Vis Consultants

Hydrogen – The risk of stranded assets in EU27

The European Union aims to decarbonize its gas sector by 2050 via the use of “low carbon gases”, including “blue” and “green” hydrogen. In the short and mid-term, natural gas is also envisaged to play a significant role as a “transitional fuel”. This short report elaborates on the fact that the carbon neutrality target -to be achieved by 2050- is not fully compatible with the long lifetimes of “blue” hydrogen and new natural gas infrastructure, especially when considering the expected cost-competitiveness of “green” hydrogen in the coming years. In more detail, we present how the relevant EC policies, the Member States’ initiatives, the allocation of public and private funds and the pipeline of new natural gas projects raise concerns for probable lock-in effects and increase the risk of having natural gas and/or “blue” hydrogen stranded assets across the EU.