The European Parliament has voted through an amendment to the Renewable Energy Directive that loosens the requirements for hydrogen to be considered renewable.

Under a previous delegated act proposed by the European Commission, hydrogen production had to be powered by a dedicated renewable energy asset for it to be considered a renewable source of the fuel. If the electrolyser used to create the hydrogen was connected to the general grid, it would have to be powered by a renewable asset in the same or adjacent geographical bidding zone that was generating power during the same one-hour period the hydrogen was produced.

Under the new rules, renewable hydrogen can be produced from grid-sourced electricity as long as producers secure power-purchase agreements (PPA) from renewable energy installations for the equivalent amount of electricity.

9-10mn t/yr – Green hydrogen demand created by new rules

“Electricity taken from the grid may be counted as fully renewable provided that it is produced exclusively from renewable sources and the renewable properties and other appropriate criteria have been demonstrated by the conclusion of a power purchasing agreement,” reads the adopted text.

The balance between the renewable electricity purchased to power electrolysers through PPAs and the amount of electricity actually taken from the grid will be assessed on a quarterly basis in order for the production to be fully qualified as renewable. After 2030, the Commission will assess whether this needs to happen on a monthly, quarterly or annual basis.

MEPs and the Czech Presidency of the Council of the EU will now enter into final negotiations on the file before it becomes law—meaning the provisions could still be adjusted.

Industry association Hydrogen Europe welcomed the amendment, noting it would make green hydrogen projects much easier to develop.

“MEPs have listened to the sector’s concerns that overly strict regulations would hinder the development of this crucial market,” it says.

Industry boost

As part of the same text, MEPs also voted that renewable fuels of non-biological origin must form at least 5.7pc of all fuels by 2030, including 1.2pc in the hard-to-abate maritime sector, and that they must form 50pc of the fuels used by industry by 2030 and 70pc by 2035.

These targets alone will result in 9-10mn t/yr of green hydrogen demand, according to Hydrogen Europe.

Parliament also made a commitment to an overall renewable energy contribution of 45pc to the total energy mix by 2030.

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Author: Tom Young