The Hydrogen Stream: EU launches mechanism to match H2 demand, supply

The European Commission has launched the Hydrogen Mechanism to support matching supply and demand under its Energy and Raw Materials Platform, while the US Senate has advanced a budget bill to extend the deadline for 45V hydrogen production tax credits to the end of 2027.

The European Commission has launched the Hydrogen Mechanism, the first such program under the EU Energy and Raw Materials Platform to go into operation. The Hydrogen Mechanism allows stakeholders to register for the first round of matching demand and supply, which is planned for September 2025. “The Hydrogen Mechanism aims to empower market participants by matching and aggregating demand and supply, help to identify needs related to the development of infrastructure and making it easier to access information on financial solutions,” said the European Commission, noting that the regulation on internal markets for renewable gas, natural gas and hydrogen mandates it to set up and operate an hydrogen mechanism for a limited duration until the end of 2029. 

The US Senate has passed an updated version of the budget reconciliation bill 51-50, possibly extending the deadline for 45V hydrogen production tax credits, announced within the US Inflation Reduction Act (IRA). The updated draft from the Senate Budget Committee allows developers to begin construction by December 31, 2027, rather than by Jan. 1, 2026. The scheme offers up to $3/kg. “The bill must now be taken up by the House,” said law firm Holland & Knight.

Air Liquide has joined the newly launched Global Hydrogen Mobility Alliance, a coalition of industry leaders that includes equipment manufacturers, automotive and technology suppliers, and energy and chemicals players. “The alliance is calling for the acceleration of the development of hydrogen mobility to secure Europe's industrial strength and sustainability,” said the French industrial gases company. 

Stanwell has ended its involvement in the 3 GW Central Queensland Hydrogen Project (CQ-H2) project, the biggest project to start front-end engineering design. The government-owned utility said it also discontinued its involvement in other hydrogen development activities.

Apex Nova, a 100% subsidiary of H2Apex, has become the sole owner of all shares in HH2E Werk Lubmin after completing the insolvency plan proceedings. “This means that, in addition to its own project, which has been in place since 2023, H2Apex now has another strategically important project to produce green hydrogen at Germany's most attractive hydrogen location in Lubmin,” said the German hydrogen developer and operator in an emailed press release. H2Apex noted that the acquired site already has grid access via transmission system operator 50Hertz and a water supply, with future potential for hydrogen injection into the planned transmission network. The company said it plans to build a 100 MW plant by 2028 in the first phase, with a medium-term goal of expanding it to 1 GW.