Norway receives six CO2 storage applications

H2 sector wary as EU nears low-carbon rules: Correction

H2 sector wary as EU nears low-carbon rules: Correction

Corrects paragraph 7 to clarify that Hydrogen Europe's requests refer to CO2 intensity of upstream natural gas supply rather than fugitive methane emissions London, 12 March (Argus) — As the European Commission edges closer to publishing its long-awaited low-carbon hydrogen regulation expected this month, there is much at stake for prospective producers within the bloc but also potential overseas suppliers, according to industry association Hydrogen Europe. The European Commission said in its Clean Industrial Deal from late February that it intends to adopt a delegated act defining low-carbon hydrogen this quarter , following publication of a draft last summer and subsequent consultation with stakeholders. The EU has already set a CO2 emissions threshold of 3.38kg of CO2 equivalent for low-carbon hydrogen, but the delegated act will settle the details for a range of production pathways that do not fall under the EU's already-adopted definition of renewable fuels of non-biological origin (RFNBOs). These include electrolysis from non-renewable power such as nuclear or waste incineration, gas reforming with carbon capture, and methane pyrolysis. Hydrogen Europe is hoping that the adopted text — which would then require approval from the European Parliament and member states — will entail some changes it says are key to unlocking nuclear-powered hydrogen and to ensure a fair reflection of emissions from gas-based production. The association has urged the commission to allow companies buying nuclear power via power purchase agreements to factor this into their emissions calculations rather than having to use a default number that stems from the CO2 intensity of the respective country's grid. This is the only way that grid-connected projects could move ahead in countries with low renewables penetration and otherwise large swathes of production could potentially be ruled out, industry participants have said. The industry body has also stressed that the EU should let gas-based hydrogen producers use project-specific figures for the CO2 intensity of their upstream natural gas supply rather than a blanket number irrespective of the location. Project-specific figures will be used for upstream methane emissions from 2028 under a separate methane regulation, which could potentially advantage Norwegian producers with typically lower upstream emissions over producers in the Middle East and parts of the US. Hydrogen Europe's chief executive Jorgo Chatzimarkakis said the sector "desperately needs legal certainty" and complained that missing deadlines has "become standard rather than an exception" for the commission. Other industry participants have previously made similar arguments around emissions calculations for nuclear power and for upstream methane emissions and many have stressed the need for certainty around the definition. The rules are crucial because low-carbon hydrogen will be needed "in the market ramp-up phase" as "renewable hydrogen is not yet available in sufficient quantities or at sufficiently affordable prices," Chatzimarkakis said. Moreover, many renewable hydrogen projects will probably have to pivot their electrolysers to make low-carbon hydrogen in spare hours to shore up their business case. Curbing low-carbon hydrogen volumes with tight rules inadvertently weakens the case for investment in midstream infrastructure that is essential in the long term, Chatzimarkakis said. This debate on measuring the emissions of hydrogen production is the latest in a slew of painstaking procedures globally, as rule makers have tried to enshrine best practices without overly regulating the nascent industry. The EU took around two years to define renewable hydrogen and the process was hardly quicker in the US. The previous US administration of president Joe Biden clarified rules for its 45V hydrogen production tax credits in early January. It listened to pleas from producers and will allow them to use project-specific emissions calculations that might give the EU food for thought — although the future of the clean energy incentives including 45V is unclear following the return of Donald Trump to the White House in January . By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.