EU State Aid Boosts Hydrogen Projects for Clean Energy Transport
Key Ideas
  • European Commission approves state subsidies for 11 companies, including Airbus and BMW, to develop low-carbon hydrogen technology.
  • Hy2Move project aims to develop transport fuels with countries like France and Germany joining the initiative.
  • Private sector investment of €3.3bn expected to match state aid for projects like powerful fuel cells and lightweight hydrogen tanks.
  • Concerns raised about the feasibility of meeting the 2030 target of 10 million tonnes of green hydrogen and the need for clear criteria for 'low-carbon hydrogen'.
The European Commission has approved significant state subsidies for a variety of projects focused on harnessing hydrogen to replace fossil fuels in transportation, aiming to advance clean energy technology within the EU. Companies like Airbus, BMW, and Michelin are set to benefit from this support, with the Hy2Move project spearheading efforts to develop low-carbon hydrogen technology. The collaboration involves several European countries and seeks to drive innovation in transport fuels. The Commission anticipates substantial private sector investment to complement the state aid, targeting advancements in fuel cells for ships and trains, as well as safe storage solutions for hydrogen as aviation fuel. However, despite the positive momentum, there are doubts surrounding the achievability of the 2030 green hydrogen production goal. Additionally, concerns have been raised regarding the need for clear guidelines on what constitutes 'low-carbon hydrogen' to prevent the potential misuse of natural gas-derived 'blue' hydrogen. As the EU continues to prioritize decarbonization in transport and heavy industry, the role of hydrogen as a key solution is highlighted, albeit with the recognition of associated challenges and uncertainties.
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