BGH2A Signs the Open Letter Calling for a Method Recognizing Non-Fossil PPA In The Low-Carbon Hydrogen Delegated Act

Sep 10, 2024

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On September 6, 2024, the Bulgarian Association for Hydrogen, Fuel Cells, and Energy Storage joined a coalition of European organizations that believe the future of the energy mix is linked to its flexibility and the use of low-emission energy sources for the production of clean hydrogen. In an open letter to the European Commission, 33 associations, companies, and energy enterprises welcomed the EU’s efforts to create an effective, functional, and ambitious legislative framework to structure the demand for Renewable Fuels of Non-Biological Origin (RFNBO).

The upcoming Delegated Act on Low-Carbon Hydrogen, according to Article 9 of Directive (EU) 2024/1788, provides a unique opportunity to fulfill the recommendations of the European Court of Auditors and achieve the shared goals for producing hydrogen through renewable energy sources.

Timely, large-scale, and safe production of clean hydrogen, its transportation, and its use in industry are cornerstones for decarbonization and the revitalization of our economy, as well as for attracting potential investors to the country.

The EU’s electrolysis industry needs a definition of electrolytic low-carbon hydrogen that leverages Europe’s strengths and facilitates the efficient deployment of our electrolytic value chain. In addition to the obligation to comply with Article 194 of the Treaty on the Functioning of the European Union (TFEU), creating fair and equitable conditions for electrolytic low-carbon hydrogen, as a complement to RFNBO production, will be crucial for launching production projects, particularly as a temporary approach to ensuring stable supplies before hydrogen storage and transportation infrastructures are put into operation.

Therefore, the Bulgarian Hydrogen Association supports the introduction of a methodology in the Delegated Act that recognizes specific carbon content (i.e., different from the grid’s average value) for long-term Power Purchase Agreements (PPAs) from non-fossil fuels.