EU Gas Overhaul Sparks Hydrogen Momentum

New rules give hydrogen clearer network access and regulatory certainty, supporting future infrastructure planning

18 Dec 2025

Europe’s hydrogen sector is moving from policy ambition to market design as a wide-ranging reform of the EU gas market reshapes how hydrogen is produced, transported and stored.

The Hydrogen and Decarbonised Gas Market Package introduces dedicated rules for hydrogen, borrowing from regulatory principles that helped natural gas develop into an integrated European market. For a sector that has relied largely on pilot projects and tailored contracts, the reform is intended to provide clearer governance and coordination across borders.

At the centre of the package is an effort to create predictability. Hydrogen pipelines and distribution networks will, over time, operate under common rules on third-party access, tariffs and planning. Analysts and industry groups say this could make it easier for producers to assess routes to market and for network operators to commit to long-term investments.

“This is the stage where hydrogen begins to resemble a market rather than a collection of trials,” said one EU energy policy adviser involved in the reform process. “The objective is to enable scale while maintaining fair competition.”

Early signs of adjustment are emerging. Gas network operators are advancing plans to repurpose parts of existing infrastructure for hydrogen, while producers are reviewing potential project locations based on anticipated future network access. Industry representatives have repeatedly pointed to transport regulation as a critical factor for market development, though investment decisions remain uneven across regions.

The reform also elevates the role of storage, an area often treated as secondary in earlier hydrogen strategies. While the package stops short of detailed storage regulation, it formally recognises storage as essential for balancing supply and demand. This has encouraged closer coordination between storage developers and network planners, particularly in regions seeking to establish hydrogen hubs.

Concerns remain. Some industrial users warn that regulatory costs could increase before demand reaches scale, and there is still uncertainty over how network fees will be set during the transition. Energy groups have also urged policymakers to ensure the framework remains flexible enough to accommodate imports and a range of supply routes.

Even so, policymakers and analysts describe the outlook as cautiously positive. By setting market rules early, the EU is aiming to support investment readiness rather than respond later to fragmented growth. As network planning progresses, Europe’s hydrogen sector is shifting from concept toward system building.