Recent developments
EU policy signal
The European Commission published the final terms for a €1 billion pilot auction to electrify industrial process heat across the EEA. Projects can deploy heat pumps, electric boilers, plasma or resistance heating, and direct renewable heat, with a five‑year premium per tonne of CO2 abated. The scheme targets process heat, a major industrial emission source, and overlaps with sectors currently using fuel-based heat, including hydrogen.
Refinery decarbonization moves
Refining decarbonization included the start-up of a multi-megawatt high-temperature electrolyzer at Rotterdam, using SOEC to supply renewable hydrogen while leveraging high-grade heat to reduce electricity demand. In Italy, Eni advanced the Priolo conversion to biorefining and chemical recycling, incorporating a hydrogen production plant, a 500,000 t/y biorefinery using biogenic feedstocks, and a Hoop unit processing 40,000 t/y mixed packaging waste to yield 32,000 t/y pyrolysis oil.
Hydrogen supply build-out
Air Liquide committed nearly $50 million to optimize hydrogen infrastructure in the U.S. Gulf Coast, adding compression and distribution and upgrading pipelines. Integration with the Spindletop hydrogen cavern supports reliable deliveries to major refiners with limited greenfield expansion.
Ammonia bunkering progress
Maritime decarbonization progressed as Sumitomo secured MPA funding to enhance safety and efficiency for ammonia bunkering in Singapore. A Keppel-led consortium on Jurong Island will develop end-to-end supply, with a demonstration targeted by 2027 and potential scale-up toward 2030 to serve bunkering and power generation.
Offshore H2 platform
Demonstration capacity grew in the Netherlands with the arrival of the BaseLoad Power Hub at Eemshaven. The 23×46 m, 1,800‑ton platform combines a 2.5 MW electrolyser, 1,200 kg hydrogen storage, and a 1 MW/5 MWh battery for R&D, with planned offshore deployment for hydrogen production and storage studies.
Strategy and capex
Strategic plans highlighted capital allocation to low-carbon molecules. OMV outlined average annual capex of EUR 2.8 billion through 2030, with 30% for sustainable projects, including green hydrogen production and SAF/HVO capacity, targeting operations by 2028 alongside scope 1–3 emissions reductions.
Emissions and resources
Enabling conditions addressed emissions and water. TotalEnergies and Veolia will reduce methane emissions from landfills using drone-based measurement, while collaborating on industrial water reuse and low-carbon energy at desalination sites—relevant to hydrogen’s water footprint and upstream gas value chains.
Trade and cost pressures
Competitiveness pressures persisted. INEOS announced 60 job cuts at Hull amid high energy costs and coal-based imports. Despite a £30 million switch from natural gas to hydrogen at the site cutting emissions by 75%, the company warned that unprotected imports threaten UK and EU chemicals manufacturing.