Our initiatives

Large industrial projects in a few designated value chains

There is a market developing for decarbonized products in specific sectors. We are seeing a more supportive environment for low-carbon hydrogen producers emerge with the development of both mandatory and voluntary markets. This is thanks to:

1. Supportive regulatory framework – The EU’s revised climate and energy package (known as Fit-For-55) helps to strengthen the business case for decarbonised products e.g. through carbon pricing measures. This includes the expansion of ETS to new sectors (maritime and road transport) and phase-out of free allowances for sectors (steel, cement, aluminium). The introduction of CBAM also helps create a level playing field for European producers through a price on imported goods. We must not lose the ambition on CBAM implementation to ensure green European producers can remain competitive.

2. Mandatory targets – for example EU level targets for efuels in the aviation and maritime sector (1.2% blend of e-kerosene into jet fuel by 2030, 35% by 2050) are starting to impact market dynamics. Industry has been slower than expected to react, but we (EGHAC) are seeing more interest from off-takers who want to avoid the penalties (currently being set).

3. Voluntary commitments – driven by consumer demand, corporate sustainability goals are starting to have an impact on sectors such as green steel, iron and fertilisers.