Introduction
As the European Union accelerates its path toward climate neutrality by 2050, hydrogen is positioning as an emerging cornerstone of a sustainable, clean, and secure energy system. Recognised for its ability to decarbonise hard-to-abate industries, enable long-duration energy storage, and reduce reliance on imported fossil fuels, hydrogen is now a key enabler of the Clean Industrial Deal (CID). The CID promotes the uptake of renewable and low-carbon hydrogen and supports public and private investments in the clean transition.
Within this strategic context, the European Climate, Infrastructure and Environment Executive Agency (CINEA) is playing an important role implementing the EU's hydrogen agenda through a robust and diversified project portfolio. Funded under programmes such as the European Research programmes (Horizon 2020, Horizon Europe), the Connecting Europe Facility (CEF) for Transport and Energy, the Innovation Fund, the LIFE Programme, the European Maritime, Fisheries and Aquaculture Fund and the Pilot Projects and Preparatory Actions scheme, these projects target breakthrough innovations and large-scale deployment in hydrogen production, transport, and end-use applications.
EU Policy Background
The EU has put in place a strong policy framework to scale up hydrogen: from legislation and funding to infrastructure and market support.
The EU Hydrogen and gas decarbonisation package, consisting of Directive (EU) 2024/1788 and Regulation (EU) 2024/1789, was adopted in May 2024 and published in the EU Official Journal on 15 July 2024. It introduces a new regulatory framework for dedicated hydrogen infrastructure and updates the rules on the EU natural gas market set out in the Gas Directive 2009/73/EC and the Gas Regulation 715/2009.
The TEN-E (Trans-European Energy)(2022) and TEN-T (Trans-European Transport)(2024) regulations recognise hydrogen as a key infrastructure priority. TEN-E includes hydrogen transmission pipelines, reception terminals, storage facilities and electrolysers as Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs), facilitating cross-border networks, streamlining permitting and providing access to funding. Projects of Common Interest (PCIs) are key cross-border infrastructure projects that link or significantly impact the energy systems of two or more EU countries. Projects of Mutual Interest (PMIs) link energy infrastructure of one or more EU countries with neighbouring (non-EU) countries. TEN-T supports the deployment of hydrogen refuelling stations along the TEN-T road network, enabling integration into Europe’s future mobility networks.
EU countries have until mid-2026 to transpose the new rules into national law. Once transposed, these will facilitate the uptake of renewable and low-carbon gases, including hydrogen, while ensuring security of supply and affordability of energy for all EU citizens.
The European Hydrogen Bank was launched in 2023 as a key financial instrument to support the early market deployment of renewable hydrogen. It aims to bridge the cost gap between renewable hydrogen and fossil fuels. With up to €3 billion in funding, the Bank de-risks investment and incentivises production. The first pilot auction under the Innovation Fund allocated €720 million to support 1.58 million tonnes of renewable hydrogen over 10 years. The Bank also plays a coordination role and facilitates blending with the existing financial instruments to support hydrogen projects.
The Net-Zero Industry Act is an initiative stemming from the Green Deal Industrial Plan which aims to scale up the manufacturing of clean technologies in the EU. This means increasing the EU’s manufacturing capacity of technologies that support the clean energy transition and release extremely low, zero or negative greenhouse gas emissions when they operate.
REPowerEU strengthens the EU’s hydrogen ambitions in response to the energy crisis and the need to reduce dependency on Russian fossil fuels. It doubles previous targets by calling for 20 million tonnes of renewable hydrogen consumption by 2030 (10 Mt domestic, 10 Mt imported), accelerates the deployment of hydrogen valleys, and promotes strategic partnerships for hydrogen imports. REPowerEU also underpins the establishment of the European Hydrogen Bank to help scale up the market.
The Fit for 55 legislative package creates a supportive regulatory framework for hydrogen deployment across sectors. Through updates to the Renewable Energy Directive (RED II/III), CO₂ emissions standards, the EU Emissions Trading System (ETS)and the adoption of theAlternative Fuels Infrastructure Regulation (AFIR), the package sets legal incentives for hydrogen use in industry, transport, and energy. It also defines rules for renewable hydrogen certification, promoting demand-side uptake.
EU body established by the Council Regulation ((EU) 2021/2085) under Horizon Europe, the Clean Hydrogen Partnership supports R&I across the full hydrogen value chain. It focuses on developing safe, efficient, and competitive hydrogen solutions in production, distribution, storage, and end-use applications. By supporting large-scale demonstration projects, the partnership helps bring innovative technologies to market, and fosters collaboration between industry, research, and policymakers.
