Ten action points for a Hydrogen Grids Strategy

Integrating a dedicated Hydrogen Grid Strategy in the upcoming Grids Package is paramount. Covering the full hydrogen infrastructure system, this Strategy will be key to powering Europe’s clean energy future and boosting its global competitiveness. It will accelerate industrial decarbonisation, enhance system flexibility, and build the networks needed to scale up renewable and low-carbon hydrogen across the EU.

This list outlines the 10 action points that will constitute

1. Enable and facilitate repurposing of natural gas infrastructure for hydrogen use: The EU should enable targeted adaptation and repurposing of the existing methane grid for renewable and low-carbon hydrogen to optimise infrastructure use and support a cost-effective transition.
2. Develop a pan-European hydrogen network: In addition, it is paramount to build a dedicated hydrogen backbone, including transmission pipelines, storage, terminals, and distribution grids, aligned with electricity grid expansion to bolster energy security. This should be adequately recognised and supported.
3. Ensure intersectoral infrastructure planning: Hydrogen infrastructure needs to be developed in coordination with natural gas, electricity, and CO₂ networks both at TSO and DSO levels to create an integrated, multi-energy system. This needs to be reflected in planning.
4. Ground planning in realistic demand scenarios: Infrastructure planning needs to reflect areas prone to hydrogen production and consumption, focusing on end-use sectors with high GHG abatement potential, in line with Article 55(2)(d) of the Gas Directive.
5. Leverage hydrogen infrastructure for system flexibility: Hydrogen networks enhance the flexibility and resilience of the energy system by enabling large-scale, long-duration storage, sector coupling, and balancing of variable renewable electricity across regions and seasons.
6. Streamline permitting and administrative procedures: It is paramount to accelerate permitting timelines, which can take up to 7 years for hydrogen infrastructure, by simplifying and harmonising procedures across Member States. Encourage implementation of RED and NZIA provisions for both renewable and low-carbon hydrogen.
7. Ensure regulatory clarity for cross-border investments: The EU needs to provide clear and consistent regulatory frameworks for cross-border hydrogen infrastructure to reduce investor uncertainty, enable long-term planning, and facilitate coordinated network development (e.g., revision of cross border costs allocation methodology).
8. Reinforce and diversify EU funding tools: Strengthen instruments like CEF in the next MFF to support hydrogen corridors.
9. Introduce new de-risking and financing mechanisms: Explore risk-sharing models such as public-private capital blending (e.g., via EIB) and apply intertemporal cost allocation to balance costs between early adopters and future users.
10. Adapt State Aid rules to support infrastructure: Expand the Clean Industrial State Aid Framework (CISAF) beyond project-level investments to cover broader hydrogen infrastructure needs that reduce hydrogen costs over time.

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