EU's green hydrogen goals deemed unrealistic by European Court of Auditors

The European Union's goals to produce and import green hydrogen fuel are unrealistic and unlikely to be met despite billions of euros in funding, the European Court of Auditors (ECA) said on Wednesday.

The European Commission has set out targets to produce up to 10 million tonnes of renewable hydrogen by 2030 and import a further 10 million tonnes. While not binding, the goals are part of the bloc's plans to end its reliance on Russian energy imports.

In a report, the ECA said those targets were based on "political will" rather than robust analysis, and the EU is far off track to meet them.

Another target set out by Brussels, to install at least 40 gigawatts of renewable hydrogen electrolysers by 2030, was an idea suggested in documents by a hydrogen lobby group, the auditors found.

Despite EU funding of 18.8 billion euros ($20.5 billion)being made available for green hydrogen projects, projects that would add less than 5GW of production capacity by 2030 have reached an advanced stage, although projects totalling around 50GW of capacity are also at an earlier assessment stage.

Green hydrogen is deemed crucial to meet the EU's climate change commitments. It is produced by using renewable energy to split water - a process that produces no CO2 emissions - and the EU is banking on it to decarbonise industrial processes such as steel and fertiliser manufacturing.

"The EU's industrial policy on renewable hydrogen needs a reality check," said auditor Stef Blok, who led the report.

The ECA said the European Commission should devise a more targeted approach to allocating scarce EU funding, and update its policies to incentivise hydrogen projects.

A Commission spokesperson said it took note of the report, and acknowledged the hydrogen market was taking shape "gradually".

"Our work is far from finished. We now have to accelerate the deployment and uptake of renewable and low-carbon hydrogen in Europe," the spokesperson said.