EU’s Strategic Investment in Hydrogen Infrastructure

Overview of EU’s Hydrogen Infrastructure Investment

The European Union (EU) has committed over €250 million in grants from the Connecting Europe Facility (CEF) to support 21 hydrogen infrastructure development studies across 16 member states. This initiative aims to enhance the EU’s position as a global leader in green hydrogen by developing a robust hydrogen production network, improving storage capacities, and establishing new hydrogen pipelines. The investment is part of a broader €1.25 billion allocation under the CEF, aimed at decarbonizing the EU’s industry and boosting competitiveness.

The EU’s hydrogen strategy is designed to enable market rules for hydrogen deployment, including removing barriers for efficient hydrogen infrastructure development and ensuring access to liquid markets for hydrogen producers and customers. The EU aims to achieve a target of 10 million tonnes of domestic hydrogen production, which is equivalent to 333 terawatt-hours (TWh) of hydrogen, by 2030. This target is part of the broader EU Green Deal, which aims to make the EU climate-neutral by 2050.

The EU’s hydrogen infrastructure investment is also supported by the European Hydrogen Backbone (EHB) initiative, which aims to accelerate Europe’s decarbonization journey by defining the critical role of hydrogen infrastructure. The EHB initiative includes investments into hydrogen production and transportation infrastructure, making imports from third countries happen and supporting the development of hydrogen infrastructure.

The EU’s hydrogen infrastructure investment is also supported by the Recovery and Resiliency Facility for clean energy, which is a temporary instrument made available to EU countries in 2021. The facility supports countries to invest in hydrogen projects across the value chain. Investment support has also been provided through the Important Projects of Common European Interest (IPCEIs) on hydrogen. The first IPCEI, called ‘IPCEI Hy2Tech’, is a €1.2 billion project that aims to develop a European hydrogen technology cluster.

The European Clean Hydrogen Alliance is determined to promote investments in clean hydrogen across the value chain and to play a pivotal role in achieving the transformation of the European energy system. The EU’s hydrogen infrastructure investment is also supported by the Next Generation EU (NGEU) program, which is a €750 billion economic recovery package to support the EU member states to recover from the COVID-19 pandemic. The program is very large (just the grant portion of NGEU is twice bigger than the Marshall plan) and redistributive (NGEU favors the south of the block: Italy and Spain get the largest shares, while Greece is the leader in per-capita allocations, at almost 20% of its GDP). The grant portion of NGEU is approximately 3% of EU’s GDP. Similar to the Marshall plan, NGEU is conditional, however it targets investment and public services, not stabilizing the budgets and promoting trade. 37% of the funds are intended for the green transition and additional 20% for digital economy. EU Invests €250M for Hydrogen Infrastructure Projects

Key Projects and Regions

BarMar-H2med Project: A significant project between Spain and France, focusing on hydrogen infrastructure development. The BarMar-H2med Project is a pivotal initiative aimed at enhancing hydrogen infrastructure between Barcelona and Marseille, France. This project is part of the broader European hydrogen strategy, which includes the REPowerEU plan. The plan supports the uptake of renewable and low-carbon hydrogen, aiming to reduce emissions and promote a sustainable energy transition Hydrogen.

Backbone Projects: Key initiatives in Italy, Portugal, and Spain that will strengthen the hydrogen network within these countries. The European Hydrogen Backbone (EHB) initiative is crucial in this regard. The EHB aims to accelerate Europe’s decarbonization journey by defining the critical role of hydrogen infrastructure The European Hydrogen Backbone (EHB) initiative. Additionally, the EU will allocate €1.25 billion in grants for 41 cross-border energy projects, including hydrogen and CO2 infrastructure, to support the development of hydrogen infrastructure EU Invests €250M for Hydrogen Infrastructure Projects.

Hydrogen Corridors and Routes: Development of hydrogen corridors and routes in the Baltic region, connecting various European countries and enhancing regional hydrogen infrastructure. The hydrogen infrastructure in the Baltic region is relatively modest compared to power grids, with estimates suggesting a need for significant investment Hydrogen Infrastructure Report. The European Clean Hydrogen Alliance is determined to promote investments in clean hydrogen across the value chain and play a pivotal role in achieving the transformation of the energy sector Learnbook on Financing of Hydrogen Infrastructure.

Benefits and Impact

The European Union’s strategic investment in hydrogen infrastructure is poised to yield significant benefits and impact across various dimensions, including economic growth, technological advancements, and environmental sustainability.

Economic Impact: The investment is expected to drive economic growth and create jobs in the hydrogen sector. The EU’s hydrogen strategy and REPowerEU plan have put forward a comprehensive framework to support the uptake of renewable and low-carbon hydrogen Hydrogen. This includes investments into hydrogen production and transportation infrastructure, making imports from third countries happen and support in BUILDING THE INFRASTRUCTURE. The European Clean Hydrogen Alliance, develop an investment agenda to stimulate the rollout of production and use of hydrogen, and build Key actions of the EU Hydrogen Strategy. The EU will allocate €1.25 billion in grants for 41 cross-border energy projects, including hydrogen and CO2 infrastructure, to support the EU Invests €250M for Hydrogen Infrastructure Projects.

Technological Advancements: The projects will contribute to technological advancements in green hydrogen production and distribution. The EHB initiative aims to accelerate Europe’s decarbonization journey by defining the critical role of hydrogen infrastructure The European Hydrogen Backbone (EHB) initiative | EHB …. The target has been set at 10 million tonnes or 333 terawatt-hours (TWh) of domestic hydrogen production and an additional 10 million tonnes of A unified European hydrogen infrastructure planning to ….

