Mobilizing Europe's Full Hydrogen Potential: Entry-Points for Action by the EU and its Member States

This policy paper takes stock of ongoing hydrogen policy developments in Europe, placing particular attention on how the European Union (EU) can most effectively mobilize its domestic hydrogen potential. While the paper acknowledges that hydrogen imports from countries outside the EU are likely to play a significant role, it departs from the premise that the large-scale mobilization of cost-competitive domestic resources is an essential element for ensuring the EU’s energy security and industrial leadership in the sector. It begins with an overview of future renewable energy demand in Europe within the context of decarbonization, on the one hand, and potentials for renewable hydrogen production and their distribution across the EU, on the other. It then contrasts this with hydrogen-related targets and announced investments in the Member States. Against this background, the paper provides a review of key EU-level policies, focusing on the promotion of hydrogen production and use. Questions related to infrastructure for storage and transport of hydrogen are beyond the scope of the paper and are not considered. Building on the policy review, the final section proposes five recommendations for further development of EU hydrogen policy and funding schemes.