EU to establish hydrogen bank with $3 billion fund
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EU aims to lead in clean hydrogen economy.
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EU Chief Von der Leyen
European Commission President Ursula von der Leyen stated on Wednesday that the EU is set to establish a hydrogen bank with a $3 billion fund to invest in the hydrogen market.
"Today I will be announcing that we have created a new European hydrogen bank," Von der Leyen stated. "This will help to guarantee the supply of hydrogen, using money from the innovation fund. We will be able to invest 3 billion euros to help to construct a future hydrogen market," she added during her annual State of the EU address.
The European Commission adopted in 2020 a hydrogen strategy that aims to position the EU as a world leader in a clean hydrogen economy.
“Hydrogen has a huge potential going forward. It is an indispensable component for the diversification of energy sources and the green transition," stated EU Competition Commissioner Margrethe Vestager on July 15.
While the strategy was announced in 2020, the EU's sanctions on Russia following the war in Ukraine, which led to energy shortages and extreme price hikes in the member states, have put the EU on a fast track to diverse energy sources, including hydrogen.
So far, the EU's attempts to manage the economic crisis following the confrontation with Russia show no signs of fast enough effectiveness, as a study conducted by the European Trade Union Confederation (ETUC) revealed a few days ago that low-income Europeans cannot afford energy bills.
"When your bill costs over a month's wages, there's no clever money-saving trick that will make a difference," ETUC Deputy General Secretary Esther Lynch said in a statement, adding, "These prices are now simply unaffordable for millions of people."
Euro slides to a 20-year low against the dollar
On September 5, the euro dropped 0.70% to 0.9884 dollars, its lowest level since December 2002, after losing parity for the first time in 2 decades last July.
Prices all over Europe have been inflated by almost 400% due to the restricted gas flow from Russia, with expectations that they increase further after Moscow went back on its decision to continue pumping gas through Nord Stream 1 to Germany due to maintenance issues.
Surging costs of power linked to gas prices have already stunted the production of various industries, such as fertilizers and aluminum manufacturers, and prompted EU governments to increase their spending by billions in order to help their citizens.
