Greece has unveiled its first legal framework on hydrogen and renewable gases, signaling intent to shape its role in Europe’s low-carbon energy transition. Yet, behind the legislative milestone lies a sobering reality: absent government subsidies, the financial viability of green hydrogen projects remains uncertain.
The draft law was presented in parliament amid growing momentum from industrial players and refiners exploring green hydrogen production pathways. But unlike peer EU states such as Germany, which have embraced state aid to catalyze early-stage deployment, Greece’s Ministry of Environment and Energy has taken a fiscally conservative stance. No financial backing will be offered to emerging technologies, including hydrogen, in an effort to shield consumers from price hikes during the energy transition.
This policy choice places a significant burden on the carbon market to carry the competitiveness of green hydrogen. According to Professor Pantelis Kapros of the National Technical University of Athens (NTUA), hydrogen uptake in Greece will depend almost entirely on the price trajectory of carbon allowances under the EU Emissions Trading System (EU ETS). The system’s second phase, set to commence in 2026, is expected to trigger a price surge. Yet current forecasts still fall short of what’s needed.
Despite these financial headwinds, Greece sees export potential in green hydrogen, leveraging its expanding solar power base and geographic position. With daytime photovoltaic generation often exceeding grid demand, hydrogen production is viewed as a possible sink for surplus electricity—a means to stabilize the system while developing a future export commodity.
Electricity represents up to 70% of green hydrogen’s production cost, and Greece’s wholesale power prices remain higher than the EU average—undermining one of the country’s potential competitive advantages.
Gas distribution operator Enaon EDA has already begun mapping existing and planned biomethane production sites across Greece. CEO Barbara Morgante confirmed ongoing studies to assess proximity and potential integration into Enaon’s network.
Produced through upgrading biogas or by synthesizing methane from green hydrogen and CO₂, biomethane is less sensitive to power prices and can be injected directly into gas pipelines—offering a smoother pathway to decarbonizing heating and industrial use.
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