EU’s Pivot to Hydrogen: A New Chapter in the Energy Transition
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As Europe navigates the challenging waters of the energy transition, facing technical hurdles and escalating costs, the EU is now asking significant investments in hydrogen, including its integration into the existing or expanded gas grid. Meanwhile, the European electric vehicle market begins to falter, potentially facing challenges from declining sales in China and the subsequent threat of an influx of Chinese EVs. This situation prompts a reassessment of growth forecasts. European manufacturers are at a critical crossroads, balancing innovation, competition, and the shift towards a sustainable automotive future. Hydrogen could help?
By Paolo Licandro
Brussels, 11 April 2024 – 7 MINUTES READ
This week, the European Parliament is set to adopt two Directives, negotiated with EU Ministers, aimed at promoting the widespread use of hydrogen and renewable gases across Europe.
This could be crucial also for industries and transport sectors that cannot be easily electrified.
What will change in the energy market?
The two legislative proposals for recasting two existing EU Directive lay the groundwork for a comprehensive strategy to decarbonize the gas market and establish a robust hydrogen economy within the EU.
The proposal for Directive COM(2021)803 aims to decarbonize the Gas Market. Compromise text. The revision of the gas market directive COM(2021)803 aims to reduce the EU’s dependency on fossil fuels and enhancing the production and use of renewable hydrogen. The proposal aims to integrate renewable gases into the energy system, prioritize hydrogen use in hard-to-decarbonize industrial sectors, and promote energy system integration.
Key initiatives include:
- local heating and cooling planning,
- leveraging synergies between existing gas and emerging hydrogen infrastructures, and
- prioritizing grid connections for renewable gas production
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