News
04/02/25
‘Now more than ever’ for European H2
Trump's return to office and uncertainty over climate policy in the US could
catalyse H2 growth in Europe, strengthening its decarbonisation drive Paris, 4
February (Argus) — Donald Trump's return to the White House last month has
brought further uncertainty for the US hydrogen sector. But European industry
participants and policymakers have been eager to demonstrate a ‘now more than
ever' mentality in the face of a US policy shift. Hydrogen industry events
around the world over the past year have been characterised by a rather gloomy
mood, as companies scale back investment, projects are cancelled or delayed, and
regulations and subsidy mechanisms fall further behind schedule. Trump's plans
to roll back climate legislation have added to the uncertainty , while a feeling
persists that "climate is not a priority" because of the global political
situation, French hydrogen investment firm Hy24's chief investment officer, Amir
Sharifi, acknowledged at last week's Hyvolution conference in Paris. But Sharifi
noted that more than being merely a decarbonisation tool, "hydrogen is a lever
for energy and food security", which strengthens its case. In any event, the
"renewables trend is far stronger than Trump" and much larger than the US, Hy24
chief executive Pierre-Etienne Franc said. He noted that other regions have "a
vested interest" in advancing decarbonisation goals and pointed to opportunities
for countries in South America and Africa, but also for China as the world's
largest manufacturer of clean energy technology. For the EU, Trump's return
could present an opportunity to strengthen its leadership in the clean energy
agenda. Europe takes "climate very seriously", the European Commission's
principal advisor at the directorate-general for energy, Tudor Constantinescu,
stressed at the event, claiming that Brussels' commitment to strict regulations
had made Europe the world's leading hydrogen market. And at Spanish gas system
transmission operator Enagas' Hydrogen Day on 29 January, Spain's prime
minister, Pedro Sanchez, pledged to go "green, baby, green" — a reference to
Trump's "drill, baby, drill" mantra. The EU's Competitiveness Compass, published
the same day, was widely praised by delegates at the Paris event, even as it
makes few direct references to hydrogen. The document outlines a roadmap towards
simplifying regulations, permitting rules and state aid to strengthen
decarbonisation and industrialisation efforts. It is to be followed soon by more
detailed action plans for key energy-intensive sectors, such as steel and
chemicals production. The EU is also set to refine its approach towards the
hydrogen sector specifically, after meeting participants in January, industry
group Hydrogen Europe chief executive Jorgo Chatzimarkakis said. Brussels will
look to create "lead markets" for key offtake sectors, such as refineries, steel
and fertilisers, he said. Still, delegates were clear that major challenges
persist. With production costs for renewable hydrogen still many times higher
than for conventional supply, project financing remains hard to come by, they
said. For many firms, "there is now less money than before for [the] energy
transition", which makes smart use of resources all the more important, French
industrial gas firm Air Liquide's hydrogen energy world business line
vice-president, Erwin Penfornis, said. But some delegates pointed to silver
linings on the cost front, too. Sharifi said a downward trend in interest rates
is starting to take shape, potentially paving the way towards improved financing
conditions in the coming months. Send comments and request more information at
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