Opening remarks by Commissioner Simson at the EU-Japan High-Level Hydrogen Business Forum.
Let me first thank the Japanese Minister, Ken Saito, for the warm welcome and for hosting this joint EU-Japan High-Level Business Hydrogen Forum in Tokyo. It is a pleasure to be here.
I want to particularly welcome and thank the CEOs, leaders and senior representatives from the EU and Japanese hydrogen industry for joining us today.
This Forum is an important moment. It delivers both on the agreement by Prime Minister Kishida and President von der Leyen at the EU-Japan Summit last year as well as our Memorandum of Cooperation on hydrogen signed in 2022.
With this in mind, we are here today with clear objectives:
- We want to foster stronger ties and exchange innovative ideas between European and Japanese business leaders;
- We also want to deliver on our mutual goal to rapidly develop and rollout hydrogen technologies and related sustainable energy solutions.
Hydrogen is a top energy priority for the EU. It’s a crucial element in our RePowerEU Plan, aimed at phasing out our dependence on Russian fossil fuels. It is also central to our transition to climate neutrality by 2050.
The EU has now almost completed the regulatory framework for a future hydrogen market and we have binding hydrogen targets in our legislation that will drive demand.
Around 6 million tonnes of potential hydrogen off-take commitments are currently under discussion. We hope that this will soon result in off-take agreements and final investment decisions for the significant pipeline of projects in the EU.
We are aware that turning this pipeline of projects into reality remains challenging. This is why the Commission is strongly committed to investing in the development of the hydrogen market, both domestically and globally. Our work on financing hydrogen infrastructure projects is proof of that. So too are our efforts to bridge the financing gap of hydrogen generation projects under the EU Hydrogen Bank.
Under the first auction of the EU Hydrogen Bank, we decided to award nearly EUR 720 million for seven highly innovative renewable hydrogen projects in Europe. The results of the auction show that the market is ready: there was a high level of participation and competition, with 132 bids from 17 different European countries. We will have a second domestic auction this year and we are confident that next year we could organise the first auction to finance hydrogen projects outside the EU.
Finally, as we speak, we are taking another important step to create a European hydrogen market. We are now launching the process to create a new pilot mechanism for hydrogen market development. It will connect European off-takers with hydrogen supplies both from Europe and outside Europe and prepare the ground for future auctions under the European Hydrogen Bank.
Ladies and Gentlemen,
Hydrogen will be an internationally traded commodity, and close EU-Japan cooperation will be essential for promoting renewable and low-carbon hydrogen globally and ensuring standards and regulation converge.
EU-Japan energy relations are very good, and they are growing closer. We are aligned in our global efforts to combat climate change. We both have a comprehensive approach to hydrogen. Japan is clearly positioning itself as a key player in the global shift towards cleaner and sustainable energy sources. And so too is the EU.
We want to cooperate with Japan to develop high standard regulations and ensure a level playing field. This is important work in establishing a global market.
And we need the private sector on board! I now look forward to hearing from business leaders. Tell us how you see things from your perspective. I want to hear your take on the hydrogen market.
Thank you.
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Opening remarks by Commissioner Simson at the EU-Japan High-Level Hydrogen Business Forum. source
