Europe’s Hydrogen Grid Race Heats Up as EU Decision Looms

Industry is pushing Brussels to fast-track hydrogen grids, warning that without clear rules, Europe’s clean hydrogen market could stall

15 Jan 2026

Europe’s drive to build a hydrogen economy is moving into a more pragmatic phase, as industry groups shift attention from production targets to the less visible task of building pipelines and storage.

Producers are advancing projects and political support remains firm. But without infrastructure to move and store hydrogen, companies warn that supply risks staying local rather than forming a continent-wide market. That concern is now shaping a coordinated push towards Brussels.

Industry bodies including Hydrogen Europe and Gas Infrastructure Europe are calling on the EU to include a dedicated hydrogen grids strategy in its forthcoming Grids Package. They argue that without shared planning and common rules, infrastructure investment will be delayed, costs will increase and confidence will weaken.

Hydrogen is widely seen as critical to cutting emissions in steel, chemicals and heavy transport, sectors that are difficult to electrify. While announced production capacity has grown quickly, uncertainty over transport and storage is slowing final investment decisions.

Sopna Sury, chair of Hydrogen Europe, has warned that hydrogen cannot move from a niche solution to a core energy source without clear, EU-wide regulation. “It needs to be planned as a system, not as isolated projects,” she has said.

The Grids Package, still under negotiation, was originally designed around electricity networks. Industry sees it as a rare opportunity to formally integrate hydrogen into EU grid planning. Companies are seeking clarity on permitting, cost recovery and long-term regulation, which they say is essential to reduce risk and unlock capital.

Energy groups such as RWE and Engie argue that repurposing existing gas pipelines could sharply lower costs and speed deployment, potentially saving up to 60 per cent compared with building new networks. But they stress this depends on common safety standards and cross-border coordination.

Storage is also climbing the agenda. Underground hydrogen storage could help manage supply swings and increase the value of renewable power. Operators say predictable regulation is the missing ingredient needed to justify large upfront investment.

Hydrogen networks require long lead times and heavy spending. Some analysts warn of overbuilding, but the industry’s message has become more unified.

Hydrogen, executives argue, is no longer just a climate ambition. It is an infrastructure choice, and the EU’s next policy decisions may determine whether it develops into a single energy system or remains a patchwork of projects.