EU Adopts Emissions Methodology for Low-Carbon Hydrogen and Fuels
Key Ideas
  • The European Commission has adopted a new emissions methodology for low-carbon hydrogen and fuels under the Hydrogen and Gas Market Directive.
  • To qualify as low-carbon, hydrogen and related fuels must achieve a minimum of 70% reduction in GHG emissions compared to fossil fuels.
  • The methodology allows for the production of low-carbon hydrogen through various methods, including natural gas combined with CCUS and low-carbon electricity sources.
  • The act will now undergo examination by the European Parliament and the Council for approval or rejection.
The European Commission has taken a significant step by adopting an emissions methodology specifically tailored for low-carbon hydrogen and fuels. This move, outlined in the Hydrogen and Gas Market Directive, marks a crucial addition to the existing regulatory framework for hydrogen within the EU. The methodology sets a clear standard, stating that to be classified as low-carbon, hydrogen and its related fuels must demonstrate a substantial 70% reduction in greenhouse gas emissions compared to unabated fossil fuels. Notably, the methodology allows for flexibility in production methods, including the utilization of natural gas in conjunction with Carbon Capture, Utilization, and Storage (CCUS), as well as sourcing from low-carbon electricity. Following adoption, the proposal is now set for review by the European Parliament and the Council, who will play a pivotal role in either accepting or rejecting the new methodology. This development emphasizes the EU's commitment to advancing sustainable energy practices and reducing carbon emissions, aligning with broader environmental goals and the transition towards a more renewable energy landscape.
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