How to make EU green hydrogen policies more cost-effective

Decarbonizing energy-intensive industries is one of the greatest challenges of the energy transition, and green hydrogen is widely seen as a key part of the solution. New research by WU Vienna published in Nature Energy finds that EU hydrogen support could become substantially more cost-effective if policymakers prioritize the installations most likely to mobilize further demand among nearby users. The study also identifies the industrial regions across Europe where targeted support could help green hydrogen spread more quickly and broadly.

The EU aims to produce 10 million tonnes of renewable hydrogen domestically and import a further 10 million tonnes by 2030. It also aims for green hydrogen to supply around 10% of final energy demand by 2050. However, current EU policy measures mostly focus on increasing green hydrogen supply through initiatives such as the European Hydrogen Bank and the EU Hydrogen Valleys, with less focus on demand.