Hydrogen Europe has written a letter to European Commission President Ursula von der Leyen regarding parts of the upcoming Renewable Energy Directive II (RED II) legislation that are counterproductive to the formation of a world-leading hydrogen market in Europe.

Specifically, we have raised the issue of the Delegated Act (DA) – Article 27.3 of RED II – which outlines the rules on renewable hydrogen production. The letter argues that the DA, in its current form, would be detrimental to the good work done so far to promote green hydrogen throughout the EU, that the rules in the DA are “disproportionate” and that they “will make European renewable hydrogen insufficient for the industry needs and non-competitive vis-à-vis non-European renewable hydrogen.”

The letter contrasts the current proposed European legislation with the recently passed US Inflation Reduction Act, which “features a concrete plan aiming to upscale the production of all forms of clean hydrogen, especially green hydrogen, in the US.” It continues:

“The significance of this plan is undoubtedly the most impressive incentive any policy maker has undertaken to encourage renewable hydrogen rollout. Many companies and project developers are already conducting negotiations to benefit from the scheme. Surely, this is understandable as the rules are simple and conditions are extremely attractive.”

The letter includes an urgent call to action:

“I urge you to address without delay the challenges pertaining to the Delegated Act on Art 27.3. In addition, it is imperative to clearly outline the frameworks of EU level support and increase strategic coordination between the Member States’ activities. It is becoming increasingly evident that only a handful of Member states would see large scale financially viable renewable hydrogen project go ahead under the current environment. Moreover, there is a need to minimise the risk concerning the rapid scale up of the European hydrogen economy by putting more public financial resources – otherwise uncertainties along the long value chain will keep hindering fast evolution.”

Along a commitment from Hydrogen Europe to continue developing concepts and solutions for policy instruments, including the European Renewable Hydrogen Switchboard concept which has been tabled and could serve as the missing “market maker”.

Europe’s hydrogen sector is at a precipice. Either the continent can capitalise on its head start to lead the world in renewable hydrogen production, distribution and end-use with the backing of investors and policymakers. Alternatively, Europe can lose ground to regional competitors due to a lack of drive and imagination at the policy level to become an also-ran in the next great technological race.