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Ref. Ares(2021)7445782 - 02/12/2021

Indeed, hydrogen is of paramount importance for the integration of more renewable energy into the European
economy: in an energy system dominated by the use of renewable power from wind and solar, using these clean
electrons to power all sectors of the economy poses insurmountable challenges if not complemented by
hydrogen. Therefore, hydrogen will play a necessary role in integrating large amounts of renewable power in the
transport, energy-intensive and heating and cooling sectors, which are today hard to decarbonise. In other
words, hydrogen enables sectoral integration[1].
 
The sector has very high ambitions. Indeed, the Hydrogen Council, made up of 19 core members, of which 12
are Europeans have recently released their vision to 2050 stipulating that up to $4tn annual sales and 45 million
jobs globally are expected. In Europe, up to 52 billion and 800K jobs by 2030 are to be expected. It is the
conviction of European companies that the hydrogen economy should be led by Europe. 
 
2.     The FCH JU has been a success
 
Whereas at the origin of the FP, the topics for the specific programmes and the corresponding calls for proposals
were selected and defined by the Council and the Commission, the establishment of intermediary structures
such as the PPPs and the P2Ps created a new approach by involving the potential applicants more closely in the
definition of the priorities and calls.
 
In the case of hydrogen and fuel cells it worked. In deciding to support the fuel cells and hydrogen (FCH) sector
through a Joint Technology Initiative (JTIs) or institutional public private partnership (iPPP), the EU made a major
choice with long lasting impact.
To date, the FCH JU has served as the main instrument for the implementation of this iPPP model. Independent
assessments have confirmed that the FCH JU is an adequate mechanism for support, ensuring that public funds
are invested properly, while also aligned with the main objectives set out by industry in collaboration with the
research community and agreed by the Commission.
 
The FCH JU created a real ecosystem bringing together companies, SMEs and research centres from different
sectors and structured them into a new sector. It brought products to the market (bus, trains, cars, electrolysers,
forklifts, micro CHP fuel cells, etc.). It is now a sector that is exporting its innovate, clean technologies all over
world. For example, NELHydrogen. A Danish/Norwegian company currently exporting its technology to the USA
and Japan, to name a few and ash the capacity to build 300 hydrogen refuelling station within its new factory in
Herning, Denmark.
 
3.     The industry’s views
 
However, while hydrogen and fuel cell technologies are very close to commercialisation, there remains a cost
gap with conventional technologies and additional improvements in technology readiness must be pursued
further. In addition, the European supply chain needs support in order to keep sustainable, high-value added
jobs in Europe.
 
Market Entry: Europe often faces the challenge of converting its technology leadership into a market leadership.
Too often Europe is overtaken by Asia and North America which are more focused in supporting market entry.
This is partly due to the reluctance of using Europe R&I instruments for supporting a real market activation.
Hydrogen is a perfect example of this challenge.
 
A Joint undertaking or institutional PPP is the optimal way to support, steer and structure the sector. It is the view
of industry that the JTI is responsible for having achieved faster innovation that otherwise would have been the
case. It sees the continuation of this model as a key component of future efforts, both in light of the successes
obtained so far and the challenges that lie ahead. This is why we strongly believe that the FCH JU should
continue to implement this task to achieve a faster commercialisation of European innovation:
 
·       FP9 is the adequate funding source to set up an ambitious R&D programme to improve the
performance and reduce the costs of the first wave of products and prepare a second wave of
products (e.g. large-scale energy storage, trucks, ships, harbour applications)
 
·       CEF Transport and Energy are the natural complement support for the massive deployment of
H2 technologies for transport, energy and industry.
 
·       Close coordination between these funding sources and other ones (e.g.: Innovation Fund) is key
and should be planned from the launch of the new MFF.
 
 
About Hydrogen Europe
 
Hydrogen Europe is the European association representing 116 industrial companies (large groups as well as
SMEs), 67 research organisations, and 9 national associations working to make hydrogen energy an everyday
reality. It is dedicated to accelerate the market introduction of these clean technologies and the adoption of an
abundant and reliable energy which efficiently fuels Europe’s low carbon economy. More information can be
found on www.hydrogeneurope.eu
 
 
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