PVTIME – Saudi Arabia’s ACWA Power and Abu Dhabi’s Masdar have jointly urged the European Union to maintain and extend its investment commitments in hydrogen beyond 2030. They warned that sustained policy certainty is essential to establish the cross-border supply chains required for Europe’s decarbonisation.
The two developers stated that, without clear regulatory signals extending beyond the current decade, private investors would be reluctant to invest the necessary capital to construct the production, transportation and import infrastructure required for Europe to meet its climate targets.
Both firms are positioning themselves as key intermediaries between Middle Eastern hydrogen producers and European offtakers. ACWA Power is developing large-scale green hydrogen and green ammonia projects in Saudi Arabia, including the NEOM facility in partnership with Air Products, and the Yanbu Green Hydrogen Hub with Germany’s EnBW. The latter is expected to begin commercial operations by 2030. Masdar holds stakes in multiple hydrogen ventures across Europe and the Middle East, and has been advocating streamlined permitting processes and stable revenue mechanisms for import-dependent markets.
The joint appeal comes at a sensitive moment for European energy policy. While the EU’s current hydrogen strategy sets ambitious targets for 2030, including the import of up to 10 million tonnes of green hydrogen annually, the regulatory and financial instruments designed to attract the necessary private capital are largely scheduled to expire or require renewal by the end of the decade. Industry players have repeatedly warned that a policy gap between the current framework and any successor after 2030 could stall project pipelines just as they reach financial close.
ACWA Power and Masdar stated that a reliable, long-term investment environment would allow developers to obtain financing for the production of electrolysers, the construction of ammonia shipping fleets, and the development of import terminals on the shores of the Mediterranean and Black Seas. They also emphasised that cross-border hydrogen corridors would reduce Europe’s reliance on imported fossil fuels and create new trade relationships with producing nations in the Middle East and North Africa.
While the companies did not specify particular policy instruments that they would like to see extended, their statement emphasised a broader industry message: hydrogen is no longer a niche fuel, but rather a cornerstone of Europe’s industrial decarbonisation strategy. Investors require confidence that the rules governing the hydrogen market will remain stable for at least the next decade.