Environmental Benefits: The focus on green hydrogen production aligns with the EU’s climate goals and aims to reduce carbon emissions. The Alliance is determined to promote investments in clean hydrogen across the value chain and to play a pivotal role in achieving the transformation of the Learnbook on Financing of Hydrogen Infrastructure.

EU’s Energy and Climate Policy

The EU’s investment in hydrogen infrastructure is a key component of its Energy and Climate Policy, aiming to accelerate the transition towards a carbon-neutral economy by 2050. The policy focuses on leveraging abundant renewable energy sources in Europe to produce clean hydrogen and support the growth of a hydrogen market. The EU’s hydrogen strategy and REPowerEU plan have put forward a comprehensive framework to support the uptake of renewable and low-carbon hydrogen Hydrogen. Key action 1. Through the European Clean Hydrogen Alliance, develop an investment agenda to stimulate the rollout of production and use of hydrogen, and build the hydrogen value chain Key actions of the EU Hydrogen Strategy. This includes investments into hydrogen production and transportation infrastructure, making imports from third countries happen and support in BUILDING THE INFRASTRUCTURE. The Alliance is determined to promote investments in clean hydrogen across the value chain and to play a pivotal role in achieving the transformation of the energy system Learnbook on Financing of Hydrogen Infrastructure. The target has been set at 10 million tonnes or 333 terawatt-hours (TWh) of domestic hydrogen production and an additional 10 million tonnes of A unified European hydrogen infrastructure planning to …. The EHB initiative aims to accelerate Europe’s decarbonization journey by defining the critical role of hydrogen infrastructure The European Hydrogen Backbone (EHB) initiative | EHB …. The EU will allocate €1.25 billion in grants for 41 cross-border energy projects, including hydrogen and CO2 infrastructure, to support the EU Invests €250M for Hydrogen Infrastructure Projects. This report outlines a view of what it will take to rally investors in support of hydrogen-based technologies and their enabling infrastructure. Support schemes stimulating investment across the hydrogen value chain.

Global Leadership in Green Hydrogen

The EU’s commitment to green hydrogen positions it as a global leader in this emerging sector, attracting investment and innovation from around the world. The investment in hydrogen infrastructure is part of a broader strategy to diversify the EU’s energy mix and reduce dependence on fossil fuels. The European Clean Hydrogen Alliance and the European Hydrogen Backbone (EHB) initiative are key drivers of this strategy. The European Clean Hydrogen Alliance aims to develop an investment agenda to stimulate the rollout of hydrogen production and use, and to build a competitive hydrogen market. The EHB initiative, on the other hand, focuses on defining the critical role of hydrogen infrastructure in accelerating Europe’s decarbonization journey. These initiatives are supported by significant financial investments, with the EU allocating €1.25 billion in grants for 41 cross-border energy projects, including hydrogen and CO2 infrastructure EU Invests €250M for Hydrogen Infrastructure Projects. The EU’s hydrogen strategy and REPowerEU plan have put forward a comprehensive framework to support the uptake of renewable and low-carbon hydrogen Hydrogen. The target has been set at 10 million tonnes or 333 terawatt-hours (TWh) of domestic hydrogen production and an additional 10 million tonnes of hydrogen imports A unified European hydrogen infrastructure planning to …. This ambitious goal is expected to create substantial economic opportunities and jobs across the EU. The EU’s leadership in green hydrogen is not just about meeting environmental targets but also about fostering a competitive and innovative hydrogen economy. The Alliance is determined to promote investments in clean hydrogen across the value chain and to play a pivotal role in achieving the transformation of the energy sector Learnbook on Financing of Hydrogen Infrastructure. The EHB initiative aims to accelerate Europe’s decarbonization journey by defining the critical role of hydrogen infrastructure The European Hydrogen Backbone (EHB) initiative | EHB …. This includes investments into hydrogen production and transportation infrastructure, making imports from third countries happen and support in BUILDING THE INFRASTRUCTURE. The EU’s hydrogen strategy and REPowerEU plan have put forward a comprehensive framework to support the uptake of renewable and low-carbon hydrogen Hydrogen. The key action 1. Through the European Clean Hydrogen Alliance, develop an investment agenda to stimulate the rollout of production and use of hydrogen, and build Key actions of the EU Hydrogen Strategy. Investment in hydrogen infrastructure remain relatively modest compared to power grids. The Grids Action Plan estimates the need for 584 bn EUR in Hydrogen Infrastructure Report.

Conclusion

The EU’s investment in hydrogen infrastructure is a pivotal step towards building a sustainable and competitive energy future. By leveraging green hydrogen production and distribution, the EU aims to reduce its carbon footprint, create economic opportunities, and enhance its position as a global leader in clean energy technologies.

Sources

• European Commission – Hydrogen
• European Hydrogen Backbone (EHB) initiative
• Fuel Cells Works – EU Invests €250M for Hydrogen Infrastructure Projects
• Hydrogen Europe – The Hydrogen Europe Quarterly
• Hydrogen Europe – Hydrogen Infrastructure Report
• ENTSOG – Learnbook on Financing of Hydrogen Infrastructure
• Nature – A unified European hydrogen infrastructure planning to …
• European Commission – Key actions of the EU Hydrogen Strategy
• European Investment Bank – Unlocking the hydrogen economy