On July 9, 2024 the Spanish government has approved a budget of  €794 mln for 7 green regiona hydrogen (H₂) projects, Energy Minister Teresa Ribera with an overall electrolysis capacity of 652 megawatts (MW). The projects will  faciliutate investments of more than €6 B in their lifespan, according to the minister and include five so-called H₂ valleys in Spain, which are large industrial hubs that integrate green H₂ production and its use, such as in producing fertilizers or powering refineries.

The main funding will go to Spain’s H2USE IPCEI projects:  40% of the funds will go to two projects managed by oil company Repsol, each with an electrolysis capacity of 100 MW and a third, or €242 MM, will go to Spanish utility Iberdrola’s projects in Puertollano in south-central Spain to develop 220 MW of electrolysis capacity. The company, Europe’s largest utility, in March scaled back its green H₂ ambitions by almost two-thirds after delays in getting funding for some projects it had announced. Spain’s draft climate strategy sets a 2030 target of 11 gigawatts (GW) for electrolyzers, up from a previous 4 GW.

The European Commission on May 28, 2024 has approved, under EU State aid rules, a fourth Important Project of Common European Interest (‘IPCEI’) to support research, innovation and the first industrial deployment in the hydrogen value chain. The project contributes to the EU’s target of 90% reduction of emissions from the mobility and transport sectors, in order for the EU to become climate-neutral by 2050. By fostering the use of hydrogen as a fuel, it will also help achieve the objectives of the European Green Deal, the EU Hydrogen Strategy and the Sustainable and Smart Mobility Strategy.

The project, called ‘IPCEI Hy2Move‘, was jointly prepared and notified by seven Member States: Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain.

The Member States will provide up to €1.4 billion in public funding, which is expected to unlock additional €3.3 billion in private investments. As part of this IPCEI, 11 companies with activities in one or more Member States, including small and medium-sized enterprises (‘SMEs’) and start-ups, will undertake 13 innovative projects.

IPCEI Hy2Move will cover a wide part of the hydrogen technology value chain, by supporting the development of a set of technological innovations, including:

• The development of mobility and transport applications to integrate hydrogen technologies in transport means (road, maritime and aviation). This includes, for example, fuel cell vehicle platforms for use in buses and trucks.
• The development of high-performance fuel cell technologies, which use hydrogen to generate electricity with sufficient power to move ships and locomotives.
• The development of next generation on-board storage solutions for hydrogen. For the use in aircraft, lightweight, yet robust hydrogen tanks are necessary ensuring safety and efficiency in flight conditions.
• The development of technologies to produce hydrogen for mobility and transport applications, in particular for supplying hydrogen refuelling stations on-site with pressurised, 99.99% pure fuel-cell-grade hydrogen.

IPCEI Hy2Move complements the first three IPCEIs on the hydrogen value chain. The Commission approved

1. IPCEI ‘Hy2Tech’ on 15 July 2022, which focuses on the development of hydrogen technologies for end users, providing up to €5.4 billion in public funding, which is expected to unlock additional €8.8 billion in private investments. As part of this IPCEI, 35 companies with activities in one or more Member States, including small and medium-sized enterprises (‘SMEs’) and start-ups, will participate in 41 projects.
2. IPCEI ‘Hy2Use’ was approved on 21 September 2022, providing up to €5.2 billion in public funding, which is expected to unlock additional €7 billion in private investments. As part of this IPCEI, 29 companies with activities in one or more Member States, including small and medium-sized enterprises (‘SMEs’) and start-ups, will participate in 35 projects. H2Use focuses on hydrogen applications in the industrial sector.
3. IPCEI ‘Hy2Infra’, approved by the Commission on 15 February 2024, concerns infrastructure investments, which are not covered by the first two IPCEIs. Hy2Move focuses exclusively on specific challenges and objectives that arise for hydrogen technology in mobility and transport applications.

The completion of the overall IPCEI is expected by 2031, with timelines varying in function of the individual projects and the companies involved. Around 3,600 direct jobs are expected to be created, and many more indirect ones.

