Thermal Energy Systems & Hydrogen

The Directorate of Thermal Energy Systems & Hydrogen contributes to the development of a sustainable, competitive and resilient energy system through two distinct but complementary areas of focus: on the one hand, the decarbonisation of the heating and cooling sectors, namely thermal energy systems, and on the other hand, the development of hydrogen use for applications that are difficult to electrify.

These activities are carried out within the framework of the Integrated National Energy and Climate Plan (NECP) as well as European policies on energy efficiency, renewable energy and hydrogen (notably Directive (EU) 2023/1791 on energy efficiency and Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources), while aiming at strengthening European industrial competitiveness, enhancing the resilience of the energy system and reducing dependence on imported fossil fuels.

Thermal Energy Systems

The directorate develops and implements policies related to the thermal energy transition, particularly in the areas of thermal (heat and cold) planning, the development of new decarbonised district heating and cooling systems or the transformation of existing systems.

The directorate supports in particular:

• thermal planning at national and local levels (see Article 25 of Directive (EU) 2023/1791 on energy efficiency). In this context, a study was carried out (HIC study (Pdf))
• the development of efficient district heating and cooling systems
• the utilisation of waste heat and cold
• the deployment of renewable heating and cooling technologies, such as geothermal energy
• the transposition and implementation of European provisions relating to energy efficiency and renewable energy in the field of thermal energy systems

Hydrogen

The directorate prepares and implements the national policies on hydrogen and hydrogen derivatives.

The directorate supports in particular:

• the implementation of the national hydrogen strategy (Pdf)
• the development of hydrogen transport infrastructure (Loi du 31 mars 2025 relative aux infrastructures d’hydrogène)

• the development of a financing mechanism in the style of an amortisation account for hydrogen infrastructure (see Guidehouse study (Pdf))
• the promotion of renewable hydrogen production projects and the development of related support mechanisms
• the integration of hydrogen into industry, heavy-duty transport and aviation (see the “Early Movers Coalition” initiative for eSAF), as well as into other applications that are difficult to electrify
• the representation of Luxembourg in European hydrogen initiatives and cross-border cooperation projects
• the implementation of national policies on CCUS and CDR (CCUS/CDR Action Framework (Pdf)), given the similarities with the hydrogen sector particularly regarding transport infrastructure (see AFRY study (Pdf))

In all these areas, the directorate works closely with other directorates and directorates-general within the Ministry of the Economy, as well as with other ministries and public administrations, municipalities, network operators, economic stakeholders, research institutions and European partners.