – and a need
                                                     for new energy sources – has renewed the
                                                                                                            To some extent, hydrogen produced from
                                                                                                          natural gas is already used in industries such
                                                                                                          as steel and ammonia production, but the
                                                                                                          production processes entail significant carbon
                                                                                                          emissions. Renewable energy, such as wind
hydrogen can also be used in hard-to-abate           focus. To keep the rise in temperature below         and solar power, however, can be tapped to
industries like steel and ammonia production,        1.5 degrees Celsius, the European Union (EU)         produce green hydrogen. The falling prices of
and it can decarbonise long-haul transport           has pledged to cut its carbon emissions by at        renewable energy are making the economic
vehicles like buses, trucks, ferries that are dif-   least 55% by 2030, compared to 1990 levels,          case for hydrogen more clear.
ficult to electrify.                                 and aims to become climate neutral by mid-
                                                     century. In this context, the implementation of        Seeing low-carbon hydrogen’s potential,
   Getting low-carbon hydrogen usage to the          the European Green Deal that the European            the EU has made low-carbon hydrogen a
level of oil or gas requires building large-scale    Commission has put forward at the end of             core part of the European Green Deal and of
production, storage and transport networks –         2019 will be crucial. While existing renewable       Europe’s efforts to secure its energy future.
investments expected to range from €200 to           energy can get us part of the way, hydrogen
€500 billion by 2030. Low-carbon hydrogen            will be important for the decarbonisation of           As a result, political will is coalescing
also needs to be competitive with the fossil         high emitting and hard to abate industrial           around hydrogen. In July 2020, the EU
fuels currently used in industry and transport,      sectors (for example, steel) which cannot be         announced an ambitious Hydrogen Strategy
as well as with natural gas, which creates           electrified, as well as for transport where bat-     that calls for:
hydrogen using a steam methane process.              teries are suboptimal or not suitable (such as         › Scaling up supply and demand for green
Whereas hydrogen electrolyser and fuel cell          long-distance freight, marine or air).                    hydrogen;
technologies hold big potential for innovation,
economies of scale and expanded production
will be crucial to bringing down prices for
low-carbon hydrogen – as will continued low
prices for electricity from renewable energy.
In most cases, a higher carbon price on fossil
fuels will also be needed to ensure low-carbon
hydrogen’s competitiveness. In addition, the
regulation governing hydrogen transport and
storage may need some adaptation to incen-
tivise investment in the needed infrastructure.

   So far, the European Investment Bank (EIB)
has focused on financing research and devel-
opment (R&D) in hydrogen transformation
and application technologies, as well as public
transport schemes deploying hydrogen buses
and rolling stock, and supply or refuelling
infrastructure. In the future, we also wish to
support projects that expand the supply and
use of hydrogen at larger scale, and we hope
                                                           Ambroise Fayolle, EIB Vice-President and Pierre-Etienne Franc, Hydrogen Council Co-Secretary,
that we will be able to do that with the right
                                                             sign advisory agreement to address climate change with increased investment in hydrogen
policy and regulatory framework in place at                                                                                       ©Cyrille Lachèvre/EIB
the EU and Member State levels.
Unlocking the full potential of hydrogen in Europe               | The European Files | 15

                                                                                                      for projects based on business models
                                                                                                      that promise an adequate risk-return ratio.
                                                                                                      Hydrogen fuel cell technology may be a good
                                                                                                      alternative to batteries for buses, trains, ships
                                                                                                      and potentially planes.

                                                                                                         Knowing this, we have funded a number
                                                                                                      of hydrogen projects in transport, such as
                                                                                                      hydrogen buses in Riga and hydrogen refu-
                                                                                                      elling stations for buses in Denmark. The H2
                                                                                                      Corridor project in France, which received a
                                                                                                      €40 million loan from the EIB, is building the
                                                                                                      production, transport and distribution infra-
                                                                                                      structure needed for a hydrogen-powered
                                                                                                      transport corridor in the Occitanie region in

