The European Commission's legal proposal defining what counts as renewable hydrogen should come sooner rather than later, says nongovernmental organisation Transport & Environment's electricity and energy manager Geert Decock. But he fears too-lax rules will could lift emissions and drive up power prices.

 

Below a Q&A, edited for length and clarity.

 

What issues do you have with the forthcoming green hydrogen law?

Essentially, under the latest leaked draft, you'll be able to sell hydrogen produced with green-washed electricity from early 2027.

 

If you add an electrolyser to the grid before 2027, you'll not have to fulfill any requirement for connecting or installing additional renewable facilities. The power source for the electrolyser just needs to be renewable. But all the renewables used for that hydrogen production will be taken from renewables that are needed to decarbonise electricity, charge electric vehicles (EVs) and power heat pumps. We fear a massive rush to install as much electrolyser capacity on grids before 2027 to beat the cut-off date. These electrolysers would then be exempt for 10 years and only need to start deploying additional renewables from 2036.

 

So do you want a further delay to the green hydrogen law?

If we want hydrogen and e-fuels for aviation and shipping by 2030 then the renewable hydrogen industry needs a stable legal framework as soon as possible so as to get started.

 

The commission has tried to find a compromise. On the one hand, environmental organisations have insisted on deploying renewables first before producing renewable hydrogen. Industry, though, appears to worry about all that at a later date. The commission has taken the middle ground. Unfortunately, that middle ground is not where we need to be.

 

Where does the EU's green hydrogen law need to be?

The high targets now being discussed under the renewables directive would have a massive impact on the grid and increase emissions.

 

Most member states have gas as the marginal unit. That extra demand from hydrogen production will then be typically met by fossil gas. Even in France, it could well be gas, and not nuclear, that meets additional demand from hydrogen production. This will also add to the ongoing spike in electricity prices putting even more pressure on household electricity and gas bills.

 

Do EU policymakers not favour a more flexible definition of green hydrogen?

There's huge pressure to deliver the delegated act defining renewable hydrogen.

 

Member states like Germany, for instance, appear more favourable to the position taken by Markus Pieper. He is the European Parliament's lead negotiator for the renewable directive. There is a feeling that the legislation should not be delayed further. The law should have been on the statute book by December 2021.

 

Are EVs also competing for that same power with hydrogen production?

Until 2030, electric vehicles represent a small part of overall electricity demand. And 40mn-50mn EVs would only add some 3pc to power demand on the grid.

 

Going forward, smart charging will diminish pressure on the grid. Batteries on wheels and vehicle-to-grid would be an asset playing a role balancing the grid that is dominated by renewables. Under the commission's target scenario of 10mn t of green hydrogen in the EU by 2030, we'd see electrolysers adding 17pc power consumption to the grid. That's the equivalent of France's power consumption.

 

Unless so-called green hydrogen is actually produced by additional new renewables then you're going to have a high real carbon footprint and increase electricity prices.

 

Is it not too late to change the commission's proposal?

Procedurally, it is very hard to reject or make changes to delegated acts, once the commission adopts them. The only thing EU member states and Parliament can do is object, but that requires more than a simple majority.

 

The vote was very close in parliament in September. If they do nothing then the commission's text is approved. Then again in this file, nothing is impossible. I make no predictions anymore on the green hydrogen law.