Hydrogen – infrastructure, development needs, financing, use and limits

Key points

The EESC:

• recognises the importance of a rapid roll-out of renewable and low-carbon hydrogen for the future energy system, as well as for the social and economic well-being of the EU. However, the use of hydrogen must, in a first step, be targeted to hard-to-electrify sectors and as a means of energy storage;
• stresses that primarily renewable hydrogen, as defined by Commission Delegated Regulation (EU) 2023/1184, should be eligible for public funding. However, especially in the transitional phase, other forms of renewable and low-carbon hydrogen will need to be used;
• points out that apart from ensuring ecological criteria, certification schemes must also guarantee social standards. These standards must include fair and safe working conditions and compliance with labour, social and trade union rights;
• realizes the importance of pipeline infrastructure for the rapid roll-out of hydrogen. In order to do this, it will be important to efficiently allocate available funds. This will require smart and integrated planning and a regulatory regime that enables the necessary investments while promoting environmental sustainability and protecting network users;
• underlines that employees will need to receive appropriate training and the workforce will need to be maintained by offering good working conditions. This should enable gas network operators to operate hydrogen networks and generate synergies;
• indicates the need to avoid cross-subsidisation of the hydrogen grids by gas grid users, especially important since the future users of hydrogen grids differ from today’s gas grid users. It is important to apply the user-pays principle and to ensure that hydrogen infrastructure is primarily financed by its users. In the early stages of roll-out, government funding could complement the user-pays-based financing via network tariffs.