The European “green” hydrogen industry is calling on the EU to introduce “Made in Europe” requirements for state spending in this sector, Reuters reports.
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Company executives warn that without support for rapid expansion, European manufacturers risk being displaced by Chinese competitors.
Last year was tough for the industry. Many projects were canceled or postponed, with high European costs for energy carriers and cheaper hydrogen based on fossil fuels, accounting for 90% of the region’s industrial use.
Kim Hede-gaard, CEO of the Danish engineering company Topsoe’s Power-to-X, told the agency that manufacturers support the EU’s plans for “Made in Europe” rules for the procurement of state-funded electrolyzers. As an example, he cited solar panels, most of whose production Europe lost in the 2000s, yielding to China and making the region highly dependent on imports.
The “Made in Europe” proposal project covered electrolyzers. These plans face resistance from some governments and companies, with ongoing discussions on which technologies to include and whether the deadline should apply to non-member countries.
Haakon Volldal, CEO of the Norwegian electrolyzer manufacturer Nel Hydrogen, said European firms are missing out on opportunities to participate in large-scale projects similar to those being implemented in China. State contracts could help them open up.
European Investment Bank President Nadia Calviño singled out electrolyzers and wind energy as low-dependency sectors where Europe can still stay ahead. This will require constant investments in EU value chains, she noted in a letter ahead of the EU leaders’ competitiveness meeting.
China already has 60% of the world’s electrolyzer production capacity. According to data from the Oxford Institute for Energy Studies, European companies still dominate the domestic market, accounting for over 80% of project sales in the region from 2022.
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