Realized green hydrogen demand is falling short of policy targets: today, less than 1% of EU hydrogen originates from green sources and only 7% of announced capacity has been completed on schedule. Beyond cost competitiveness, green hydrogen uptake depends on demand-side interdependencies linked to shared infrastructure, supply chains and knowledge exchange. Yet, aside from sectoral mandates for the aviation, shipping and industrial hydrogen sectors, EU policy instruments remain primarily supply-side. EU Hydrogen Valleys, a place-based policy designed to enable regional ecosystems, gives limited consideration to demand (existing valleys target 0.2 Mt demand or 1% of the EU’s 2030 goal). European Hydrogen Bank auctions likewise do not account for demand-side linkages. Current policy instruments are falling short of expectations: amid demand uncertainties, the 2025 European Hydrogen Bank auction awarded only 23% of its €1.2 billion budget. Accelerating hydrogen uptake requires updating and extending these policies based on an improved understanding of demand-side interdependencies.
