Sep 27, 2024, 4:48 PM
Sep 27, 2024, 4:48 PM

EU moves to finalize low-carbon hydrogen definition by January

Highlights
  • The European Commission is conducting a public consultation to finalize the definition of low-carbon hydrogen, which began on September 27.
  • The proposed definition states that hydrogen can be considered low-carbon if it emits only 30% of the emissions of the fuel it replaces, with three methods for calculating emissions based on electricity sources.
  • This definition is crucial for the EU's new gas market rules and will provide legal certainty for hydrogen producers and users.
Story

The European Commission is nearing the completion of its definition for low-carbon hydrogen, following a public consultation that began on September 27. This initiative is crucial as hydrogen is seen as a clean alternative to natural gas and a vital component for the chemical industry. The EU's legislative framework mandates a transition to clearly defined 'green' hydrogen, and the definition of 'low-carbon' hydrogen is equally complex. The Commission suggests that hydrogen can be labeled as low-carbon if it emits only 30% of the emissions of the fuel it replaces. This definition is significant for the EU's new gas market rules, which will impact access to transport infrastructure. Three methods for calculating carbon emissions from hydrogen production have been proposed, focusing on the carbon intensity of the electricity used. The first method considers the CO2 intensity of a country's electricity mix, favoring nations with a high nuclear power share. The second method allows producers to align hydrogen production with periods of low-carbon electricity pricing, while the third method requires detailed CO2 intensity data from regional power grids. Jens Geier, a German MEP, emphasized the importance of the proposed act in providing legal certainty for producers and users, while also highlighting the need for flexibility to make future improvements. After the consultation period, the Commission will present a final proposal, which can be accepted or rejected by EU member states or the European Parliament.

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