EU Tightens Rules to Boost Local Hydrogen Projects Amidst Chinese Competition

The European Commission is devising stricter policies to ensure EU funding for hydrogen projects benefits European companies. This move follows local industry concerns about cheap Chinese imports. The EU's latest green hydrogen funding round is aimed at strengthening local production, with a focus on protecting European electrolysers manufacturers.

The European Commission is tightening regulations to ensure that EU funding for hydrogen projects benefits European companies, according to the head of the EU's climate change policy. Local industries have raised alarms about cheap Chinese imports undercutting the market. The EU aims to launch its next round of green hydrogen funding this month, hoping to stimulate local production of the fuel.

Additionally, the EU is imposing tariffs on Chinese electric vehicles, which it claims receive excessive state subsidies. European electrolyser manufacturers have warned they can't compete with lower-cost Chinese products and are urging the EU to introduce criteria favoring local firms. Climate Commissioner Wopke Hoekstra confirmed that the EU is working on these protective measures.

Speaking at the Eindhoven University of Technology, Hoekstra revealed that the next funding auction would include explicit requirements for building European electrolyser supply chains. He emphasized the need for data security and cyber safety, and hinted at rules to limit the dependence on non-EU countries. This move follows a previous auction where low-cost bids indicated the use of cheaper Chinese equipment. The Commission has not disclosed specifics but sees around a quarter of projects planning to source electrolysers externally. Hoekstra stated that while Europe is not seeking to sever ties with China, it will act against unfair competitive practices.

(With inputs from agencies.)