Hydrogen 'resilience' | EU moves forward with target for 40% of electrolysers to be made in Europe

The EU’s proposed target of meeting 40% of its green hydrogen equipment needs with domestically-made products moved a step closer towards becoming a reality yesterday (Tuesday), with the news that two of its branches of government had reached agreement on the enabling legislation.

The legislation now needs formal approval from the EP and Council, as well as sign off from the third EU government branch, the European Commission, which rarely objects to agreements between the Parliament and Council.

Europe's current goal of producing 10 million tonnes of green hydrogen by 2030 envisages a maximum of 25GW of annual electrolyser manufacturing capacity by 2025 — even though this 10-million-tonne target seems unlikely to be met, given the current rate of project development.

An infographic produced by the EP today predicts that hydrogen could represent 20% of the EU’s energy mix by 2050, including 20-50% of energy demand in transport and 5-20% in industry.

The NZIA also streamlines permitting for strategic industries, meaning that manufacturers of electrolysers and other green hydrogen-related equipment should be able to get their projects signed off more quickly.

It also proposes measures to build skills in strategic industries, as well as measures to “ease market access” for such industries.

The European Parliament and Council agreed on the European Commission’s general approach but added measures to further streamline rules on permitting procedures, and also to introduce the concept of “Net Zero Industrial Valleys” — manufacturing hubs where several companies work on net-zero technologies.

The agreement also sought to regulate member states’ subsidy auctions for renewable energy technologies — without defining which technologies would be included in this definition — to ensure that subsidies were offered on the basis of environmental sustainability and system integration, as well as on price.

Public authorities purchasing goods from strategic industries must also ensure environmental sustainability, as well as considering “resilience criteria” (ie, whether the goods being procured could undermine Europe’s own manufacturers) if the goods in question come from an industry in which there is a “third-country dependence” of more than 50%.

“With the Net-Zero Industry Act we want to support our industry in its transition,” said Jo Brouns, minister for economy, innovation, work, social economy and agriculture in Flanders in Belgium. “The NZIA is an important step in creating the necessary ecosystem to boost the manufacturing of clean technologies. Europe launched a pathway towards a cleaner and sustainable future for the European industry. Now the time is ripe for Europe to take back the lead on the global scene for clean technologies and to build a competitive, green, and job-creating industrial sector.”