Direct, large-scale pink hydrogen production in Europe is currently very limited, as the industry is still in its pilot and policy-alignment phase. Over 95% of European hydrogen is still produced from fossil fuels, primarily through steam methane reforming.

Speaking at the Nuclear Energy Summit, President Ursula von der Leyen pledged €200m to support private investment in nuclear technologies and unveiled a new European strategy for small modular reactors with the aim that they are operational by the early 2030s. Funding will come from the Emissions Trading System.

“After years of declining investment, we need more to turn the tide,” she said.

“While in 1990 one-third of Europe’s electricity came from nuclear, today it is only close to 15%. This reduction in the share of nuclear was a choice, I believe that it was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emissions power.”

Europe’s electricity prices are “structurally too high” and a major impediment to developing nuclear and derisking investments in low-carbon technologies.

“Affordable electricity is not only important for our citizens’ cost of living, but it is also decisive for our industrial competitiveness. Robotics and AI will drive the next wave … and both require affordable electricity in abundance. That is why industrial competitiveness will increasingly be determined by whom best can produce, transport, store, and use abundant and affordable electricity,” she said.

There has been significant debate over whether to include nuclear-derived hydrogen in renewable targets. A group of nine countries led by France has successfully lobbied for the EU to provide more regulatory clarity and support for low-carbon (nuclear) hydrogen as part of the EU Clean Industrial Deal.

Europe’s dependency on fossil fuels is an enduring challenge, starkly underlined by the current Middle East crisis. Qatar provided around 12 billion cubic meters (bcm) of gas to the EU in 2025.

But while renewables produce the lowest-cost electrons, they are variable and sometimes the best sites are far from industrial demand centres.

“That is why we need to also invest in storage and in demand flexibility and build out our grids,” added von der Leyen.

“The must be a joint European effort. The modular reactors’ business model needs scale. This is also the purpose of our Clean Energy Investment Strategy – to lower energy costs, to accelerate the deployment of clean technologies and to open up more financing opportunities.”