European Hydrogen Sector Seeks EU Support Against Chinese Competition

European hydrogen equipment manufacturers are calling for greater support from the European Union to compete with cheaper Chinese products. Leading companies such as Thyssenkrupp Nucera, Siemens Energy, and Nel Hydrogen have addressed a letter to the EU, urging intervention to level the playing field.

The letter, dated July 1, highlights the rapid expansion of China’s hydrogen equipment production capacity. Within a year, China has increased its share of the global electrolyzer production capacity from 10% to 40%, aided significantly by government subsidies. These subsidies are creating an uneven playing field, disadvantaging European producers. The European companies argue that if the technology or its supply chain is lost, recovery would be nearly impossible.

EU’s Hydrogen Ambitions

The EU has ambitious plans to produce 10 million tonnes of renewable hydrogen by 2030. Achieving this goal relies heavily on the use of electrolysers. However, the European manufacturers fear that without adequate support, this demand will be met with cheaper Chinese equipment, undermining local production and innovation.

The letter to European Commission President Ursula von der Leyen calls for the introduction of “resilience criteria” in the EU’s Hydrogen Bank funding programme. These criteria would favor local companies in upcoming auctions and ensure the localization of key parts of the production process within Europe. The aim is not to close off the European market but to ensure fair competition and build resilient value chains.

In April, the EU Hydrogen Bank awarded €720 million to seven EU projects. Industry sources indicate that some of the successful projects planned to use cheaper Chinese equipment, further highlighting the competitive disadvantage faced by European manufacturers. The EU is already taking steps to toughen its stance on green technologies from China, including imposing tariffs on imported Chinese electric cars and investigating subsidies to wind and solar energy suppliers.

The call for support comes amid broader efforts to ensure that Europe does not become overly dependent on Beijing for key elements of the clean energy transition. Christoph Noeres, head of green hydrogen at Thyssenkrupp Nucera, emphasized the importance of fair competition and building resilient value chains, which are crucial for the sustainability and security of Europe’s green hydrogen ambitions.