European Commission's Low Carbon Hydrogen Delegated Act: Towards a Sustainable Future
Key Ideas
- The Low Carbon Hydrogen Delegated Act provides legal certainty for hydrogen project developers in Europe, aiming to set the framework for hydrogen producers.
- Despite some improvements compared to the previous draft, there are concerns about the Act not fully meeting the needs of a thriving low-carbon hydrogen market.
- Positive changes include lower default values for upstream CO2 emissions of natural gas and improved treatment of solid carbon co-products.
- Some drawbacks include limitations on sourcing low-carbon electricity through power purchase agreements and unchanged treatment of hydrogen from nuclear sources.
The European Commission recently published the Low Carbon Hydrogen Delegated Act, aiming to bring legal certainty to hydrogen project developers in Europe. While the Act is a step forward in setting the framework for hydrogen producers, it falls short of fully meeting the needs of a thriving low-carbon hydrogen market. Several improvements were noted in the final version compared to the previous draft, such as the reduction of default values for upstream CO2 emissions of natural gas and the improved treatment of solid carbon co-products.
However, concerns remain regarding restrictions on sourcing low-carbon electricity through power purchase agreements and the unchanged treatment of hydrogen from nuclear sources. The Act also introduces the possibility of using biomass or biofuels to lower the GHG intensity of low carbon fuels under certain conditions. Despite these positive steps, there are worries about the complex reporting obligations and bureaucratic hurdles that the Act may impose on hydrogen pioneers.
Jorgo Chatzimarkakis, CEO of Hydrogen Europe, expressed concerns about the Act potentially deterring clean tech investment in Europe due to excessive complexity. The Act is now under examination by Parliament and the Council, who have the opportunity to oppose it within the next two months. The scrutiny period may be extended upon request, but there is no provision for amending the proposals at this stage.