The European community of 27 countries has placed hydrogen, which is produced using renewable energy, at the heart of efforts to decarbonize the economy, especially in heavy industry.
However, from the report European Court of Auditors (ECA) it appears that the EU is likely will not achieve its goal of creating a 20 million tonne green hydrogen market by the end of the decade – reports Bloomberg.
Green hydrogen is a plan based on political will
According to the ECA, which monitors the finances of the 27-nation bloc and can influence policymaking, the current hydrogen plan is not based on solid analysis but on political willThe report found that nearly €20 billion in funding until 2027 is spread across different programmes, making it difficult for businesses to access the funds.
The ECA report deepens doubts about the EU’s hydrogen plans and whether the fuel is a realistic solution to reduce greenhouse gas emissions. Doubts particularly concern the short-term perspective.
Too little demand for green hydrogen
Another problem that ECA draws attention to in the report is the level of raw material supply depending on demand and vice versa.
According to auditors By the end of the decade, demand for green hydrogen will not even reach half of the EU target of 20 million tonnes, to be split equally between local production and imports. In 2022, hydrogen accounted for less than 2% of Europe’s energy consumption, with the largest share of demand coming from refineries.