EU lawmakers should raise the bloc’s renewable energy target to 45pc by 2030, according to a position paper from industry body Hydrogen Europe.

The European Commission’s Fit for 55 package proposes that renewables should contribute 40pc of the EU’s final energy consumption by 2030.

The proposal is going through the legislative process, but the target should be amended to 45pc if the EU wants to become a centre of green hydrogen manufacturing expertise, Hydrogen Europe says.

“Replacing fossil-based hydrogen with renewable hydrogen is a top priority for Europe and thus a strong signal to the market is needed,” says the paper, titled Delivering RepowerEU hrough a strong European hydrogen industry.

40pc – Target share for renewables in final energy consumption by 2030

A proposal that industry be mandated to use 50pc renewable fuels of non-biological origin (RFNBOs) by 2030 is also vital for the growth of the hydrogen sector and should be supported by an interim 2027 target—not currently proposed by the commission, Hydrogen Europe says. The current target to meet at least 2.6pc of final energy demand with RFNBOs should be maintained and could be revised upwards, it adds.

Targets in the Alternative Fuels Infrastructure Regulation proposal on hydrogen refuelling stations—which are in danger of being diluted—should also be maintained, the industry body emphasises.

And the 2030 subtarget for synthetic aviation fuel should be increased from the proposed 0.7pc by 2030 to a pathway in line with a 5pc target before 2035. Liquid hydrogen is considered one of the best options for decarbonising aviation.

Defining hydrogen

Having a set of definitions for different types of hydrogen and clear methodologies to calculate their carbon footprint is also key, according to Hydrogen Europe.

“These rules… will fundamentally determine the capacity of Europe to channel necessary investments into the production of renewable hydrogen,” says Hydrogen Europe.

The definitions will be outlined in two delegated acts. One will establish when hydrogen producers can run their electrolysers—the EU is worried that running electrolysers all the time could increase the emissions of the energy system as a whole—and the other will define exactly what is meant by low-carbon hydrogen in terms of carbon footprint.

Both rules should be brought into action as soon as possible to help reduce uncertainty in the industry and encourage investment, Hydrogen Europe says. The European Commission is due to publish its initial proposals on the definition on 18 May.

Permitting

National governments and the EU should extend simplified planning procedures for renewable energy projects to hydrogen production developments.

“Permitting is a key bottleneck for the execution of large-scale energy infrastructure,” says the paper.

“While it is laudable that governments and the European Commission are aiming to tackle this issue by proposing simplified and accelerated procedures, such measures should be extended to electrolyser projects to avoid similar barriers,” it continues.

“Permitting is a key bottleneck for the execution of large-scale energy infrastructure” Hydrogen Europe

Currently, the Industrial Emissions Directive treats all types of hydrogen production routes and project sizes in the same way, putting a disproportionate regulatory burden on smaller projects.

The European Commission should consider introducing thresholds to treat the various production projects differently depending on their size and should accelerate the process for the approval of important projects of Common European Interest (IPCEI).

IPCEI and national-level support schemes should focus on reducing investment risk and on establishing the serial production of electrolysers in a manner that is not limited to specific technologies.

And the European Commission and European Investment Bank should introduce a new mechanism for a fast-track process to approve loans to hydrogen projects at favourable investment rates.

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Author: Tom Young