EU tightens hydrogen subsidy rules amid Chinese competition concerns

September 4, 2024 |

In the Netherlands, Reuters reports the European Commission is tightening regulations to ensure EU hydrogen subsidies prioritize European companies, responding to concerns about competition from cheaper Chinese imports. This move coincides with the upcoming launch of the next round of funding for green hydrogen projects, aiming to bolster Europe’s domestic industry.

EU climate policy chief Wopke Hoekstra, speaking at Eindhoven University on Monday, announced that the new funding round will include criteria designed to strengthen European electrolyser supply chains, crucial for hydrogen production. The criteria could require work to be performed within Europe and limit reliance on non-EU suppliers, supporting local manufacturers struggling to compete with lower-cost Chinese alternatives.

Earlier this year, the EU allocated €720 million to seven hydrogen projects across Europe. However, concerns arose when industry sources revealed that some successful bids planned to use cheaper Chinese equipment, undercutting local suppliers. These developments have prompted the EU to refine its approach, aiming to ensure that future projects more directly benefit European companies.

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Category: Policy

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