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🌍𝗔𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗛𝘆𝗱𝗿𝗼𝗴𝗲𝗻 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗮 𝗚𝗿𝗲𝗲𝗻𝗲𝗿 𝗘𝘂𝗿𝗼𝗽𝗲🌍 The European Union is spearheading efforts to integrate renewable hydrogen into its energy mix as a vital component of its decarbonization strategy. The recent report by the European Court of Auditors highlights both the progress and challenges in this ambitious journey. 🔹 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗥𝗲𝗽𝗼𝗿𝘁: 1. 𝗔𝗺𝗯𝗶𝘁𝗶𝗼𝘂𝘀 𝗧𝗮𝗿𝗴𝗲𝘁𝘀: The EU's Hydrogen Strategy and REPowerEU plan set ambitious goals for hydrogen production and imports, aiming for a total of 20 million tons of Hydrogen produced and imported by 2030. 2. 𝗙𝘂𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁: Over €18.8 billion has been allocated for hydrogen projects from 2021-2027, primarily through the Recovery and Resilience Facility and the Innovation Fund, with initiative such as the Hydrogen Bank which specifically support projects producing renewable Hydrogen. 3. 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀: Despite the progress, the targets are deemed overly ambitious without robust analysis, and member states' alignment with these targets varies. 4. 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: While the legal framework is largely in place, its impact on market development remains uncertain. Permitting processes and state aid rules have been expedited, but practical implementation by member states is crucial. 5. 𝗖𝗼𝗼𝗿𝗱𝗶𝗻𝗮𝘁𝗶𝗼𝗻: There is a need for better coordination both within the Commission and with member states and industry to ensure unified progress towards the hydrogen economy. EU's Industrial Policy on Renewable Hydrogen: The EU’s hydrogen strategy focuses on fostering a market for renewable hydrogen, crucial for decarbonizing hard-to-electrify sectors. The Commission is working on aligning efforts across member states, addressing funding challenges, and streamlining regulations to support this transition. 𝗙𝗼𝗹𝗹𝗼𝘄 𝗕𝗿𝘂𝗻𝗱𝘁𝗹𝗮𝗻𝗱 𝗳𝗼𝗿 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆-𝗿𝗲𝗹𝗮𝘁𝗲𝗱 𝘁𝗼𝗽𝗶𝗰𝘀. 🔗 For more detailed insights, explore the full report here: https://lnkd.in/dxS976GD learn about the EU's hydrogen strategy here: https://lnkd.in/dzgENk4r 📖 Source: EU's Industrial Policy on Renewable Hydrogen #RenewableEnergy #HydrogenEconomy #GreenIndustry #Brundtland

“If we figure hydrogen out, every country in the world could be clean energy independent, but the industry will be killed if only legislation focused on solely green hydrogen is passed,” - Jeff Holyoak. The hydrogen industry could face risks if legislation focusing only on 100% green hydrogen is globally adopted, according to TOMCO and Linde at the recent GAWDA SMC Conference. While green hydrogen, produced from renewable sources, is crucial for clean energy independence, its sole focus might hinder industry momentum and scalability. Concerns have also been raised about regulations like the 45V clean hydrogen production tax credit, which could discourage investment in clean hydrogen by imposing fixed emissions rates. Regulation and technology adaptation are needed to ensure the viability and growth of the broader hydrogen industry, including blue hydrogen production pathways, which could also contribute significantly to decarbonization efforts. #H2 #Infrastructure #HydrogenIndustry #GreenHydrogen #BlueHydrogen #Linde #GAWDASMC2024 #gasworld #GAWDAMedia #Legislation #CleanEnergy #Investment #Growth #Decarbonization

