Impulse Paper: European Hydrogen Alliance Needed to Drive the Scale-Up Forward

A large association initiative from the energy sector and industry is calling on the German government to initiate a hydrogen alliance at EU level. In this way, the agreement in the coalition agreement to take a leading role in a European hydrogen initiative can be filled with life and the scale-up of the European hydrogen economy can be driven forward more successfully.

The scale-up is currently being hampered politically: in view of complex and unclear regulatory requirements, which also lead to additional costs, delays in infrastructure projects and the resulting still hesitant demand, increasing uncertainty can be observed. There is an urgent need to counteract this. With the right framework at EU level and increased cooperation between EU member states, the hydrogen scale-up can become a European success story. This is why the BDEW, DVGW and DIE GAS- UND WASSERSTOFFWIRTSCHAFT, among others, are calling on the German government to establish a hydrogen alliance at EU member state level and to take a leading role in this alliance, as agreed in the coalition agreement.

The overarching goals of the hydrogen alliance should be

1. Political clout: The member states of the Hydrogen Alliance could jointly advocate for an implementation-oriented H2 policy in the Council of the EU and vis-à-vis the EU Commission and the European Parliament.
2. International networking: The Alliance should build bridges to important non-EU partners in the hydrogen sector in order to develop and diversify import sources for the procurement of low-carbon hydrogen.

The hydrogen alliance should specifically address the following fields of action:

• Revising the EU regulatory framework for the production and imports of hydrogen, particularly with a view to reducing production costs, adapting the electricity purchasing criteria and making the Delegated Act 2023/1185 on the assessment of greenhouse gas savings from low-carbon fuels practicable.
• Certification and trading system: Cooperation for a uniform, globally compatible H2 certification system, setting up a viable trading system and cooperation on standards for H2 qualities at EU level.
• Accelerate infrastructure expansion: Expansion of the European H2 backbone and connecting corridors outside the EU. This requires cross-border financing mechanisms. The construction of import infrastructure is also key. This includes the development of integrated systems that include ammonia crackers and a correspondingly expanded pipeline and storage infrastructure network in addition to efficient import terminals.
• Strengthen offshore electrolysis and focus on maritime areas.
• Strengthen the European Hydrogen Bank and expand funding instruments: A coherent support framework is needed on the demand and producer side to offset the cost disadvantages. In addition, hedging instruments for hydrogen supply contracts and for midstreamers are necessary.
• Secure technology leadership: Expansion of an innovative H2 economy and technology leadership in terms of strengthening European competitiveness. This also includes the promotion of European networked research and development in order to promote innovation.