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EC proposes renewable hydrogen rules

Shiva Singh by Shiva Singh
11 May 2024
in European Commission News

Belgium, (Brussels Morning Newspaper) The European Commission has proposed rules for renewable hydrogen under the Renewable Energy Directive.

In a statement released on Monday, the Commission pointed out that the new rules are part of a broader regulatory framework for hydrogen that will ensure production from renewable electricity.

The two new acts will provide regulatory certainty and help bloc members to attract green investments, the EC stressed and reminded that the bloc aims to increase production and import of renewable hydrogen as part of the green push.

European Commissioner for Energy Kadri Simson pointed out “renewable hydrogen is a crucial component of our strategy for a cost-effective clean energy transition and to get rid of Russian fossil fuels in some industrial processes.”

She stressed the importance of clear rules for the development of the market and concluded “these delegated acts provide much-needed legal certainty to investors and will further boost the EU’s industrial leadership in this green sector.”

The first act defines which hydrogen fuels are considered renewable in the EU, with the EC pointing out that producers will have to use renewable energy for electrolysis.

The body noted that this will incentivise more renewable energy production, stressing that production of renewable hydrogen will not exert pressure on power generation.

Power consumption

It noted that production of renewable hydrogen will consume increasingly more power in the coming years, estimating that roughly 500 TWh will be needed in 2030 or about 14% of total consumption of electricity in the bloc.

The Commission pointed out that EU member states will be allowed to introduce stricter rules for production of renewable hydrogen in 2027 and stressed that the new rules will apply to renewable hydrogen produced in the EU as well as hydrogen imported from non-EU countries.

The two acts will be sent to the EU Parliament and Council, which will have two months to accept or reject the Commission’s proposals. The EC reminded that MEPs and Council cannot propose amendments to its proposed rules.

The Commission reminded that it adopted the Hydrogen Strategy in 2020 and expects it to become an important fuel to help the bloc achieve its environmental goals.

As part of its hydrogen push, the EC imposed mandatory targets for the sectors of transport and industry.

Related News:

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  • Commission Greenlights €350 Million German State Aid Plan for Renewable Hydrogen Production
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  • EC proposes new rules for fisheries and aquaculture
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