The next European Hydrogen Bank (EHB) auction will have “explicit criteria” to support domestic electrolyser supply chains, according to the EU’s head of climate policy, in response to concerns over the influx of cheaper Chinese imports.
EU Climate Commissioner Wopke Hoekstra, told an event at Eindhoven University of Technology, that he would ensure the second EHB auction was “different” to the first, which saw less than half of the available funds awarded to projects using non-EU technology.
Whilst saying European electrolysers had a “good presence” in the pilot auction, Hoekstra added, “China is now oversupplying them at ever-lower costs.”
He vowed that the next auction will have “explicit criteria to build European electrolyser supply chains,” as Brussels attempts to “restore the balance” with China’s growing industrial dominance.
“We aim not to sever ties with China. But we will have to restore the balance,” the Commissioner told the event, stressing that the bloc will have to act if unfair competition continues.
It comes after renewed calls from European electrolyser original equipment manufacturers (OEMs) to implement Made in Europe criteria to the upcoming €1.2bn EHB auction round – awarding production subsidies to green hydrogen projects.
Read more:EU electrolyser leaders call on support amid ‘acute threat’ from Chinese rivals
In a letter signed by the likes of Nel, Siemens Energy and thyssenkrupp nucera, the OEMs said Chinese state-owned companies could go through extended periods of operational loss while expanding capacity thanks to zero-interest government loans.
“This skewed playing field creates unfair competition and puts European electrolyser manufacturing at a significant disadvantage,” it said.
Turbocharged by fears that the electrolyser industry could face the same fate as solar PV players that collapsed due to Chinese alternatives, the OEMs urged policymakers to introduce “tough reliance criteria through the EHB.”
Read more:Is Europe’s solar crisis a window into the future for electrolyser OEMs?
Speaking to H2 View for an upcoming interview, Hydrogen Europe CEO, Jorgo Chatzimarkakis, stressed that the EU should not make the same mistakes as it did with the solar PV industry.
Joining the call for the Made in Europe criteria, he said, “The absence of such conditions will lead to the dumping of highly subsidised Chinese electrolysers gaining large market shares in Europe.”
H2 View subscription
If you’re looking to upgrade your H2 View experience, check out our subscription packages and unlock nearly FIVE YEARS of content.
Even with an essential H2 View subscription, you will gain unlimited access to h2-view.com’s archive of content containing over 11,000 stories, features and interviews – as well as a monthly digital and/or print magazine!
Still need more? Our premium package provides access to all of H2 View’s exclusive webinars on demand!
