Von der Leyen: Investment in European hydrogen to grow by 140% in 2024

November 8, 2024, by Aida Čučuk

Investment in European hydrogen is set to grow by 140% in 2024, according to European Commission President Ursula von der Leyen.

Ursula von der Leyen, President of the European Commission; Courtesy of the World Economic Forum; Archive

At the fourth edition of the Renewable Hydrogen Summit, the president shared that in 12 months, Europe has seen final investment decisions (FID) on over 2 gigawatts (GW) of renewable hydrogen projects, which is said to be four times the current installed capacity.

Von der Leyen stated that renewable hydrogen is here, growing, and it is only the beginning: “With REPowerEU, we put forward the ambition to produce 10 million tons of renewable hydrogen by 2030. And we backed that ambition with the first comprehensive legislative framework in the world.”

“Under the Renewable Energy Directive, at least 42% of hydrogen used in industry, and 29% in transport, must be renewable by 2030. These are binding targets we all agreed on. And Member States have until May 2025 to turn them into national law. If done right, this will be a game-changer, unlocking demand across the entire value chain. And encouraging hydrogen production to scale up across Europe.”

Von der Leyen also acknowledged that big challenges remain, adding that there is a need to accelerate the creation of clean lead markets.

“We are working closely with Member States and industry off-takers — from steel and chemical producers to transport and energy storage providers — to identify their priorities. This will be a key part of the Clean Industrial Deal that the new European Commission will present in its first 100 days. We want to prioritise the infrastructure needed to connect large-scale hydrogen projects with end users. We will tap into Europe’s vast renewables potential and bring it to our industries to help them decarbonise,” the president said.

Regarding the European Hydrogen Bank (EHB), von der Leyen mentioned the benefits of the pilot auction, which uses revenues from the EU Emissions Trading System to support producers of hydrogen categorized as renewable fuel of non-biological origin (RFNBO):

“After our first auction, almost 700 million euros were disbursed to projects. They are set to deliver close to one-sixth of our hydrogen target this decade. And in December we will hold another auction, this time with 1.2 billion euros in funding. And we have added a critical new element: A clause that specifically encourages the use of equipment from European companies. Because they are the very innovators that pioneered renewable hydrogen tech in the first place. This secures Europe’s energy independence. And this creates good jobs here in Europe.”