The European Council and European Parliament have reached a provisional deal on the Renewable Energy Directive that sets targets for transport and industrial use.

The deal sets a target for 42pc of hydrogen used in industry to come from renewable fuels of non-biological origin (RFNBOs) as defined in the recently published delegated acts by 2030, rising to 60pc by 2035. Member states will be able to discount this share by 20pc if their national contribution to binding overall EU targets meets expected contributions and if the share of fossil fuel-derived hydrogen consumed is less than 23pc in 2030 and 20pc in 2035.

42pc – Target share of green hydrogen for industrial use by 2030

The EU consumes c.8.6mn t/yr of hydrogen, over 96pc of which is grey. The new target would accelerate the take-up of green hydrogen by the refining and agrichemicals sectors, which have been reluctant to switch owing to concerns around security of supply, small volumes from initial projects and cost.

The deal sets a binding target of 5.5pc for advanced biofuels and RFNBOs in the share of renewables supplied to the transport sector by 2030, with a sub-target of at least 1pc of renewables to be RFNBOs. Member states can choose between binding targets by 2030 of a 14.5pc reduction in their transport sector’s greenhouse gas intensity via the use of renewables or a 29pc share of renewables in that sector’s final consumption.

The provisional agreement includes accelerated permitting procedures for renewable energy projects, which will be classed as of ‘overriding public interest’, limiting the grounds of legal objections to new installations.

The agreement will be voted on by member state representatives in the Council, followed by a vote in Parliament, before it can enter into force.

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Author: Polly Martin