The European Union has launched the second Projects of Common Interest list, which includes more than 100 hydrogen infrastructure projects that would enjoy fast-tracking and multi-billion-euro investment. This marked the doubling of hydrogen projects from the preceding Projects of Common Interest list, which indicates the EU’s dedication to making the region the hydrogen capital of the world.
Commission announces 100 hydrogen projects for rapid development
The latest list of PCI and PMI projects published by the European Commission marks an important growth in the hydrogen infrastructure support base. These projects involve the creation of hydrogen infrastructure such as hydrogen transport networks, hydrogen storage infrastructure, and hydrogen electrolyzers. This status offers important advantages, such as simplified procedural approval and priority access to EU-level financial tools.
Italian major Snam appears as one of the most significant winners, as various hydrogen transport projects across the borders receive state acknowledgement. The projects initiated by the company are based on connecting hydrogen production hubs to the major consumers of the same in various European nations. This approach helps the company benefit from the increasing use of clean hydrogen in various sectors such as steel, chemicals, and electricity.
Projects must still secure approval from Parliament and Council
The hydrogen infrastructure schemes are subjected to the last stage of approval from the European Parliament and the Council of the EU before they are officially categorized as such. This aspect of the legislation makes sure that the Parliament exercises control over the investment in major energy infrastructure. This process of approval would take additional months.
Critics warn of massive waste on fossil gas-based hydrogen
There are grave concerns raised by environmental groups regarding the content of the hydrogen project scheme, as it appears that some 75% of the hydrogen schemes involving the use of the pipe network are fossil gas-based. This criticism was raised by CEE Bankwatch Network, as it perceives that such projects would merely increase the dependence of the EU on natural gas and not truly promote decarbonization.
According to an analysis by Food and Water Action, the total investment for the hydrogen schemes proposed exceeds £80 billion, not including the vast subsidies that would be necessary to drive market demand. More than 90 percent of the hydrogen proposed piping schemes are promoted by members of ENTSO-G, which stands for Europe’s fossil gas transmission lobby group.
“Clean hydrogen costs an eye-watering amount and will be in short supply for the forseeable future. Nonetheless, it needs to be saved for important uses that do not currently have other options for decarbonisation,” stated David Cebon, Professor of Mechanical Engineering at the University of Cambridge.
Several experts question the feasibility of hydrogen networks
Leading hydrogen experts question the inherent assumptions of the extensive investment plan promoted by the EU to construct such a huge number of hydrogen pipes, proposing that the use of clean hydrogen ought to occur on-site. Paul Martin, Chem. Eng. and creator of the Hydrogen Science Coalition, contends that most of the proposed hydrogen pipes are actually going to transport natural gas, as the development of hydrogen appears to be proceeding slowly.
Key investment concerns
- Total project costs exceed £80 billion
- 75% of pipelines are designed for fossil gas-based hydrogen
- Limited transparency in the selection process
- Questionable demand projections for clean hydrogen
The EU hydrogen infrastructure project marks the moment of truth for the European energy sector, where the aspirations regarding industry are matched by the needs of the environment. Although the proponents of the project believe that such investments would make the EU the leading global player in the hydrogen industry, opponents point out the vast costs that would be incurred by society for the creation of such infrastructure.
