A European hydrogen alliance is needed to drive the ramp-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 play a leading role in a European hydrogen initiative can be filled with life and the ramp-up of the European hydrogen economy can be driven forward more successfully. The associations outline possible goals and fields of action in an impulse paper.

Hydrogen and its derivatives are indispensable for achieving climate neutrality, ensuring security of supply and securing Germany’s industrial base in the long term. The development of a hydrogen economy also holds enormous potential for the EU’s competitiveness, its global innovative strength and technological leadership, as well as for strengthening resilience. It can make a significant contribution to Europe’s energy and technological sovereignty.

However, the ramp-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 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 ramp-up can become a European success story. BDEW, DVGW, DWV, en2X, figawa, FNB GAS, DIE GAS- UND WASSERSTOFFWIRTSCHAFT, Hydrogen Europe, VCI, VDA, VDMA, VIK, VKU and WV Stahl are therefore calling on the German government to set up a hydrogen alliance at EU Member State level and to play a leading role in this alliance, as agreed in the coalition agreement.

What is needed is a focus on cost efficiency and pragmatism as well as closer European coordination and targeted support mechanisms. The course for the majority of relevant regulation is set at EU level.

The overarching goals of the hydrogen alliance should be:

1. Political clout: The member states of the Hydrogen Alliance could jointly advocate an ambitious, innovation- and 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 will build bridges with key non-EU partners in the hydrogen sector, including the UK, Norway and countries bordering the Mediterranean, in order to make progress on import corridors to the EU and to develop and diversify import sources for low-carbon hydrogen.

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

• Revision of the EU regulatory framework for the production and import of hydrogen, in particular with a view to reducing production costs, adapting the electricity purchase criteria for RFNBO-compliant hydrogen in Delegated Act 2023/1184 and a practical design of Delegated Act 2023/1185 to assess greenhouse gas savings from low-carbon fuels.
• Certification and trading system: Cooperation for a uniform, globally compatible H2 certification system, establishment of 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.
• Strengthening offshore electrolysis and the 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 drive innovation.

German Association of Energy and Water Industries (BDEW)

German Technical and Scientific Association for Gas and Water (DVGW)

German Hydrogen Association (DWV) e. V.

en2x – Trade Association Fuels and Energy e.V.

figawa e. V.

DIE GAS- UND WASSERSTOFFWIRTSCHAFT e. V.

Hydrogen Europe

German Association of the Automotive Industry (VDA)

German Chemical Industry Association (VCI)

VDMA e. V.

Association of the Industrial Energy and Power Industry (VIK)

Association of Municipal Enterprises (VKU)

Association of Gas Transmission System Operators (FNB Gas)

German Steel Federation (WV Stahl)