Back in June, the European Commission has taken further steps to support the growth of the European hydrogen market by initiating work on a new pilot mechanism. This initiative, created under the recently adopted Decarbonised Gases and Hydrogen Package, aims to accelerate investment by providing greater clarity on the market status of both hydrogen suppliers and off-takers. The mechanism will also help facilitate stronger connections between these market participants. 

Set to operate for five years as part of the European Hydrogen Bank, the hydrogen pilot mechanism will collect, process, and provide access to data on demand and supply for renewable and low-carbon hydrogen and its derivatives. This will allow European off-takers to connect with both European and international suppliers. The system will also track hydrogen flows and prices to give a comprehensive view of the market. 

The Commission has initiated a procurement process to find a service provider that will develop the IT platform needed to manage this pilot. The goal is to finalize a contract by the end of 2024 and begin operations by mid-2025. 

This mechanism is expected to enhance demand visibility between suppliers and consumers, speeding up final investment decisions and securing off-take agreements. As Europe continues its transition towards a greener energy landscape, hydrogen will play a critical role in achieving the Green Deal targets, phasing out dependency on Russian fossil fuels, and boosting the competitiveness of European industries. 

This pilot is part of the Commission’s broader work to create a European Multiproduct Platform, which will eventually allow the joint purchase of strategic commodities, including essential raw materials. 

>> more details on the Commission website : Commission kick-starts work on a new pilot mechanism to boost the hydrogen market (European Union, 3 June 2024)