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EU to Enforce Stricter Criteria for Hydrogen Projects Amid Chinese Import Concerns

The EU plans stricter funding rules for hydrogen projects to favour European companies, amid rising concerns over cheaper Chinese imports and cybersecurity issues.

September 05, 2024. By EI News Network

The European Commission is working on stricter rules to ensure that EU funding for hydrogen projects primarily benefits European companies, following concerns raised by local industries about cheap Chinese imports. This announcement comes as the EU prepares to launch its next round of funding for green hydrogen projects, aimed at fostering a domestic industry to produce the fuel.

As per media reports, the EU is also intensifying its stance on green technologies imported from China, recently imposing tariffs on electric vehicles that it claims benefit from excessive subsidies. European electrolyser manufacturers, who produce machines that use electricity to split water and produce hydrogen, have expressed concerns over their ability to compete with cheaper Chinese counterparts. They have called for the EU to include criteria in its Hydrogen Bank funding scheme that would favor local companies. In response, EU climate commissioner Wopke Hoekstra stated that the EU's executive body is working on new rules for the next funding auction to strengthen European electrolyser supply chains.

Hoekstra indicated that upcoming subsidy criteria might require more work to be done within Europe and limit reliance on non-EU countries. He emphasised that companies would only receive support if European cybersecurity, safety, and data protection could be ensured. The changes are part of a broader effort to prevent European data from ending up in the hands of non-EU governments.

Earlier this year, the EU allocated EUR 720 million to seven hydrogen projects. At the time, industry sources noted that the low-priced bids from some successful projects suggested the use of cheaper Chinese equipment. A Commission document revealed that around a quarter of the projects that bid for funding planned to source their electrolysers from outside the EU, while nearly another quarter intended to use a mix of EU and non-EU equipment. Hoekstra clarified that while the EU does not seek to sever ties with China, it will intervene where it perceives competition to be unfair.

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Policies & Regulations

European Union

European cybersecurity

Hydrogen Bank funding scheme

European electrolyser manufacturers

green hydrogen business

Chinese imports