Hydrogen Technology: Lessons from the EU

By Saya Mueller, University of California—Los Angeles

Source: Wikimedia Commons

Introduction

With questions around a sustainable future constantly hanging in the air, the US may look to take a page out of the EU’s book in hydrogen power.

The European Union is accelerating its push to cut greenhouse gas emissions by at least 55% by 2030, part of a broader plan to reach climate neutrality by 2050. To meet these targets, the EU has ramped up investments in clean technologies and sustainable infrastructure, aiming to transform its energy and industrial systems.

European Endeavors: Hy2Tech

A major pillar of this effort is Hy2Tech, created under the Important Projects of Common European Interest (IPCEI) framework. The IPCEI system enables EU member states to direct public funding into large-scale, cross-border innovation projects in strategic sectors such as hydrogen, batteries, and microelectronics, all of which are areas where private financing alone has not been sufficient to close market gaps.

Approved in 2022, Hy2Tech links 35 companies across 15 EU member states. The initiative supports 41 projects covering all stages of the hydrogen value chain. These efforts span hydrogen production, storage, transportation, decarbonization technologies, and end-use applications, with a strong emphasis on scalability and standardization to ensure hydrogen systems are both cost-effective and interoperable across the continent.

Participants range from major industrial players to emerging startups. The program is backed by up to €54 billion in public funding and is expected to leverage an additional €9 billion in private investments. According to the European Commission, Hy2Tech could generate up to 20,000 direct jobs as the hydrogen sector expands.

The automotive sector has also made strides, with companies like Mercedes-Benz signing a binding agreement for green steel made in a Sweden-based, hydrogen-powered iron and steel plant.

Several projects illustrate the initiative’s breadth. Genvia, a joint venture supported by Hy2Tech, has received €32 million for its work on high-temperature reversible solid oxide electrolyzers, technology aimed at decarbonizing cement and steel production. Other efforts include John Cockerill’s scale-up of alkaline electrolyser manufacturing and Faurecia’s development of lightweight hydrogen storage systems for commercial and heavy-duty vehicles. Together, these initiatives highlight the EU’s push for interoperable hydrogen standards.

Pushback in the U.S.

Although the EU has accelerated its innovation in the hydrogen sector, the US lags in advancements.

The US Hydrogen Program Plan was updated in 2024, citing their efforts to merge multiple offices within the Department of Energy to align with a hydrogen-forward future. Their hydrogen objectives echo the EU’s climate neutrality goals, with a push to achieve a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050.

That being said, the US faces regulatory and funding challenges to roll out its multi-year plans.

For one, the federal government cancelled $7.56 billion in grants that supported hundreds of clean energy projects in 16 states on October 1st. The largest cut within the overall reductions was $1.2 billion for California’s project to develop clean hydrogen, an initiative known as the Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES.

However, regardless of such shortcomings, the US’s global standing gives it the chance to delve in.

Strengths of the U.S.

A recent study published by the Center of Global Energy Policy in Columbia highlighted feasible solutions on federal, state, and private-sector levels (Papapolyzou & Corbeau, 2024). Two federal options – pay-as-bid auctions and contracts for difference (CfD) auctions – have already been implemented globally, with potential profitability in a US setting.

Green steel for cars and tax credits for hydrogen endeavors in industries where decarbonization is notoriously hard to implement are also on the agenda, with state-level initiatives already underway.

With Hy2Tech as a blueprint for international collaboration, the US can expand to intercontinental lengths as well. Perhaps the EU’s next hydrogen venture will have ties to the US as well.

Above all, regardless of the shortcomings prevalent in the US today, we must as a whole acknowledge the necessity of prioritizing a sustainable future.

Halfhearted attempts at solar energy and wind power have become a thing of the past; geothermal heating, hydrogen technology, and potential headway in nuclear power dominate headlines around the world. It’s about time the US follows suit.

References

Papapolyzou, D., & Corbeau, A.-S. (2024, November 7). The US has a hydrogen demand problem – Despite generous incentives. Center on Global Energy Policy, Columbia University. https://www.energypolicy.columbia.edu/the-us-has-a-hydrogen-demand-problem-despite-generous-incentives/