The European Commission (EC) recently defined the parameters under which hydrogen, hydrogen-based fuels, or other energy carriers can be acknowledged as renewable fuels of non-biological origin (RFNBOs).
The EU has taken a step forward in its fight against climate change by establishing a framework to guide the production and use of renewable hydrogen.
Two acts have been adopted in this context. The first focuses on the conditions that classify hydrogen and hydrogen-based fuels as RFNBOs, and the second outlines a method for calculating the life-cycle greenhouse gas emissions for these fuels.
An essential aspect of the first act is the principle of “additionality” for hydrogen as per the EU’s Renewable Energy Directive. It sets the criteria to ensure that renewable hydrogen is only produced when and where necessary. This strategy stipulates that producers must demonstrate compliance with regulations. According to the EC, the concept of “additionality” guarantees that the renewable hydrogen supplies due by 2030 are linked to new, rather than existing, renewable energy production. This approach aims to increase the volume of renewable energy available in the EU.
The second act considers emissions associated with drawing electricity from the grid, from processing, and transporting these fuels to the end consumer.
The EC estimates that approximately 500 TWh of renewable electricity is needed to fulfill the 2030 ambition in REPowerEU of producing 10 million tons of RFNBOs. While the initial electricity demand for hydrogen production will be negligible, it will surge towards 2030 with the mass rollout of large-scale electrolyzers.
The new rules will officially take effect 20 days after their publication in the Official Journal. The final texts are consistent with the draft acts adopted on 13 February 2023. The regulations will apply to both domestic producers and international producers exporting renewable hydrogen to the EU.
The EC has pledged to maintain close contact with stakeholders and certification schemes to support the practical implementation of this framework.
The acts form part of a broad EU regulatory framework for hydrogen, encompassing energy infrastructure investments and state aid rules. They also set legislative targets for renewable hydrogen for industry and transport sectors, ensuring that all RFNBOs are produced from renewable electricity.
According to the EC, these interrelated acts are vital for the fuels to be counted towards EU countries’ renewable energy targets. They are expected to provide regulatory certainty to investors as the EU aims to reach 10 million tons of domestic renewable hydrogen production and 10 million tons of imported renewable hydrogen by 2030, in line with the REPowerEU Plan.
EU Commissioner for Energy Kadri Simson stressed the significance of these acts, noting: “Today, the delegated acts on renewable hydrogen have been approved. This means legal certainty for both producers and consumers of renewable hydrogen, and is a pivotal step to attract the necessary investments to decarbonize our energy system.”
