FT: Europe faces critical shortage of metals needed for clean energy

 The Financial Times writes: 

Europe faces a critical shortage of clean-energy metals and needs to decide urgently how it will bridge the looming supply gap or risk new dependencies on unsustainable producers. 

 That is the conclusion of a new study commissioned by Eurometaux, an industry group that represents some of the region’s biggest metal producers, including Glencore and Rio Tinto.

  The report, written by Belgium’s Katholieke Universiteit Leuven, marks the first attempt to provide some EU-specific numbers around last year’s warning from the International Energy Agency of supply challenges owing to the amount of metals needed for batteries, solar panels and wind turbines. 

 It comes as the EU, which is aiming to be carbon neutral by 2050, looks to reduce its dependence on imported Russian energy and make a quicker switch to renewable energy.

 “There is a risk . . . with the geopolitical developments we are seeing round the world that Europe . . . will not have the metal for its climate programme,” said Mikael Staffas, president of Eurometaux and chief executive of Boliden, one of Europe’s biggest metals and mining companies. He was speaking before the launch of the study in Brussels.

You can read the rest of the piece via the below link:

https://www.ft.com/content/72400b96-4c67-4a7f-9a98-53371f5ab421?fbclid=IwAR1UsPYM-oQNYFWHwUxkkBA10T2vOMrWTR_xoNpwwpl71F3sAZO7lIdMnx4

EU: Commission approves german 27.5 Bn energy-compensation scheme

 The European Commission has approved, under EU State aid rules, a German scheme to partially compensate energy-intensive companies for higher electricity prices resulting from indirect emission costs under the EU Emission Trading System (‘ETS').

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €27.5 billion scheme will allow Germany to reduce the impact of indirect emission costs on its energy-intensive industries and hence the risk that these companies relocate their production to countries outside the EU with less ambitious climate policies. At the same time, the measure will facilitate a cost-effective decarbonisation of the German economy in line with the Green Deal objectives, while limiting possible distortions of competition.”

The German measure

The scheme notified by Germany, with a total estimated budget of €27.5 billion, will cover part of the higher electricity prices arising from the impact of carbon prices on electricity generation costs (so-called ‘indirect emission costs') incurred between 2021 and 2030. The support measure is aimed at reducing the risk of ‘carbon leakage', where companies relocate their production to countries outside the EU with less ambitious climate policies, resulting increased greenhouse gas emissions globally.

The measure will benefit companies active in sectors at risk of carbon leakage listed in Annex I to the Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2021 (‘ETS State aid Guidelines'). Those sectors face significant electricity costs and are particularly exposed to international competition.

The compensation will be granted to eligible companies through a partial refund of the indirect emission costs incurred in the previous year, with the final payment to be made in 2031. The maximum aid amount will be generally equal to 75 % of the indirect emission costs incurred. However, in some instances, the maximum aid amount can be higher to limit the remaining indirect emission costs incurred to 1.5 % of the company's gross value added. The aid amount is calculated based on electricity consumption efficiency benchmarks, which ensure that the beneficiaries are encouraged to save energy.

You can read the rest of the piece under the below link:

https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4925

EU: energy cooperation between the bloc and Ukraine and Moldova

 Transmission System Operators for Electricity of Continental Europe agree to increase the trade capacity with the Ukraine/Moldova power system, entsoe.eu:

On 28 July, the Transmission System Operators (TSOs) of Continental Europe agreed to increase the trade capacity with Ukraine/Moldova to 250 MW which is more than double the capacity that was set in the initial phase (100 MW). The possibility of further increasing trade capacity will be assessed in September based on power system stability and security considerations.

Commercial electricity exchanges with the Ukraine/Moldova power system started on 30 June on the interconnection between Ukraine and Romania, followed by the Ukraine-Slovakia interconnection on 7 July. Electricity trading on the other interconnections (Ukraine-Hungary and Moldova-Romania) is expected to follow later.

