EU's Strategic Move: Blocking Chinese Hydrogen Tech for Greener Fuel Production
Key Ideas
  • EU to exclude Chinese hydrogen electrolyzers in upcoming auction to boost local fuel production amidst green transition.
  • New resilience requirements aim to limit Chinese competition, promote local production, and protect clean tech sector.
  • Projects winning in the auction must restrict sourcing of electrolyzer stacks from China to 25% of total capacity.
  • Introduction of non-price criteria like emissions and cyber security to favor European supply chains and investments.
The European Union is taking strategic steps to block Chinese manufactured hydrogen electrolyzers in an upcoming auction worth €1.2 billion aimed at accelerating fuel production during the green transition. The move is a response to China's oversupply of electrolysers at decreasing costs, posing a threat to the European clean tech sector. Winning projects will need to adhere to new guidelines, restricting the sourcing of electrolyzer stacks from China to no more than 25% of total capacity. The EU's climate commissioner highlighted the need for explicit criteria to support European electrolyzer supply chains, emphasizing the importance of reducing reliance on Chinese production. This decision aligns with the EU's efforts to protect its clean tech industry from Chinese dominance, similar to the measures already in place for solar panels and batteries. The introduction of non-price criteria, such as emissions and cyber security, in the auction process aims to prioritize local production and investments. Failure to comply with these guidelines could result in reduced grant money or termination. Additionally, a public consultation has been opened to define low-carbon hydrogen methodology, further emphasizing the EU's commitment to green energy. Hydrogen Europe, the industry association, praised the new criteria introduced by the EU, stating that they create a favorable environment for companies to invest in Europe. The resilience criteria implemented mark a significant moment for the hydrogen sector and the European Union as a whole, signaling a shift towards supporting local industries and fostering sustainable growth.
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