European solutions to European problems. That is the principle defended by the main industrial players of the European Union, convinced that they have the necessary plan to achieve the deployment of clean hydrogen. A resource that could guarantee both industrial competitiveness and energy independence that Brussels claims to constantly pursue. They have conveyed this to the European Commission this week with the presentation of the European Alliance for Resilience in Clean Hydrogen and Derivatives, an initiative that aims to become a strategic pillar within the continent's energy transition process.
The head of the clean transition portfolio of the Community Executive, Teresa Ribera, has welcomed the birth of the initiative. During a lunch held this Tuesday in Brussels with CEOs from across the continent, the vice-president sent a clear message of institutional and industrial collaboration: “We will use you. It is important to use all of you and it is also important that you use us. Let's keep this dialogue open”. Ribera believes that “clean hydrogen has a central role to play”, although she stressed that its development will only be possible if it is achieved “to scale it up” significantly in the coming years.
A negotiation, a voice
The objective of this alliance is not minor. It is about building a unified voice before European institutions, capable of translating climate ambition into concrete, viable, and profitable industrial projects. In a context marked by the urgency of the energy transition and geopolitical pressure on resources, the platform is born with the intention of promoting a solid value chain around green energy, with a special role for hydrogen as a key energy vector.
In essence, what industrial players are demanding is an acceleration in the adoption of low-carbon energies across Europe. To this end, they consider it essential to strengthen the energy sovereignty of the continent and reduce dependence on the import of fossil fuels from abroad. The Alliance, in which companies such as Enagás and Moeve participate, argues that Europe must be able to produce its own clean fuels and strategic industrial materials, especially in a geopolitical context marked by uncertainty and volatility.
In this regard, the international situation plays a decisive role. The growing instability in different regions of the world has highlighted the fragility of global supply chains. Therefore, the promoters of the initiative consider it a priority to reduce dependence on external suppliers, especially regarding critical raw materials and key technologies for the energy transition. It is not only an environmental issue, but also one of long-term economic and strategic security.
Who pays the bill?
One of the main obstacles identified by the Alliance is the lack of investment. According to the data presented, less than 7% of clean hydrogen projects have reached a final investment decision, which reflects the existing difficulties in materializing initiatives in this area. Among the causes explaining this delay are the regulatory fragmentation within the European Union, the complexity of the rules applicable to renewable fuels, the uncertainty in future demand and the lack of clarity in infrastructure development.
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To these problems is added the need to build a truly resilient energy system. The Alliance insists that Europe must protect its industry against geopolitical pressures such as those derived from international conflicts. In this context, the CEO of thyssenkrupp AG, Miguel Ángel López, warned in a meeting with journalists in Brussels that Europe's vulnerability is “structural”, which implies a significant risk for its future prosperity. As he explained, the dependence on critical materials and external technologies could seriously compromise the continent's industrial development if urgent measures are not taken.
The axes on which to act
To address these challenges, the Alliance proposes a series of coordinated actions in key areas. Among them, boosting demand, regulatory simplification, and access to private capital stand out. In its action plan, they propose the creation of a stable and financeable market, which necessarily involves the immediate transposition of regulations such as the Renewable Energy Directive. Likewise, they propose the development of leading markets in hard-to-decarbonize sectors, such as heavy transport or defense, where hydrogen could play a decisive role.
Another of the central demands is that Brussels evolve from what they describe as a “regulatory rigidity” towards greater industrial pragmatism. In particular, sector players emphasize the need to reduce electricity costs, which currently represent up to 70% of the cost of hydrogen production. To this end, they propose a redesign of European subsidies that prioritizes large-scale projects and contributes to reducing operating costs.
Access to financing is another of the fundamental pillars of the strategy. The Alliance proposes to reduce the risk of investments through the use of revenues from the emissions trading system and the Carbon Border Adjustment Mechanism. The objective is to make clean hydrogen more competitive against other energy alternatives, thus facilitating its large-scale adoption by industry.
Furthermore, infrastructure development is considered a key element. In this regard, the promoters of the initiative advocate for the creation of a European hydrogen backbone network, capable of connecting the main production centers with those of demand. To achieve this, they propose improving coordination in cross-border planning and developing risk-sharing instruments that allow boosting the first investments in this area, reducing entry barriers.
The European plan
The geopolitical dimension was again present during a lunch following the presentation of the Alliance. Teresa Ribera noted that the escalation of tensions in the Middle East has complicated efforts to resolve the continent's energy problems in the last month. In particular, she referred to the disruption in the Strait of Hormuz, which she described as an “unprecedented shock” with direct implications for global energy supply.
Given this scenario, the European Commission plans to present a specific action plan to respond to the crisis in the coming days, before the meeting of European leaders in Cyprus. Despite the seriousness of the situation, Ribera was relatively optimistic, considering that Europe is better prepared than in previous crises. As she explained, the continent now has a greater capacity to develop its own solutions and reduce its vulnerabilities.
However, he also issued a clear warning: “we are not yet strong enough to feel free, sovereign, and resilient”. This statement reflects the need to continue advancing in the construction of a more robust and autonomous energy system, capable of facing current and future challenges.
For the vice president, one of the fundamental keys of the European strategy involves the electrification of the economy. In her opinion, the development of clean technologies not only contributes to decarbonization, but also improves competitiveness and strengthens energy security. “Every time we electrify, we reduce the bill,” she stated before business representatives, highlighting the economic potential of this transformation.
However, she also warned that electrification alone will not be enough. According to Ribera, Europe must go further and also commit to the development of energy molecules, such as hydrogen, that allow addressing those sectors where direct electrification is more complex. In this regard, she defended the need to advance in parallel in both lines of action.
New ways of discussion
In coherence with this approach, Brussels intends to accelerate the so-called network package, especially given the commitment shown by some Member States in this area. However, the vice-president insisted that “electrons are not enough”, which reinforces the importance of hydrogen within the European energy strategy.
The Alliance is proposed as an instrument capable of improving communication between the industrial sector and legislators. Offering coordinated and precise information will be one of the pillars of its activity in the coming months. According to the CEO of Enagás, Arturo Gonzalo, this initiative will allow accelerating strategic hydrogen projects that are fundamental to advance in the decarbonization of the European economy.
A significant step in Europe's attempt to strengthen its energy autonomy and industrial competitiveness. At a time of profound transformations, both technological and geopolitical, hydrogen is emerging as one of the key elements to build a more sustainable, resilient, and sovereign future.