EU Commission Boosts Hydrogen Production With Net-Zero Industry Act



The European Commission has unveiled the Net-Zero Industry Act as part of the Green Deal Industrial Plan, aiming to scale up the manufacturing of clean technologies, including hydrogen, in the EU.


This move is designed to equip the Union for a clean energy transition, improve the resilience and competitiveness of net-zero technologies, and ensure Europe’s energy system is more secure and sustainable.


President of the European Commission, Ursula von der Leyen, emphasized the need for a regulatory environment that accelerates the clean energy transition. She highlighted the importance of sectors like wind turbines, solar panels, heat pumps, renewable hydrogen, and CO2 storage in reaching net-zero emissions by 2050. The Net-Zero Industry Act will create favorable conditions for these industries to meet the increasing demand in Europe and globally.


The Act addresses technologies that will significantly contribute to decarbonization, such as solar energy, wind energy, batteries and storage, heat pumps, geothermal energy, electrolysers and fuel cells, biogas/biomethane, carbon capture and storage, grid technologies, and sustainable alternative fuels technologies. It specifically focuses on renewable hydrogen production and includes provisions for setting up Net-Zero Industry Academies, which will help develop a skilled workforce to support the production of net-zero technologies in the EU.


EU Commission: Renewable Hydrogen to Decarbonise the EU’s Energy System


Furthermore, the European Commission presented its ideas on the design and functions of the European Hydrogen Bank, aimed at supporting the uptake of renewable hydrogen within the EU and facilitating imports from international partners. The first pilot auctions for renewable hydrogen production will be launched under the Innovation Fund in Autumn 2023. Selected projects will receive a subsidy in the form of a fixed premium per kg of hydrogen produced for up to 10 years of operation, which will enhance the bankability of projects and reduce overall capital costs.


Kadri Simson, Commissioner for Energy, emphasized the central role of clean energy in the European Green Deal, stating that it would form the core of Europe’s Green Deal Industrial Plan and the recently introduced Net Zero Industrial Plan. By promoting domestic investment in production, Europe aims to create products needed both locally and globally, generate jobs for its citizens, and strengthen its industries.


European Commission Sets Out Rules for Renewable Hydrogen


Alongside the Net Zero Industry Act (NZIA), the Commission also unveiled the Critical Raw Materials Act (CRM) to lay the foundation for the use of raw materials in scaling up Europe’s sustainable materials market. The CRM will focus on the extraction, processing, recycling, monitoring, and diversification of critical ores, minerals, and concentrates to bolster the continent’s sustainable materials sector.


Jorgo Chatzimarkakis, CEO of Hydrogen Europe, hailed the recently announced legislation as a “turning point for accelerating the European hydrogen economy.” He referred to the initial outline of the highly anticipated Hydrogen Bank as the “icing on the cake” on an important day for European hydrogen. Chatzimarkakis expressed enthusiasm for ongoing discussions with policymakers, aiming to establish Europe as the global leader in hydrogen for years to come.


European Commission Approves €170M State Aid Scheme for Renewable Hydrogen Production in Denmark


The proposed Net-Zero Industry Act will now be discussed and agreed upon by the European Parliament and the Council of the European Union before adoption and entry into force. The Act is a crucial step in achieving the EU’s climate and energy goals and reinforcing Europe’s position as a leader in the clean energy transition.




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