Clean Hydrogen Letter Supported by 33 of Europe’s Biggest Industry Associations and Companies

Reaching climate neutrality by 2050 in the EU will require the right regulatory framework for scaling up clean technologies to reach deeper emission cuts. Clean hydrogen will play a key role in this process and can make a real difference as a clean energy vector and clean feedstock, particularly for energy-intensive industries, heating, transport and in power generation.


To Executive Vice-President Frans Timmermans

Also sent to Commission President von der Leyen, Executive Vice-President Dombrovskis, Executive VicePresident Vestager, Commissioner Simson, Commissioner Breton, Commissioner Vălean, Director-General Juul Jørgensen, Director-General Petriccione, Director-General Jorna, MEP Bușoi, MEP Krasnodębski, MEP Petersen, MEP Toia, MEP Gálvez Muñoz, MEP Canfin, MEP Eickhout, MEP Luena, MEP Motreanu, MEP Hazekamp, President of the European Council Michel, Ambassador Clauss, Ambassador Léglise-Costa, Ambassador Andrassy, Ambassador Szech-Koundouros, Ambassador Dubreuil, Ambassador Štefanić

Subject: Wide industry coalition call for a Hydrogen Strategy inclusive of all clean hydrogen
pathways

Brussels, 24 June 2020

Dear Vice-President Timmermans,

Reaching climate neutrality by 2050 in the EU will require the right regulatory framework for scaling up clean technologies to reach deeper emission cuts. Clean hydrogen will play a key role in this process and can make a real difference as a clean energy vector and clean feedstock, particularly for energyintensive industries, heating, transport and in power generation.

As we firmly believe that Europe’s future energy system needs to take a technology-neutral approach to drive the most cost-efficient and cost-effective decarbonization, we support a strategy which comprises all clean hydrogen production pathways, including electrolysis, methane pyrolysis and natural gas reforming in combination with carbon capture, utilisation and storage (CCUS). The clean hydrogen economy could provide up to 5.4 million jobs by 2050*, and retain existing high-skilled jobs in EU energy-intensive industries. For this to materialise, an inclusive approach to clean hydrogen is necessary.

Today, hydrogen produced from natural gas delivers the lion’s share of the EU’s industrial hydrogen, while hydrogen from clean electricity is produced in much smaller volumes**. We fully recognize and support the growth in hydrogen from clean electricity, which will become a significant part of the hydrogen mix in 2050, while market design will need to ensure that the requirements of different consumer groups are met. However, this hydrogen alone will not be enough to develop a commercial market for clean hydrogen in the next decade. It will take time to scale up, which is why we need to deploy all scalable, enabling technologies starting today.

Hydrogen from natural gas with carbon management technologies such as CCUS and pyrolysis will be needed to create the necessary scale and make hydrogen applications cost-competitive. Today, it is 2 to 5 times cheaper than renewable hydrogen and its deployment will help reduce the latter’s cost***. Furthermore, the flexibility and resilience provided by the gas system significantly reduce investments needed and facilitate the integration of large-scale variable renewable energy.

In order to create these European opportunities in the short-, mid-, and long-term both for economic growth and decarbonization, it is of key importance for the EU to invest in all hydrogen technologies to unlock the nascent hydrogen market, while supporting the development of EU hydrogen ecosystems. We thus urge the EU to create a strong policy framework in support of all forms of clean hydrogen, which would ensure the competitiveness of Europe’s industrial sector and secure highquality jobs for Europeans.

Yours sincerely,

Annex: List of signatories

  1. Aker Solutions
  2. Cerame-Unie – The European Ceramic Industry Association
  3. ENI
  4. ENTSOG – European Network of Transmission System Operators for Gas
  5. Equinor
  6. EUGINE – European Engine Power Plants Association
  7. Eurofer – The European Steel Association
  8. Eurogas
  9. EUTurbines
  10. ExxonMobil
  11. Fuels Europe
  12. GasNaturally
  13. GasTerra
  14. General Electric
  15. Gas Infrastructure Europe
  16. Global CCS Institute
  17. International Association of Drilling Contractors
  18. IGU – International Gas Union
  19. Industri Energi
  20. IOGP – International Association of Oil and Gas Producers
  21. Marcogaz – Technical Association of the European Natural Gas Industry
  22. Mitsubishi Heavy Industries
  23. Mitsubishi Hitachi Power Systems Europe
  24. MOL Group
  25. Neptune Energy
  26. NOGEPA – Netherlands Oil and Gas Exploration and Production Association
  27. Norwegian Oil and Gas
  28. Oil & Gas UK
  29. Polish Oil & Gas Company
  30. Romanian Federation of Associations of Energy Utility (ACUE)
  31. UNIPER
  32. Wintershall Dea
  33. Zukunft Erdgas

*FCH JU (2019): Hydrogen Roadmap Europe. Available from: https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf
**https://www.iea.org/reports/the-future-of-hydrogen, June 2019.
***Ibid.

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