Von der Leyen urged to shield EU hydrogen industry, with focus on electrolyser producers

The designated European Commission president is being lobbied by the European hydrogen industry, to ringfence the EU’s upcoming €1.2 billion hydrogen subsidy auction, in favour of EU producers.

Hydrogen is considered a key element for the decarbonised production of steel, cement, and chemicals. Historically, EU manufacturers managed to capture a relevant share of the global market – but as China is ramping up production and looking to begin exporting, the industry is looking for aid.

“The European hydrogen ecosystem is well-placed to contribute to reaching the objectives of the energy transition,” explains Jorgo Chatzimarkakis, CEO of lobby group Hydrogen Europe, in a letter sent to the designated Commission President Ursula von der Leyen on Wednesday 3 July.

He says hydrogen – and the EU’s competitiveness – needs “an experienced and competent Executive Vice President of the European Commission responsible for the clean industry with a strong political mandate.”

During the last year, this was Maroš Šefčovič, who took over the Green Deal portfolio after Timmermans left. Then, Hydrogen Europe lobbied for him to get the job. He is returning to the Commission for a fourth term, although his new portfolio has yet to be announced.

The European hydrogen industry has a long list of legislative requests for von der Leyen, including actions to address the threat posed by foreign and cheaper electrolysers.

Electrolysers are equipment which, when powered with renewable energy, produce decarbonised hydrogen. Political leaders are interested in European production of the technology, given its potential to create jobs and strengthen energy independence.

Chatzimarkakis calls for “aligning the costs of CO2 emissions embedded in imported goods and products with domestic ones with an ETS revision and targeted expansion of CBAM (Carbon Border Adjustment Mechanism) sectors.”

That would mean that manufacturers of electrolysers would face the same CO2 costs, irrespective of whether they produce within or beyond EU borders.

It is already the second letter von der Leyen received this week urging her to shield electrolyser manufacturers.

“Our challenge is to ensure that European electrolyser manufacturing remains in Europe,” wrote a group of 20 manufacturers.

“Europe’s share in global manufacturing capacity is increasingly dwarfed by China which accounts for 40%, up from 10% in 2023,” they add.

Their companies can afford to bleed money for years thanks to their extensive state backing, states the letter.

The manufacturers argue that the results of the EU’s first major hydrogen subsidy tender shows that producers opted for electrolysers made outside of Europe.

Both letters highlight the upcoming Hydrogen Bank auction planned within the year, where Brussels will pay out €1.2 billion – which the industry argues should go to EU electrolysers by way of a “tough resilience criteria.”

[Edited by Donagh Cagney/]Rajnish Singh]

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