Tackling Investment Risks to Accelerate Green Hydrogen Deployment in the EU

The EU needs to mobilize €330 billion to €400 billion in private investment to bring 20 million tons of green hydrogen to market by 2030. However, two primary risks hinder this: market risk, where off-takers fear paying higher-than-market rates compared to fossil fuels, and first-mover risk, where early investors face high electrolyzer costs that may become uncompetitive as technology prices fall. RMI suggests that a cumulative investment of approximately €10 billion between 2024 and 2029 could offset market risk, while producers may need €3.5-5 billion per year in public support to keep early capacity competitive. By spending up to €15 billion to offset these risks by 2030, the EU could leverage significant private spending on renewables and electrolyzers.

• Scaling green hydrogen supply to 20 million tons in European markets by 2030 requires mobilizing between €330 billion and €400 billion of private investment in electrolyzers and renewables.
• Two primary investment risks impede industrial-scale deployment: market risk, which stems from green hydrogen competing with oil, natural gas, and coal, and first-mover risk, where high initial electrolyzer costs may render early projects uncompetitive as technology costs decline.
• A cumulative investment of approximately €10 billion between 2024 and 2029 could close the price gap between green hydrogen and the fossil-based fuels it replaces, mitigating market risk.
• To achieve necessary learning curves and scaling benefits, the EU must build capacity capable of delivering at least 3 million tons per year by the end of 2027; subsequently, producers may require €3.5-5 billion annually in public support to remain competitive until early assets are retired.
• Public spending of up to €15 billion to offset investment risks by 2030 could catalyze private spending on clean energy technologies exceeding 20 times that amount.

APA

RMI (2022). Tackling Investment Risks to Accelerate Green Hydrogen Deployment in the EU. https://rmi.org/resources/tackling-investment-risks-to-accelerate-green-hydrogen-deployment-in-the-eu/

Chicago

RMI. Tackling Investment Risks to Accelerate Green Hydrogen Deployment in the EU. 2022. https://rmi.org/resources/tackling-investment-risks-to-accelerate-green-hydrogen-deployment-in-the-eu/.

Wikipedia

{{cite report |author=RMI |title=Tackling Investment Risks to Accelerate Green Hydrogen Deployment in the EU |date=6 October 2022 |url=https://rmi.org/resources/tackling-investment-risks-to-accelerate-green-hydrogen-deployment-in-the-eu/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022tackling, author = {{RMI}}, title = {{Tackling Investment Risks to Accelerate Green Hydrogen Deployment in the EU}}, institution = {RMI}, year = {2022}, month = oct, url = {https://rmi.org/resources/tackling-investment-risks-to-accelerate-green-hydrogen-deployment-in-the-eu/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }