European Commission Adopts Methodology for Low-Carbon Hydrogen and Advances Towards Decarbonization
Key Ideas
  • The European Commission adopted a delegated act setting a threshold of 70% greenhouse gas emission savings for hydrogen to be considered low carbon, allowing flexibility in production methods.
  • The act acknowledges the diverse energy mixes across Member States and does not specify the share of renewable energy for hydrogen production from electricity, with the Renewable Energy Directive addressing this aspect.
  • Efforts to facilitate the implementation of the Methane Regulation are underway, with a focus on practical solutions to address methane emissions, especially in maritime transport.
  • Future plans include launching a public consultation on using Power Purchase Agreements for nuclear energy to enhance the production of low-carbon hydrogen from direct nuclear sources in 2026.
The European Commission has taken significant steps towards decarbonization by adopting a delegated act that defines a methodology for low-carbon hydrogen. Hydrogen must achieve a 70% greenhouse gas emission savings compared to unabated fossil fuels to be classified as low carbon. This flexibility allows for production through methods like natural gas with carbon capture and from low-carbon electricity sources. The act also recognizes varying energy mixes across EU Member States and does not specify the renewable energy share for hydrogen production, leaving this detail to the Renewable Energy Directive. Efforts are being made to simplify the Methane Regulation implementation to address methane emissions, with a focus on practical solutions. Looking ahead, a public consultation on using Power Purchase Agreements for nuclear energy to boost low-carbon hydrogen production from direct nuclear sources is planned for 2026. Furthermore, the European Commission has introduced the Hydrogen Mechanism under the EU Energy and Raw Materials Platform to facilitate efficient sourcing of energy and raw materials for European companies. This mechanism aims to match supply and demand, identify infrastructure development needs, and provide access to financial information, empowering market participants.
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