Adopted in July 2020, the European Hydrogen Strategy provides the foundation for building a sustainable hydrogen economy in the EU. It outlines a phased approach prioritising renewable hydrogen production and use in hard-to-decarbonise sectors such as industry and transport. The strategy sets an ambitious goal of installing at least 40 GW of electrolysers and producing 10 million tonnes of renewable hydrogen in the EU by 2030, positioning hydrogen as a key enabler of climate neutrality.
Hydrogen’s benefits
As a clean and versatile energy carrier, hydrogen can help decarbonise sectors that are difficult to electrify—such as heavy industry manufacturing, long-distance transportation, aviation, and maritime shipping—thereby significantly reducing greenhouse gas emissions and improving air quality in urban areas. When used, hydrogen helps to reduce emissions, contributing to healthier environments.
Hydrogen production supports long-term climate-action solutions, while improving economic resilience. This implies the need for a rapid shift of human skills, which will help the EU to create more highly qualified jobs. Infrastructure technology, and hydrogen production investments will boost economic growth, particularly in areas going through an industrial transition. By supporting hydrogen valleys and local supply chains, the EU can ensure that economic opportunities are distributed more evenly across Member States.
Energy security is another key area where hydrogen has a positive impact. By enabling the large-scale storage of renewable electricity and offering a domestic alternative to imported fossil fuels, hydrogen strengthens the EU’s energy resilience. This reduces dependency on external suppliers, helps stabilise energy prices in the long term, and enhances the flexibility of the European energy system.
Hydrogen-powered vehicles and heating systems will offer clean alternatives to conventional technologies, allowing households and businesses to play an active role in the green transition.
Challenges
Despite rapid advancements, the hydrogen ecosystem faces several challenges:
- Technical issues, such as impurities in biomass-derived syngas, limited durability of fuel cells, low efficiency of anion exchange membrane electrolysers, or performance limitations of synthetic fuel catalysts, among others.
- Economic barriers, including high production costs, CAPEX intensity due to precious metal catalysts, and slow market uptake in the absence of scale and financing.
- The regulatory framework for hydrogen in the EU is still under development, with transposition into national law across Member States ongoing. This regulatory uncertainty translates into market challenges, as investors face unclear signals regarding production volumes and, in particular, demand from offtakers. The absence of a stable and predictable framework affects the commercial viability of large-scale investments in hydrogen production facilities, transmission networks, and refuelling infrastructure.
- Environmental considerations, such as water consumption in electrolysis and the need for additional renewable energy sources and the non-CO2 effects in aviation.
Through its funded projects, CINEA addresses these challenges by supporting cutting-edge research, demonstration at scale, and the development of enabling infrastructure, thereby contributing to the EU target of producing 10 million tonnes of renewable hydrogen annually by 2030 and facilitating the creation of a resilient and competitive European hydrogen economy.
This publication highlights the progress and promise of hydrogen technologies across the CINEA portfolio. It showcases how innovation, integration, and coordinated actions are bringing the EU closer to a sustainable, secure, and net-zero future — with hydrogen at its core.
CINEA’s portfolio
CINEA supports a diverse portfolio of hydrogen projects across Europe composed by 229 projects across all the programmes managed by the Agency, with a total EU funding of €5.6 billion. From local heating systems to large-scale industrial electrolysis, hydrogen energy networks, and clean mobility corridors, these projects demonstrate the technical feasibility and positive climate impact of hydrogen technologies. Below are selected examples, organised by their primary area of focus – though many projects contribute to multiple objectives simultaneously.
CINEA's hydrogen portfolio spans four strategic categories:
- Hydrogen Production – Covering a broad range of pathways, including renewable electrolysis (alkaline – ALK-, proton exchange membrane -PEM-, anion exchange membrane -AEM-, solid oxide electrolyser cell -SOEC-), natural gas steam reforming production with carbon capture or biomass gasification. These applications in both transport and industrial uses.
- Hydrogen as a Feedstock for Alternative Fuels – Supporting the synthesis of e-fuels and renewable liquid/gaseous fuels through Power-to-X processes.
- Hydrogen Energy Networks – Enabling the reception, transmission and storage of hydrogen via repurposed or newly dedicated infrastructure.
- Hydrogen Use in the Transport Sector – Enabling zero-emission mobility via hydrogen-powered heavy-duty vehicles, maritime vessels, rail, and aviation.
Several of these projects adopt cross-sectoral approaches, linking hydrogen production with downstream use and infrastructure, in line with the EU’s energy system integration strategy.