Negotiators from the European Parliament and EU national governments reached a historic deal on a new EU gas directive in December.
This directive, once fully ratified by the EU Parliament and Council in Q1 2024, is set to usher in a new era for renewable and low-carbon gases, with a spotlight on hydrogen. The overarching goal is to seamlessly integrate these innovative energy sources into the existing energy system, leveraging the extensive natural gas infrastructure.
The upcoming directive mandates countries to formulate comprehensive national network development plans. These plans must align with joint scenarios covering electricity, gas, and hydrogen, in harmony with National Energy and Climate Plans and an EU-wide Ten Year Network Development Plan. A crucial inclusion is the requirement for hydrogen and gas network operators to furnish details on infrastructure that can either be decommissioned or repurposed. In a bid to address concerns about potentially futile investments in hydrogen infrastructure, nations must devise specific hydrogen network development plans grounded in “realistic” demand projections.
Austrian Liberal MEP Claudia Gamon, who actively participated in negotiations on behalf of the parliament, shed light on the MEPs’ strategic vision. Gamon highlighted the necessity of directing hydrogen towards initial applications that align with broader environmental goals. Emphasizing the impending high demand for hydrogen, she stressed the need to prioritize “hard-to-abate sectors to guarantee supply for our industry” and urged leveraging alternatives like hydrogen wherever possible.
The genesis of the EU’s hydrogen and gas directives traces back to the ‘Fit for 55’ Package, launched two years ago by the European Commission. This comprehensive package aimed to align EU climate and energy laws with the ambitious target of reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050. While negotiations on the directive have concluded, there is still a pending agreement on the regulation, which deals with more technical aspects requiring substantial input from national regulators.
The agreement on the EU gas directive in December received accolades from hydrogen advocates who have long called for clear regulations, especially since the unveiling of the EU’s Hydrogen Strategy in 2020.
As the directive awaits its final approvals, the European Union stands at the forefront of a hydrogen-powered future, solidifying its commitment to a greener, more sustainable energy landscape.