“The number of projects launched each year is growing by 44%. We have a pipeline of nearly 3 gigawatts under construction, with final investment decisions (FIDs) already made. But this is not what we had anticipated a few years ago,” said Daniel Fraile, Chief Policy Officer at Hydrogen Europe, during his participation in the Storage, Renewable and EV Integration Forum, organized by Strategic Energy Europe and Mobility Portal Europe.

The executive clarified that while the progress is solid, the pace does not match the sector’s early projections. “The technology is evolving. It’s maturing. But there is still risk,” he noted, emphasizing that the current regulatory and market environment still creates uncertainty for investments.

“We’re on the right path, but much slower than expected. A few years ago, we thought this was a 100-meter sprint. Now it looks more like a 500- or 1,500-meter hurdle race. There are many barriers along the way. But I believe we are heading in the right direction, and we’re seeing stronger project pipelines,” he said during the virtual event.

RELIVE THE STORAGE, RENEWABLE, AND EV INTEGRATION FORUM:

The second major event of the year from Strategic Energy Corp was a two-part virtual session, co-organized with Mobility Portal Europe and Strategic Energy Europe.

Strategic Energy Corp, in partnership with the Future Energy Summit (FES), is behind some of the sector’s most relevant events, as FES positions itself as the leading platform for renewable energy dialogue in Spanish-speaking countries. The third edition of FES Iberia 2025 will take place on June 24, at the Colegio de Caminos (Betancourt Auditorium, C. de Almagro, 42, Chamberí, Madrid). (Watch the previous edition here).

Toward More Competitive Hydrogen

According to Fraile, the core challenge remains competitiveness. “2025 won’t be the year of final investment decisions. We’ll see progressive growth as the industry gains confidence in the technology,” he forecasted.

He acknowledged that cost parity with fossil fuels won’t be achieved before 2030. “We need to consider the overall benefits: diversification, geopolitical resilience, and technological leadership,” he emphasized.

In the transport sector, however, “progress is more concrete,” with hydrogen being better integrated in applications like refineries.

CO₂ Pricing as a Key Lever

To achieve a realistic comparison with fossil fuels, Fraile pointed out that 80% of hydrogen costs depend on electricity prices. For this reason, he stressed the need for global action on CO₂ pricing.

“We won’t be able to replace fossil hydrogen with green hydrogen at cost parity. We must recognize the green premium and work with other countries to establish an international price signal,” he said, citing China’s leadership in electrification and India’s serious commitment to decarbonization.

Leading Countries: Germany, the Netherlands, and Spain Set the Pace

Fraile identified three countries leading the hydrogen push in Europe. “The Netherlands is probably the most advanced in legislation and industrial implementation. Germany is very far along in infrastructure development and has a clear financing and support mechanism. Spain is well-positioned both for its domestic market and for exports to Europe,” he explained.

These leaderships are reflected in public policies, financial incentives, and regulatory frameworks that allow for faster project execution, in contrast with other EU member states where significant delays persist. Fraile also pointed out that these leaderships were evident in the results of the latest auction.

Results of the Second Hydrogen Bank Auction

In its second auction, the European Commission awarded nearly €1 billion to 15 projects in five countries. These initiatives will produce 2.2 million tonnes of renewable hydrogen over ten years and avoid more than 15 million tonnes of CO₂ emissions.

Spain emerged as the main beneficiary, with 8 selected projects, €292 million in grants, and 891 MW of installed capacity, consolidating its position as a key hub on the European green hydrogen map. For the first time, three offshore projects in Norway were also selected, reflecting hydrogen’s expansion into new sectors.

“It’s very interesting to see that two German projects and one Dutch project were awarded—and they were the largest in the auction. That shows that with economies of scale, at around 400 to 500 megawatts, you can be competitive even compared to neighbors with greater renewable potential,” Fraile analyzed.

He also pointed out that the premium requested in this auction remained the same as in the first, adding: “There still seems to be market expectation that someone will be willing to pay for that cost difference, to cover that high premium. That remains to be seen.”

Regulatory Obstacles: The Main Bottleneck

One of the biggest hurdles Fraile identified is the lack of transposition of the Renewable Energy Directive. “Most member states have yet to implement this directive. It’s complicated to access support schemes, project development cycles are very long, and so are permitting processes,” he warned.

Regulatory uncertainty causes many projects to face delays or cancellations, threatening the achievement of decarbonization targets for 2030 and beyond.

Net Zero Industry Act and Global Value Chains

Regarding the Net Zero Industry Act, Fraile supports including criteria beyond price and minimum European content in projects. However, he cautioned: “We still don’t know if these tools will be effective. There are many conditions and a lot of fragmentation among countries, which confuses investors.”

“We must be very careful not to block components that could be produced more competitively in other parts of the world by restricting activity to Europe only. We want diversification and to avoid dependence on a single country,” he added.

Fraile insisted that Europe still leads in electrolyzer technology and that it is essential to protect the industry without isolating it. “We need to diversify, not focus only on ‘Made in Europe’. We need global, resilient, and competitive supply chains,” he said.

International Cooperation: The Role of China and India

Fraile also emphasized the need to align efforts with other regions. “Europe should not move forward alone—we need coordination with China, India, and other regions also committed to decarbonization,” he stated. He highlighted that both countries are developing ambitious policies in electrification and hydrogen use and that joint work is key to scaling solutions and avoiding fragmented standards.

Three Strategic Priorities Toward 2030

Looking to the next decade, Hydrogen Europe’s Chief Policy Officer outlined three key priorities to consolidate the sector:

• Determination: “We need long-term visibility. These are multi-year investments. Real political commitment and long-term clarity are necessary.”

• Simplification: Streamline procedures, speed up permitting, and reduce bureaucracy for grid access and support schemes.

• Technological openness and a flexibility-based plan: “Let’s not say ‘only batteries’. Auction services and let the best solution win—whether it’s short-term storage, fast frequency response, or long-duration capacity.”

Fraile stressed that electrification alone won’t solve all challenges. “The grid is limited. Many people want to electrify but cannot access the grid. Waiting for years is not an option. We need alternatives,” he concluded.

In this scenario, hydrogen emerges as a key solution to provide long-term flexibility and storage in energy systems increasingly dominated by variable renewables.