News Digest (www.upstreamonline.com)
A coalition of 70 civil society organisations is urging the European Parliament to vote against funding for major hydrogen pipeline projects. They argue that the push for these projects, part of the EU's second list of Projects of Common or Mutual Interest (PCI/PMI), risks increasing the bloc's dependence on fossil fuels due to insufficient domestic clean hydrogen production.
The organisations' open letter specifically targets projects like the Melita and EastMed "hydrogen-ready" natural gas pipelines, as well as the BarMar and SoutH2 corridor pipelines. They contend that these projects will receive energy transition funding without credible renewable hydrogen available to transport, likely leading to the movement of fossil-fuel-based hydrogen instead. This, they warn, creates a risk of fossil fuel lock-in and stranded assets, repeating past mistakes made with gas infrastructure.
The letter argues that clean hydrogen should be restricted to hard-to-abate sectors, describing it as energy-intensive, inefficient, and expensive. It highlights a significant gap between EU ambitions and reality, citing a report from the European Union Agency for the Cooperation of Energy Regulators (Acer). Despite over €20 billion in subsidies, the EU had only 308 MW of electrolyser capacity built by end-2024, far short of the 6 GW target. Consequently, the REPowerEU goal of 10 million tonnes of green hydrogen by 2030 is deemed unattainable, with industry estimates projecting domestic production of only about 1.43 million tonnes annually by 2030.
The coalition also questions plans to import hydrogen, stating they would require large public subsidies and massive new infrastructure investments. They raise concerns that production in other countries could compete with local populations for water resources. Furthermore, the group criticises the PCI/PMI selection process itself, citing Acer's previous questions about its credibility and robustness, and alleges it is littered with procedural errors and flawed evidence.
If adopted, projects on the list would gain access to subsidies from the Connecting Europe Facility for Energy, whose budget for 2028-2034 was recently expanded from €5.84 billion to €29.91 billion. The organisations are calling on the European Commission to immediately draw up a new list containing only electricity projects.
25 March 2026
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