Energy EU Court of Auditors: Lower demand for green hydrogen

According to the EU Court of Auditors, the targets set by the EU Commission for the production and import of green hydrogen are unlikely to be achieved. The auditors have now called on the Commission to update its hydrogen strategy.

According to a report by the Luxembourg-based EU auditors, the Commission has taken the right steps on the way to a nascent market for renewable hydrogen.

However, there are still problems along the entire value chain. "There is a risk of loss of competitiveness in key industries and new strategic dependencies", the auditors warn. The Brussels authority must ensure that the targets can be achieved.

Green hydrogen as a beacon of hope

Green hydrogen - i.e. hydrogen produced using renewable energies - is seen as a beacon of hope for the energy transition. In principle, hydrogen can serve as a basis for fuels to replace coal, oil and natural gas in industry and transportation, for example. However, its production is very energy-intensive and currently still significantly more expensive than fossil fuels.

The European Commission has been too ambitious in setting targets for the demand for renewable hydrogen, the auditors criticize. By 2030, ten million tons of green hydrogen are to be produced and ten million tons imported. However, these targets were not based on a solid analysis, but were driven by political will, according to the Court's statement. In its analysis, the Court assumes that not even ten million will be in demand by the end of the decade.

Investment decisions postponed

The auditors also criticize the fact that it took too long to agree on what exactly is meant by renewable hydrogen and which regulations apply to it. Many investment decisions have been postponed as a result. Project developers are also postponing investment decisions, as supply depends on demand and vice versa.

In a response to the report, the European Commission pledged to accelerate and further develop the use and uptake of renewable and low-carbon hydrogen in Europe. "The Commission will continue to work with stakeholders to turn our ambitions into reality," said a spokesperson. It is clear that the hydrogen ecosystem will develop gradually. How quickly will vary from sector to sector - and possibly also from region to region.

SDA