As the war in Ukraine creates an unprecedented energy crisis in Europe, this was a highly anticipated speech. During her speech on the state of the European Union to MEPs gathered in Strasbourg on Wednesday 14 September, the President of the European Commission Ursula von der Leyen notably announced that the European Union (EU) would set up a public bank dedicated to the development of hydrogen energy, capable of investing 3 billion euros “to build the future market” of this energy.
“We need to move from the niche market to the mass market. (…) We want to produce ten million tonnes of renewable hydrogen in the EU every year by 2030,” she argued. This requires to “filling the investment gap”added M.me Von der Leyen, assuring that this public bank would also contribute to “guarantee the purchase of hydrogen”.
Strategic sector for the decarbonization of the economy
The President of the European Commission thus devoted a large part of her speech to the issue, also ensuring that the EU was going to engage “in-depth reform” of the European electricity market to cope with soaring energy prices.
In an attempt to deal with this crisis, the institution already presented, in May, its plan « RePower EU » providing for an acceleration of renewable energies within the EU to free itself as quickly as possible from imports of Russian gas, in direct reaction to the invasion of Ukraine.
In July, the European executive approved a research and development project in favor of hydrogen, a strategic sector for the decarbonization of the economy, by federating 41 initiatives involving 35 companies (large groups, SMEs or start-ups), supported by 15 Member States, including Germany, Spain, France, Italy and Poland.
In this context, Brussels has authorized public funding of up to 5.4 billion euros, estimating that this state aid should make it possible to mobilize 8.8 billion additional private investments and create 20,000 jobs throughout the Europe.
Hydrogen should play a central role in enabling industry to produce steel, cement or chemicals and pharmaceuticals without emitting CO2. For this, it must itself be green, i.e. resulting from an electrolysis of the water molecule (H2O).
It could thus replace coal in industry and make it possible to store intermittent renewable energies, solar or wind, via fuel cells. Heavy transport (trains, ships, road utility vehicles, etc.) could also use hydrogen to replace their fossil fuels.
“Unwavering solidarity” with Ukraine
During her speech, Ursula von der Leyen also reiterated the EU’s unwavering support for Ukraine. “Europe’s solidarity with Ukraine will remain unwavering”repeated the Commission President in the eighth month of the conflict, insisting that EU sanctions against Russia were not about to be lifted.
Dressed in the colors of Ukraine as a token of European solidarity with Ukraine, Ursula von der Leyen honored the Ukrainian President’s wife, Olena Zelenska, guest of honor at this speech and who was applauded by MEPs.
“Dear Olena, it took immense courage to stand up to Putin’s cruelty. You found that courage”launched the leader, announcing that she would leave for kyiv at the end of the parliamentary debate following her speech in order to discuss ” in detail “ of continued European aid with President Volodymyr Zelensky.
“I stand here in front of you with the conviction that, thanks to our courage and our solidarity, Putin will fail and Europe will win”added the President of the European Commission, who spoke successively in English, French and German.
Capping the superprofits of energy companies
Ursula von der Leyen also proposed a cap on exceptional income – called “superprofits” – of electricity producers based on renewable energies and nuclear which would make it possible to raise “more than 140 billion euros” for EU states, in order to redistribute them to vulnerable households and businesses. The twenty-seven European energy ministers must, for their part, meet again on September 30 to decide on the emergency plan proposed by the European Commission.
During his speech, Mr.me Von der Leyen has also pledged that the EU will constitute “strategic reserves” to avoid supply disruptions in raw materials « critiques » for its industry (lithium, rare earths). Finally, she assured that the EU would double its firefighting capacities next year by purchasing ten light amphibious planes and three additional helicopters.
The speech on the state of the Union must allow the Commission – not elected but having the initiative of European laws – to report on its results and present its projects to European parliamentarians.
It was the third time that Ursula von der Leyen had engaged in this exercise inspired by American politics, in a very different context from that of 2021, where she was further strengthened by the united management of the health crisis. A two-hour debate with MEPs was scheduled after his speech.