EU Allocates Significant Hydrogen Research Funds to Fossil Fuel-Partnered Projects
Amsterdam, Saturday, 13 September 2025.
The EU is dedicating over one-third of its hydrogen research subsidies to projects involving fossil fuel partners, raising sustainability concerns amid climate goals.
Investment Overview and Stakeholders
The European Union has invested over €1.4 billion out of a total of €4 billion in hydrogen research subsidies since 1985 in projects involving fossil fuel partners. Notably, Shell, a major fossil fuel company, is involved in 39 subsidized projects, highlighting the significant role of such entities in these initiatives [1]. The involvement of fossil fuel companies has increased from 3% in the 1990s to over 25% in recent years, indicating a growing interest in hydrogen technology [1].
Concerns and Criticisms
Critics argue that the subsidies directed towards hydrogen production from fossil gas do not adequately address climate change and pollution concerns. Stanford University’s Professor Mark Jacobson emphasizes that these investments primarily benefit the fossil fuel industry instead of promoting genuinely sustainable solutions. He points out the lack of ambition in the European Commission’s proposal for ‘low-carbon’ hydrogen, which demands a 70% reduction in CO2 emissions compared to fossil fuels [1].
Hydrogen Storage Innovations in the Netherlands
In addition to research, the Netherlands is spearheading hydrogen storage initiatives. The HyStock project in Zuidwending aims to develop large-scale underground hydrogen storage in salt caverns, a vital step towards achieving the country’s climate neutrality goals by 2050. This storage capability is crucial for balancing supply and demand, thus supporting a stable and flexible energy system [2].
Future Directions and Potential Impacts
Looking forward, the European Commission is set to make a critical decision regarding new rules for ‘low-carbon’ hydrogen. The outcome could significantly influence the direction of EU hydrogen research funding and its alignment with climate goals. As the EU prepares for the upcoming European Hydrogen Week in late September, these discussions are expected to gain prominence, potentially reshaping the continent’s energy landscape [1][3].