Renewable hydrogen – coordination actions with and for the hydrogen industry In our audit (European Court of Auditors) on the EU’s industrial policy on hydrogen (https://lnkd.in/d2rJ4b-3), we found that the European Court of Auditors Commission took steps to coordinate the ramp-up of the hydrogen value chain. However, coordination within the Commission and between the Commission and member states does not yet ensure that all parties are moving in the same direction. Numerous Commission directorates-general are responsible for specific aspects of the hydrogen value chain and pursue objectives which are not always aligned. The Commission has not yet used the existing fora to discuss key strategic issues on the future of the hydrogen value chain in the EU with member states. Moreover, the Commission did not provide guidance or support to member states about how to establish their national hydrogen strategies (see also my comments in this post https://lnkd.in/dPTbJzCq). With regard to coordination with industry, the Commission set up the European Clean Hydrogen Alliance (https://lnkd.in/da_Yr8Fn), but after a promising start, momentum slowed. Therefore, we recommend that the Commission should decide on the future of the Clean Hydrogen Alliance in terms of its scope and number of roundtables and adopt a clear and time-bound mandate for its future work. #StefBlok #EU #ECA #CleanHydrogenAlliance #industrialpolicy #hydrogen #industry

Renewable hydrogen: European Court of Auditors calls for a reality check "The EU has had mixed success in providing the building blocks for the emerging renewable hydrogen market, according to a report by the European Court of Auditors. While the European Commission has taken a number of positive steps, challenges remain all along the hydrogen value chain, and the EU is unlikely to meet its 2030 targets for the production and import of renewable hydrogen. The auditors call for a reality check to ensure that the EU’s targets are realistic, and that its strategic choices on the way ahead will not impair the competitiveness of key industries or create new dependencies." 🎯 2030 goals for #renewablehydrogen production & demand were overly ambitious (10 million tonnes produced + 10 million tonnes imported) 💼 Targets not based on a robust analysis, but driven by political will 📈 The demand expected to be stimulated will not even reach 10 million tonnes by 2030, let alone the 20 million tonnes initially envisaged by the Commission 📚 ✔ Credit given to the European Commission for proposing most legal acts within a short period of time: the legal framework is almost complete, providing certainty to establishing a new market 💰 ❓ Lacking overview of needs or of the public funding available. EU funding scattered between several programmes. Still no guarantee that production potential can be fully harnessed, or that public funding will allow the EU to transport #greenhydrogen across the EU from countries with good production potential to those with high industrial demand. ⛽ In 2022, #hydrogen accounted for less than 2 % of Europe’s energy consumption, with the largest share of demand coming from refineries 🛳 As things stand, there is no overall EU hydrogen import strategy MAIN RECOMMENDATIONS The auditors call on the Commission to update its hydrogen strategy, based on a careful assessment of three important areas: 1️⃣ how to calibrate market incentives for renewable hydrogen production and use; 2️⃣ how to prioritise scarce EU funding and which parts of the value chain to focus on; 3️⃣ and which industries the EU wants to keep and at what price, given the geopolitical implications of EU production compared to imports from non-EU countries https://lnkd.in/dGyYXASr

Renewable hydrogen – EU targets: ready, steady, … monitor It is not mandatory for member states to prepare hydrogen strategies. Member states did provide updated national energy and climate plans by mid-2023 and final versions have been or will be submitted soon. These include reporting on measures to achieve the non-binding EU targets for #hydrogen. The Commission reviewed the draft national plans and issued recommendations to member states. However, it did not ask them to set targets in line with the EU’s targets. The Commission did not establish a coordination process with member states to ensure a certain degree of alignment. In fact, member states did not necessarily align their targets and measures with those of the EU. They are not all moving at the same speed or with the same level of ambition. Therefore, we recommend that the @European Commission sets out an #EUroadmap and monitors progress. It should in close collaboration with the member states: 1.      set out and publish an EU roadmap for the development of a hydrogen value chain towards 2030 and beyond, based on its assessment of the national energy and climate plans and its updated Hydrogen Strategy, 2.      monitor the EU’s and member states’ progress in achieving binding and non-binding targets by means of a scoreboard. For the first part we ask the Commission to use the already existing process and available data, and enhance it by using its own assessment it is expected to make, to establish a realistic path towards the renewable hydrogen targets the EU has set. It falls within the remit of the Commission to coordinate EU and national efforts, ensuring effectiveness, efficiency and focus. The #scoreboard would provide for a transparent and public tool to show the progress toward the common EU targets. Our report on the EU’s industrial policy on renewable hydrogen contains more information on the Commission’s roles and responsibilities and other observations and recommendations: https://lnkd.in/d2rJ4b-3 #StefBlok #EU #ECA #hydrogenroadmap #hydrogen #industry #industrialpolicy    