You can read the rest of the piece under the below link:

https://www.entsoe.eu/news/2022/07/29/transmission-system-operators-for-electricity-of-continental-europe-agree-to-increase-the-trade-capacity-with-the-ukraine-moldova-power-system/

Europe: Countries of the bloc sound out strategies to avoid the commodities trap

 After the rude awakening caused by the military aggression by Russia on Ukraine and the assessment of the overwhelming dependency of countries - especially Germany - on gas supply from Russia, thinktanks in the EU reflect about how not to repeat the same mistake with other commodities such as rare earths, titanium or graphite, writes WELT:

The Ukraine war and the gas crisis are causing politicians to view Europe's heavy dependence on a few raw material suppliers with greater concern than before. When it comes to mining and processing strategically important raw materials, countries such as China hold quasi-monopolies – and of all things when it comes to the materials on which the European energy and mobility transition depends.

The business-oriented think tank Center for European Politics (CEP) has now investigated how dependent the EU is on such raw materials. Germany and other European economies are therefore too dependent on raw materials from a few countries for future key technologies and should end this dependency as quickly as possible. "The chances of survival of the European economic and social model are also decided on the international commodity markets," says the unpublished study, which is available to WELT.

For the study, the researchers specifically identified resources that are indispensable for future technologies, but whose supply situation is critical. To do this, they brought together two analyses: on the one hand, a study by the German Raw Materials Agency (DERA), which identifies groups of raw materials that are essential for the energy transition and digitization, and on the other hand, a list from the European Commission of 30 raw materials for which there are supply risks.

The researchers have identified twelve substances that are equally promising and supply-critical. The list includes materials such as lithium, cobalt and rare earths, which also dominate the public debate about the scarcity of raw materials. However, substances such as titanium, graphite and more exotic substances such as scandium and vanadium also appear.

They are in wind turbines, solar systems, batteries for electric cars, fuel cells, electric motors or in microchips, displays and fiber optic cables. And for all the substances examined, a few or even just individual countries dominate the global supply.

"Not only is a large part of the relevant raw material deposits outside of one's own sphere of influence," says study author André Wolf. “The global markets are currently also predominantly dominated by countries that represent strategic rivals or that do not share the environmental and social standards that are essential for the EU’s self-image. The move away from fossil resources threatens to replace old dependencies with new, unwanted ones.”

The dominance of China is particularly striking: The country was the most important sponsor of eight of the twelve substances examined in 2020. If one also takes into account the processing of raw materials, China's dominance is likely to be even greater.

And the leadership in Beijing has shown in the past that it is willing to use this power. At the end of 2010, China had stopped exports of rare earths to Japan because of a diplomatic dispute in order to extort concessions from Tokyo.

The realization is not new, but Brussels and national capitals have been alarmed since Russia invaded Ukraine. The fact that geopolitical upheavals are jeopardizing the supply of raw materials is suddenly no longer an abstract danger.

“Russia is blackmailing us. Russia uses energy as a weapon,” said Ursula von der Leyen, President of the European Commission recently. There is concern in her authority and in the national capitals that such a scenario could happen again.

Because geopolitically the world threatens to split into two blocs again: on the one hand the western world, on the other hand countries like Russia, China and other authoritarian systems. Against this background, the EU states want to secure the supply of critical raw materials and end one-sided dependencies.

Two years ago, Industry Commissioner Thierry Breton's staff presented an action plan on raw materials, but it was relatively non-binding. Since the outbreak of the Ukraine war, the agency has tightened its course. In March von der Leyen announced a law on critical raw materials. The draft should be available by the end of the year.

One of the things discussed in Brussels is that companies or even states should build up strategic stocks of important raw materials. The increased mining of critical raw materials in Europe should also make the EU more independent from the rest of the world.

However, the CEP experts warn that the Commission's plans could overshoot the mark. In particular, the scientists consider plans to mine critical raw materials in Europe to be misleading. "Massive state support for the mining of future raw materials in the EU area would be a questionable strategy from an economic policy point of view," says the study.

