The Renewable Hydrogen Coalition, comprising 14 chief executives, has issued a joint letter appealing to the 27 European Ministers of Finance to enhance financial support for renewable hydrogen and electrolyser manufacturing capacity within Europe. The CEOs are also urging the allocation of national budgets to the European Hydrogen Bank.
The letter, released today, emphasizes that the initial phase of European renewable hydrogen projects is on the brink of realization, contingent upon specific measures. Currently, only 4% of projects have reached the final investment decision, with challenges such as inflationary pressures and rising interest rates affecting investment cases.
To expedite the deployment of renewable hydrogen projects and bolster electrolyser manufacturing capacity in Europe, the chief executives are calling for the streamlining of national and EU public funding. They are advocating for the allocation of national budgets to the European Hydrogen Bank, endorsing its “Auction-as-a-Service” approach to facilitate faster progress for national renewable hydrogen projects.
The letter further calls for the deployment of new funds in the upcoming European budget, with support from the European Investment Bank to provide guarantees that unlock and accelerate private investments in Europe.
In addition, the coalition urges the implementation of the “polluter pays” principle in energy taxation, proposing the taxation of products based on their greenhouse gas content.
Lastly, the CEOs advocate for the cessation of fossil fuel-related subsidies, aligning actions with the objectives outlined in COP28. The coalition asserts that these measures are essential to overcome existing challenges and ensure the successful realization of the critical first wave of European renewable hydrogen projects.