12 INSIGHTS ON HYDROGEN FOR BRAZIL 👇 ⚡1. #Brazil is well-positioned to produce renewable #hydrogen due to its abundant and cost-competitive #renewableenergy resources ⚡2. Renewable hydrogen is best considered to #decarbonise applications where the direct use of renewable electricity is not possible. ⚡3. #Infrastructure will be key, with low-emission hydrogen production integrated into medium- and long-term energy development plans ⚡4. Fossil-based hydrogen with carbon capture and storage (CCS) can serve as a bridging technology, but will be outcompeted by renewable hydrogen ⚡5. Brazil’s potential future market for hydrogen-powered vehicles is constrained by more mature technologies ⚡6. #Brazilian #bioenergy industry can strongly contribute to the PtX market in the country ⚡7. Low-emission hydrogen production in Brazil offers business opportunities and #decarbonisation options for industrial sectors such as #fertilisers, #steelmaking and #chemicals. ⚡8. Conducting a comprehensive social and #environmental assessment and integrated planning for #hydrogen and PtX projects in Brazil to ensure social and economic development ⚡9. Hydrogen production must be seen not only as an #energy issue but also as a ₦climate issue, to pave the way for a blend of financing instruments ⚡10. Brazil can play an important role in the global trade of PtX products, ensuring the ₦competitiveness of its exports to #European and #AsianPacific markets ⚡11. Hydrogen industry needs to be #competitive and set low-emission hydrogen standards in line with #global trade requirements ⚡12. Enhancing international cooperation and promoting R&D I will be a key aspect for the development of the hydrogen economy in Brazil 👇👇👇 Agora Industry Follow Africa Hydrogen Hub (AHH) for more updates

🪫Renewable #hydrogen targets for 2030 were “out of reach” 1️⃣Consumption of renewable hydrogen in Europe in 2023 was just 0.11mn tonnes and Europe currently has only 324MW of green electrolysers, according to Hydrogen Europe — far below the commission’s target. 2️⃣The ECA report found that total EU funding for hydrogen-related projects between 2021 and 2027 had reached €18.8bn. But, of the 24 member states that had submitted plans for how they would decarbonise their economies to meet EU targets, only Germany had set a goal for importing hydrogen. None of the countries had set specific targets for hydrogen production in their national strategies. 3️⃣The definition of low-carbon hydrogen the commission will use is due to be published this year. considered low-carbon the hydrogen must not be produced with more than 3.38kg of CO₂ per kg — a level that campaigners have argued is not ambitious enough for the EU to meet its climate goals. Pic: Gap between projected demand for green hydrogen in EU Member States and expected supply (based on announced projects) in 2030 Megatons per year (Mt/y) Source: Financial Times, EY

Green Hydrogen (hydrogen synthesised using renewable energy) currently costs $6 per kilo to make. To compete with fossil fuels that price will have to drop to around $2. Here some info on the people and processes that are making that a reality.