The EU does have significant deposits of lithium and rare earths, for example. States like China are not only so dominant on the raw materials markets because of the deposits there, but also thanks to state subsidies, low wages and low environmental standards. “The EU cannot and should not copy such a strategy.”

Instead, in the short term, Europe should look around for new sources of raw materials in friendly countries that have large deposits, good infrastructure and share Europe's values. Norway, Canada and the USA in particular are ideal partners.

In fact, the EU is striving for such strategic raw material partnerships, but so far it has only agreed on two: with Canada and, of all places, Ukraine. However, a sense of proportion is required for the agreements, after all, new one-sided dependencies must not arise.

In the long term, the EU must expand the recycling of strategically important raw materials in order to secure supplies, write the CEP researchers. The EU Commission is also in favor of this. According to a study by the authority, the recycling rate for cobalt and platinum metals, which are mainly used for electric motors, was 20 percent in the EU in 2020. In the case of iridium or lithium, however, the quotas would be close to zero.

Europe: members of the Bloc sound ways to end dependency from russian gas

 The measures are planned to be effective by the end of the year, WELT:

The pressure on the EU states to impose an embargo on Russian energy supplies is increasing. The heads of state and government meeting in Brussels on Thursday will also argue about this issue again. It is very unlikely that they will agree on a gas embargo this week. But the pressure will remain.

The European Commission, the EU's powerful administration, is therefore already preparing for a possible supply freeze for oil and gas from Russia – even in the event that Russia stops supplies of its own accord.

France: french government is lagging behind EU climate goals

 As France is taking over the presidency of the Council of the EU on january 1st 2022 its climate performances is scrutinized, writes WELT:

Even in normal times France is decisive for the fortunes of the European Union. From January 1st, the country and President Emmanuel Macron will become even more important. Then France will take over the rotating EU Council Presidency, i.e. political leadership and coordination of the 27 member states.

For six months, Paris will play a central role in coordinating negotiations among the member states, formulating strategies and negotiating compromises. It's an important function; The ability of the Council Presidency to determine whether and how legislative proposals progress at European level is crucial.

A lot is expected of politically weighty countries like France during their Council presidencies - not least because they have large civil servants that are necessary to advance the often complex issues.

EU: conservative lawmakers warn Commission President unfulfillable energy requirements

 As the decision about the "green character" of different energy sources is scrutinized, conservative lawmakers caution European Commission President Ursula von der Leyen that some requirements might be unrealizable and thus damage companies and strain consumers, writes WELT:

The argument has been smoldering for months, but Ursula von der Leyen wants to end it soon. The European Commission will shortly decide whether it will classify nuclear power and natural gas as sustainable in the future - and under what conditions.

Before the final spurt in Brussels, MEPs warn that companies and consumers in many European countries could suffer the wrong decision. They fear that excessively strict requirements from Brussels could ensure that the energy supply is at risk, that energy prices remain high in the long term - and that the energy transition could fail on top of that.

That is the tenor of a letter that 22 MPs from eleven countries sent to von der Leyen, President of the European Commission, on Friday. “We remain convinced that Europe must make the transition to climate neutrality realistic, responsible and appropriate; especially when it comes to the specific needs of small and medium-sized companies, ”says the letter initiated by CDU member Markus Pieper. The unpublished letter is available to WELT.

Germany: EU plans thwart Germany's energy shift

 EU guidelines with very strict precepts on gas power plants could lead Germany to extend the operating time of coal power plants the government wanted to give up by 2030, reports WELT:

The new federal government would like to "ideally" bring the coal phase-out in Germany forward from 2038 to 2030. But the traffic light coalition partners encounter immense problems right at the beginning of their project. In addition to the even declining production of renewable energies, new specifications from Brussels threaten to make it more difficult to achieve the targets.

