Policy

EU Approves List of 100 Hydrogen Projects Amid Cost Concerns

EU approves list of 100 hydrogen projects amid cost concerns
Policy

EU Approves List of 100 Hydrogen Projects Amid Cost Concerns

EU approves list of 100 hydrogen projects amid cost concerns

© European Parliament

The European Commission has endorsed a new roster of 235 cross-border energy projects, including 100 hydrogen and electrolyzer developments, granting them priority status and access to accelerated permitting across the bloc.

Commission updates PCI/PMI roster amid slow hydrogen rollout

The update marks the second list of Projects of Common or Mutual Interest (PCI/PMI), a mechanism intended to accelerate Europe’s energy integration and support the rollout of hydrogen networks, renewable power grids and CO₂ transport links. The move comes as Brussels faces pressure to bridge the gap between ambitious 2030 hydrogen targets and slower-than-expected deployment on the ground.

Returning projects and new additions

Many schemes, including the BarMar pipeline between Spain and France and the Mosahyc link connecting France and Germany, reappear after being featured on the first PCI/PMI list. Others were removed because they had been completed, were expected to finish before March 2026, no longer met the criteria, or ranked lower than competing submissions, according to the Commission. Several new entries — particularly electrolyser projects — have been added, such as Spain’s ErasmoPower2X, which was recently excluded from the country’s Auctions-as-a-Service programme.

Cross-border links and expanded funding

The list also incorporates proposed hydrogen corridors between Belgium and the UK, and between Tunisia and Italy. In parallel, the Commission confirmed that PCI/PMI status grants developers faster permitting, coordinated cross-border approvals and eligibility for EU funding through the Connecting Europe Facility (CEF), whose 2028-34 budget was expanded from €5.84bn to €29.91bn. Earlier this year, €258m in CEF support was awarded to 21 hydrogen projects.

Commission defends infrastructure push

Commissioner for Energy and Housing Dan Jørgensen said the selected initiatives would help deliver “cleaner, cheaper and more secure energy,” while Spanish climate minister Teresa Ribera described the cross-border infrastructure as the “lifelines” of the EU’s energy system. The Commission estimates that nearly €1.5tn in energy infrastructure investment will be required by 2040.

Criticism over feasibility and timing

Yet the scale and timing of the hydrogen network build-out remain contentious. George Verberg, former CEO of Dutch gas grid operator Gasunie, warned that “the economics of the EU’s hydrogen infrastructure plans simply don’t stack up,” arguing that repurposing natural gas pipelines for hydrogen could incur far higher costs than industry estimates suggest. Recent Dutch experience, he added, showed retrofitting assumptions to be “excessively optimistic,” raising concerns that premature investment in long-distance hydrogen transport could undermine public confidence.

Outlook for policymakers and investors

The updated PCI/PMI list now enters a two-month scrutiny period in the European Parliament and Council, after which policymakers may approve, reject or prolong the review. Its adoption would set the course for substantial public support for hydrogen infrastructure at a time when ACER, the EU’s energy regulator, has warned that electrolyser deployment remains “way behind” stated goals due to slow permitting, regulatory uncertainty and elevated power prices. For investors and developers, the new list offers clarity on which cross-border corridors the EU intends to prioritize, but rising concerns over cost and market readiness highlight the challenges ahead.

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