The European Union is not on track to meet its 2030 targets for hydrogen production and imports, according to the European Court of Auditors (ECA).
In a critical assessment released Wednesday, the ECA scrutinized the implementation of the EU’s hydrogen strategy, touted as a key lever for industrial decarbonization.
10 Million Ton Target Unlikely to be Met
“The Commission has set unrealistic targets for hydrogen production and imports, and the EU is not on course to achieve them,” concludes the report, which recommends that the European Commission “update its hydrogen strategy based on a thorough assessment.”
Ambitious Goals and the REPowerEU Plan
Brussels unveiled its hydrogen strategy in mid-2020 and further amplified its ambition in 2022 with the REPowerEU plan, a roadmap aimed at ending the continent’s reliance on Russian fossil fuels by 2030.
Hydrogen can be produced either from gas (through reforming) or from water using electricity (through electrolysis). The Commission has identified the deployment of hydrogen produced from renewable electricity as a crucial tool for greening heavy industries that are difficult to decarbonize (fertilizers, petrochemicals, steel, cement).
However, the Luxembourg-based watchdog contends that “the Commission has set overly ambitious targets for the production and import of renewable hydrogen, each expected to reach 10 million tons by 2030.”
“Reality Check” Needed for EU’s Industrial Hydrogen Policy
“These targets were driven by political will, without being based on a rigorous analysis,” argue the report’s authors.
“The EU’s industrial policy on renewable hydrogen needs a reality check,” said Stef Blok, ECA member and audit lead, as quoted in the press release.
Challenges in Implementation
The report highlighted several challenges, including “divergent ambitions among Member States not always aligned with the objectives” and fragmented EU funding (18.8 billion euros for the 2021-2027 period) spread across multiple programs, making it difficult for companies to navigate.
While acknowledging the Commission’s regulatory efforts, which proposed “most legal acts in a short time,” the ECA criticizes “delays in adopting rules for renewable hydrogen, which have hindered market development.”
Commission’s Response
“Our work is far from over,” responded a European Commission spokesperson. “We must now accelerate the deployment and adoption of renewable and low-carbon hydrogen in Europe and further develop this emerging market.”