The potential of hydrogen for decarbonizing EU industry

Given the vast potential for renewable electricity generation, the production of renewable hydrogen is a promising option for the hard-to-decarbonise energy-intensive industry sectors. A growing hydrogen sector will also result in job creation and economic growth while fostering innovation and reducing pollution. The European Commission published its Hydrogen Strategy in 2020 with the aim of boosting hydrogen use in the EU while promoting the uptake of renewable hydrogen production. Recent activities, such as the launch of the European Clean Hydrogen Alliance and the EU Innovation Fund, the formation of Hydrogen Valleys and the promotion of Important Projects of Common European Interest (IPCEIs), provide promising first steps to foster a European hydrogen economy. Nevertheless, important policy gaps still need to be addressed. This study takes stock of the current situation with respect to the realisation of the EU Hydrogen Strategy and identifies policy options to address gaps in the current landscape.