Ref. Ares(2020)4360743 - 21/08/2020
THE EU HYDROGEN
STRATEGY:
HYDROGEN EUROPE’S
TOP 10 KEY
RECOMMENDATIONS
I N T R O A N D P O L I T I C A L
INTROD C
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Hydrogen Europe is the European association representing the interests of the
hydrogen industry. We represent the whole value chain from production to final
use and its stakeholders. Our mission is to promote clean hydrogen as the enabler of a
zero-emission society. With more than 160 industrial companies, 78 research
organisations and 23 national associations as members, our association encompasses
the entire spectrum of the European hydrogen technologies ecosystem collaborating in
the Fuel Cell Hydrogen Joint Undertaking. We are a Brussels-based association fostering
knowledge and pushing for fact-based policymaking ensuring that the European
regulatory framework enables the role of hydrogen in our society that strives for net
zero carbon emissions.
Meeting the EU’s long-term climate and energy goals and realising the promise of
the Green Deal means carbon free power, increased energy system efficiency and deep
decarbonisation of industry, transport and buildings. Achieving all this will require both
electrons and molecules, and more specifically:
clean hydrogen (renewable and low
carbon hydrogen) at large scale. Without it, the EU will not achieve its
decarbonisation targets. As such, clean hydrogen and hydrogen-based solutions are
set to play a systemic role in the transition to renewable sources by providing a
mechanism to flexibly transfer energy across sectors, time and place, in order to meet
demand.
With a view to the upcoming publication of the European Commission’s proposals for
an EU Hydrogen Strategy and the Communication on Energy System Integration, this
paper outlines our association’s top 10 key recommendations.
These
recommendations have been developed with the aim of creating a framework
that supports and enhances the uptake of clean hydrogen and promotes its role
as an enabler for sectoral integration. Moreover, our recommendations aim at
making the EU the central market place for clean hydrogen as a global
commodity.
HYDROGEN EUROPE
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10 RECOMMENDATIONS
1 Define an EU wide terminology
for renewable and low carbon
2
hydrogen together with a
Establish the principle of CO2 as
methodology to calculate life
the new “currency” of the energy
cycle greenhouse gas emissions
system
in order to enable a functioning
clean hydrogen economy
3 Promote and support hydrogen
market stimulation programs
including quotas/targets,
4 Enable a competitive hydrogen
economy by clarifying the market
design and supporting sectoral
dedicated programs and support
integration
schemes
Revise the Trans-European
5
6 Revise the directive for the
Networks for Energy (TEN-E)
Deployment of Alternative Fuels
Regulation to support the
Infrastructure (DAFI) to boost
development and roll out of
the use of hydrogen in the
hydrogen networks
mobility sector
7 Support for a strong, effective
and all-encompassing Clean
8 Remove undue barriers to
hydrogen production and
Hydrogen for Europe
hydrogen infrastructure
Partnership
9 Unlock hydrogen’s potential by 10 Launch the Clean Hydrogen
Alliance and establish
leveraging innovative financial
hydrogen as a key element in
instruments
global EU climate diplomacy
and neighbourhood policy
HYDROGEN EUROPE
2
Define an EU wide terminology for renewable
and low carbon hydrogen together with a
methodology to calculate life cycle greenhouse
1
gas emissions in order to enable a functioning
clean hydrogen economy
Rapid agreement on a comprehensive and science-based
uniform EU-wide
terminology for renewable and low carbon hydrogen is necessary to adapt
national legal definitions and to provide a clear taxonomy which brings with it
legal certainty.
The adoption of a
methodology for the calculation of the life cycle
greenhouse gas emissions from renewable and low carbon hydrogen is
needed and should also be reflected in the EU-wide terminology to allow
comparability between energy sources in terms of the emissions factor. As such,
we encourage the European Commission to take into account the work
undertaken as part of the CertifHy project, which can serve as a good starting
point for the development of this methodology, but additionally to take into
account the role of ‘negative emissions’.
