02/14/2023
Source: Energy & Management Powernews
The EU Commission has presented two regulations defining green hydrogen and sustainable fuels of "non-biological origin" (RFNBO).
Green hydrogen and synthetically produced fuels should, according to the ideas of the EU Commission, replace the previously used fossil fuels. The use of "green" hydrogen or ammonia produced with the help of electricity from renewable sources, as well as derivatives made from them, are to accelerate the decarbonization of the energy industry and parts of the transport sector and make the EU independent of Russian natural gas.
So far, only RFNBO (Renewable Fuels of Non Biological Origin) used in the transport sector can be counted towards the EU's climate targets. A new version of the Renewable Energy Directive (RED) is to ensure that this is also the case in all other sectors. A corresponding amendment to the RED is currently being negotiated between the European Parliament and the Council of Ministers.
Unclear so far has been what requirements hydrogen and other RFNBO produced or imported in the EU must meet in order to be recognized as sustainable. The Parliament's chief negotiator, Markus Pieper (CDU), had therefore suspended the negotiations last week and called on the Commission to present the criteria for RFNBO. The Commission has now complied with this request.
Production of green electricity at the same time and in the same area
According to this, green hydrogen and other renewable fuels may only be produced from additional electricity from renewable sources that is produced at the same time and in the same area. This is the case if, for example, an electrolysis plant for hydrogen production is directly connected to a wind turbine or PV system that was built no more than 36 months before the electrolysis plant was commissioned. If the electrolysis is operated with electricity from the grid, it must be ensured that the green electricity is generated in the same bidding zone or in an off-shore facility that is connected to the bidding zone. In the bidding zone, the share of renewable energy in the year before must be more than 90 percent and the operating hours of the electrolyzer must not exceed certain ceilings.
Alternatively, green hydrogen can be produced with electricity from the grid if the emission intensity of electricity production in the bidding zone in question does not exceed 18 grams of CO2/MJ and the operator of the electrolyzer has signed firm supply agreements (PPAs: power purchase agreements) with the suppliers of green electricity.
In the first few years, electrolyzer operators will only have to demonstrate that their bidding zone generates as much green power as they need for hydrogen production on a monthly basis. This requirement is to be gradually tightened so that after 2030, reconciliation will be on an hourly basis. Member states may also introduce hourly reconciliation earlier.
In principle, the use of RFNBO will only count toward the EU's renewable energy target if it saves at least 70 percent of greenhouse gases compared to the use of fossil fuels. The exact methods for calculating emissions savings will be set out in a second regulation, also presented by the Commission on Feb. 13. The European Parliament and the Council of Ministers have two months to submit objections to both regulations. If they do not, they will automatically enter into force.
At least 10 million tons of green hydrogen in 2030
The Commission expects that the EU will need to produce at least 10 million tons of green hydrogen in 2030 and import the same amount again to meet the targets of its REPowerEU program. This would require 500-550 TWh of green electricity, about 14 percent of total EU electricity consumption. Electrolysers with a capacity of 6,000 MW are to be built in the EU by 2025. As of today: 160 MW.
With its comparatively restrictive definition, the commission wants to ensure that green hydrogen production does not take place during times when electricity from renewable sources is scarce. The proposal gives producers "the opportunity to demonstrate that hydrogen is renewable if they ensure that they generate additional electricity," it says in justification. Power purchase agreements with green power generators, for example, offer this opportunity, it said. The criteria also apply to imported RFNBOs. Importers must provide relevant certificates from certification systems recognized by the EU Commission. They will also serve as a guide for the approval of national and European subsidies.
The EPP rapporteur for renewable energy, Markus Pieper, said this afternoon in Strasbourg that the Commission had presented a pragmatic proposal: "In the event of a wind lull, producers of hydrogen have the option of obtaining the necessary electricity from the grid. This provides planning security for the young hydrogen economy." The rules would be adapted over time to the availability of green hydrogen. Pieper and the energy policy spokesman for the Green Party, Michael Bloss, criticized, however, that green hydrogen may also be produced with nuclear power.
Author: Tom Weingärtner
Accessibility
Language
