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Red II could impede hydrogen – lobby groups

European lawmakers must address the barriers imposed on hydrogen producers by the Renewable Energy Directive (RED II) if the EU’s hydrogen targets are to be achieved, according to the Renewable Hydrogen Coalition and Hydrogen Europe.

The RED II regulations are currently being revised as part of the green new deal and the EU’s increased ambition to have net-zero emissions by 2050.

The EU’s Hydrogen Strategy aims to produce 1mn t of renewable hydrogen and deploy at least 6GW of installed electrolyser capacity by 2024.

2050 – Date by which EU wants to be net zero

But the requirements of RED II and the draft delegated act on renewable electricity for renewable fuels of non-biological origin (RFNBOS) to prove additionality,  coupled with rules on the time and distance between renewable energy generation and its consumption in an electrolyser could hinder investment in capacity, according to the two bodies.

“The requirements…are precluding investors from financing projects aiming to replace carbon-emitting energy carriers with renewable hydrogen,” they said in a statement.

The rules are designed to ensure that any green hydrogen produced by electrolysers is provable as genuinely generated by renewable sources. But they should be phased in and their effect evaluated by a proper market assessment, according to the two bodies.

“This will enable the ramping up of renewable hydrogen production and give investor certainty to early movers,” they said.

The rules should also ensure that an electrolyser has signed a power purchase agreement (PPA) with a renewable electricity producer before coming into operation. Once a PPA has been signed, Guarantees of Origin (GOOs) should be accepted for up to three years to prove the renewable character of the electricity used for the production of hydrogen, they add.

The RED II regulations are currently being revised as part of the green new deal and the EU’s increased ambition to have net zero emissions by 2050.


Author: Tom Young