European Union to Invest $5.2 Billion More for Green Hydrogen Projects

To provide a major thrust to hydrogen development in the region, the European Commission (EC) has approved $5.2 billion in public funding. The EU said that the new investments will also be attracting about $6.8 billion in private funding for the hydrogen industry.

The EU held that 13 countries will be giving funds for a project called ‘IPCEI Hy2Use,’ that is being created for the support of 29 businesses in 35 projects. The objective of IPCEI Hy2Use is to develop large-scale electrolysers and transport infrastructure, for the production, storage and transport of renewable and low-carbon hydrogen.

The EU said that investments will go into all types of hydrogen – grey, brown and green – but it will focus more on the green hydrogen that is produced employing renewable sources of energy.

According to Margrethe Vestager, who is the Vice President at the European Commission, the fresh funding is expected to add about 3.5 GW of electrolysis capacity. According to Vestager, this capacity will give an output of approximately 340,000 tons of renewable and low-carbon hydrogen annually.

The European Commission has set a target of 80 GW renewable hydrogen electrolyser capacities in Europe by the end of this decade. Recently, EC President Ursula von der Leyen said that the EU also has a target to produce ten million tons of renewable hydrogen in the EU, each year. She held, “To achieve this, we must create a market maker for hydrogen, in order to bridge the investment gap and connect future supply and demand.”

To give a fillip to the green hydrogen industry, the European Union is increasingly introducing better or favourable regulations. In September, the European Parliament passed an amendment in the Renewable Energy Directive II (RED II) which eliminated the “additionality” requirements and also brought binding targets for green hydrogen production in the Union.

Europe is already investing hugely in the green hydrogen segment and has evolved as a hub for clean energy. By the end of this year, Europe will be having a third of the world’s electrolyser capacity for green hydrogen.