Energy / Europe
Monitor Europe energy trends, electricity markets, supply pressure, regulation and regional resource dynamics.
ACER webinar: Progress in Europe's hydrogen markets (9 December 2025)
Topic
Progress in Europe's hydrogen markets
Key insights
- The webinar is recorded, and participants can access the video and slides from the agency's website the following day.
- Participants' microphones will be muted, and the team's chat will be disabled, but questions can be asked via Slido.
- The agenda includes a presentation of the Acer Hydrogen Market Monitoring Report 2025, followed by a panel discussion and a Q&A session.
- Building a hydrogen market from scratch is challenging and requires clear policies, strong coordination, and effective funding methods.
- Continuous monitoring of national and European hydrogen markets is essential to assess policy effectiveness and make necessary adjustments.
- In 2024, an additional 100 megawatts of electrolyzers were installed in Europe, bringing the total capacity to 308 megawatts.
Perspectives
Extracted key points from the webinar on hydrogen markets.
Proponents of hydrogen market development
- Highlight the need for clear and consistent policies to support hydrogen market growth
- Emphasize the importance of monitoring national and European market developments
- Argue for effective funding methods to support the hydrogen economy
- Propose the acceleration of the carbonization package to empower regulators
- Advocate for flexibility in project frameworks to reduce costs
- Stress the necessity of cooperation among stakeholders for successful project implementation
Skeptics of current hydrogen market conditions
- Warn that high costs of renewable hydrogen hinder market growth
- Claim that regulatory uncertainties create risks for investors
- Point out that the lack of willingness to pay for green hydrogen limits market expansion
- Critique the strict RFMBO rules that lead to higher production costs
- Question the effectiveness of current funding mechanisms in addressing market risks
- Highlight the challenges posed by the impending end of grid fee exemptions in Germany
Neutral / Shared
- Acknowledge the doubling of hydrogen market growth since 2022
- Recognize the importance of infrastructure development for hydrogen transport
- Note the need for clear certification and guarantees of origin in the hydrogen supply chain
Metrics
capacity_mw
308 megawatts MW
total electrolyzer capacity in Europe
Increased capacity is crucial for scaling the hydrogen economy.
the total electrolyzer capacity reached 308 megawatts
growth_rate
doubled since 2022 x
year-on-year growth rate of the hydrogen market
Indicates rapid market expansion but insufficient for targets.
It doubled since 2022 and one can say, well one can say that this is a kind of impressive growth rate on a year-on-year basis.
cost_ratio
four times higher x
cost comparison of renewable hydrogen to fossil hydrogen
High costs hinder market development and adoption.
the cost of renewable hydrogen is approximately four times on average higher than the fossil hydrogen
transport_cost
30 cents per kilogram EUR/kg
estimated cost for transporting hydrogen via pipelines
Low transport costs could facilitate market growth if production costs decrease.
the estimated cost for transporting hydrogen via pipelines at around 30 cents per kilogram.
price_renewable_hydrogen
close to the production cost of renewable hydrogen EUR
price sectors are willing to pay for renewable hydrogen
Indicates potential market demand and investment opportunities in renewable hydrogen.
sectors at the moment that are willing to pay a price for renewable for clean hydrogen, renewable or low carbon hydrogen that is close to the production cost of renewable hydrogen.
capacity_mw
300 megawatt MW
capacity of the green hydrogen system under construction
This capacity indicates significant investment in renewable energy infrastructure.
we are under construction of a 300 megawatt system in the northwest of Germany
capex
above 50%
percentage of CAPEX covered for the hydrogen project
High funding coverage reduces financial risk and supports project viability.
we are funded on the CAPEX site, pretty heavily funded, above 50% in funding
funding
2.6 billion EUR
total funding received by SHS for its decarbonization project
Substantial funding enables SHS to pursue ambitious green steel production goals.
we received a 2.6 billion funding
Key entities
Timeline highlights
00:00–05:00
The installation of 100 megawatts of electrolyzers in Europe increases total capacity to 308 megawatts, supporting the hydrogen market's growth.
- The webinar is recorded, and participants can access the video and slides from the agency's website the following day.
- Participants' microphones will be muted, and the team's chat will be disabled, but questions can be asked via Slido.
- The agenda includes a presentation of the Acer Hydrogen Market Monitoring Report 2025, followed by a panel discussion and a Q&A session.
- Building a hydrogen market from scratch is challenging and requires clear policies, strong coordination, and effective funding methods.
