The European Commission has opted to maintain its current hydrogen strategy despite recommendations from the European Court of Auditors (ECA) for a significant overhaul.
This decision keeps the targets set for renewable hydrogen production and imports as outlined in the REPowerEU plan, which aims to reduce the European Union’s (EU) dependence on Russian fossil fuels and address the climate crisis.
In an official statement, the Commission emphasized that revising the targets downward could undermine investor confidence. The current goal is to produce and import 20 million tonnes of renewable hydrogen by 2030. This hydrogen must be produced through electrolysis powered by renewable electricity, explicitly excluding nuclear sources.
The ECA recently released a document criticizing the Commission’s targets as “overly ambitious.” According to the auditors, the EU is unlikely to meet these targets, projecting that the demand will not even reach 10 million tonnes by 2030. The ECA suggests that the targets were driven more by political will than by a robust analysis, particularly in the context of sanctions against Russia and the need to replace Russian natural gas.
Stef Blok, the ECA member responsible for the audit, stated, “The EU’s industrial policy on renewable hydrogen needs a reality check.” He emphasized the need for a strategic path toward decarbonization that does not compromise the competitiveness of key EU industries or create new strategic dependencies.
The ECA report also highlights the differing ambitions among EU Member States and a mismatch in project financing. Countries with higher renewable hydrogen production capacity, such as Germany, Spain, France, and the Netherlands, receive a significant portion of the EU funding, estimated at €18.8 billion for 2021-2027. This concentration of funding raises questions about equitable support for other member states.
The ECA advocates for including low-carbon hydrogen—produced using nuclear and fossil sources with carbon capture—in the production and import targets. This recommendation is echoed by industry stakeholders like Hydrogen Europe, who argue that the Commission should better reflect national priorities and potentials.
Stef Blok underscored the importance of this debate, suggesting that the inclusion of low-carbon hydrogen is a critical consideration for achieving the EU’s hydrogen goals.
In her re-election speech, Commission President Ursula von der Leyen defended the focus on renewable hydrogen, citing significant investments in clean hydrogen compared to the US and China. She announced plans for a new Clean Industrial Deal to reduce energy bills and increase competitiveness in energy-intensive sectors.
Von der Leyen also highlighted the EU’s efforts to eliminate dependence on Russian gas, emphasizing the massive investments in locally produced renewable energy.
