The global clean hydrogen is on the verge of transformation as we head into 2025. If I were to identify five pathways that are both plausible and capable of major impact, these would be my top picks.
Simplification of EU rules for low-carbon hydrogen
The German government and the International Energy Agency (IEA) have both been pleading for reductions in the red tape around qualification for the EU’s renewable hydrogen definition. This would have a significant impact on the achievement of the required quotas under the Renewable Energy Directive (RED), as well as on access to renewable fuels of non-biological origin- (RFNBO)-focused incentives and support schemes for large international projects. These petitions follow many months of similar complaints and warnings from a number of industry stakeholders, as well as the cancellation of high-profile projects, with developers often citing as the principal cause the absence of (or, perhaps more accurately, delay in) apparent demand from Europe.
Though there are some RFNBO-compliant, off-grid projects (or projects located in areas with very high renewables penetration) which will prefer to keep the RFNBO definition narrow. Mathematically, however, the EU’s additionality, geographic correlation and time-matching requirements for renewable hydrogen are proving to be at odds with the EU’s hydrogen adoption targets and a feasible policy to decarbonise industry more generally.
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