MEDIA ADVISORY: THE EU HYDROGEN RUSH AT COP27 IS SHORT SIGHTED AND RISKS EXTENDING THE ENERGY CRISIS BEYOND THE EU

• The EU will sign a MoU on renewable hydrogen with Egypt, while having already signed one with Namibia last week, and is about to sign one on hydrogen only with Japan.
• Until hydrogen is 100% renewable, it will continue being produced from fossil gas, worsening the energy and the climate crisis. Therefore significant additional renewable generation capacities need to be generated. 
• Hydrogen MoUs need to be monitored carefully to exclude new gas exploration and infrastructure development.  

Brussels / Sharm-El-Sheikh, 14 November 2022 – The European Union will sign  a Memorandum of Understanding with Egypt, having already penned one deal with  Namibia last week at Sharm El Sheikh (Egypt) during COP27, entailing agreements on renewable hydrogen. These short-sighted deals, which are part of the ‘REPowerEU’ that plans to import 10 million tonnes of renewable hydrogen by 2030 (in addition to producing 10 million domestically), fit in the larger EU strategy to move away from Russian fossil gas and fossil fuels in general.

The Memorandum of Understanding with Namibia covers raw materials and renewable hydrogen. The European Investment Bank (EIB) and Namibia also signed a joint declaration to deepen their cooperation on renewable energy, including renewable hydrogen, including a loan by EIB Global to the Government of Namibia of up to €500 million.  

The MoU between the EU and Egypt focuses on accelerating cooperation on renewable hydrogen and its derivatives (ammonia, methanol, synthetic gases and synthetic fuels) produced with technologies such as “electrolysis”. The plans should complement existing energy cooperation between the EU and Egypt, including in the context of the East Mediterranean Gas Forum (EMGF). As the EGMF is involved and hydrogen expansion is the perfect catch for the fossil gas industry to continue business as usual (via pipeline and other infrastructure), the development of this MoU (and others focusing on hydrogen) needs to be monitored very carefully to exclude new gas exploration and infrastructure development.  

The (Renewable) Hydrogen Controversy Hydrogen has been misleadingly considered as the new transition fuel as it is seen by many as a clean alternative to coal, fossil gas and oil. With Russia’s war in Ukraine and the subsequent fossil gas and energy crisis, the European Commission further pushed  renewable hydrogen expansion as the magic wand to diversify away from Russian gas. However today hydrogen is produced predominantly from fossil gas as close to 100% comes from Steam Methane Reformation. But, for the use of hydrogen to deliver significant emissions savings, all of the energy used for hydrogen production must come from additional renewable energy sources, coming on top of those needed to electrify main sectors of the economy (heating, transport, industry).

Once produced, renewable hydrogen must be targeted only to those sectors where direct electrification through renewable energy cannot yet be pursued: energy intensive industries  such as the steel and fertiliser industry, or long distance transport with shipping and aviation.