05.07.2024

They want von der Leyen to protect the hydrogen industry in the EU

The European hydrogen industry is lobbying European Commission President Ursula von der Leyen hard to limit the upcoming EU auction of €1,2 billion in hydrogen subsidies in favor of EU producers, reports Euractiv.

Hydrogen is considered a key element for the decarbonized production of steel, cement and chemicals. Historically, EU producers have been able to capture a relevant share of the global market, but as China ramps up production and wants to start exporting, the industry is looking for help.

"The European hydrogen ecosystem is well placed to contribute to the energy transition goals," explains Yorgo Katsimarkakis, CEO of lobby group Hydrogen Europe, in a letter sent to Commission President-elect Ursula von der Leyen.

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

In the last year it was Maros Šefčović who led the Green Deal after the departure of Frans Timmermans. Hydrogen Europe insists that he should get the post. Sefcovic returns to the Commission for a fourth term, although his new portfolio has not yet been announced.

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

Electrolyzers are equipment that, when powered by renewable energy, produce decarbonized hydrogen. Political leaders are interested in European production of the technology, given its potential to create jobs and strengthen energy independence.

Katsimarkakis calls for equalizing the costs of CO2 emissions embedded in imported goods and products with domestic ones with a review of the ETS and a targeted expansion of the Carbon Boundary Adjustment Mechanism (CBAM) sectors.

This would mean that electrolyser manufacturers would have the same CO2 costs regardless of whether they produce within or outside the EU.

Increased pressure

That's it already the second letter, which von der Leyen received this week, urging her to protect electrolyser manufacturers.

"Our challenge is to ensure that European electrolyser production stays in Europe. Europe's share of global manufacturing capacity is increasingly dwarfed by China's, which stands at 40%, down from 10% in 2023,” they write.

Both letters highlight the upcoming Hydrogen Bank auction planned later this year, where Brussels will pay out €1,2 billion - which the industry says must go to EU producers through "strict sustainability criteria".