Europe inches toward pragmatism: Germany broadens H2 policy as UK targets maritime

Westwood’s October Compass flags a policy pivot: Germany will support all low-carbon hydrogen (incl. CCUS) and replace rigid capacity targets with demand-driven goals – while H2Global expands auctions (incl. a joint DE–NL auction for pure hydrogen) and restarts e-methanol imports.

In the UK, a £448m UK SHORE package targets maritime decarbonisation (H₂, ammonia, methanol, electrification, wind).

At the same time, developers face headwinds from RFNBO rule rigidity and permitting delays.

Highlights

• German refresh: broader tech scope beyond RFNBO-only; flexible targets aligned to industrial demand (refining, high-temp heat), plus support for CCUS.
• Auctions: Germany adds €412m to H2Global; DE–NL joint auction to import pure hydrogen; e-methanol auction relaunched (€437.5m).
• UK focus: £448m UK SHORE aims at maritime fuels and port electrification, with claimed £700m private already crowding in.
• Rules debate: 8 EU electrolyser OEMs urge RFNBO flexibility (additionality timing); GH2 defends status quo; Commission review not before 2028.
• Developer strain: ScottishPower pauses UK projects; Salzgitter delays Phases 2–3; Stegra (Boden) funding uncertainty after partial grant.

Why it matters
Bankability is shifting from grant totals to offtake certainty and flexible rules. Germany’s stance and H2Global’s design could anchor price stability and trigger FID-ready projects – even as rigid RFNBO interpretations risk pushing investment elsewhere.

Source: Westwood Global Energy Group