European Green Hydrogen Faces Setbacks: Can Policy Catch Up?
Brussels, Thursday, 6 November 2025.
In 2025, Europe’s green hydrogen dreams hit a snag as slow policy implementation led to project cancellations and investment withdrawals. But hope remains, especially in the resilient refinery sector.
Policy Delays and Project Cancellations
The European green hydrogen sector has faced a tough year in 2025, with slow policy implementation causing a wave of high-profile project cancellations. Major energy companies have pulled back their investments, leaving the market in a state of uncertainty. The EU’s second green hydrogen subsidy auction is a case in point, where 1.9 GW out of the awarded 2.3 GW capacity withdrew before signing grant agreements due to delayed national legislation [1].
Resilience in the Refinery Sector
Despite the setbacks, the refinery sector is leading the charge in renewable hydrogen projects. Companies like Shell have made final investment decisions on two industrial-scale renewable hydrogen facilities in Germany and the Netherlands. This sector’s progress offers a glimmer of hope amidst the broader challenges facing the industry [1].
Urgent Need for Regulatory Changes
Industry experts emphasize the urgent need for regulatory changes to facilitate growth and reduce costs. The Hydrogen Council has pointed out that implementing existing policies could increase the value of using green hydrogen to over $10/kg, a significant jump from the current $1-$2/kg. Such measures could drive demand to 5 million metric tonnes per year in Europe by 2030, provided policies are fully implemented [1].
The Role of Common User Infrastructure
A recent report by Dii Desert Energy highlights the potential of Common User Infrastructure (CUI) to improve project bankability. By clearly defining access, ownership, and operating standards, CUI can give investors the confidence needed to move from plans to execution. This approach could be a game-changer for large-scale renewable energy and hydrogen projects [2].
Conclusion: A Call for Action
The European green hydrogen market stands at a crossroads. While the sector faces significant challenges, particularly from policy delays, the resilience of the refinery sector and innovative solutions like CUI offer pathways forward. Without immediate regulatory action, however, Europe risks falling behind in the rapidly growing global green hydrogen market [1][2].