Hydrogen and its derivatives can play an important role for sectors that are hard to decarbonise and contribute to the EU reaching climate neutrality by 2050. The mechanism covers renewable or low-carbon hydrogen and derivatives such as ammonia, methanol, certain aviation fuels (eSAF) and eMethane.
The mechanism offers a number of advantages
- It empowers buyers and sellers by connecting future demand and supply and helps mitigate market uncertainty
- It makes the hydrogen market more transparent by providing European and international companies with more visibility on potential commercial partners
- It supports the development of hydrogen infrastructure and access to financial solutions
- It promotes market engagement and unlocks new business opportunities as it brings buyers and sellers together in an open, transparent environment
Commissioner for energy and housing, Dan Jørgensen says: 'Today’s call marks a new chapter in the EU’s support to the European industry and its competitive decarbonisation through renewable and low-carbon hydrogen. By connecting buyers and sellers, this hydrogen mechanism will help us create a cleaner and competitive future for our energy and our economy.'
