The European Resilience Alliance for Clean Hydrogen & Derivatives (ERA), a coalition of leading European industrial companies, has published its Clean Hydrogen Value Chain Bankability Playbook, calling for targeted public financial support and greater regulatory certainty to accelerate investment in clean hydrogen production, infrastructure and industrial applications across Europe. The alliance includes companies and organizations operating across the hydrogen value chain, such as Stegra, thyssenkrupp, RWE Generation, Enagás, Gasunie and Hydrogen Europe.
According to ERA, Europe has established a substantial pipeline of clean hydrogen projects, but uncertainties surrounding demand, revenues, infrastructure development and technology deployment continue to prevent many projects from reaching final investment decisions (FIDs). Progress has been made since the publication of its first white paper in April 2026, including further implementation of the Renewable Energy Directive III (RED III) in several EU member states and additional clean hydrogen projects reaching FID. However, further measures are needed to translate Europe's hydrogen ambitions into large-scale industrial investments.
Three financial mechanisms proposed to improve hydrogen project bankability
The playbook identifies three priority financial mechanisms aimed at improving the bankability of clean hydrogen projects and mobilizing private capital.
The first mechanism involves double-sided auctions supported by public funding, which would connect hydrogen producers and consumers through competitive bidding and facilitate long-term supply agreements. Under this approach, public support would cover only the funding gap required to make individual transactions commercially viable.
The second proposal involves contracts for difference for hydrogen midstream operators, enabling them to aggregate fragmented supply and demand while receiving financial support to cover the resulting funding gap.
The third mechanism focuses on intertemporal cost allocation for hydrogen transport infrastructure. Under this approach, initial transport tariffs would remain affordable and predictable, while infrastructure operators would recover costs over a longer period through financing arrangements and government or EU guarantees.
According to ERA, these mechanisms would address investment risks that individual market participants cannot currently manage efficiently, helping establish a functioning hydrogen market during its initial development phase.
Regulatory certainty and coordinated investment remain priorities
The alliance emphasized that stable and pragmatic regulations are essential for creating predictable demand for clean hydrogen, particularly in industrial sectors where emissions reductions are difficult to achieve. Public financial support should be targeted and temporary, with commercial risks and the additional costs of clean hydrogen eventually borne by market participants as the market matures.
The organization also highlighted the importance of coordinating investment across hydrogen production, transportation and consumption, noting that delays in one part of the value chain can affect the commercial viability of projects elsewhere. It called on EU institutions and national governments to implement the proposed financial mechanisms and establish more predictable regulatory conditions to support clean hydrogen production, infrastructure development and industrial decarbonization.
