Hungary’s Hydrogen Strategy: Ambition for Innovation within Political Confines

Hydrogen is a much-discussed facet of Hungary’s energy transition that has seen little progress, but offers an important tool to extend the government’s foreign and energy policy. Policy-making in Hungary is highly centralised and government ambitions have prioritised the continued role of nuclear power, natural gas, and a solar PV boom. These closely trace foreign policy priorities as well, given that the former two entrench relations with Russia, while the latter enhances self-reliance while allowing the country to meet EU renewable energy targets. A hydrogen economy supports such ambitions, while the government has also welcomed EU funds and foreign investment into novel (green) technologies that increase the value added in the economy. Domestic demand offers a secondary, but nonetheless important, push for the uptake of hydrogen in industry and transportation. Hungary’s case shows how pre-existing political economic confines shape the uptake of hydrogen, as governments and other key actors take action while disrupting pre-existing practices to the least extent possible.