The government encourages hydrogen development initiatives, Energy Minister says

The government will support hydrogen development by actively encouraging private initiatives and pilot projects, said on Friday the Minister of Energy, Commerce and Industry, George Papanastasiou, in his opening remarks at the ‘Hydrogen for a Clean Future: Pathways for Cyprus and Beyond’ Conference.

The Conference took place at the Frederick University and was organised by the Cyprus Hydrogen Association and the Cyprus Employers and Industrialists Federation.

The Minister noted that hydrogen has emerged as one of the key pillars of Europe’s decarbonisation strategy, a driver of industrial competitiveness, and a future geopolitical asset. “The European Union has recognised this through its 2020 Hydrogen Strategy, the REPowerEU plan, the creation of the European Hydrogen Bank, and the establishment of the European Network of Network Operators for Hydrogen (ENNOH)”, he said, noting that the Ministry has been actively involved in ENNOH’s foundation from its very inception.

“Today, Cyprus participates as an associated partner in ENNOH, demonstrating our commitment to being part of Europe’s hydrogen infrastructure development from the ground up. This involvement ensures that Cyprus remains connected to the broader European hydrogen ecosystem and benefits from the technical cooperation, knowledge sharing, and coordinated planning that ENNOH facilitates. Our participation reflects our belief that, while we are a small island nation, we must be present at the table where Europe’s hydrogen future is being shaped,, he said.

Papanastasiou highlighted the Cyprus’ National Hydrogen Strategy, which, as he said, represents a realistic and feasible approach, tailored to our specific national circumstances and needs.

The Strategy for the period 2025-2030 prioritises regulatory adaptation through the development of a comprehensive framework, which addresses the entire hydrogen value chain, from production and distribution to end-use applications. According to the Minister, by 2027, “we aim to establish this framework, which will encompass clear licensing procedures and the necessary safety and quality standards to support a reliable hydrogen ecosystem”.

Beyond the regulatory framework, the Strategy also focuses on the gradual introduction of hydrogen in heavy transport as the optimal and most cost-effective pathway for integrating hydrogen into our energy mix. This approach, George Papanastasiou said, acknowledges that for Cyprus electrification of passenger transport remains the most suitable and efficient option, particularly given our island’s extensive renewable energy potential and the compatibility of short distances with current electric vehicle capabilities.

The Minister of Energy also noted, however, the challenges ahead. As he said, water scarcity is a critical factor for Cyprus, as producing green hydrogen through electrolysis requires between 9 and 15 kilograms of water for every kilogram of hydrogen produced. In addition, the necessary investments in specialised infrastructure are exceptionally high and require careful technical and strategic planning.

He noted that these challenges are not unique to Cyprus. “We observe that Europe’s shift toward an economically viable model implies a slower green transition due to increased costs. Yet this should not discourage us. Private initiatives that promote innovative technologies through pilot programs must continue to ensure we don’t fall behind international technological developments,” he said.

“The government will support hydrogen development by actively encouraging private initiatives and pilot projects, while establishing the legislative and regulatory frameworks needed for success”, Papanastasiou said, adding that innovation and entrepreneurship are the fundamental driving forces of the energy transition and the collaboration between private investment and targeted government policy can create a dynamic and sustainable hydrogen ecosystem.

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