Funding is not enough - need to create DEMAND for Green H2 for sustainable investments. In reviewing what's happening in the EU to create demand, I read about a range of strategic key actions to drive green hydrogen #DEMAND. It made sense to me and hence, sharing this for comments. 1. Regulatory Framework and Standards   a. To create a stable and predictable market, the EU is developing a clear regulatory framework for hydrogen. This includes defining green hydrogen certification standards and creating Guarantees of Origin (GoOs) to track the renewable nature of hydrogen, ensuring transparency and trust in the market.   b. The EU has passed legislation under the Fit for 55 package to mandate the use of green hydrogen in certain sectors, like heavy industry and transportation, setting clear targets for its integration into energy systems. 2. Incentivizing Industrial Use   a. The EU is prioritizing the use of green hydrogen in hard-to-abate sectors like steel, cement, and chemicals, where electrification is difficult. Initiatives like the Carbon Border Adjustment Mechanism (CBAM) and stricter emission reduction targets are indirectly creating demand for green hydrogen as industries seek to decarbonize.   b. The EU is promoting the use of green hydrogen in heavy transportation, including trucks, shipping, and aviation, through projects such as Hy2Use and Hy2Tech, which support infrastructure development and fuel innovation. 3. International Partnerships   - The EU is establishing international agreements with countries that are hydrogen production leaders, such as Morocco, Chile, and Australia. These partnerships are aimed at securing imports of green hydrogen and building a global green hydrogen supply chain, reinforcing both domestic production and external supply.    4. Green Public Procurement   - The EU is encouraging the use of green hydrogen in public procurement by requiring green hydrogen or hydrogen-derived fuels in the construction of public infrastructure, transportation, and large-scale public energy projects. This provides a strong initial demand signal for private investors. 5. Hydrogen Valleys   - The EU is supporting hydrogen valley initiatives that create localized ecosystems where hydrogen production, storage, distribution, and consumption are concentrated. These valleys are often linked with industrial clusters, which helps build scale and reduce costs, making green hydrogen more attractive for industries. 6. Strengthening the Carbon Pricing Mechanism   - The EU’s Emissions Trading System (ETS) is increasing the cost of emitting CO₂, which indirectly drives demand for green hydrogen. As carbon prices rise, industries face higher costs for continuing to use fossil fuels, making hydrogen a more economically viable alternative. Creating demand is a fundamental driver for investment. Just funding doesn't help a project achieve its longer term viability. Chris Bowen MP Tim Buckley Alana Barlow Fiona Simon

The ECA Report 11/2024 on renewable hydrogen policy is probably one of the most important analysis on EU hydrogen policy so far conducted and comes at the right time. Some considerations from my side: - On a general note (107-119), many DGs active on hydrogen policy with different ambitions and objectives... and this is creating highly impacting effects on policy-making at very structural levels. - The EU "strategic targets" on green hydrogen have been set before we could adopt a definition of what is what and before having impact assessed the costs that our definition of green hydrogen will have on affordability and availability (26). By relation, if the underlying premises for the strategic target setting were faulty, we can and should bear in mind the risk that also the legal targets set in the RED III are tainted as well since they stem from the Strategy. - A key assumption of the target-setting was that fossil-hydrogen use will be replaced by green hydrogen (27) while many sectors will transition from different type of carriers.. how is this policy approach feasible? - The EU strategic targets were incomplete as in they did not entail a hydrogen production costs target (30). This is clashing with several initiatives and announced priorities of the Commission in making this carrier cost-affordable. - The cost-impact of strict correlation criteria and additionality of the DA is indeed very controversial and contended both in academia and outside. The ECA reports how costs increases are between 25 and 30%. An impact asessment on costs was probably necessary. The derogatory clause beyond 2028 for it to be successful in stimulating the ramp-up should be extended (46-77). - Demand-side measures (Art.22a, RED III) will have a delayed effect (as to the former) and be highly uncertain as to the latter since at least 5 MS have reported how these are highly difficult to be achieved (para 63). Imagine company level obligations. - Highly uncertain impact of EU funding sources on stimulating the economy, confusion on the investment needs of the EU in hydrogen production & use, both related to production (80-82) (80-106). - Comprehensive investment needs estimate in terms of the user's industry needs to be able to adapt production processes to green hydrogen is missing (80-82). - Demand-side related funding is weaker and incomplete (92), also reinforcing those claiming that we are witnessing a one-sided approach to hydrogen stimuli policy. - Prioritising the use of hydrogen where is most effective in terms of CO2 emissions abatement & energy efficiency as specified in Art. 3(5a) of the Gas Directive is the first of 3 crucial factors for developing the market for the ECA [yet ignored so far] - The "chicken & egg problem" (para 42-43) - uncertainty on the demand of hydrogen, driven by uncertainties on quantities and prices of hydrogen, is one of the key factors in delayed FIDs for hydrogen projects. As a quick and imperfect analysis I stop it here.