HYDROGEN EUROPE
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Establish the principle of CO2 as the new
“currency” of the energy system
2
In order to establish a robust system of carbon reduction the
CO2 content of
energy carriers and vectors will become the “new currency” of the energy
system and EU economic recovery.
A transparent mechanism for tracing and
tracking the carbon content is a prerequisite. This would enable a clear
taxonomy and prioritisation.
Switching from fossil to clean hydrogen solutions needs to become a business
case for energy consuming sectors. Regulation across sectors should aim at
creating price parity with fossil energy.
The European Commission should
consider earmarking a share of
allowances to finance carbon contracts for difference (CCfDs). CCfDs could
finance the gap between the ETS price and the price parity level of carbon-
neutral solutions. Such a mechanism would facilitate integrating renewable
and low carbon hydrogen energy into demand sectors.
The
energy taxation directive should consider the carbon content and
contribution to decarbonisation of the various energy sources whilst also
considering the context from an international competition perspective. The
ongoing pandemic and its implications across the energy sector compound the
need to further address this subject.
Energy consumers
investing in and utilising low-carbon / renewable
feedstocks and fuels should be recognised and (fiscally) rewarded for their
efforts, while high carbon, polluting processes, fuels and feedstocks should face
a proportionately higher fiscal burden.
HYDROGEN EUROPE
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2
The European Commission should
address the existing shortcomings in the
EU ETS legislation concerning CO2 transport, which could create obstacles
for the uptake of low-carbon hydrogen. Specifically, Article 12(3a) and Annex I of
the Directive 2003/87/EC create uncertainties with regard to the recognition of
CO2 transport modes other than pipelines under the CO2 transport network
definition. It is unclear whether the CO2 captured and transferred to ships for
transport to permanent storage would be considered as captured given that
CO2 transport by ship is not included in the CO2 transport network definition.
To enable ship-based CO2 transport solutions to retain their EU ETS allowances
is a crucial step towards enabling large-scale low carbon hydrogen projects to
move forward. Therefore, the European Commission should resolve the legal
issue as soon as possible.
Carbon border tax should only be considered as an option of last resort.
Internal EU reforms should be prioritised before employing an instrument that
has broader implications. Any added tax should rely on the carbon content and
not the lower price of imported goods. As a result, the carbon border tax should
be compliant with WTO rules and add costs relative to the carbon content of
any good to be imported.
HYDROGEN EUROPE
5
Promote
and
support
hydrogen
market
stimulation programs including quotas/targets,
3
dedicated programs and support schemes
Hydrogen quotas/targets for renewable and low carbon hydrogen on the
demand side are desirable. Such quotas /targets are needed to drive
decarbonisation and boost the uptake of hydrogen, sending a clear signal to end-
users and triggering investment on the production side to meet the demand. The
following type of quotas/targets could be set:
An industrial quota/target for
carbon free steel, ammonia, methanol and other
chemical products.
A transport quota/target (a percentage of total volume) for
carbon free kerosene,
shipping bunkering fuels, hydrogen powered trains and for hydrogen in
transport fuels.
Heating
(high and low temperature heating) quota (as percentage of energy, not
volume) in total gas demand (this does not mean physical blending but countries
could choose to do so).
These quotas/targets should
be achievable via pure hydrogen, hydrogen blends
and synthetic methane. Quotas and targets should be set in 2030 as well as 2050 to maintain
momentum for investments into the hydrogen economy both in the short term
and the long term.
Incentives should be set to reach the renewable and low carbon hydrogen
quotas/targets in the industry and heavy-duty transport sectors.
The development of guidelines for the
EU wide harmonisation of regulations,
uniform standards, definitions and technical rules that govern hydrogen blending
should be supported.
HYDROGEN EUROPE
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3
Revision of the eco-design and energy labelling provisions for market
transformation towards devices capable to process hydrogen blends and
hydrogen.
The current revision of eco-design and energy labelling of space heaters should set
out a
framework for market transformation towards devices capable to
process hydrogen blends and hydrogen, and uptake of hydrogen in gas
networks. It should drive innovation and support synchronization of
decarbonisation across the gas value chain, towards a decarbonized building stock
in 2050, ensuring that the majority of future installed end-use appliances are
capable of processing hydrogen-methane blends or pure hydrogen.
