The European Union is taking steps to fortify its local manufacturing sector by excluding Chinese hydrogen production equipment from its subsidy programs.
This decision comes as part of an effort to boost the development of “green” hydrogen technology within the EU. As part of the new subsidy criteria set by the European Hydrogen Bank, any hydrogen project using equipment with more than 25% of its unit’s capacity coming from Chinese electrolyzer stacks will not qualify for financial support. This new initiative is expected to protect EU-based manufacturers and encourage local innovation in sustainable energy technologies.
The decision to restrict Chinese components echoes broader EU strategies to protect its economies from excessive foreign dependency, particularly in critical technologies like clean energy. By reserving subsidies for projects that utilize a higher percentage of European-made components, the EU aims to stimulate its own technological advancements and maintain a competitive edge in the fast-evolving global market for sustainable energy solutions.
This move is a part of broader international efforts to balance trade relationships and reduce dependency on Chinese technology. While it is designed to boost domestic capabilities, it could also lead to increased tensions between China and Europe, particularly in the green energy sector. As the EU focuses on building a resilient, self-sufficient infrastructure in hydrogen technology, relations with China might experience a strain, impacting diplomatic and economic exchanges.
