The EU needs urgent focus on green hydrogen to decarbonise transport

A conference held in Estonia highlighted that low-carbon hydrogen is a key component of the energy transition and can make it happen, but it needs infrastructure and financing to develop its potential.

Discussing and identifying strategic actions for the development of sustainable infrastructure for hydrogen and its derivatives, focusing on financing and usage.

This was the objective of the conference Offshore Power for E-Fuels: Boosting the New Hydrogen Economy which took place in Pärnu, Estonia on 12 November 2024. The event was organised by the European Economic and Social Committee (EESC) and brought together the Netherlands Embassy in Estonia, the Pärnu County Development Centre, the Metrosert Applied Research Centre, Invest Estonia and the e-methanol plant developer Power2X.

Sustainable hydrogen for green transport

Green and low-carbon hydrogen are crucial components in our energy transition and recent initiatives, such as the EU Hydrogen Bank, have highlighted that there is momentum in developing sustainable hydrogen markets.

Sustainable hydrogen is particularly important for the decarbonisation of the transportation sector and other hard-to abate industries.

Unlike traditional fossil-derived gasoline and diesel, synthetic e-fuels are created using renewable sources and are manufactured by combining captured carbon dioxide or carbon monoxide with hydrogen obtained from water split using low-carbon electricity sources such as wind, solar and hydro.

The resulting fuels can serve as drop-in replacements for fossil fuels, offering a low overall carbon footprint, and are particularly relevant for reducing greenhouse gas emissions in long-distance freight, marine and air transport.

A call for action

EU and national policy makers have a key role in providing the necessary means to put these ambitions into practice and can ease cooperation among Member States to adopt effective strategies. They can also facilitate the exchange of best practices that aim to increase hydrogen production capacity. This approach will ensure that the future EU hydrogen sector meets environmental and social standards while being financially viable.

‘The rapid deployment of renewable hydrogen is critical – not only for the transformation of our energy system but also for the social and economic well-being of the European Union. However, it’s essential that we direct our resources wisely. To maximise our impact, we need to prioritise hard-to-abate sectors and establish effective ecological and social standards that ensure fair and safe working conditions.’

Baiba Miltoviča, president of the EESC’s Section for Transport, Energy, Infrastructure and the Information Society

‘Estonia has significant and untapped potential for renewable energy and bio-based feedstocks. Development of a flexible power grid and supporting hydrogen economy are key to a successful energy transition, as it will allow value creation despite the intermittency of renewable power generation.’

Peter Daemen, Power2X

‘Advancing the hydrogen economy requires extensive dialogue, commitment, partnerships and the integration of diverse expertise and goals. As in diplomacy, we will need to bring people and nations together in order to find common ground and, similarly, progressing requires that all stakeholders move forward in sync. This involves not only aligning industry and government but also gaining the public’s trust and encouraging them to support this transition.’

Sander van der Sluis, Netherlands Ambassador to Estonia

The joint conclusions of the conference will soon be published on the EESC website. They will include messages and requests by all participants to be shared with EU institutions, in particular the European Parliament, the European Commission, the European Council and the European Committee of the Regions.