Pillars of a European Hydrogen Import Strategy

According to cep energy expert André Wolf, the primary objective should be to avoid creating new one-sided dependencies on energy supplies. Targeted support for hydrogen transport infrastructure in third countries could significantly increase the number of potential supplier countries. This is particularly beneficial in geographically remote regions with high potential for renewable energy and stable institutional frameworks. The study’s model calculations show that globally active infrastructure support prevents long-term market dominance by individual regions of origin and leads to a diversified mix of trading partners.

The study also calls for the use of competitive dual tenders as a key funding instrument. “To bridge the initially high import costs and the limited willingness of European industry to pay, the German H2Global model should be extended to the whole of the EU,” Wolf argues. In doing so, the state bridges the price gap between the still high costs of climate-friendly hydrogen and the lower price that German industrial companies are prepared to pay.

State investment guarantees against political risks in the countries of origin can, in addition, facilitate private infrastructure investment in third countries and reduce the need for direct subsidies for imports. Wolf warns, however, that an uncoordinated use of such guarantees could increase country risks in the German import portfolio. He therefore considers binding criteria for the geographical diversification of guarantee allocation, as well as more intensive diplomatic cooperation with the countries of origin, to be indispensable.

“Europe does not need a subsidy race, but a strategically coordinated mix of instruments.” This is the study’s conclusion. “Only when competition, targeted infrastructure support and political risk hedging work in tandem can the EU establish a cost-effective and resilient hydrogen supply.”