The European Investment Bank has funneled roughly €2 billion into the hydrogen value chain over the last five years. These investments target specific industrial applications, such as a 20-megawatt electrolyzer supporting a fertilizer plant in Spain and a 100-megawatt unit for biofuel production in Portugal. By focusing on industrial clusters, the bank aims to build infrastructure incrementally, preventing the creation of stranded assets while proving commercial viability.
Despite this momentum, high electricity prices and a lack of long-term offtake agreements remain significant hurdles. Clean hydrogen must compete with cheaper fossil-based alternatives, often requiring carbon pricing or a green premium to attract private capital. Moving forward, the EIB intends to prioritize projects that reduce financial risk, emphasizing sectors where direct electrification is not feasible, including steel manufacturing, chemical refining, and heavy transport. Success now depends on the transition from project planning to the physical construction of transport networks and storage facilities that link producers to industrial end-users.
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