Specific branding/labelling programmes to recognise renewable and/or low
carbon hydrogen products are needed; similar to Energy Star programme[1].
Regulation on Eco-Innovations: Allow low-carbon steel to be eligible eco-
innovations. Green steel can reduce the CO2 performance of vehicles of 6-7g
CO2/km per vehicle. Investments in green steel could take off immediately,
because the additional costs of low-carbon steel are lower than the effective
carbon price created by the fleet regulation.
Review state aid rules and guidelines:
For projects granted the label of Important
Project of Common European
Interest (IPCEI) a state aid of up to 100% would enable the implementation
of hydrogen projects by companies that are vulnerable or have been impacted
by COVID-19.
The outlook for a
possible waiver of state aid rules if applications for IPCEI
projects are presented this year; this might accelerate the kick-starting process
considerably.
[1] For more info on the Energy Star programme: https://ec.europa.eu/energy/topics/energy-
efficiency/energy-efficient-products/energy-star_en
HYDROGEN EUROPE
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3
The list of electro-and trade intensive sectors in Annex 3 of the Guidelines for
which an aid in the form of reduction in the funding for support of renewable
energy can be granted should be extended with production of clean hydrogen.
In order to ensure the necessary investment security in the market introduction
phase of the relevant production assets, it is advisable to design the approval for
the reduction of the apportionment for the energy purchased on a multiyear
basis.
In order for electrolysers to play their key role in renewable integration across
sectors as well as contribute to the decarbonisation of the power sector
through ancillary services, Hydrogen Europe recommends that the guidelines
should be reviewed keeping in mind that electricity produced as a result of
storage systems should be considered renewable, only if the electricity in the
system is of renewable origin.
Operating aid could be granted to clean hydrogen production facilities through
aid schemes and measures similar to those applicable to renewable energy
sources (“premium” re. 3.3.2.1.).
Establish a dedicated chapter on state aid for hydrogen technologies with the
following elements: (1) aid intensity up to 100% for hydrogen technologies in
first-of-its kind large scale installations; (2) allow cumulating the maximum aid
also based on
a reasonable financing gap analysis rather than only on a rigid
eligible cost approach, (3) stronger OPEX support; (4) Faster and simpler
notification procedures; (5) increasing notification thresholds for hydrogen
technologies to € 200mn, (6) clear rules for cumulation of aid.
HYDROGEN EUROPE
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Enable a competitive hydrogen economy by
clarifying the market design and supporting
4
sector integration
Building a clean hydrogen economy and GW electrolyser market requires a
European hydrogen market design, where the
development of regulation needs
to be agile and fit for purpose.
A mature hydrogen market will only exist if/when there is enough demand in the
various end-uses and a hydrogen backbone infrastructure in place. Several actions
can be taken in the short term but also in the medium to long term.
In the short term: Start-up trade in Guarantees of Origin (GO)
We recommend the EU should focus on enabling market traction for clean
hydrogen, with a clear roadmap towards developing rules for trading through
the use/acceptance of
EU wide Guarantees of Origin to prove the carbon
intensity of the hydrogen.
Different approaches of national issuing bodies to Guarantee of Origin can lead
to fragmentation and hamper broader trading related aspects of hydrogen.
The
EU should propose guidelines to national issuing bodies to encourage
common practices and standards, thus pathing the way towards a more pan-
European approach.
Guarantees of origin need to be supported by a
robust track and trace and
auditing system.
Since hydrogen imports will become important,
the EU itself needs to play a
role as an issuing body, at least for imports.
In the medium to long term:
Auctions/tenders for the production of renewable and low-carbon hydrogen to
get hydrogen volume in the market
Start up a hydrogen price index e.g. based on a pricing panel whereby market
parties on a regular basis give their hydrogen trading prices.
Start up a hydrogen trade exchange at a part of the hydrogen backbone, where
there are already a couple of suppliers and off-takers.
