Europe Puts the Spotlight on Domestically-Made Net-Zero Technologies with New Bill

The European Union (EU) has recently passed a bill aimed at promoting the use of domestically-made net-zero technologies, such as hydrogen equipment. This bill, known as the Net Zero Industrial Act (NZIA), was approved by the legislative branch of the EU with 361 votes in favor, 121 against, and 45 abstentions.

The NZIA sets deployment targets for various EU-made net-zero equipment, including electrolysers, fuel cells, and other hydrogen technologies. It also provides regulatory advantages to manufacturers of these technologies to enhance production capacity. The goal is to have 40% of total electrolyser deployment be “Made In Europe.”

One of the key features of the NZIA is the creation of “Net-Zero Acceleration Valleys,” where projects seeking to build new manufacturing facilities can delegate some of the necessary environmental assessment tasks to host governments. This will help streamline the process and encourage more investment in these technologies.

The bill also sets a target for Europe to capture 15% of the global market for these technologies. Christian Ehler, a Member of the European Parliament leading the bill, stated that this vote is a positive development for European industry, aligning with the region’s economic, climate, and energy goals.

The purpose of this act is also seen as a way to counter the increasing dominance of Chinese manufacturers in the global net-zero technology market. Currently, Chinese manufacturers hold 34% of the global electrolyser market, with Europe following closely behind at 27%. Some Western electrolyser manufacturers have expressed concerns that EU subsidy programs favoring the lowest production costs could inadvertently subsidize cheaper Chinese equipment.