Ms Catherine Joyce-O'Caollai:

On the effect of the Inflation Reduction Act, anecdotally, we are hearing within the hydrogen sector that it has had the effect of expediting the development of the sector by five years. By introducing certain tax breaks as well as a production support per kg top-up, it has had the effect of accelerating the sector at quite a rapid pace.

With respect to the EU response, we obviously need to scale rapidly. Looking at the use of EU-wide mechanisms in an Irish context, it is important to say with respect to the Irish hydrogen sector that we are coming from a lower base. Other member states are further ahead of us. Some of them would also have existing oil and gas infrastructure which can be repurposed which will enable the faster deployment of those industry.

However, when one looks at the relaxation of state aid rules, it should be temporary. As Dr. Walker pointed to, it can have the effect of lingering for longer than had been originally intended. However, in the general block exemption regulation and the changes that were made there, there are limits. For certain projects, it might be up to a limit of €30 million. It really should not have a distortive effect upon the operation of the Single Market. However, it needs to be looked at and analysed to ensure that we have knowledge of the enduring effects so that it does not distort the market.

Broadly, we would be in support of the measures that are introduced under this Act and the accompanying relaxation of certain state aid rules but it has to be proportionate.