H2eart for Europe Alliance: workshop

Workshop: “Advancing EU infrastructure through the national implementation of the EU Decarbonised Gas and Hydrogen Package: connecting policy, financial support mechanisms and market creation”

H2eart for Europe is an EU-wide, CEO-led alliance, composed of thirteen Storage System Operators (SSOs) from across Europe, committed to accelerating the decarbonisation of the European energy system at the lowest cost to society by scaling up the deployment of Underground Hydrogen Storage (UHS). On March 6^th, the alliance successfully hosted a high-level workshop in Brussels. The event brought together policymakers, regulatory authorities, industry representatives and financial institutions to discuss the implementation of the EU Decarbonised Gas and Hydrogen Package and strategies to bridge the hydrogen storage development gap.

The workshop focused on the needs to scale up hydrogen infrastructure to ensure a resilient, decarbonised European energy system. The event highlighted the regulatory, financial, and technical measures needed to unlock investments and facilitate market scale up. Discussions were centered on aligning national strategies with European objectives, securing investments, and addressing barriers to project development.

Regulatory and market developments: Clarity needed for UHS acceleration

The workshop's first panel explored the transposition of the EU Decarbonised Gas and Hydrogen Package into national legislation. Panellists agreed that while the package represents a milestone in shaping Europe’s hydrogen infrastructure, further regulatory clarity and coordination are required to facilitate timely implementation. The discussion underscored that the legislation provides the fundamental regulatory environment needed for a European hydrogen market ramp-up, however, (financial) risks remain. Some panellists indicated that pragmatism was needed to ensure timely UHS project development. Other take-aways included the need for standardized permitting procedures and integrated network planning.

Bridging the hydrogen storage investment gap: De-risking the business case

The second panel examined financial risk mitigation mechanisms for UHS deployment. With the hydrogen market still in its early stages, panellists highlighted the importance of structured support mechanisms to ensure bankability and investor confidence. Discussed solutions included building a business case for UHS centred on the flexibility value it can provide to the network with the increasing share of renewables, unlocking further electrification of the EU energy system and increasing energy security. The discussion reflected a growing consensus on the need for targeted financial instruments, such as Contracts-for-Difference and minimum revenue floor mechanisms.

Strategic Prioritisation: Defining Next Steps for UHS Implementation

The interactive knowledge session in the afternoon allowed participants to engage in structured discussions on market design, regulatory frameworks,financing and project developments. Stakeholders agreed on a set of priorities for the next six months, with a focus on:

• furthering integrated network planning across energy markets (electricity, gas, hydrogen) with UHS at its core,
• advocating for a clear scale-up path for UHS as part of the EU’s clean transition,
• removing permitting roadblocks in Member states by collaborating with local authorities and sharing best practices, and
• creating a long-term business case for UHS to trigger FIDs.

Next Steps: Ongoing Engagement and Follow-Up Actions

The event concluded with a commitment to sustain dialogue and collaboration among stakeholders. To build on the workshop’s momentum, H2eart for Europe will publish a summary of the day and define actionable steps for the coming months.

About H2eart for Europe

H2eart for Europe is an EU-wide, CEO-led alliance committed to accelerating the decarbonisation of the European energy system at the lowest cost to society by scaling up the deployment of underground hydrogen storage (UHS). Launched in Brussels on 23rd of January 2024, the alliance aims to provide fact-based reports and analysis that can serve policymakers as guidance, and that utilise and build on the experience of our members, leading companies paving the future of hydrogen storage across Europe. We are committed to investing in scaling up UHS infrastructure to meet the flexibility demand in a decarbonised energy system.