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Europe Daily Bulletin No. 13120
SECTORAL POLICIES / Energy

European Commission clarifies conditions for hydrogen to be considered renewable

The European Commission unveiled, on Monday 13 February, two draft delegated acts required by the Renewable Energy Directive (2018/2001). One of the two drafts specifies the conditions under which hydrogen can be considered renewable and hydrogen-based fuels can be considered renewable fuels of non-biological origin.

As hydrogen is an energy carrier and not an energy source, it can only be considered renewable if it is produced from renewable electricity.

The first delegated act thus defines specific criteria allowing hydrogen producers to prove that the electricity they use is of renewable origin, when their production installation is directly connected to an installation using renewable energies (additionality rules) or when the electricity comes from the electricity grid (temporary and geographical correlation).

These rules will be applied gradually to facilitate the installation of large electrolysers and the ramp-up of renewable hydrogen production, with a target of 6,000 MW of electrolysers powered by renewable electricity by the end of 2025 (see EUROPE 12523/1). Until 2030, renewable hydrogen producers will be able to operate their electrolysers whenever they want as long as the total amount of renewable electricity consumed matches the total amount of renewable hydrogen produced in a calendar month of the year. Beyond that, they will have to have a production corresponding to the electricity they have purchased, on an hourly basis.

With the REPowerEU strategy, the European Union has set itself the target of producing 10 million tonnes of renewable fuels from non-biological sources by 2030, which would require 14% of the total electricity consumption in Europe (500-550 TWh).

See the first proposal for a delegated act: https://aeur.eu/f/5az

The second proposal for a delegated act sets out the methodology for calculating greenhouse gas (GHG) emission reductions from renewable fuels of non-biological origin and recycled carbon fuels. This method takes into account the entire life cycle of fuels to calculate emissions and associated savings.

The act also states that the reduction in GHG emissions resulting from the use of recycled carbon fuels must be at least 70% compared to fuels produced using fossil fuels.

See the second draft delegated act: https://aeur.eu/f/5b0

The issue of hydrogen produced from nuclear electricity is being addressed in the ongoing negotiations on the decarbonisation of the hydrogen and gas markets (see EUROPE 13090/4).

In this context, the Commission proposes that hydrogen should be considered low-carbon when it comes from non-renewable sources and its production allows for at least a 70% reduction in GHG emissions compared to fossil natural gas, throughout its life cycle. A methodology for assessing GHG emission reductions from low-carbon fuels will be defined via a delegated act by the end of 2024, according to a statement from the EU institution.

Last week, MEPs cancelled the trilogue negotiations with the EU Council on the revision of the Renewable Energy Directive due to the delay in presenting the two delegated acts (see EUROPE 13115/22). This trilogue will take place on Tuesday. (Original version in French by Mathieu Bion)

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