Nearly €1 billion Funded by the EU for Green Hydrogen Projects

€992 million has been allocated by the European Union to fund 15 renewable hydrogen projects, distributed among 5 nations within the European Economic Area. This funding, approved under the EU Innovation Fund, is central to Europe's initiative for clean energy.

Over the next decade, these projects are projected to generate roughly 2.2 million tonnes of green hydrogen, contributing to a reduction of more than 15 million tonnes of CO₂ emissions. Particular emphasis is placed on sectors like heavy industry and transport, which present considerable challenges for decarbonization with standard clean energy approaches.

Why Green Hydrogen Matters in the Energy Shift 

Green hydrogen forms when renewable electricity drives electrolysers. These devices split water into hydrogen and oxygen. This process does not produce any direct greenhouse gas emissions, unlike grey hydrogen, which comes from fossil fuels. Green hydrogen presents a viable clean alternative for sectors where direct electrification is challenging, such as steel manufacturing, aviation, shipping, and chemical production.

However, green hydrogen faces a significant hurdle in competing with hydrogen derived from fossil fuels. This is primarily due to the substantial cost of electrolysers and the fluctuating prices of renewable electricity. Consequently, direct financial assistance from the European Union is crucial. Such support serves to bridge the cost gap and accelerate the integration of clean hydrogen technologies.

Environmental Gains from Funded Projects 

Fifteen EU-supported projects aim to prevent over 15 million tonnes of CO₂ emissions by 2033, equivalent to removing 9 million cars from roads annually. These initiatives are projected to produce 2.2 million tonnes of renewable hydrogen.

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In contrast, producing one tonne of hydrogen from fossil fuels results in roughly 6.3 tonnes of CO₂ emissions.

Green hydrogen is crucial for reducing emissions in sectors that are difficult to decarbonize, which are major contributors to Europe's greenhouse gas emissions. Globally, hydrogen production, largely from fossil fuels, releases nearly 900 million tonnes of CO₂ yearly. Substituting this with green hydrogen could significantly cut emissions.

Boosting EU Energy Security 

More than 70% of Europe's energy is imported, primarily as fossil fuels. By supporting local renewable hydrogen production, the EU can decrease its reliance on imported energy, thereby enhancing energy security.

Using local wind or solar power, electrolysers can produce hydrogen closer to its point of use. This reduces transmission costs and mitigates supply chain disruptions caused by global politics or market volatility.

Furthermore, the development of green hydrogen promotes stability. It empowers the EU to better withstand global energy shocks and lessens its vulnerability to fluctuating oil and gas prices.

This funding round is part of a wider EU plan to grow a €100 billion clean economy by 2030.

Jobs, Innovation, and Export Opportunities

Green hydrogen is projected to generate up to 1.4 million jobs across Europe by 2030, as reported by the European Renewable Energy Council, while also providing significant environmental advantages. These employment opportunities span various sectors, including engineering, manufacturing, logistics, and maintenance.

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The European Union anticipates that newly established hydrogen hubs will spur innovation, mirroring the growth trajectories of the solar and wind energy sectors. To support this, the Innovation Fund assists European companies in advancing the entire hydrogen supply chain, from raw material sourcing to energy management software development.

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Given the substantial investments in clean energy being made by nations in Asia and North America, Europe's proactive approach in the hydrogen sector could provide it with a considerable competitive advantage on the global stage.

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