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Recent Developments in EU Hydrogen Initiatives, including the "Hydrogen Valleys"

Clean hydrogen is an important element of the EU’s strategy to achieve its net-zero greenhouse gas emissions commitment by 2050. Nevertheless, the low carbon hydrogen market is still in its early stages and significant investments in infrastructure will be required in order for hydrogen to achieve greater penetration as a fuel source.

The policy developments at the EU level discussed here are aimed at growing the renewable hydrogen sector by providing greater public investment in the short-term and facilitating large-scale private investment in the long run.

For example, the European Commission approved €5.4 billion in state-aid-funded hydrogen subsidies in July 2022, launching 41 projects focused on hydrogen technology in 15 countries. And the REPowerEU set a target of 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of renewable hydrogen imports by 2030. The plan estimates investment needs to be in the range of €28-38 billion for EU-internal pipelines and €6-10 billion for storage. At COP27 in November 2022, the European Commission also signed partnerships with Egypt, Kazakhstan and Namibia on the development, deployment, use and undistorted trade of renewable hydrogen and its derivatives. And much more, including financial support to the expansion of hydrogen research and innovation hubs accross Europe, the "Hydrogen Valleys". (not Silicon Valley in US ;-). Click here to lean more.

This memo Sullivan & Cromwell LLP provides a summary of recent developments in the EU’s hydrogen policies, focusing on the European Parliament’s adoption of amendments to the Renewable Energy Directive II and the REPowerEU plan.


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“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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