The starting position for the planned energy transition turbo of the new federal government deteriorated considerably on Wednesday: According to the latest figures from the German Association of Energy and Water Management (BDEW), the goal of achieving 80 percent green electricity in Germany by 2030 has become little more unrealistic. Accordingly, the share of renewable energies in gross electricity consumption has even shrunk from 46 percent to 42 percent this year. The main reason for this was poor wind conditions.

It is therefore ruled out in specialist circles that renewable energies can replace the capacities of coal and nuclear power that will be lost in the near future. Almost every study on the achievement of the German energy transition targets assumes that gas-fired power plants will have to be built to a considerable extent by 2030 in order to be able to temporarily close the electricity gap.

Germany: chancellor Scholz on Nord Stream 2 and nuclear power

 Newly appointed chancellor Olaf Scholz refused in a speech to interconnect the question of the operating licence of contentious pipeline Nord Stream 2 and the tense situation in Ukraine. Nord Stream 2 is a purely commercial project, he said. He disagreed with french President Macron about the future of nuclear. He pointed out that Germany has other energetical models. 

Source WELT:

Federal Chancellor Olaf Scholz (SPD) has spoken out against combining the operating license for the controversial Nord Stream 2 gas pipeline with efforts to de-escalate the Ukraine crisis. “With regard to Nord Stream 2, it is a private-sector project,” he said on Friday night after the EU summit in Brussels.

For commissioning, compliance with European law has to be clarified in one aspect. "An authority in Germany decides on this quite apolitically," emphasized the SPD politician. This is "a different question" than the current efforts to prevent a violation of the Ukrainian borders.

The Baltic Sea pipeline from Russia to Germany was completed weeks ago. The Federal Network Agency decides on the operating permit. The pipeline has long been criticized by the US, but also by some EU countries. They fear that they are too dependent on Russia for energy supplies.

At its summit, the EU unanimously threatened Russia with retaliation in the event of an attack on Ukraine. In a joint statement by the heads of state and government, Russia urgently needs to defuse the tensions caused by the deployment of troops on the border with Ukraine and aggressive rhetoric. Any further military aggression will have "massive consequences and high costs".

EU: France and Germany strike deal on future usage of nuclear in Europe

 In an emergency summit of EU- energy secretaries, which was convened to work out responses to the high energy prices the participants agreed that nuclear will still be part of the european energy mix. The french government got its way against detractors of nuclear energy in other goverment of the Bloc writes WELT:

The subject was not on the agenda, but the advocates of nuclear power did not allow themselves to be dissuaded. At the emergency summit of the EU energy ministers, a show event at which the high energy prices should be publicized, the camp of the pro-nuclear countries spoke up anyway.

"Many delegations" have demanded that Brussels take a quick position on nuclear power, said the Slovenian Minister of Infrastructure Jernej Vrtovec on Tuesday afternoon after the meeting.

Nord Stream 2: possible legal obstacles after completion

 In a very interesting paper Prof. Alan Riley explains that the contentious pipeline "Nord Stream 2" might not be operational even after constructional completion. The project may face legal counteraction.

Quote:

"However, even if a deal is not possible and Nord Stream 2 is technically completed despite the threat of US sanctions, it is far from clear that the pipeline can enter into operation any time soon. There is the prospect of a significant EU law battle at least over the application of the liberalization provisions of the Gas Directive 2009"

You can read the rest of the piece via the below link:

https://huri.harvard.edu/files/huri/files/riley_-_nord_stream_2.pdf?m=1618864282

EU: Carbon Border Adjustment Mechanism will hit Russia and Turkey

 German newspaper WELT reports on the planned green house gas tariffs on goods from non-EU-member states:

Climate protection is currently well received by voters; At the geopolitical level, however, ambitious climate policy doesn't just make friends. This applies above all to the currently discussed climate tariff for products that are produced in countries with less stringent climate regulations than Europe.