HYDROGEN EUROPE
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4
Power to gas plant ownership model and investments in natural gas
conversion to hydrogen for flexible supply:
A clear, predictable and non-discriminatory policy framework that enables and
supports the roll out of activities/investments for power-to-gas as well as
conversion facilities for hydrogen (steam-methane reforming (SMR) and
autothermal reforming (ATR)) from natural gas in combination with CCS, by any
players, as a non-regulated activity is needed. Nevertheless, should the following
conditions apply:
The need for investments in power-to-gas assets as well as low carbon hydrogen
production facilities has been identified within the context of decarbonisation
efforts, and/or within the context of EU network development planning (as
approved by European and National Regulatory Authorities (e.g. through a cost-
benefit analysis);
A subsequent gap in private investment is recognised (through, inter-alia,
market tests).
Competent authorities shall:
Launch a tendering process open to all players to enable investments through
support mechanisms; the tendering process should offer the same support, at
the same level and at the same moment so as to ensure that there is a level
playing field between all actors;
If unsuccessful, provide that Transmission System Operators/Distribution System
Operators (TSOs/DSOs) can directly invest as a regulated activity until the
market conditions develop significantly.
In case of investment by TSOs/DSOs as a regulated activity, an adequate regulatory
oversight should be in place, ensuring transparent and non-discriminatory access
to the service. In such a regulated framework, National Regulatory Authorities
(NRAs) should regularly monitor market developments. Should markets develop
significantly, NRAs might prescribe how:
Regulated entities shall transfer their respective activities and assets from a
regulated to a fully commercial/non-regulated entity; or
They shall opt to phase-out their activities in this regard.
HYDROGEN EUROPE
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4
Enabling “HydroGenewables”
On grid
Off-grid
The deployment of electrolysers
Large scale renewable electricity-
connected to the electricity grid
hydrogen
integrated
production
must be supported as long as the
plants are also needed. This type of off-
electricity used is renewable or low
grid integrated model for hydrogen
carbon according to a defined
production
should
be
further
threshold, backed with a robust GO
investigated and supported as it has
system. This will contribute to sector
potential to reduce costs whilst
coupling and sectoral integration
promoting system efficiency. As such,
through new flexibility resources to
EU auctions and tenders for renewable
integrate more renewables in the
electricity-hydrogen production should
power system.
be promoted.
The
upcoming offshore wind strategy is an opportunity to rework how overall
system efficiency gains can be achieved by looking at the optimal way to bring
hydrogen from supply source to demand area (i.e. offshore conversion) which can
be brought by new gases like hydrogen. Those are issues we need to address to
allow the whole infrastructure to play its role.
Removing double grid charging: In the case of electrolysers,
double grid (power
and gas)
charging relating to the conversion/production of hydrogen is
unjustified and should be removed so as not to impose an undue burden and
unfair competition. This should be taken into account when implementing the
clean energy package.
Modifications to the Gas Directive:
Remove barriers to the development and operation of hydrogen networks.
The 2009 Gas Directive
should also refer to gases including renewable and
low carbon hydrogen taking into account their specificities.
The 2009 Gas Directive only refers to natural gas networks. Clarity is needed
here to
recognise the evolving role of infrastructure companies, and to
recognise their role in operating natural gas pipelines but also their plans to
retrofit/convert existing natural gas pipelines with a view to operating them as
clean hydrogen pipelines.
Regulation should not prescribe which energy carrier should be used in
which sector, but instead allow for the use of the appropriate energy carrier with a
view to promoting overall system efficiency.
HYDROGEN EUROPE
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Revise the Trans-European Networks Regulation
for Energy (TEN-E) Regulation to support the
5
development and roll out of hydrogen networks
The upcoming
revision of the Trans-European Networks for Energy (TEN-E)
Regulation should:
Introduce a
coordinated and holistic approach to develop a European Ten-
Year Network Develop Plan (TYNDP) between electricity, gases and clean
hydrogen is essential to optimise the investment efforts required for the
transformation of the energy system. In line with the TYNDP framework,
member states should be asked to list and report the planned clean
hydrogen and hydrogen interconnection projects on the national level so
as to facilitate network planning and long-term visibility of hydrogen
infrastructure development across Europe. It is important to create visibility for
the ongoing hydrogen development efforts on the EU- as well as national levels.
