Sun. Jun 23rd, 2024

The European Commission announced a new step in the development of the EU hydrogen market

Natasha Kumar By Natasha Kumar Jun3,2024

European Commission announced a new step in the development of the EU hydrogen market

The European Commission announced on Monday a new step in the development of the EU hydrogen market – launch of work on a pilot mechanism within the framework of the recently approved package of decarbonized gases and hydrogen, reports “Interfax-Ukraine”.

“Hydrogen is a strategic part of the EU's transition to clean energy. This is vital not only to achieving our zero emissions goals, but also to maintaining our competitiveness and maintaining Europe's position as a leading global economy. By facilitating the establishment of contacts between suppliers and consumers, we will make a decisive contribution to accelerating the development of Europe's nascent hydrogen sector”, – said Marosh Shevchovych, Executive Deputy Chairman of the EC.

According to Kadri Simson, Member of the EC for Energy, this mechanism plays a crucial role in launching a functioning European hydrogen market. “So far, too few projects are approaching final investment decisions, and too few buyers have signed contracts to switch to hydrogen. This mechanism will help us to better understand and determine where the demand and supply of hydrogen arise,”, – the European Commission quotes the words of Simson.

As explained in the document, the new mechanism is aimed at accelerating investments by providing a clearer picture of the market situation for both buyers and suppliers, as well as facilitating contacts between them. It will operate for five years and will be part of the European Hydrogen Bank.

The Hydrogen Pilot Facility will collect, process and provide access to information on supply and demand for renewable low-carbon hydrogen and its derivatives, enabling European buyers to compete as with European and foreign suppliers.

The mechanism will collect and process market data on the dynamics of hydrogen flows and prices. As reported in the European Commission, the process of finding a service provider for the development of an IT platform for managing the pilot mechanism has begun. The commission plans to sign the contract by the end of the year to begin work by mid-2025.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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