With the European Commission’s second Union list of Projects of Common Interest and Projects of Mutual Interest, hydrogen infrastructure has grown from a niche category to a core element of energy planning. More than 130 transmission projects and over 500 hydrogen-related proposals now populate European maps. Still, only a select fraction carries the coveted PCI/PMI status, raising questions about how such designations are granted and whether they target true system-critical investments or speculative bets on future market growth.
From first to second list: scaling up and narrowing down
The first PCI list under the revised TEN‑E Regulation included 65 hydrogen and electrolyser projects, emphasizing backbone transmission and excluding unabated fossil gas. The second list reflects both an expansion and a tightening of eligibility, with maturity and sustainability criteria now playing a stronger role. Geographical patterns remain: despite calls for regional balance, most projects concentrate in Western European corridors, potentially reinforcing disparities in infrastructure access and industrial opportunity.
Numbers, funding signals, and demand uncertainty
PCI/PMI status not only offers regulatory fast-tracking but acts as a beacon for funding, with recent CEF Energy allocations referencing €250 million for hydrogen within a broader €1.2 billion for cross-border energy projects. However, actual bankable production is lagging behind mapped capacity, and the gap between infrastructure readiness and hard industry demand is driving scrutiny about the risk of unused assets or lock-in to suboptimal applications.
Hydrogen backbone: integration versus lock‑in
Europe’s updated Joint Hydrogen Infrastructure Map catalogs more than 130 transmission lines, dozens of storage assets, and a network of connected production facilities towards 2030-2050 targets. While this scale signals ambition, critics warn that the uneven pace of industrial hydrogen adoption risks overbuilding transport capacity, resulting in stranded assets or assets serving low-value uses rather than sectors where hydrogen’s climate potential is highest.
Tightening eligibility: climate safeguards under pressure
Regulatory reforms explicitly bar new fossil gas projects but continue to allow “low-carbon” hydrogen projects, creating tension in public debates. Lifecycle greenhouse gas benchmarks are intended to prevent public support for emissions-intensive assets, yet practical implementation remains contested, with watchdogs highlighting risks that PCI/PMI projects could be leveraged for quasi-fossil uses unless guidelines are strictly enforced.
Regional corridors and cross‑border politics
The SoutH2 Corridor exemplifies how PCI status is being used to anchor hydrogen infrastructure across borders and coordinate permitting, investment, and national strategies. These backbone routes increasingly connect renewable-rich peripheries and key industrial centers, but the list’s composition signals a need for more deliberate correction of regional imbalances to avoid leaving Eastern and Southern member states behind.
Market design, tariffs, and regulatory risk
For cross-border projects, bespoke regulatory frameworks—including tariffs and cost allocation—remain largely unsettled, which complicates efforts to ensure hydrogen networks are economically viable and do not incentivize wasteful or carbon-intensive end uses. The evolution of these frameworks will be pivotal for the bankability and climate utility of tomorrow’s hydrogen network.
Aligning PCI/PMI hydrogen with industrial decarbonisation
Although the Commission frames PCI/PMI hydrogen infrastructure as an enabler for decarbonising heavy industry and transport, data reveal supported projects often tie into sectors like chemicals and ammonia, sometimes serving export-oriented value chains with limited direct impact on EU industrial resilience. The system benefits will depend on tighter coordination with sector transition plans, targeted prioritization of truly hard-to-abate applications, and rigorous demand-side scrutiny.
What the second list signals to investors
By granting PCI/PMI status to more hydrogen projects, while sharply curating the final selection, the Commission sends a clear message that hydrogen is vital to Europe’s energy future. Yet, the balance of ambition and realism will hinge on how climate safeguards, demand forecasts, and regional equity are managed as selected projects evolve from planning documents to on-the-ground assets.
