Imported green hydrogen produced from renewable energy — and the green ammonia made with it — are crucial for European industry to eliminate its reliance on Russian natural gas. Imports of these clean energy fuels are already cost-competitive and can substitute most fossil fuels used by heavy industry and transport in the EU within eight years.

As Europe defines its pathway to energy security and climate alignment, this new report explains key policy measures that EU leaders should take to ensure green hydrogen and ammonia deployment. Straightforward incentives focused on infrastructure for industrial hubs, as well as a certification system and import rules that prioritize low-carbon fuels, will allow the region to reap immediate economic benefits and jump-start the decarbonization of the hardest-to-abate sectors. Incorporating green hydrogen and ammonia into trade policy with renewables-rich countries like Australia, Brazil, Chile, and North African nations will enable imports to reach the continent as early as 2024.

Source: Eurostat, 2022; Petrochemicals Europe, 2022; Fertilizers Europe, 2022; Eurofer, 2020