Setting EU targets will not be enough to harness potential of hydrogen, says report

European policy makers must think beyond EU targets to make the best use of the decarbonisation potential brought by hydrogen.

That’s according to a new study by experts from the Centre on Regulation in Europe (CERRE) that explores the economic outlook for renewable gases and hydrogen and makes proposals for an optimal regulatory framework.

Future markets for renewable gases and hydrogen: What would be the optimal regulatory provisions? confirms the market potential of hydrogen and biomethane in the EU but finds that the current production cost for both ranges from two to five times the current price of natural gas in the wholesale market.

In the absence of support, the report says this cost difference will likely impede their competitiveness.

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