Cheap and dirty, gray hydrogen can be made by stripping natural gas at €1 per kilogram. Capturing the escaping CO2 to lower emissions, which makes so-called blue hydrogen, ups the cost to €1.50 to €2 per kilogram. Green hydrogen, made from renewable electricity and zero emissions, can cost up to €5 per kilogram.

“The main booster has to be a significant increase in volumes to bring down the price … to a range of €1-€2 per kilogram as quickly as possible,” the draft states. “Time to lay the foundations for this rapid acceleration and industrial leadership is now.”

Production targets would be set for the desired amounts of green, blue and gray hydrogen for 2030, 2040 and 2050.

In the short term, the Commission proposal suggests paying producers of gray hydrogen to go blue by implementing carbon capture technologies.