Europe risks losing the emerging green hydrogen industry – Reuters

The European green hydrogen industry is calling on the EU to introduce “made in Europe” requirements for public spending in this sector, Reuters reports.

Company executives warn that without support for rapid expansion, European producers risk being squeezed out by Chinese competitors.

Last year was a difficult one for the industry, with many projects canceled or postponed due to high European energy costs and cheaper fossil fuel-based hydrogen, which accounts for 90% of industrial use in the region.

Kim Hedegaard, CEO of Power-toX at Danish engineering company Topsoe, told the agency that manufacturers support the EU’s plans for “made in Europe” rules for state-funded electrolyzer procurement. As a striking example, he cited solar panels, most of whose production Europe lost in the 2000s, yielding to China and making the region heavily dependent on imports.

The “made in Europe” proposal included electrolysers, but these plans are facing resistance from some governments and companies, and there is still debate over which technologies to cover and whether the term should include countries outside the bloc.

Hakon Walldal, CEO of Norwegian electrolyzer manufacturer Nel Hydrogen, said European companies are missing out on opportunities to participate in large-scale projects similar to those being implemented in China — government contracts could help open them up.

In February, European Investment Bank President Nadia Calviño highlighted electrolysers and wind energy as “low-dependency sectors” where Europe can still stay ahead. However, this will require continued investment in EU value chains, she said in a letter ahead of a meeting of EU leaders on competitiveness.

China, the agency notes, already has 60% of the world’s electrolyzer production capacity. European firms still dominate the domestic market, accounting for more than 80% of sales to projects in the region from 2022, according to the Oxford Institute for Energy Studies.

Recall that in October last year, the German Federal Audit Office stated that the country’s hydrogen strategy needed to be adjusted in order to achieve the 2030 targets for domestic production of green hydrogen.