The European Commission should reassess and update its hydrogen strategy due to “unrealistic” 2030 targets, according to the European Court of Auditors (ECA).

A report seen by Kallanish says the goals for renewable hydrogen production and demand are “overly ambitious” and were based on “public will,” not a robust analysis. The bloc is targeting the annual production and import of 10 million tonnes each by 2030.

“The EU’s industrial policy on renewable hydrogen needs a reality check,” says Stef Blok, the ECA member in charge of the audit. “The EU should decide on the strategic way forward towards decarbonisation without impairing the competitive situation of key EU industries on creating new strategic dependences.”

The auditors claim that the EC does not have a “full overview of needs or of the public funding available.” They say the EU funding is scattered between several schemes, making it difficult for companies to determine the best type of funding for a given project. Some €18.8 billion ($20.56 billion) is available in funding during 2021-2027, according to the report.

Yet, the bulk of it is being used by a handful of member states including Germany, Spain, France and the Netherlands. These countries have a high share of hard-to-abate industries and more advanced decarbonisation projects. However, the ECA warns that there is still no guarantee that public funding will allow the EU to transport green hydrogen across the block from countries with good production potential to those with high industrial demand.

“As things stand, there is no overall EU hydrogen import strategy,” the report states.

Citing the “chicken-and-egg problem,” the ECA calls on the EC to carry out a “careful assessment” of three important areas: how to calibrate market incentives; how to prioritise scarce funding and which parts of the value chain to focus on; and which industries the EU wants to keep and at what price.

Hydrogen Europe said on Wednesday it supports the ECA calls on the EC to revisit their overall hydrogen strategy, detailing the role expected from imports and the role hydrogen can play in cross-sectoral renewable integration and decarbonisation.

The trade body concurs with the report’s conclusions, which it says criticises the complexity and length of implementation of European hydrogen legislation.