The so-called CO2 border adjustment is intended to make imported products that are more harmful to the climate overseas than in Europe more expensive at the borders of the EU. The climate protection wall around the continent could thus ensure that European producers, with their higher energy costs, can remain competitive on their home market. Stricter climate rules and rising energy prices should be possible without endangering jobs, for example in the energy-intensive steel industry.

EU: Commission approves German support for cogenerated electricity

The European Commission has approved, under EU State aid rules, the prolongation and modification of an existing German scheme to support the production of electricity from new, modernised and retrofitted highly efficient cogeneration (‘CHP') plants (except coal and lignite-fired CHP). The scheme (‘Kraft-Wärme-Kopplungsgesetz' – ‘KWKG 2020'), which is approved until 2026, will further promote energy efficiency, lead to a better integration of cogenerated power into the German electricity market and lower CO2 emissions, without unduly distorting competition.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The German scheme will promote energy efficiency and contribute to further reductions in CO2 emissions, in line with the objectives of the European Green Deal. Compared to the existing German scheme to support cogenerated electricity, the new scheme introduces new features which aim at further ensuring the competitiveness of the tenders through which the support will be granted, as well as at keeping electricity prices low for consumers and incentivising cogeneration plants to operate at times of higher electricity demand, that is when it's needed the most.”

You can read the rest of the piece via the below link:

https://ec.europa.eu/commission/presscorner/detail/en/IP_21_2842

EU: state of affairs of the ITER fusion reactor

 ITER is a unique project, aiming to build the world’s largest fusion machine. By fostering innovation and international collaboration, the project creates economic growth and job opportunities, while putting the EU in the lead of global fusion research. 

The construction work started in 2007 in Cadarache, in the south of France, on a 42 hectare site that today hosts the tokamak, several buildings, infrastructure and power supplies. ITER is one of the most complex engineering projects in history, as it will require millions of components to assemble the giant reactor that will weigh 23,000 tonnes.

The project stems from the ITER agreement, which was signed by 7 partners in 2006: China, Euratom (represented by the European Commission), India, Japan, South Korea, Russia and the USA.  Together, they govern the ITER Organization, which is responsible for constructing and managing the project, and they all pool financial and scientific resources to it. Each partner has a domestic agency that manages its contributions; the EU’s agency is called Fusion for Energy and is located in Barcelona, Spain.

In addition to the ITER activities, the EU is also supporting fusion research, education and training activities through the EUROfusion consortium funded by the Euratom Research and Training Programme 2021-2025.

The (near) fusion future

ITER aims to produce 10 times more fusion power than the heating power put into the plasma, making it the key experimental step between today’s research machines and tomorrow’s fusion power plants.

2020 marked an important step with the start of the 5-year assembly phase of the tokamak. The next big milestone will be in 2025, by which time ITER is expected to create its first super-heated plasma. This should reach full power by 2035, with the aim of demonstrating that more energy can be taken out than is put in. 

Even though ITER itself will not produce electricity – it is rather intended to prove that large-scale fusion is possible – it represents a giant step in the creation of fusion energy, and will drive the transition from research to reality.

In addition to the progress on the European site, later this year, the EU and Japan will inaugurate the fusion reactor JT-60SA, located in Naka, Japan. It will be the largest tokamak in operation, until ITER is operational. JT-60SA has been designed and built jointly by Japan and Europe under the “Broader Approach” agreement. Its specific properties are its capability to produce long-pulse plasmas. Its main missions are to support exploitation of ITER (scheduled to start in 2025) and to contribute to the design of the EU’s next generation fusion reactor, DEMO.

You can read the rest of the very interesting article via the below link:

https://ec.europa.eu/info/news/focus-fusion-power-and-iter-project-2021-maj-17_en

EU: decrease of CO2 emissions in 2020

Eurostat estimates that in 2020, the year when COVID-19 containment measures were widely introduced by the EU Member States, carbon dioxide (CO2) emissions from fossil fuel combustion (mainly oil and oil products, coal, peat and natural gas) significantly decreased by 10% in the EU compared with the previous year. CO2 emissions from energy use are a major contributor to global warming and account for some 75% of all man-made EU greenhouse gas emissions. They are influenced by factors such as climate conditions (e.g. cold / long winter or hot summer), economic growth, size of the population, transport and industrial activities.