Recognise the
contribution to decarbonisation efforts as a key
sustainability criterion for Projects of Common Interest (PCIs) and
extend the
eligibility of PCI status to projects facilitating the integration of renewable
and low carbon gases, including hydrogen.
The sustainability dimension for the PCI selection should be incorporated on
the basis of GHG emissions reduction potential applied in a non-discriminate
manner to all technologies and network development plans, as is the case for
decarbonisation projects under the Innovation Fund.
Emission performance-
based evaluation in the context of TEN-E Regulation would ensure its
consistency with the EU’s climate and energy legislation as well as help
avoid counterproductive outcomes in terms of energy and resource use.
Support the
retrofitting of existing cross border gas infrastructure to
transport clean hydrogen as well as provisions that favour the
development of
new dedicated clean hydrogen infrastructure, including open access to
infrastructure.
HYDROGEN EUROPE
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5
With hydrogen set to take up an important role in transport, particularly in
heavy duty road transport as well as maritime and aviation, it is
imperative to
create more synergies between the TEN-T regulation and the TEN-E
regulation to ensure that hydrogen transported through the TEN-E
corridors can be accessed by the relevant refuelling stations along the
TEN-T corridor. The TEN-T Regulation can help to scale the use of clean
hydrogen and hydrogen-based solutions in the transport. At the same time,
clear boundaries between the TEN-E and TEN-T sections on hydrogen should be
established based on hydrogen use – whether as clean fuel in energy or in
transport.
“Clean hydrogen networks” should be introduced as a new thematic area
under the TEN-E Regulation. Both new infrastructure projects as well as
hydrogen transport (including pipelines, maritime, road and other) solutions,
intermediate storage and associated infrastructure projects should be
encompassed in the framework of TEN-E.
The new TEN-E rules should support the development and
interlinkage of
hydrogen clusters, particularly projects of cross border nature, thus
pathing
the way for the development of an EU hydrogen backbone. It should also
facilitate dedicated hydrogen infrastructure workstreams. These
cooperative workstreams should cluster hydrogen-ready member states,
promote the development of clean hydrogen infrastructure projects and
address standardisation and safety issues in a timely manner.
Extend the current CCS (capture and storage of CO2) domain to include CCU
(Capture and utilisation of CO2).
To enable the scale up of CCS-enabled hydrogen in Europe, the TEN-E
framework should include
maritime CO2 transport in the CO2 transport
network definition. The CO2 transport network referred to in Annex II (4)(a) is
defined in Directive 2009/31/EC (CCS Directive), which limits the scope to a
network of pipelines. A CO2 transport network should not be limited to
pipelines but encompass maritime, road and railway transport that can be part
of a shared CO2 transport network. Other transport solutions and in particular
shipping offer an agile and tailor-made option for industrial sites with smaller
volumes of CO2 which are out of reach of CO2 pipeline for economical or
technical reasons. In contrast, a certain minimum capacity is needed to justify
the rationale of constructing a CO2 transport pipeline.
HYDROGEN EUROPE
13
Revise the directive for the Deployment of
Alternative Fuels Infrastructure (DAFI) to boost
6
the use of hydrogen in the mobility sector
The revision of DAFI should support the uptake of clean hydrogen solutions in the
road transport, rail transport (with the inclusion of rail and airport infrastructure for
ground movements in the scope of the Directive) and maritime sectors, including
in ports and airport logistics:
Hydrogen should be
added to the list of mandatory fuels.
The
specificity of infrastructure for heavy-duty vehicles (HDVs) must be
considered. It is necessary to support hydrogen refuelling stations on the TEN-T
Core network next to those at the logistics centres, depots as well as on urban
nodes.
