The European Commission has published the long-anticipated Low Carbon Hydrogen Delegated Act, providing legal clarity for hydrogen producers and developers in Europe. This new regulation complements the existing RED III Delegated Act on Renewable Fuels of Non-Biological Origin (RFNBO) and it is an important step in closing regulatory gaps for the sector.
Hydrogen Europe comments that the final version introduces several improvements, such as:
- The approach to the upstream CO2 emissions of natural gas default values has changed, acknowledging that gas transported through pipelines has lower GHG emissions.
- Proposed introduction of country or region-specific default values of upstream emissions in the 2028 impact assessment.
- The possibility of using hourly average GHG intensity of grid intensity that would reward more flexible operation of electrolyzers.
- Improved treatment of solid carbon co-product, at least partially recognizing its potential for permanent carbon storage in products.
At the same time Hydrogen Europe feels the text falls short of what is needed for a thriving low-carbon hydrogen market. The exclusion of low-carbon electricity sourced through PPAs and the lack of immediate provisions for hydrogen produced from nuclear energy has been noted. A separate methodology for nuclear-based hydrogen is expected by 2026, with a legal revision deadline in 2028.
The European Parliament and Council now have two months to review the Act before it enters into force. At their request, the scrutiny period can be extended by 2 months but there is no possibility for the Parliament or Council to amend the proposals.
The full text of the Low Carbon Hydrogen Delegated Act is available here: https://energy.ec.europa.eu/publications/commission-delegated-regulation-eu-specifying-methodology-assessing-greenhouse-gas-emissions-savings_en
