June saw a number of setbacks for European hydrogen project development, with three major projects halted amid familiar challenges including unfavourable economics, policy uncertainty and inadequate government support.
EWE cancelled its 50MW electrolytic hydrogen project in Bremen after ArcelorMittal withdrew from its green steel initiative, despite being offered €1.3 billion in subsidies. The exit underscores the continued challenges of industrial decarbonisation in Europe, particularly due to the complex EU and national regulations such as RFNBO rules.
While EWE will continue its other Clean Hydrogen Coastline projects, it issued a call for urgent reforms on electricity prices, regulatory clarity, funding access and infrastructure to restore investor confidence.
LEAG similarly postponed its 100MW H2UB Boxberg project. The decision was partly driven by the German government’s abandonment of the Power Plant Safety act, which had proposed funding for 500MW of hydrogen-fired power capacity.
In the UK, Air Products suspended its £2 billion green ammonia import and hydrogen terminal at the Port of Immingham, despite receiving development consent to produce up to 76ktpa of hydrogen. Progress hinged on policy support, either through a UK subsidy scheme or direct government investment, neither of which materialised.
While the company has not ruled out reviving the project, it stressed that that policy support to enable firm offtake commitments are necessary before it can proceed.
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Source: Westwood Energy