The Directive should reflect the
multi-faceted solutions that hydrogen
technologies can bring to the transport sector’s decarbonisation such as
multi-
purpose hydrogen refuelling stations at strategic locations that could serve
for different transport applications e.g. at airports and ports.
HYDROGEN EUROPE
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Support for a strong, effective and all-
encompassing Clean Hydrogen for Europe
7
Partnership
The
future Clean Hydrogen for Europe partnership and successor to the Fuel
Cells and Hydrogen Joint Undertaking
should be built on three equally
important pillars: (1) production of hydrogen, (2) transportation of hydrogen
and (3) end uses applications in transport (trucks, trains, ships and aviation) as
well as heat, power and industry. Restricting or even focusing the partnership on
pillar 1 and 2 without the end uses would break down the innovation ecosystem
successfully created by the current Fuel Cells and Hydrogen Joint Undertaking. It
would separate the supply from the demand of hydrogen. Moreover, it would
ignore that that end use applications, in particular in transport, are those that
require the most R&I.
The future partnership should include
flagship projects which develop an
application up to commercial readiness (e.g. 200 trucks) and serve as a
springboard to the massive investments anticipated by the IPCEI, Clean Hydrogen
Alliance and EU policies.
Similarly, the future partnership should
support Hydrogen Valleys (e.g. port,
industrial hub, airport city), combining in a single location production and
transportation of hydrogen and several end-uses applications and demonstrating
the full potential of hydrogen as an enabler for sector integration.
The partnership should
prepare the new generation of applications (e.g.
shipping and aviation) which are hard to abate without hydrogen.
The sheer existence of a strong and robust hydrogen sector today is the clear result
of the previous partnerships. In order to consolidate this sector, a continuation is
urgently needed and given the growing importance of hydrogen technologies, this
should be reflected in a
doubling of the relevant budget. Moreover, this would be
in line with the commitment taken in Mission Innovation to double the budget of
public funding R&I for the clean energy including Hydrogen.
HYDROGEN EUROPE
15
Remove undue barriers to hydrogen production
and hydrogen infrastructure
8
REDII includes so-called
“multipliers” where every KWh of electricity used in
battery electric vehicle is counted as four times its energy content and the energy
of advanced biofuel is counted 2.5 its energy content.
There are no such
multipliers for hydrogen or hydrogen-based fuels, albeit they contribute to
(net) zero emission
solutions. It results in a direct economic disadvantage towards the above-
mentioned solutions to comply with the 14% renewable energy targets for fuel
suppliers. This leads to market distortions and is contrary to current national
legislation stemming from European Directives. Multipliers should be applied to
hydrogen as well.
The use of renewable electricity from the grid for the production of hydrogen is
unnecessarily restrictive and not yet clear. While we acknowledge the spirit of the
principle of “additionality”, both proving the additionality and demonstrating the
correlation in time and geography with actual renewable generation create
limitations which could place insurmountable barriers to the introduction of
renewable hydrogen in the transport sector. Furthermore, the conditions laid out
do not reflect the reality of grid operations.
We urge for a
swift adoption of the relevant delegated act as soon as possible.
The current uncertainties are dissuading investments across the EU.
HYDROGEN EUROPE
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8
The
EU taxonomy regulation should take into account the following when
developing delegated acts:
There is a mismatch between the Technical Expert Groups (TEG) designation of
hydrogen as a sustainable activity and the construction of new dedicated
hydrogen infrastructure as unsustainable.
There should be clear support for
the use of dedicated hydrogen pipelines as a sustainable activity.
·
The transportation of hydrogen via pipelines should be taken into account as
sustainable activity. Equivalent to the categorisation of electricity transmission
and distribution (4.9)
the operation of hydrogen pipelines and the revenues
derived from the activity should qualify as eligible since the transportation
of hydrogen via pipeline will represent a central feature of a fully decarbonised
European energy system by connecting supply and demand across long
distances.
·
The Technical Expert Group (TEG) report proposes that the manufacturing of
hydrogen should only be eligible if the CO2 intensity of the electricity mix it is
connected to is below 100g CO2e/kwh over the life cycle. This approach is not in
line with the renewable energy directive which defines different conditions for
using renewable fuels of non-biological origin towards the 14% transport target.