CO2 emissions from fossil fuels are generated in the country where the fuels are burned for purposes such as electricity generation, transport, steel production etc. Consequently, imports and exports of energy products have an impact: for example, if coal is imported for electricity generation this leads to an increase in emissions in the importing country, while if electricity as such is imported, it has no effect on emissions in the importing country, as these emissions would be reported in the exporting country where the electricity has been produced.

Biggest decreases in CO2 emissions from energy use in Greece and Estonia, lowest in Malta and Hungary

According to Eurostat estimates, emissions fell in 2020 in all EU Member States, with the largest decrease in Greece (-18.7%), followed by Estonia (-18.1%), Luxembourg (-17.9%), Spain (-16.2%) and Denmark (-14.8%). The lowest decreases were seen in Malta (-1.0%), Hungary (-1.7%), Ireland and Lithuania (both -2.6%).

You can read the rest of the piece via the below link:

https://ec.europa.eu/eurostat/en/web/products-eurostat-news/-/ddn-20210507-1?redirect=%2Feurostat%2Fen%2Fweb%2Fproducts-eurostat-news

EU: impact of COVID-19 pandemic on EU energy supply in 2020

Since early 2020, restrictive measures have been taken to slow down the spread of COVID-19. These measures included the closure of factories, schools and restaurants, and required people to confine themselves in their homes. In late spring, many EU Member States began removing some restrictions following the first signs of recovery. By late autumn, however, the second COVID-19 wave had started and restrictive measures were again put in place. The EU’s fuel supply was adversely affected by these measures.

Inland deliveries of petroleum products

The oil industry was affected most by the pandemic and striking differences between 2020 and 2019 were evident. The most dramatic differences were seen in the deliveries of fuels for transport. In April 2020, deliveries of kerosene-type jet fuel dropped by more than 80% compared to the same month in 2019, while motor gasoline recorded a drop of nearly 50%. Gas oil and diesel oil also recorded a decrease of 20% over the same period. The reintroduction of restrictions by many Member States in autumn 2020 did not influence the deliveries of these fuels as much.

You can read the rest of the piece via the below link:

https://ec.europa.eu/eurostat/en/web/products-eurostat-news/-/ddn-20210506-1

EU: second IPCEI for project "European Battery Innovation"

The Commission has approved, under EU State aid rules, a second Important Project of Common European Interest (“IPCEI”) to support research and innovation in the battery value chain. The project, called “European Battery Innovation” was jointly prepared and notified by Austria, Belgium, Croatia, Finland, France, Germany, Greece, Italy, Poland, Slovakia, Spain and Sweden.

The twelve Member States will provide up to €2.9 billion in funding in the coming years. The public funding is expected to unlock an additional €9 billion in private investments, i.e. more than three times the public support. The project complements the first IPCEI in the battery value chain that the Commission approved in December 2019.

(...)

The project will cover the entire battery value chain from extraction of raw materials, design and manufacturing of battery cells and packs, and finally the recycling and disposal in a circular economy, with a strong focus on sustainability. It is expected to contribute to the development of a whole set of new technological breakthroughs, including different cell chemistries and novel production processes, and other innovations in the battery value chain, in addition to what will be achieved thanks to the first battery IPCEI.

Read more.

Source: https://ec.europa.eu/commission/presscorner/detail/en/IP_21_226

EU: EU lawmakers call for halt to Nord Stream 2 after Navalny arrest

Source Reuters: 

European Union lawmakers passed a resolution on Thursday calling for the bloc to stop the completion of the Nord Stream 2 gas pipeline to take Russian natural gas to Europe, in response to the arrest of Kremlin critic Alexei Navalny.