On June 25, 2024 the Commission published a Staff Working Document outlining the strategic priorities and actions that are currently ongoing or planned regarding the foreseen development of 50 Hydrogen Valleys in Europe by 2030:

• The Commission will support a ‘Hydrogen Valley Facility’ through the Clean Hydrogen Joint Undertaking, , to help early-stage Hydrogen Valleys mature to the point where they can start construction.
• Building on the recently relaunched European Hydrogen Observatory, a new Clean Hydrogen Knowledge Hub will provide stakeholders with the information they require, allowing for automated data analysis and reporting to support knowledge-based decision making.
• Following the recent revision of the Strategic Energy Technology (SET) Plan, the Commission will work closely with Member States and stakeholders to implement the Strategic Research and Innovation Agenda (SRIA) of the ERA Pilot on Green Hydrogen.
• The Commission has approved four successive waves of hydrogen Integrated Projects of Common European Interest (IPCEIs). Together, these initiatives aim to raise over EUR 43 billion from a blend of public and private funds, supporting more than 120 projects involving nearly 100 European companies.
• A European Hydrogen Academy has been launched in January 2024, with an EU contribution of EUR 3 million. The European Commission intends to transform it into a European Net-Zero Industry Academy as announced in the Net-Zero Industry Act, providing a broad portfolio of education, training and reskilling.
• The Commission will intensify the cooperation with international partners on clean hydrogen deployment and the development of hydrogen markets, in particular through the Clean Hydrogen Mission under Mission Innovation.
• The additional EUR 200 million invested by the Commission in the Clean Hydrogen Joint Undertaking is being used to boost the support to Hydrogen Valleys across Europe.

On June 17,2024, the same day when the EU powers were to be decided for the coming 4 years,  EU’s regional hydrogen power came together in a Brussels hotel ballroom looking for inspiration, partners and funding to build on the current 16 EU Hydrogen Valley (HV) projects to reach a REPower target of 50 valleys  in 2030. Although globally almost 100 HV are under development of which 70 in the EU, only 25% of  the HV have reached Final Investment Decision.

Roland Berger,  the inhouse consultant of the EU’s Clean Hydrogen Partnership, who developed the soon to be published Hydrogen Valley Roadmap, showed a  surprising lowering of the cost of hydrogen down from 6,4 to 6 euro/kg from 2021 to 2023 although costs are up from RE and electrolyzers.

A few examples of yet established and budiing HV’s were represented, in that order

HEAVENN First Hydrogen Valley Geerte de Jong – Programme manager, New Energy Coalition. Successes so far in generating local demand is the Inland Navigation Antonie hydrogen vessel and tiny houses. The local Groningen Airport, datacentres and gasturbines are expected to boost demand in the future.

Sines Energy Hub, Portugal Daniel McArthur – Chief Financial Officer, MadoquaPower2X, SINES Green ammonia project received 250 mln from first H2 Auction. In 2020 MoU was sigend between Netherlands and Portugal to ship low cost H2 to NL. 1670 MW and 1260 ktons per annum Front End Engineering Design decision still need to happen for 50mln of investments.

TRIERES   Konstantinos Chatzifotis – EU Affairs Manager, Motor Oil
Corinthia, Peloponnese Region, Greece, small hydrogen valley, 10 MW electroyser one bus and HRS in Akkita, 1500 tons of H2 per year combination of CHP, CEF Innovation fundin received. No FID yet.

AMBER • Grzegorz Jóźwiak – Director, Hydrogen and Synthetic Fuels, ORLEN S.A  Pomerania Region Valley, Poland

H2BE Hydrogen Valley, Belgium Cyril Harry – Head of Gas Asset Regulation & Analysis, Engie

BalticSeaH2 Jatta Jussila – CEO, CLIC Innovation
BalticSeaH2 25 mln funding total 33 mln 2023 – 2028  cross border Finland – Estonia managed by CLIC Innovation Gasgrid Finland, 20MW Harjavalta P2X plant should be operational in 2024, second and third in pipeline. Emphasized that Hydrogen Valleys are in fact CO2 Reduction Valleys and mentioned an interesting experience in including a CCU project at a waste incineneration plant of Vantaa Energy to produce carbon neutral methane. This investment was in the end not made as the new RFNBO rules do not allow any fossil based input and the plant did in the end not manage to reduce fossil based input to the required level.

• Nikolaos Ntavos – Co-Founder and Manager at CluBE-Cluster of Bioeconomy and
Environment of Western Macedonia
• Velaug Myrseth Oltedal – Associate Professor at the Western University of Applied
Sciences in Norway
• Lorenzo Squintani – Wubbo Ockels School for Energy and Climate, University of
Groningen
• Sile Brennan – Hydrogen Safety expert, Ulster University
• Clement Maury – Coordinator of GReenSKHy project, Afpa Grand Est