What's Happening?
The European green hydrogen industry is urging the European Union to implement 'made in Europe' requirements for public spending in the sector. This call comes as European producers face increasing competition from Chinese companies. The industry has
experienced setbacks due to high energy costs in Europe and the prevalence of cheaper, fossil fuel-based hydrogen. Executives like Kim Hedegaard from Topsoe support the EU's plans for state-funded electrolyzer procurement to include 'made in Europe' rules. The proposal aims to prevent a repeat of the solar panel industry scenario, where Europe lost significant production to China. However, the proposal faces resistance from some governments and companies, with debates ongoing about which technologies should be covered.
Why It's Important?
The push for 'made in Europe' requirements is crucial for maintaining the competitiveness of the European green hydrogen industry. Without such measures, European companies risk losing market share to Chinese competitors, which could lead to increased dependency on imports. The situation mirrors past experiences in the solar panel industry, where Europe became heavily reliant on Chinese imports. Ensuring local production could bolster the EU's energy independence and support its climate goals. Additionally, maintaining a strong domestic industry could provide economic benefits, including job creation and technological innovation within the EU.
What's Next?
The European Investment Bank has highlighted the importance of continued investment in EU value chains, particularly in sectors like electrolysers and wind energy. The EU leaders are expected to discuss competitiveness strategies, which may include decisions on the 'made in Europe' proposal. The outcome of these discussions could significantly impact the future of the green hydrogen industry in Europe. Stakeholders, including governments and industry leaders, will likely continue to negotiate the specifics of the proposal, balancing national interests with the broader goal of strengthening the EU's industrial base.