- Continuous monitoring of national and European hydrogen markets is essential to assess policy effectiveness and make necessary adjustments.
- In 2024, an additional 100 megawatts of electrolyzers were installed in Europe, bringing the total capacity to 308 megawatts.
05:00–10:00
The hydrogen market's growth has doubled since 2022, yet it remains inadequate for Europe's targets, necessitating robust policies and frameworks to boost investor confidence.
- The growth rate of the hydrogen market has doubled since 2022, but it is still insufficient to meet Europe's ambitious targets.
- A clear framework and policies are necessary for the new market, with the low carbon delegated act nearly completing the regulatory puzzle at the European level.
- Only Denmark and Ireland have fully transposed the renewable energy directive, which sets targets for renewable fuels of non-biological origin, including hydrogen.
- Delays in implementing agreed policies undermine investor confidence and hinder market deployment.
- The high cost of renewable hydrogen, currently about four times higher than fossil hydrogen, remains a significant barrier to market development.
- The lack of economies of scale due to lower-than-expected hydrogen deployment has prevented further cost reductions.
10:00–15:00
Limited information from hydrogen bank auctions shows sectors willing to pay near production costs for renewable hydrogen, which could accelerate market growth.
- Concerns were raised about the sustainability of tariffs and the stability of the assumptions underlying them.
- Limited information from European hydrogen bank auctions indicates sectors willing to pay near production costs for renewable hydrogen.
- Implementation of agreed policies is crucial for providing clarity and certainty to investors.
- Accelerating the carbonization package is important for empowering regulators and network operators.
- Early-stage market support and funding should target sectors and projects that can rapidly scale up.
- The role of low carbon hydrogen in market creation needs further clarification, especially regarding methane-based hydrogen risk assessment.
15:00–20:00
The construction of a 300 megawatt green hydrogen system in Germany is expected to enhance renewable hydrogen supply, despite regulatory uncertainties and high post-2027 prices.
- Hydrogen ramp-up phase faces regulatory uncertainty and industrial competitiveness concerns regarding renewable hydrogen prices.
- A 300 megawatt green hydrogen system is under construction in northwest Germany, expected to be operational by the end of 2027.
- The project is heavily funded, with over 50% of CAPEX covered, allowing for its development despite high hydrogen prices post-2027.
- SHS, Germany's fourth largest steel producer, is undertaking the largest brownfield decarbonization project in Europe, aiming for a significant ecological footprint.
- SHS has received 2.6 billion in funding to support its transition to green steel production, including a new DRI plant and electric arc furnace.
- A 10-year contract with French company Verzo aims to produce 6,000 tons of green steel by 2032, ramping up to 120,000 tons.
20:00–25:00
The H2MAD project aims to establish a hydrogen corridor between Portugal and Spain, facilitating the transport of two million tons of hydrogen over the next decade, which is crucial for developing the hydrogen market in Europe.
- The H2MAD project aims to create a strategic hydrogen corridor between Portugal and Spain, with plans to transport around two million tons of hydrogen over the next decade.
- H2MAD involves five Transmission System Operators (TSOs) and is designed to support the development of the hydrogen market in Europe.
- A significant challenge for H2MAD is aligning infrastructure development with the growth of hydrogen production and demand, which requires substantial initial investment.
- Building the pipeline infrastructure is a lengthier process compared to constructing electrolyzers or adapting plants, complicating scaling efforts.
- Cooperation among all parties involved is crucial for the success of the H2MAD project, especially given its cross-border nature.
- The project has successfully engaged over 168 companies through a call for interest and established an alliance with more than 50 interested parties to work on commercial terms.
25:00–30:00
High risks and strict regulations in hydrogen production lead to increased prices, limiting market absorption and investment potential.
- The cost of hydrogen projects is influenced by both actual costs and associated risks, with current risks leading to increased prices.
- In Germany, the government partially covers pipeline infrastructure risks, facilitating financing and leading to more FIDs for projects.
- Strict regulations on renewable hydrogen production, such as the R-FMBO framework, can result in higher costs due to the requirement for 100% CO2 reduction from the start.
- Low carbon hydrogen can be produced via electrolysis, allowing for a 70% CO2 reduction, which could lower prices compared to stricter standards.
- Flexibility in project execution and technical optimization is essential to reduce costs for renewable and low carbon hydrogen.
- Currently, no customers can absorb the higher costs of renewable hydrogen due to the absence of lead markets and the financial constraints of industries like steel.