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T&E: EU guidelines for green hydrogen give it investment certainty

Anela DoksoBy Anela Dokso14/02/20232 Mins Read
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According to Transport & Environment (T&E), the guidelines for green hydrogen established by the European Commission give green hydrogen the much-needed investment certainty.

However, the group has criticized the plan to loosen regulations for the generation of green hydrogen, allowing projects beginning before 2028 to use power generated by coal and gas. Surprisingly, the Commission determined that hydrogen generated through a low-carbon energy infrastructure that uses nuclear electricity qualified as “renewable.”

Geert Decock, electricity & energy manager at T&E said: “The EU has provided clarity on what makes hydrogen green or not. This will kickstart investments in hydrogen and e-fuels, which are crucial for decarbonising our ships, planes and heavy industry. And by coupling green hydrogen generation with additional renewable capacity, the Commission will avoid the potentially disastrous consequences of creating new demand for already limited supplies of renewable electricity.”

Hydrogen projects will need to increase the amount of renewable energy in the local grid starting in 2028 as production begins to ramp up to meet demand. By doing this, it will be possible to prevent the grid from losing access to renewable energy, which would increase energy costs for homes and businesses.

T&E requests that these delegated acts on renewable fuels of non-biological origin be speedily adopted by the European Parliament and the EU Council (RFNBO). The committee issues a caution that this choice should not be used as justification for using hydrogen for all of our energy needs.

“Hydrogen is not a silver bullet, it still requires significant amounts of electricity to produce. It should only be used in sectors that need it. It makes no sense to use hydrogen whenever direct electrification is possible,” warns Decock.

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