EU Tightens Hydrogen Funding Rules for Local Firms

The European Commission is tightening regulations for green hydrogen funding to support local industries amid concerns over cheap Chinese imports, as announced by Climate Commissioner Wopke Hoekstra. This month, the EU will launch a new funding round aimed at fostering a domestic hydrogen production industry, while also imposing tariffs on Chinese electric vehicles that are seen as benefiting from excessive subsidies. Hoekstra confirmed that the next funding auction will include explicit criteria to develop European electrolyser supply chains, emphasizing the need for cybersecurity and safety assurances for companies seeking support. Although the specifics of the new rules remain under development, it is uncertain whether they will outright ban projects using foreign equipment from receiving EU subsidies. Previous funding rounds have faced criticism due to the prevalence of low-cost bids linked to cheaper Chinese products. The Commission's latest review indicated that approximately a quarter of projects planned to source electrolysers externally, prompting the call for protective measures for European manufacturers.