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31.08.2026
The EU’s hydrogen economy is moving forward more slowly than expected, but the common rules of play currently being developed will pave the way for investments that will accelerate the production, transmission and use of renewable hydrogen. Despite slower uptake, the use of hydrogen is now strongly gaining ground in transport. Germany is the driving force behind the development of the EU’s hydrogen economy with newly set ambitious goals for hydrogen derivatives in transport. From Finland’s perspective, the long-term direction of development is on the right track, says Marko Janhunen at Gasgrid.
The European hydrogen economy is moving forward, but at a slower and more selective pace than was expected just a few years ago. This is how Marko Janhunen, VP, Public Affairs at Gasgrid, who is closely following the development of the hydrogen market and regulations, assesses the situation.
– In real life, major changes often happen more slowly than expected. When Russia invaded Ukraine and triggered a serious energy crisis, the EU hoped for a quick change, but at the same time, the regulatory framework for the hydrogen economy, for example, was still completely in the making. To some extent, it still is, Janhunen says.
The objectives of the EU’s hydrogen economy were outlined in the REPowerEU strategy of 2022, which aims to reduce the EU’s dependency on Russian fossil fuels, improve the security of energy supply and to accelerate the transition to clean energy.
– The strategy set an ambitious target for the EU to produce 10 million tonnes of renewable hydrogen a year by 2030, Janhunen says.
Applications for renewable or green hydrogen are being sought in sectors such as the steel, chemical and fertiliser industries, heavy-duty transport, and in renewable fuels for aviation and maritime transport.
– Everyone recognises that renewable hydrogen is a significant way to reduce carbon dioxide emissions and an important part of the future energy mix. At the same time, the EU must improve its competitiveness and increase its energy self-sufficiency. All of these objectives contribute to the development of the hydrogen economy.
Janhunen thinks that it will be challenging to reach the EU’s targets within the original timeline. Over the next two years, however, the EU and its Member States will implement legislative projects that will lay the foundations for the hydrogen economy to be built in the coming decades.
The aim is to create common rules of play for the role of renewable and low-carbon hydrogen as an energy carrier for both transport and industry until the 2040s. The EU is now strongly promoting electrification. Hydrogen is therefore part of this electrification goal, which to a particularly large extent will reduce dependence on energy from outside of the EU.
The EU’s Renewable Energy Directive III (RED III) sets binding targets and sustainability criteria for the use of renewable energy in EU Member States by 2030. The European Commission is now preparing a new RED IV Directive, which will tighten renewable energy targets in the next decade.
Clarification of the regulatory framework aims to reduce the uncertainty that hinders investments promoting the production and use of green hydrogen. This is also the aim of public support to accelerate the production of renewable hydrogen and the emergence of a hydrogen market.
One such financing instrument is the European Hydrogen Bank run internally by the European Commission.
– The use of renewable hydrogen is already making strong progress in certain sectors, Marko Janhunen considers.
One such sector is heavy-duty transport. On the other hand, ammonia made using green hydrogen is being developed to power ships.
According to Janhunen, Germany is a leading star in the development of the hydrogen economy in the EU. The country has transposed the obligations of the RED III Directive into legislation faster than many other Member States.
– This means, for example, a statutory obligation to gradually increase the use of renewable hydrogen in transport.
Germany is now focusing efforts in particular on encouraging the steel industry to switch to using renewable hydrogen in steelmaking. This is being encouraged through state aid granted to companies.
– Large energy companies, too, are preparing for the change by investing in the production of renewable hydrogen in plants that currently produce grey, i.e. fossil, hydrogen.
Janhunen says that Spain is another major EU Member State that has recently set ambitious targets for building a hydrogen economy. Spain’s target for hydrogen fuels in transport is even more ambitious than Germany’s. Accelerated by public support, the country aims to become a major producer and exporter of renewable hydrogen and its derivatives to the rest of Europe.
According to Marko Janhunen, there are also conflicting views within the EU regarding the development of the hydrogen economy. Member States may have very different perspectives on how the obligations of the clean transition will create wellbeing, economic growth and employment, and enable society to increase its energy self-sufficiency.
Finland supports the creation of a European hydrogen market and common rules of play. The goal is to become a leading producer of renewable hydrogen and process it into high-value products. Gasgrid’s future national hydrogen infrastructure, which can also be connected to European hydrogen infrastructures in the future, is an essential part of Finland’s ambitions.
Janhunen thinks that Finland has excellent potential to become a significant producer of renewable hydrogen and hydrogen derivatives, such as e-fuels. However, since Finland’s own market is small, this requires the creation of a European hydrogen market.
– Cooperation with the EU is essential for Finland. It is extremely important to us that large Member States such as Germany and Spain support the promotion of the hydrogen economy.
Story: Matti RemesPhotos: Niina Kaverinen, Getty Images
Vice President, Public Affairs at Gasgrid, 2024–
His remit includes highlighting renewable and low-carbon gases as part of the green transition, the hydrogen economy, advocacy for the EU and promotion of the national hydrogen infrastructure.
Education: Master of Social Sciences/University of Helsinki, Executive MBA/Helsinki School of Economics, Master of European Studies/College of Europe, Belgium
Prior to joining Gasgrid: 25 years in advocacy, public affairs and international projects in the forest industry.
Hobbies: walking with the dog and various forms of exercise, gastronomy and political history.
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