                                                                                                      We need to act together
                                                                                                        Active coordination, among the EU insti-
                                                                                                      tutions, national governments and industry,
  › Supporting the development of new mar-         them in sorting through the various financial      is essential if the hydrogen dream is to
    kets and infrastructure;                       tools – debt products, guarantees or equity        become reality. Europe’s transitioning of its
  › Establishing Europe as a leader in the         instruments – that can reduce investor risks,      energy systems from high-emitting fossil
    hydrogen industry, a creator of highly         particularly for new technologies or new           fuels to low-carbon hydrogen will require
    skilled jobs.                                  industries trying to scale up. Our support goes    massive investment and monumental
                                                   beyond financial tools, however, to include        coordination.
  In this context, we welcome the European         market research and constructing new
Commission’s recent proposal to update the         business models.                                      Launching initiatives to support EU member
Trans-European Networks for Energy (TEN-E)                                                            countries’ national strategies and to develop
regulation, to include battery and green              An example is our support for the HyDeal        new financing mechanisms could help. At
hydrogen energy storage.                           initiative. It involves a number of industrial     the same time, however, we need to build
                                                   players – including gas transmission systems       hydrogen production, storage and distribution
  The enthusiasm for clean hydrogen extends        operators, electrolyser manufacturers and          links across EU member states. Those cross-
to the national level, where EU members            solar photovoltaic developers – that are           border projects will require specific coordi-
such as Germany, France, Portugal and the          coming together to build a large-scale, inte-      nation and an alignment of public resources.
Netherlands have crafted their own hydrogen        grated hydrogen ecosystem designed to
strategies. Germany has even promised to           deliver low-cost green hydrogen for industrial        In November 2020, following on the
back hydrogen development with a public            clients. The hydrogen produced will come           good experience with the European Battery
budget of €9 billion.                              from solar-powered electrolysis and will           Alliance, the European Commission launched
                                                   be transported via pipelines to a number of        the European Clean Hydrogen Alliance, which
Providing a catalyst                               storage and delivery hubs.                         brings together the industry, public authorities
   In the last eight years, the EIB has invested                                                      and civil society to identify a pipeline of
€2 billion euros in hydrogen projects – plowing    A public push                                      hydrogen investments. Hydrogen projects are
money into electrolysers, catalysts, fuel cells,      Building the low-carbon hydrogen eco-           being included in the list of Important Projects
electric trains, hydrogen bus fleets, refueling    system up to the point that it could con-          of Common European Interest (IPCEI), which
infrastructure and industrial applications.        tribute to replacing fossil fuels would require    allows them to receive public support.
Today, we have approximately €1 billion of         enormous investments in renewable energy
hydrogen-related projects in our pipeline,         such as wind and solar or substantial new             The EIB, which cooperates with the
and we are looking for more innovators to          capacity for carbon capture and storage. The       European Battery Alliance, is looking forward
finance. At the same time, our new energy          EIB has experience in these kinds of projects.     to doing the same with the hydrogen industry.
lending policy focuses on decarbonisation                                                             Higher-risk financing instruments, developed
and the potential of low-carbon gases like           There is also need and scope for further         together with the European Commission, have
hydrogen. We have also forged partnerships         technological progress in hydrogen con-            proved helpful in addressing projects in this
with the Hydrogen Council, a group of leading      version technologies – from low-carbon             sector, which entail significant technical and
energy, transport, industry and investment         electricity to hydrogen (electrolysers) and to     market risk. In addition, EIB advisory services
companies, and France Hydrogène, the French        electricity (fuel cells). This is an area, where   can play a key role to help not-yet mature
association for hydrogen and fuel cell devel-      the Bank has already accompanied multiple          projects to develop.
opment, to identify promising projects and         companies – small and large – in their R&D
innovation.                                        and innovation activities.                            The Bank remains committed to continue its
                                                                                                      support for investments in clean hydrogen – in
  We have the technical experience, through          In addition,    investment in hydrogen           line with the indications of the EU Taxonomy
our Advisory Services, in helping innovators       transport and       storage and re-fuelling        – which could range from R&D investments
and governments put together projects in           (for transport)    infrastructure is needed.       to demonstration projects, as well as the
a way that can attract financing. We guide         Investment and     finance can be mobilised        building of the necessary infrastructure.
16 | The European Files                                |   Unlocking the full potential of hydrogen in Europe

                                                      Clean Hydrogen
                                                      Energy for a
                                                      climate-neutral Future
                  JENS GEIER
   MEP (S&D, Germany), Rapporteur on the
   Hydrogen Strategy, Member of the ITRE
     Committee, European Parliament

