EU Implements Restrictions to Safeguard Green Hydrogen Industry
Key Ideas
- The European Union is introducing restrictions on its subsidy program to protect domestic manufacturers of equipment for green hydrogen production.
- Chinese-made equipment for green hydrogen production is being limited to less than 25% of output capacity to shield the European market.
- The move aims to prevent a situation similar to the challenges faced by the EU's solar panel industry due to foreign competition.
- The changes will come into effect with the upcoming subsidy auction by the European Hydrogen Bank.
The European Union is taking steps to safeguard its domestic manufacturers in the green hydrogen sector by imposing restrictions on the sourcing of equipment. The EU is concerned about the potential negative impact of Chinese-made electrolyzer stacks on the European market for green hydrogen. To address this issue, the EU has decided that projects using Chinese equipment above 25% of output capacity will not be eligible for subsidies. This move is a proactive measure to protect the EU's green hydrogen industry from challenges similar to those faced by the solar panel sector. With the new rules set to be enforced during the next subsidy auction conducted by the European Hydrogen Bank, the EU aims to ensure the competitiveness and sustainability of its green hydrogen production.