Jul 4, 2025
The EU launches a hydrogen initiative to promote market adoption.
The European Commission has initiated the Hydrogen Mechanism as part of the EU Energy and Raw Materials Platform to aid the market growth of renewable and low-carbon hydrogen and its derivatives, such as ammonia, methanol, and electro-based sustainable aviation fuel (e-SAF).
The online platform will feature various mechanisms for hydrogen, raw materials, natural gas, and biomethane, with the potential to include additional products in the future. The Hydrogen Mechanism is the first to launch, and stakeholders can now register and subscribe, with the first demand-supply matching expected in September 2025.
Dan Jørgensen, Commissioner for Energy and Housing, remarked that the new Hydrogen Mechanism enables European industries to take advantage of competitive opportunities while enhancing supply security and decarbonization. This marks the start of broader efforts under the EU Energy and Raw Materials Platform, demonstrating Europe's proactive approach to shaping its future.
Hydrogen is anticipated to play a crucial role in decarbonizing challenging industries and is deemed essential for the EU’s climate neutrality goal by 2050 and for reducing reliance on Russian fossil fuels by 2027.
According to the regulation concerning the internal markets for renewable gas, natural gas, and hydrogen, the European Commission is tasked with establishing a mechanism under the European Hydrogen Bank to promote hydrogen market development until the end of 2029.
The Hydrogen Mechanism aims to connect and aggregate demand and supply, identify infrastructure development needs, and provide access to financial information.
Additionally, in 2025, the EU presented the Clean Industrial Deal, a strategy to transform decarbonization into a growth driver for European industries by promoting renewable energy, along with the Commission's announcement of over €250 million in grants from the Connecting Europe Facility (CEF) for 21 hydrogen infrastructure development studies.
Furthermore, the Commission has reached a Common Understanding with the UK to foster cooperation on new energy technologies like hydrogen and has signed agreements with the European Investment Bank (EIB), KfW Development Bank, Corporación de Fomento de la Producción (CORFO), and the Chilean Ministry of Energy to support Chile’s renewable hydrogen sector.
The online platform will feature various mechanisms for hydrogen, raw materials, natural gas, and biomethane, with the potential to include additional products in the future. The Hydrogen Mechanism is the first to launch, and stakeholders can now register and subscribe, with the first demand-supply matching expected in September 2025.
Dan Jørgensen, Commissioner for Energy and Housing, remarked that the new Hydrogen Mechanism enables European industries to take advantage of competitive opportunities while enhancing supply security and decarbonization. This marks the start of broader efforts under the EU Energy and Raw Materials Platform, demonstrating Europe's proactive approach to shaping its future.
Hydrogen is anticipated to play a crucial role in decarbonizing challenging industries and is deemed essential for the EU’s climate neutrality goal by 2050 and for reducing reliance on Russian fossil fuels by 2027.
According to the regulation concerning the internal markets for renewable gas, natural gas, and hydrogen, the European Commission is tasked with establishing a mechanism under the European Hydrogen Bank to promote hydrogen market development until the end of 2029.
The Hydrogen Mechanism aims to connect and aggregate demand and supply, identify infrastructure development needs, and provide access to financial information.
Additionally, in 2025, the EU presented the Clean Industrial Deal, a strategy to transform decarbonization into a growth driver for European industries by promoting renewable energy, along with the Commission's announcement of over €250 million in grants from the Connecting Europe Facility (CEF) for 21 hydrogen infrastructure development studies.
Furthermore, the Commission has reached a Common Understanding with the UK to foster cooperation on new energy technologies like hydrogen and has signed agreements with the European Investment Bank (EIB), KfW Development Bank, Corporación de Fomento de la Producción (CORFO), and the Chilean Ministry of Energy to support Chile’s renewable hydrogen sector.