The European Commission has stepped up regulatory support for green hydrogen in its proposal to revise climate legislation released last week, with the Renewable Hydrogen Coalition calling it a ‘real game changer’ for the nascent industry of the EU.
As part of its “Fit for 55” climate legislation package, named after the 55% reduction in greenhouse gas emissions it aims to achieve by 2030, the European Commission has proposed several ways to stimulate the use of renewable hydrogen.
“Hydrogen must provide an alternative to fossil fuels, so today we are proposing a definition of renewable hydrogen, which makes it possible to have a viable certification system,” Energy Commissioner Kadri Simson said at the meeting. ‘a press conference on Wednesday July 14.
As part of the plans, the European Commission has proposed a target of 50% “renewable fuels of non-biological origin” – mostly green hydrogen – in the share of hydrogen fuels used in European industry by 2030 , whether as raw material or in final energy. consumption.
It’s “a real game changer,” according to the Renewable Hydrogen Coalition, an industrial group of power companies like Enel, Iberdrola and Orsted as well as wind industry giants like Vestas and Siemens Gamesa.
“Such an objective can clearly help increase the share of renewable hydrogen in the European hydrogen market – currently based at 96% fossil gas – and reduce its cost, making it competitive with fossil alternatives”, said François Paquet of the coalition.
Green hydrogen targets for transport and industry
However, meeting the EU’s climate target by 2030 will require a significant increase in the production of renewable electricity, which is needed to power electrolysers that generate green hydrogen, Paquet said.
And incentives will be needed to enable the use of green hydrogen in heavy industry and long-haul transportation, the industry said.
The package contained other targets, such as a 2.6% target for “renewable fuels of non-biological origin” used in transport, and more refueling stations for hydrogen vehicles.
These were well received by industry body Hydrogen Europe, which said the new targets would give a significant boost to the EU’s nascent hydrogen economy.
“By setting targets for the use of hydrogen in industry and transport, the EU has a real chance to meet its climate targets, create thousands of jobs and protect its industry,” said declared Jorgo Chatzimarkakis, Secretary General of Hydrogen Europe.
But setting targets is not enough to allow a switch to renewable hydrogen, Paquet warned.
“Any objective must be accompanied by dedicated support instruments for renewable hydrogen to make it an economically feasible option and keep them competitive,” he said.
This includes reducing renewable electricity tax rates and supporting so-called carbon-for-difference contracts – or state aid deals where governments close the gap between the price of carbon in the electricity market. ‘EU and the price of CO2 that would be needed to make green hydrogen competitive.
NGOs denounce flawed plans
However, not everyone was satisfied with the Commission’s plan.
Transport and Environment, a green mobility NGO, has warned that a focus on hydrogen risks promoting its use in the automotive sector, where electrification is more efficient.
And Global Witness, another environmental NGO, has expressed concern that the European Commission has undermined climate ambition by promoting ‘low carbon’ hydrogen in parts of its ‘Suitable for 55’ program. .
“It would have been absurd to allow fossil fuels to be labeled as ‘renewable energy’,” Global Witness said, welcoming the Commission’s decision to exclude “low carbon” hydrogen from the renewable energies.
However, he cautioned against measures to promote “low carbon” hydrogen in other parts of the package. “Low carbon” hydrogen is obtained from fossil gas but removes the associated CO2 emissions using a process known as carbon capture and storage (CCS).
“What the Commission took from industry with one hand, it returned with the other. This has resulted in a contradictory hydrogen policy which will only be exploited by fierce lobbying from the gas industry, ”said Tara Conolly, gas campaign manager at Global Witness.
However, the European Commission has made it clear that renewable, low-carbon hydrogen will be needed to develop the hydrogen market in the years to come.
“There are sectors where direct electrification is not the solution, where we need other alternatives, and hydrogen is the obvious alternative. That is why we are going to promote the production of hydrogen here in Europe and also its use in different sectors, mainly in industry and transport, ”said Simson.
To meet our 2030 goals, “we will also need low carbon hydrogen, not just renewable energy,” she added.
[Edited by Frédéric Simon]