This difference in approaches creates uncertainty on the market and increases
administrative burden for potential project developers.
·
Hydrogen as a by-product should also be eligible, as renewable or low
carbon hydrogen whenever they comply with the EU wide terminology for
renewable and low carbon hydrogen.
HYDROGEN EUROPE
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Unlock hydrogen’s potential by leveraging
innovative financial instruments
9
Scaling up the hydrogen economy needs a dedicated financial engineering as
there will be many different sources for public funding enabling a framework for
private investment. In order to reduce the complexity and to avoid
incompatibilities in the combination of funds, a one-stop-shop should be
established which could be managed by the Clean Hydrogen Alliance.
A special EIB fund (equity and/or debt)
on HydroGenewables and clean
hydrogen in general could be set up with earmarked investment capacity for this
new sector.
Make accessing global renewable resources a key feature of the EIB’s climate bank
ambition. To build a fully integrated energy system for climate neutrality, the
EIB
should support projects outside the EU aimed at importing renewable energy
from the world’s most competitive locations for wind and solar energy.
At present, the EIB’s envelope for international project financing focuses on a rigid
set of priority countries. This approach is at odds with what it takes to combat
climate change. Economies will need to harness the best spots for wind and solar
energy worldwide and trade renewable energy has hydrogen and hydrogen-based
solutions across the globe. In this context and to increase cost-effectiveness, also
larger and promising Power-to-X projects should be developed and built where
environmental conditions are more favourable for renewable energy generation.
A
fund for “Clean Hydrogen Networks” should be established under the
Connecting Europe Facility to correspond to the proposed new thematic area
under the TEN-E regulation.
We welcome the Innovation Fund to support large scale demonstration of pre-
commercial technologies and IPCEI schemes which we believe are essential for the
scale-up of clean hydrogen projects. However,
special measures like waiving
state aid rules if applications for hydrogen related projects are submitted
until the end of the running year should be considered, e.g. in the IPCEI
context.
A fund involving private sector and public/para-public banks should be set up
to support EU-wide deployment of HRS.
The price of hydrogen should be determined in Euro denominations,
strengthening Europe’s role in the development of a hydrogen market.
HYDROGEN EUROPE
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Launch the Clean Hydrogen Alliance and
establish hydrogen as a key element in global EU
10
climate diplomacy and neighbourhood policy
Recognise the Clean Hydrogen Alliance (CHA) as the
key platform for hydrogen
to deliver on the European Green Deal, the new Industrial Strategy and the EU
recovery plan, by supporting the creation of a competitive ecosystem for clean
hydrogen in Europe and enhancing European energy sovereignty. In particular:
Guarantee a balanced representation of industrial stakeholders in the CHA
reflecting the complexity of the hydrogen value chain, from production to end
uses.
Ensure the Commission’s political leadership in the process and the
development of a coherent business and regulatory framework.
Promote the endorsement of the 2x40 GW Green Hydrogen Initiative
roadmap by the Clean Hydrogen Alliance as the basis for enabling scale up and
mass deployment of hydrogen by 2030.
Promote the establishment of a multi-faceted energy system that
promotes production and infrastructure pathways for both renewable and
low carbon hydrogen.
The
EU should define a strategy aimed at harnessing the Union’s best wind
and solar spots. Moreover,
this strategy should extend beyond the EU’s
borders, enabling the import of renewable energy from outside the EU.
Imported renewable energy (hydrogen or hydrogen-based solutions) should be
eligible to contribute towards the climate targets or relevant sectors.
Promote
a new, unique and long-lasting mutual cooperation on political,
societal and economic level between the EU and its neighbours such as North
Africa and Ukraine.
Ensure European industrial leadership in hydrogen technologies –
“made in
Europe” - on the global stage.
Establish hydrogen as key component of the ongoing EU-Ukraine energy
cooperation as well as the
EU-Africa and Euro-Mediterranean partnerships.
HYDROGEN EUROPE
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