Group of companies, which includes EDP, Iberdrola, Enel, Smartenergy and Akuo, want the new RED III directive to commit to binding targets for green hydrogen
A group of energy companies and environmental protection associations, organized under the umbrella of the Renewable H2 organization, are calling on members of the European Parliament to ensure that the European Union (EU) only considers the 100% renewable hydrogen option in the changes to be made in the new EU RED III directive (Renewable Energy Directive), instead of admitting other “low-carbon” solutions more generally.
Among the signatories of the letter released this Thursday are several companies with a presence in Portugal, such as EDP, Iberdrola, Enel, Smartenergy and Akuo, as well as other companies and organizations, such as wind tower manufacturer Vestas, the environmental association Transport & Environment, the company Orsted and the research center E3G.
“Following the European Commission’s communication “REPowerEU” released this Tuesday, the signatories of this letter call on European legislators to limit the Renewable Energy Directive to renewable hydrogen only and to maintain the European Commission’s proposed ambition for the market for renewable hydrogen and associated e-fuels [synthetic fuels],” the missive made public by Renewable H2 reads.
The organization and energy companies argue that this detail (limiting RED III to green hydrogen, without admitting other low-carbon solutions) is “essential” to increase demand and create a European renewable hydrogen market and stimulate innovation.
Setting binding targets for green hydrogen, the letter argues, will send a strong signal to the market and stimulate investment in renewable hydrogen, and ensure Europe’s first-mover advantage in the green hydrogen industry, as well as serving as the basis for national incentive frameworks to unlock private investment in this new industry.
The organization notes that in the short term there is potential demand for 540 terawatt hours (TWh) of green hydrogen and that Europe must take into account that the cost of electrolyzers in China is already lower than in Europe, according to Bloomberg New Energy Finance, so the Old Continent must accelerate the conditions that stimulate the bet on green hydrogen.
