Europe’s hydrogen rules: what counts as green when nuclear power is involved
The European Commission is shaping rules that let hydrogen produced from nuclear energy be labeled green. This move, supported by France and eight other member states, could influence energy investments and the future deployment of the H2Med pipeline linking Barcelona and Marseille.
On Monday the Community Manager announced two delegated actions that outline the conditions under which hydrogen and hydrogen based fuels derived from renewable electricity can be considered renewable fuels of non biological origin. The aim is to clarify how renewable electricity ties into hydrogen production and its non biological origin status.
Brussels treats hydrogen that uses renewable electricity as fully renewable when the electricity used is at least 90 percent renewable and when the hydrogen is categorized as low carbon due to a life cycle that cuts greenhouse gas emissions by at least 70 percent compared with fossil natural gas. This framework opens space for hydrogen produced from nuclear energy to be considered in some cases as green hydrogen.
The commission provides a methodology for calculating emissions in electricity generation. It includes upstream emissions, emissions from grid removal, processing, and transportation of these fuels to the final consumer. This equips regulators with a consistent way to assess the true carbon intensity of electricity used for hydrogen production.
If the emission intensity of the electricity is under 18 gCO2eq per MJ, there is no need to prove the targeted 70 percent emissions savings, and electricity drawn from the grid can be counted as fully renewable without triggering certain criteria.
This approach paves the way for hydrogen production from atomic energy in both Paris and Stockholm, recognizing a substantial role for nuclear power in Sweden’s electricity mix. The Commission attributes emission intensities of 4.1 gCO2eq per MJ for Sweden and 19.6 gCO2eq per MJ for France, while inviting review of these figures using Eurostat data or other trusted sources to refine the thresholds for each country.
Considering nuclear energy hydrogen as green, the measure seeks to avoid increasing the use of fossil fuels to supply electricity for hydrogen production. It also challenges the additivity principle, which would otherwise prevent electrolyzers from sharing existing electricity facilities used for other purposes.
The principle of additivity is that electrolyzers, which separate hydrogen from water, will be tied to new renewable energy generation. This means they should not rely on facilities whose electricity is earmarked for alternate uses. The objective is to ensure a direct link between hydrogen generation and new renewable capacity, preventing hydrogen from drawing away renewable electricity from the grid.
The policy aims to ensure that hydrogen production expands only when enough renewable energy is actually available. In other words, the growth of hydrogen should not cannibalize renewable electricity that would otherwise power other parts of the grid.
Hydrogen projects commissioned before January 1, 2028, and facing expected increases in electrolyzer output are considered part of a transition. These projects will be allowed a grace period of up to 36 months for compliance with the new rules.
Starting January 1, 2030, producers will be able to align their hydrogen output with renewable energy supply through monthly contracts, though member states may impose stricter rules from July 1, 2027. The European definition of green hydrogen diverges from the stance of some member states, notably Spain and Germany, which advocate banning nuclear hydrogen, sometimes called pink hydrogen, and limiting the green label to electricity produced from renewables alone.
At present, green hydrogen remains economically challenging. Yet rapid development is anticipated, with projections of around 10 million tonnes produced within the European market by 2030, accounting for a sizable share of electricity generation. Experts estimate that a few hundred facilities would be needed to reach that level of production.
The definitions issued by the European Commission tie into the Renewable Energy Directive RED 3, currently under negotiation among the Council, the European Parliament, and the Commission. The Commission released technical definitions to guide the discussion and is expected to resume negotiations promptly. The directive envisions a substantial role for renewable energy in hydrogen use, aiming for significant shares in industry by 2030 and beyond, supported by expanding renewable energy capacity. (citation: European Commission)