Navalny, Russian President Vladimir Putin’s most prominent critic, was detained at the weekend and later jailed for alleged parole violations after flying back to Russia for the first time since being poisoned by a military grade nerve agent.

German Chancellor Angela Merkel, who has continued to back the pipeline between Germany and Russia despite criticism elsewhere in the EU, said on Thursday her view of the project had not changed despite the Navalny case.

Lawmakers in the European Parliament voted overwhelmingly to block the pipeline construction work, with 581 votes in favour, 50 against and 44 abstentions, calling on the EU to review relations with Russia in light of Navalny’s arrest.

EU: discord over hydrogen strategy

Concerning the EU's important project of common European interses (IPCEI) in hydrogen, five member-states (Austria, Denmark, Luxembourg, Portugal and Spain) want to make clear that they will only support this project if it the hydron is produced by renewable energies, not by natural gas or nuclear, writes Euractiv:

EU member states have squabbled over the past weeks about which type of hydrogen to support, with two opposing camps facing off: those backing green hydrogen produced exclusively from renewable electricity, and those in favour of a broader “low-carbon” definition, which also includes nuclear power and decarbonised gases.

Supporters of “blue” hydrogen say natural gas will be needed in the short term to ramp up production volumes and grow the EU’s hydrogen market, which is currently tiny.

Margrethe Vestager, the EU’s competition chief, sought to clarify the Commission’s approach, saying regulatory support will be targeted only for projects that can make a significant contribution to the EU’s long-term climate goals.

“Developing technologies for low-carbon and, in particular, green hydrogen, and building the necessary infrastructure for its deployment, will take us one step closer to making Europe the first climate-neutral continent by 2050,” she said in a speech at the launch event.

IPCEIs were set up in 2014 and allow EU member states to subsidise high-risk cross-border research and innovation, as well as infrastructure projects, without having to observe the EU’s normally strict state aid rules.

“No member state or business can do this alone,” Vestager stressed. “That’s why it makes sense for European governments to come together to support such important projects of common European interest, if the market alone would not take the risk. And it is why we have put special state aid rules in place to smooth the way.”

But the five EU countries are worried that the new hydrogen IPCEI will be used to support “low-carbon” hydrogen made from natural gas or nuclear power.

They say they signed up to the manifesto – but only “with the understanding that this initiative should exclusively refer to hydrogen from renewable energy sources since we consider this technology as the only long-term sustainable solution to achieve climate neutrality by 2050.”

“Projects within an IPCEI must respect the principle of the phasing out of environmental harmful subsidies,” the signatories of the letter wrote. “Therefore, an IPCEI on hydrogen must only be eligible when produced from renewable sources, where a clear market gap is identified,” the letter said.

EU: meeting between EU and Ukraine representatives on energy topics

 The EU press service reports:

Today, Commissioner for Energy Kadri Simson and Acting Energy Minister of Ukraine, Olha Buslavets, held a ministerial meeting, in the form of a video-conference, under the Memorandum of Understanding on a Strategic Energy Partnership between the EU and Ukraine.

Both sides endorsed the annual work plan for 2021 setting out actions for cooperation in all key areas, including a strong emphasis on the European Green Deal, cooperation on energy efficiency and renewable energy, nuclear safety, as well as a call to continue market reforms.

Recalling Ukraine’s ambition to approximate its policies and legislation with the European Green Deal, Commissioner Simson and Acting Minister Buslavets agreed on the common interest to engage on climate change and the clean energy transition, including pursuing ambitious environmental and climate objectives. The European Commission expressed  strong support for the decarbonisation of the Ukrainian energy sector, in particular through increased electrification, promotion of transparent and market-based use of renewable energy and decarbonised gases, including clean hydrogen, and energy efficiency measures. Cooperation on methane emissions was also addressed as a common area for action.

You can read the rest of the piece via the below link:

https://ec.europa.eu/info/news/joint-press-statement-eu-ukraine-ministerial-meeting-energy-2020-dec-10_en