T       he European Union has endorsed the
        Paris Agreement and has committed
        with the European Green Deal to
achieve climate neutrality by 2050 through
a just transition. This transition implies the
                                                         However, hydrogen is not the silver bullet
                                                      solution to decarbonisation. Instead, direct
                                                      electrification should be considered the pref-
                                                      erable option for decarbonisation. In addition,
                                                      the EU needs to base its hydrogen economy
                                                                                                        hydrogen and to establish a functioning and
                                                                                                        predictable clean hydrogen market that
                                                                                                        attracts investments, a comprehensive regu-
                                                                                                        latory framework for hydrogen needs to be
                                                                                                        put in place. The EU gas market regulatory
decarbonisation of the entire economy,                on clean hydrogen, as only clean hydrogen         framework could serve as a blueprint, due to
including hard-to-decarbonise sectors. This           is sustainable in the long term. To ramp up       the common features of hydrogen and gas,
transition towards a clean energy system              clean hydrogen production and establish the       together with the Clean Energy Package, due
also needs to ensure security of supply               hydrogen economy fast enough to achieve           to its holistic approach to reviewing the func-
and affordability of energy. As hydrogen              our climate goals, low-carbon hydrogen can        tioning of the energy market.
produced through electrolysis with electricity        play a transitional role, as clean hydrogen
from renewable energy sources is a clean              is not yet sufficiently abundant and com-            To ramp up clean hydrogen production
alternative to fossil fuels and can be used           petitive. However, the European Commission        and to prevent diverting renewable energy
for various purposes, including feedstock for         should continuously assess for how long, for      from other use cases to hydrogen production,
industrial processes, fuel cells and energy           which purposes and how much low-carbon            the EU also needs to create sufficient addi-
storage, it can make a valuable contribution to       hydrogen is needed. I am furthermore con-         tional renewable energy production. This
this transition. However, hydrogen represents         vinced that it is important that fossil-based     goes hand in hand with providing the nec-
only a small part of the European energy              hydrogen is phased out as soon as possible.       essary infrastructure for renewable energy,
mix and 95% of our hydrogen production is                                                               including transporting renewable energy to
currently based on fossil fuels1. Furthermore,        Hydrogen Classification and Standards             hydrogen production sites. The Commission
clean hydrogen is not yet competitive. Due               In order to create an ecosystem for            and Member States should ensure that the
to the currently limited availability of low-         investments, a single European classifi-          missing infrastructure is provided as soon as
carbon and clean hydrogen, its use should be          cation for the different types of hydrogen is     possible. In addition, as renewable electricity
concentrated on sectors that operate close to         needed. I support the Commission’s proposed       is responsible for a significant part of clean
competitiveness of hydrogen or that currently         classification based on the carbon content        hydrogen production costs, it is important to
cannot be decarbonised by other means.                of hydrogen and stepping away from the            reduce costs by abolishing taxes and levies
Examples are the steel and chemical industry          commonly used colour-based approach.              on renewable electricity in order to achieve
and aviation and maritime transport.                  In addition, we need to be able to clearly        competitiveness.
                                                      identify clean hydrogen. For this purpose, I
   Thus, the EU needs to develop a sustainable        suggest the development of standards and          Hydrogen Infrastructure
hydrogen economy that aims at making clean            a European certification and labelling system        The EU should avoid a chicken and egg
hydrogen competitive as soon as possible.             based on an independent, science based            problem between hydrogen infrastructure,
For this, a hydrogen strategy that covers the         review of the lifecycle emissions of hydrogen     production facilities and demand. We need
whole hydrogen value chain, includes demand           production. As clean hydrogen production          to develop all elements from the start. The
and supply sectors and is coordinated with            is based on renewable electricity, we also        EU should incentivise infrastructure devel-
national efforts, is necessary. The European          need guarantees of origin for hydrogen and        opment, e.g. through the revision of the
Commission has made a first step in this              renewable electricity. These elements are         TEN-E regulation. I support the Commission’s
direction by adopting “A hydrogen strategy for        important for hydrogen consumers to be            approach to start planning the medium range
a climate-neutral Europe” in July 2020.               able to invest consciously in clean hydrogen      and backbone transmission infrastructure
                                                      options.                                          from the start to develop a fully-fledged
                                                                                                        internal hydrogen market as soon as possible.
1 European Commission: Hydrogen generation in         Ramping up Hydrogen Production
Europe: Overview of key costs and benefits, July        To achieve the ambitious goals set in             As cost-efficiency is always important, the
2020, https://op.europa.eu/en/publication-detail/-/
publication/7e4afa7d-d077-11ea-adf7-01aa75ed71a1/     the Commission proposal for a Hydrogen            existing gas infrastructure could be retrofitted
language-en                                           strategy, to scale up the production of clean     for pure hydrogen use, which could reduce
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