Filenews 17 March 2025 - by Andreas Poullikkas
The European Union has developed a comprehensive hydrogen strategy, which includes specific targets for the production and use of renewable hydrogen by 2030 and 2050.
The EU strategy also includes funding, infrastructure and international cooperation plans. In our article in the daily press entitled "Review of the hydrogen market in the EU", in January 2025, we had referred to the report of the EU Agency for the Cooperation of Energy Regulators (ACER) on the monitoring of the hydrogen market in EU member states, where reference was made to the absence of a national strategy for hydrogen in our country and the steps that need to be taken.
Recently, the document entitled "Cyprus' National Strategy for Hydrogen" was put up for consultation, which is in the positive direction, since Cyprus seems to be trying to align its efforts with the European strategy, however the document is much more limited in scope and detail, compared to strategies of other EU Member States.
Proposals and directions for the development of the hydrogen sector in Cyprus are outlined, however, it is not a fully developed strategy with specific measures, timelines and detailed targets, as expected from an official national strategy. The document presents a vision for the use of hydrogen in Cyprus, with a focus on energy transition, climate neutrality and reducing dependence on fossil fuels. Actions on infrastructure development, the use of hydrogen in transport and the creation of a regulatory framework are mentioned, but the proposals are general and are not accompanied by detailed implementation or financing plans.
Also, reference is made to two development scenarios (conservative and ambitious) for hydrogen in Cyprus until 2030 and 2050 without any explanations and without a clear strategy on how to achieve them. No specific quantified targets and commitments are proposed, such as installed electrolysis capacity in 2030 or 2040, expected green hydrogen production in 2030 or 2040, etc.
For example, our previous article (EU Hydrogen Market Review, January 2025) gives the targets set by several EU Member States with Spain and Germany having the highest target in terms of installed capacity of electrolysis plants (12 and 10 GW respectively), followed by France (6.5 GW), Denmark (6 GW), Portugal (5.5 GW) and Sweden (5 GW).
A preliminary study rather than a national strategy
The above document that was put to consultation, despite being titled "Cyprus National Strategy for Hydrogen", is more akin to a preliminary study, but lays the foundations for a future hydrogen strategy since it concludes with two short-term actions for the period 2025-2030:
(a) establishing a comprehensive regulatory framework for the production, distribution and use of hydrogen, with a projected completion timetable in 2027; and
(b) to implement targeted awareness-raising campaigns, make use of online platforms and enhance cooperation between academia and potential hydrogen users.
It is a preliminary plan of short-term actions rather than a fully formulated National Strategy of Cyprus for Hydrogen, so further development and specification is needed, as well as more specialization in policies, financial tools and implementation mechanisms, in order to be compared with the more developed strategies of other countries to be transformed into an integrated national hydrogen strategy.
It is a first step towards formulating a national hydrogen strategy for Cyprus, but it cannot be considered as a fully-fledged strategy. Compared to other countries, Cyprus is at a very early stage of development in the hydrogen sector. First and foremost, hydrogen should be recognized as a key component of our country's energy mix for 2030 and until 2050. It is necessary to draw up targeted measures to start the hydrogen chain (production, transport, storage and use in final consumption) and to create a hydrogen market in our country.
To make a real strategy, it would need to include:
(a) specific and quantified targets (e.g. quantities of hydrogen production, reduction of carbon dioxide emissions);
(b) detailed implementation plans and timetables;
(c) financing and incentive plans for investment; and
(d) coordination with other countries and international organisations.
Such a strategy should also take into account the advantages of the surrounding region in terms of renewable hydrogen production and the long-term synergies likely to arise in transport and end-use, such as synergies with the India-Middle East-Europe Economic Corridor (IMEC).
In addition, a comprehensive hydrogen strategy must be dynamic, adaptive and data-driven, with the aim of achieving the country's climate and energy goals. Cyprus, with its strong solar potential and strategic geographical location, has the potential to develop a competitive hydrogen market, provided it adopts a comprehensive and well-designed strategy. A comprehensive hydrogen strategy for our country must cover a wide range of elements, from production and storage to use and infrastructure, as well as set specific targets and timelines. The strategy should be tailored to the specificities of our country (geography, energy mix, economic capacity, etc.) and be aligned with global and European goals for climate neutrality.
For example, short-term actions (2025-2030) could involve developing hydrogen pilot projects, setting up key infrastructure (refuelling stations, production plants), introducing a legislative framework and incentives for investment, and focusing on the use of hydrogen in sectors where it is most efficient (e.g. heavy-duty vehicles, industry).
Medium-term actions (2030-2040) could address scaling up hydrogen production and use, developing transport and storage infrastructure and expanding the use of hydrogen to more sectors (e.g. shipping).
Long-term actions (2040-2050) could involve fully integrating hydrogen into the energy economy, achieving climate neutrality with the help of hydrogen and international cooperation on green hydrogen exports.
- Professor of Energy Systems – Frederick University
