EU's Ambitious Green Hydrogen Targets Face Realism Check

The European Court of Auditors (ECA) has criticized the EU's goals to produce and import green hydrogen, deeming them unrealistic despite significant funding. The targets, aimed at reducing reliance on Russian energy, are based on political will rather than thorough analysis. The ECA suggests a more targeted funding approach.

The European Union's ambitions to produce and import green hydrogen fuel appear overly optimistic and likely unattainable, as highlighted by the European Court of Auditors (ECA) on Wednesday.

The European Commission's targets include producing up to 10 million tonnes of renewable hydrogen and importing an additional 10 million tonnes by 2030. These goals, while non-binding, form part of the broader strategy to reduce the bloc's dependence on Russian energy imports. However, the ECA's report indicates these targets are driven more by 'political will' than rigorous analysis, putting the EU off course to achieve them.

Furthermore, Brussels' objective to install at least 40 gigawatts of renewable hydrogen electrolysers by 2030 originated from a hydrogen lobby group's documents. Despite the EU earmarking 18.8 billion euros ($20.5 billion) for green hydrogen initiatives, only projects generating less than 5GW of capacity by 2030 have reached an advanced stage. Meanwhile, projects totaling around 50GW are still in the assessment phase.

Green hydrogen, essential for meeting the EU's climate goals, produced through renewable energy to split water sans CO2 emissions, is critical for decarbonizing sectors like steel and fertilizer manufacturing. 'The EU's industrial policy on renewable hydrogen needs a reality check,' stated auditor Stef Blok, who spearheaded the report.

The ECA recommended that the European Commission adopt a more targeted fund allocation strategy and revise policies to better incentivize hydrogen projects. A Commission spokesperson acknowledged the market's gradual development but emphasized the need to expedite the adoption of renewable and low-carbon hydrogen in Europe.

'Our work is far from finished. We now have to accelerate the deployment and uptake of renewable and low-carbon hydrogen in Europe,' the spokesperson affirmed. ($1 = 0.9173 euros)

(With inputs from agencies.)