Ramping up electrolyzer manufacturing in EU to boost renewable hydrogen production
The European Commission, Hydrogen Europe and 20 European companies including Topsoe signed a declaration on increasing electrolyzer manufacturing capacity in the EU.
The declaration backs EU´s new target to double the previous EU target to 10 million tons of annual domestic production of renewable hydrogen plus an additional 10 million tons of annual hydrogen imports.
“Power-to-X and energy independence will not happen in the EU unless we ramp up the manufacturing of electrolyzers in the EU as well,” said Roeland Baan, CEO of Topsoe. “Therefore, I am extremely happy to see commitment from both the EU and industry to do exactly that.”
In Brussels, the industry committed to have 10 times more combined annual electrolyzer manufacturing capacity in the EU by 2025 than today. In return, the EU committed to ensure a supporting regulatory framework and EU funds.
”If the EU wants to be independent of Russian gas, then we need to produce 10 million tons of renewable hydrogen in the EU every year,” Baan said. “Manufacturing of electrolyzers must therefore be scaled up significantly. This represent both an unprecedented challenge and a significant opportunity for Topsoe.”
The joint declaration features three pillars:
Ensuring a supportive regulatory framework through adequate permitting rules and committing to stand up for the ambitious targets included in the revision of the Renewable Energy Directive and the Alternative Fuels Infrastructure Regulation Proposal.
Facilitating adequate access to finance by revamping the Innovation Fund to be inclusive of innovative zero and low-carbon equipment manufacturing such as electrolyzers. In addition, accessing to state aid to derisk investments, and put in place carbon contracts for difference to further incentivize large-scale deployment of clean-hydrogen technologies.
Integrating supply chains by way of expanding research and development and ensuring the availability of required components and materials in a timely and affordable manner.
Under the joint declaration, Europe’s leading electrolyzer manufacturers agreed to increase their manufacturing capacity to reach 17.5 gigawatts by 2025 and to further increase capacity by 2030 in line with projected demand for renewable hydrogen.