European Hydrogen Pipeline Network Subsidy Mechanism

proposed

A joint report from the European Network of Transmission System Operators for Gas (ENTSOG) and European Network of Network Operators for Hydrogen (ENNOH) proposes that the EU should subsidise hydrogen pipeline network fees to make near-term prices more affordable. The report suggests using an inter-temporal cost allocation (ICA) mechanism to spread network development costs over time, allowing future users to pay part of the initial costs. It also envisions a European Special Purpose Vehicle (SPV) to manage disbursements and provide an EU budget-backed guarantee to attract private capital and provide a safety net if market development falls short.