European Commission (EC) President Ursula von der Leyen reaffirmed the EC's strong commitment to advancing the hydrogen market and fostering a climate-neutral European economy at the Renewable Hydrogen Summit in Brussels. In a video address on Thursday, von der Leyen highlighted Europe's leadership in renewable hydrogen, citing more than 2 GW of renewable hydrogen projects that secured final investment decisions in the past year.
She attributed Europe's success to clear and binding targets set under the REPowerEU plan, which aims for 10 million tonnes of renewable hydrogen production by 2030. Additionally, the Renewable Energy Directive mandates that by 2030, 42% of hydrogen used in industry and 29% in transport must be renewable. These targets are binding, with Member States required to translate them into national law by May 2025.
Despite the progress, von der Leyen acknowledged the challenges ahead, stressing the need to accelerate the creation of clean lead markets as part of the Clean Industrial Deal. The EU is focusing on developing the infrastructure needed to connect large-scale hydrogen projects to end users, unlocking the potential of Europe's abundant renewable energy resources to help industries decarbonize.
She highlighted that this transformation could drive down prices for products like clean steel, cement, fuel, plastics, and fertilisers, providing competitive advantages to European industries. By 2030, for instance, a mid-sized electric car made with clean steel would be priced similarly to one made with traditional steel.
Furthermore, von der Leyen announced that the EU's second renewable hydrogen auction under the European Hydrogen Bank initiative will be held in December, with EUR 1.2 billion (USD 1.29bn) in funding available. A key addition to the auction this year is a clause that encourages the use of equipment from European companies, which von der Leyen said would help secure Europe's energy independence and create good jobs across the continent.
Her remarks come at a time when there is global uncertainty surrounding the future of green hydrogen, particularly following the wave of cancelled hydrogen projects and concerns in the US about the direction of renewable energy policy under the leadership of Donald Trump.
