The European Commission boosted regulatory support for green hydrogen in its proposed overhaul of climate legislation published last week, with the renewable hydrogen coalition calling it \u201ca true game changer\u201d for the nascent EU industry.<\/p>\n\n\n\n
As part of its \u2018Fit for 55\u2019 package of climate legislation, named after the 55% greenhouse gas emissions reduction it aims to achieve by 2030, the European Commission put forward several ways of boosting the use of renewable hydrogen.<\/p>\n\n\n\n
\u201cHydrogen must provide an alternative to fossil fuels, so today we are proposing a definition for renewable hydrogen, which makes it possible to have a viable certification system,\u201d said energy commissioner Kadri Simson at a press conference on Wednesday (14 July).<\/p>\n\n\n\n
As part of the plans, the European Commission proposed a 50% target for \u201crenewable fuels of non-biological origins\u201d \u2013 essentially green hydrogen \u2013 in the share of hydrogen fuels used in European industry by 2030, whether as a feedstock or in final energy consumption.<\/p>\n\n\n\n
That is \u201ca true game-changer,\u201d according to the Renewable Hydrogen Coalition, an industry group bringing together electricity companies such as Enel, Iberdrola and Orsted as well as wind industry giants like Vestas and Siemens Gamesa.<\/p>\n\n\n\n
\u201cSuch a target can clearly help boost the share of renewable hydrogen in the European hydrogen market \u2013 currently 96% fossil-gas based \u2013 and drive its cost down, making it competitive with fossil-based alternatives,\u201d said Fran\u00e7ois Paquet from the coalition.<\/p>\n\n\n\n
Green hydrogen targets for transport and industry<\/p>\n\n\n\n
However, reaching the EU\u2019s 2030 climate goal will require a significant build-up in the production of renewable electricity, which is needed to feed the electrolysers generating green hydrogen, Paquet said.<\/p>\n\n\n\n
And incentives will be needed to enable the use of green hydrogen in heavy industry and in long distance transport, the industry said.<\/p>\n\n\n\n
The package indeed contained other objectives, like a 2.6% target for \u201crenewable fuels of non-biological origin\u201d used in transport, and more refuelling stations for hydrogen vehicles.<\/p>\n\n\n\n
Those were welcomed by industry body Hydrogen Europe, which said the new objectives will give a significant boost to the EU\u2019s nascent hydrogen economy.<\/p>\n\n\n\n
\u201cBy putting targets on the use of hydrogen in industry and transport, the EU stands a real chance to achieve climate objectives, create thousands of jobs and protect its industry,\u201d said Jorgo Chatzimarkakis, secretary general of Hydrogen Europe.<\/p>\n\n\n\n
But setting targets is not enough to enable a switch to renewable hydrogen, Paquet warned.<\/p>\n\n\n\n
\u201cAny target must be accompanied by dedicated support instruments towards renewable hydrogen to make it an economically feasible option and keep them competitive,\u201d he said.<\/p>\n\n\n\n
That includes reducing taxation rates for renewable electricity and supporting so-called carbon contracts for difference \u2013 or state aid agreements where governments close the gap between the carbon price on the EU market and the CO2 price that would be needed to make green hydrogen competitive.<\/p>\n\n\n\n
NGOs denounce flawed plans<\/p>\n\n\n\n
However, not everyone was pleased with the Commission\u2019s plan.<\/p>\n\n\n\n
Transport and Environment, a green mobility NGO, has warned that the focus on hydrogen risks promoting their use in the automotive sector, where electrification is more efficient.<\/p>\n\n\n\n
And Global Witness, another environmental NGO, expressed concern that the European Commission had undermined climate ambition by promoting \u201clow-carbon\u201d hydrogen in parts of its \u2018Fits for 55\u2019 package.<\/p>\n\n\n\n
\u201cIt would have been absurd to allow fossil fuels to be labelled as \u2018renewable energy\u2019,\u201d Global Witness said, hailing the Commission\u2019s decision to exclude \u2018low-carbon\u2019 hydrogen from the renewable energy directive.<\/p>\n\n\n\n
However, it warned about moves to promote \u2018low-carbon\u2019 hydrogen in other parts of the package. \u2018Low-carbon\u2019 hydrogen is obtained from fossil gas but disposes the related CO2 emissions using a process known as carbon capture and storage (CCS).<\/p>\n\n\n\n
\u201cWhat the Commission took away from industry with one hand it gave back with the other. This has resulted in a contradictory hydrogen policy that will only be further exploited by fierce lobbying from the gas industry,\u201d said Tara Conolly, senior gas campaigner at Global Witness.<\/p>\n\n\n\n
The European Commission made it clear though that both renewable and low-carbon hydrogen will be needed in order to grow the hydrogen market in the coming years.<\/p>\n\n\n\n
\u201cThere are sectors where direct electrification is not the solution, where we need other alternatives, and hydrogen is the obvious alternative. That\u2019s why we will promote hydrogen production here in Europe and also uptake in different sectors, mainly in industry and transport,\u201d Simson said.<\/p>\n\n\n\n
To achieve our 2030 targets, \u201cwe will need also low-carbon hydrogen, not only renewables,\u201d she added.<\/p>\n","protected":false},"excerpt":{"rendered":"
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