EU: Rules Agreed to Stimulate Investment in Green Hydrogen

by Ship & Bunker News Team
Tuesday February 14, 2023

In a move designed to stimulate investment in green hydrogen, the European Commission has clarified the make up of alternative fuel.

Two delegated acts from the EC define what renewable fuels of non-biological origin (RFNBOs) are and propose a methodology for calculating life-cycle greenhouse gas emissions for these fuels.

By linking future green hydrogen production to new renewable electricity production, the commission hopes to avoid distorting the emerging market of renewable fuels.

"This principle aims to ensure that the generation of renewable hydrogen incentivises an increase in the volume of renewable energy available to the grid compared to what exists already," the commission said.

"In this way, hydrogen production will be supporting decarbonisation and complementing electrification efforts, while avoiding pressure on power generation," it added.

The EC's rules on green hydrogen have met with the approval of the Brussels-based environmental group, T&E.

"This [the two delegated acts] will kickstart investments in hydrogen and e-fuels, which are crucial for decarbonising our ships, planes and heavy industry," the group said.

While T&E has quibbles over the date that the rules apply from, it urges the European Parliament and EU Council to "swiftly adopt" the two delegated acts