EU's Clean Industrial Deal: Industry Welcomes Measures but Highlights Gaps
Key Ideas
  • The EU's Clean Industrial Deal (CID) aims to accelerate hydrogen production and consumption by adopting a low-carbon hydrogen definition and implementing mechanisms for industrial decarbonisation.
  • Industry body Hydrogen Europe welcomes the CID's ambition but criticizes a lack of flexibility for member states in promoting demand and closing price gaps between fossil and non-fossil hydrogen.
  • Some manufacturers suggest focusing on supporting hydrogen demand-side rather than providing more funding, emphasizing the need for actions to ensure project progress and increase capacity utilization.
  • The European electrolyser sector seeks de-risking mechanisms to enhance confidence in new technologies, with calls for support schemes like power purchase agreements to boost renewable hydrogen projects.
Industry participants in the hydrogen sector have shown a positive reception towards the EU's Clean Industrial Deal (CID) and the accompanying Clean Industry State Aid Framework (CISAF). The CID aims to accelerate hydrogen production and consumption, with measures such as a low-carbon hydrogen definition and mechanisms for industrial decarbonisation. While industry body Hydrogen Europe has welcomed the CID's ambition, they have raised concerns about the lack of flexibility for member states to promote demand for hydrogen and address the price disparity between fossil and non-fossil hydrogen. There are also discussions around the challenges faced by electrolyser manufacturers, with some highlighting the need for support directed towards the hydrogen demand-side rather than increased funding for manufacturing. The industry calls for de-risking mechanisms to enhance confidence in new technologies, such as power purchase agreement support schemes to boost renewable hydrogen projects. The CID draft envisions a 'Sustainable Transport Investment Plan' to prioritize support for renewable and low-carbon fuels in aviation and waterborne transport. However, there are concerns about the omission of specific references to e-fuel mandates, disappointing industry bodies like the Skies and Seas Hydrogen-fuels Accelerator Coalition (Sasha). Overall, the industry is hopeful about the CID's potential to support investment in hydrogen and industrial decarbonisation, but highlights the need for addressing gaps in the framework to ensure long-term demand-side support and price stability for hydrogen adoption.
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