The European Commission has announced the release of proposed detailed rules outlining the definition of what constitutes renewable hydrogen in the EU. These rules will have significant implications for fuel producers inside and outside Europe.
These Acts are part of a broader EU hydrogen regulatory framework that includes energy infrastructure investments, state aid rules, and legislative targets for renewable hydrogen in the industrial and transportation sectors. In addition, they will provide regulatory certainty to investors as the EU aims to produce 10 million tonnes of domestic renewable hydrogen and import 10 million tonnes of imported renewable hydrogen by 2020, as outlined in the REPowerEU Plan.
The first Delegated Act specifies the conditions under which hydrogen, hydrogen-based fuels, or other energy carriers can be considered non-biological renewable fuels or RFNBOs. The Act clarifies the “additionality” principle for hydrogen outlined in the EU’s Renewable Energy Directive. Hydrogen electrolyzers will need to be linked to new renewable electricity generation. This principle seeks to ensure that renewable hydrogen production encourages an increase in the volume of renewable energy available to the grid compared to what is currently available. As a result, hydrogen production will aid in decarbonization and complement electrification efforts while reducing the strain on power generation. The rules also include criteria ensuring that production only occurs where sufficient renewable energy is available.
Both domestic and foreign producers will be subject to the EU’s proposed rules for renewable hydrogen, and a certification scheme will be established to help them show they are in compliance and trade renewable hydrogen within the EU single market.
In addition, the commission released a proposed methodology for calculating lifecycle greenhouse gas emissions for renewable fuels of non-biological origin (RFNBOs), such as renewable hydrogen, taking into account upstream emissions, emissions associated with taking electricity from the grid, processing, and transporting these fuels to the end-user.
