Hydrogen Is Not About Subsidies, but About Demand
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HYDROGEN
You have criticised European regulation for holding
back competitiveness. How will the full CBAM regime,
which applies to hydrogen as well, affect imports
and prices for Czech companies from this year?
The principle that a European producer should not
have to bear the cost of emissions while a competitor
importing from a third country can avoid those costs
altogether is understandable. At the same time, we
need to monitor how the final framework affects
the costs of companies that rely on imported raw
materials for their own production.
In the case of hydrogen, it cannot be said that all
imports will become more expensive by the same
percentage. It depends on the emissions associated
with its production, the price of certificates,
the relevant adjustments and any carbon price
already paid in the country of origin. The impact will
therefore vary from one supplier to another. For Czech
companies, this also means having to provide reliable
data on the production of imported hydrogen.
It is also important to distinguish between the different
dates. The regime applies to imports from 2026,
but the sale of certificates will begin in 2027. This
does not mean that the cost associated with this
year’s imports will disappear.
My criticism of European policy is broader: border
protection alone will not solve the problem of expensive
energy or excessive bureaucracy within Europe. If we
want a competitive industrial sector, we must address
these costs as well.
Your ministry is preparing a separate licence
for the transmission, distribution and storage
of hydrogen, distinct from the gas sector. When
will it take effect, and how much funding will
the state realistically allocate to hydrogen
in the coming years?
The purpose of a separate framework is to give investors
clear rules for operating in the hydrogen infrastructure
sector. They need to know the conditions under which
networks and storage facilities will be operated, what
obligations they will have and how customer access
will work. For infrastructure with a long service life,
legal certainty is essential.
When it comes to funding, we need to distinguish
precisely between the total funding available
under announced programmes, support awarded
to specific projects and funds actually disbursed. We
also need to distinguish between national and European
funding sources. To give an example, the GREENGAS
Call No. 1/2024 was launched with an allocation
of CZK 3 billion to support electrolysers and related
activities. However, this figure alone does not indicate
the total amount of future funding for hydrogen.
I would prefer not to comment on any other dates
until they have been finally approved.
What I consider important is that public support
should help projects overcome initial investment
and technological uncertainty and attract private
capital. At the same time, we must also assess future
operating costs and whether there is secured demand.
You have served as both Minister of Industry
and Minister of Transport. Alongside battery
technologies, hydrogen is increasingly being
discussed in the transport sector. In which
segments of public transport do you think it has
a comparative advantage?
I see potential primarily in operations involving high
daily mileage, short refuelling times and conditions
where charging is difficult. In public transport, this
could include certain regional bus routes. Another
advantage may be that vehicles return to a single
depot, where refuelling can be centralised and regular
demand for hydrogen can be secured.
On the railways, hydrogen could be an option
for certain non-electrified lines. However, it is essential
to compare it very carefully with battery trains
and potential electrification. The mere fact that
a railway line does not have overhead electrification
is not in itself an argument for hydrogen.
I would always want to see a detailed calculation
for the specific operation: the cost of the vehicle,
energy, infrastructure, servicing and backup solutions
in the event of a disruption. The outcome may differ
from one route to another. Regional authorities
commission public transport services for passengers
and must ensure both reliability and affordability.
I would choose the technology based on these
parameters.
In one sentence: why should a company
in the Moravian-Silesian Region invest in hydrogen
today rather than wait?
Because a company that develops an economically
sound project today will gain experience, partners
and customers before a wider range of competitors
starts competing for the same contracts.
I see the role of the state as creang
clear rules, speeding up perming
and seng support in a way that
ensures producon, infrastructure
and consumpon are genuinely aligned.