Luxembourg’s energy system is characterized by a high reliance on imported fossil fuels for its total energy supply, while simultaneously achieving one of the highest shares of renewable energy in its domestic electricity generation. The overall energy mix, which includes transportation and heating, remains dominated by fossil fuels due to high demand from the transport sector and transit traffic. Oil and Petroleum Products (69.1%) account for the largest share, primarily driven by fuel sales to cross-border commuters and freight. Natural gas (15.2%) is used extensively for industrial, residential, and commercial heating. While Luxembourg imports roughly 76% to 86% of its electricity, the energy actually generated within the country is almost entirely low carbon.

Luxembourg is advancing its green hydrogen sector to decarbonize industry and transport, aiming for initial production by 2026 through the €39m “LuxHyVal” (Luxembourg Hydrogen Valley) project. This initiative, led by the University of Luxembourg and supported by the EU, focuses on a 6MW electrolyzer in Bascharage to replace imported fossil-based hydrogen. It aims for 1,750 kg/day of green hydrogen by 2026 to support industrial needs, particularly for partner Ceratizit and transport, including Sales-Lentz and TICE buses.