IEA：2024年西北欧氢监测报告

NorthwestEuropeanHydrogenMonitor2024

INTERNATIONALENERGYAGENCY

Thispublicationandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.

Source:IEA.

InternationalEnergyAgency

Website:www.iea.orq

TheIEAexamfnesthefullspectrumofenergyissuesincludingoil,gasandcoalsupplyanddemand,renewableenergytechnologies,electricitymarkets,energyefficiency,accesstoenergy,demandsidemanagementandmuchmore.Throughitswork,theIEAadvocatespoliciesthatwillenhancethereliability,affordabilityandsustainabilityofenergyinits31membercountries,13associationcountriesandbeyond.

IEAmembercountries:

ustraliaAustria

eigium

anada

zechRepublic

enmarkEstonia

Finland

rance

ermany

reece

ungaryIreland

taly

apan

orea

ithuania

uxembourg

exico

etherlands

NewZealand

NorwayPoland

Portuga!

SlovakRepublic

Spain

Sweden

Switzerland

RepubiicofTurkiye

UnitedKingdom

UnitedStates

TheEuropeanCommissionalsoparticipatesintheworkoftheIEAIEAassociationcountries:

ArgentinaBrazil

ChinaEgypt

India

Indonesia

Kenya

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Singapore

outhAfrica

hailand

kraine

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NorthwestEuropeanHydrogenMonitor2024

Abstract

Abstract

NorthwestEuropeisattheforefrontoflow-emissionshydrogen1development.ThisregionaccountsforaroundhalfofEurope'stotalhydrogendemand:andithasvastanduntappedrenewableenergyandcarbonstoragepotentialintheNorthSea.Italsohasawell-developed,interconnectedgasnetworkwhichcouldbepartiallyrepurposedtofacilitatethetransmissionanddistributionoflow-emissionshydrogenfromproductionsitestodemandcentres.

Thedevelopmentoflow-emissionshydrogeninNorthwestEuropecouldgraduallyscaleupintheshort-tomedium-term.NorthwestEuropeancountriesnowhavetheambitiontodevelopupto30to40gigawatts(GW)ofelectrolysercapacityby2030.However,mostlow-emissionshydrogenprojectsarecurrentlyintheearlystagesofdevelopment.Theirsuccesswilldependtoalargeextentonsupportingpoliciesandregulatoryframeworks,withcontinuousmonitoringofprogress.Thecost-efficientdevelopmentoflow-emissionshydrogenmarketswillalsonecessitatearegionalapproachthatmaximisesexistingsynergiesamongnationalmarkets.

ThisisthesecondeditionoftheNorthwestEuropeanHydrogenMonitor.Itprovidesanannualupdateoflow-emissionshydrogenmarketdevelopmentsinNorthwestEurope,andistheresultofcollaborationamongthecountriesinvolvedintheHydrogenInitiativeoftheCleanEnergyMinisterial(CEM-H2I)workstreamentitled"RoundtableontheNorth-WestEuropeanRegion"andthehydrogenworkinggroupofthePentalateralForum.

ThecountriesanalysedinthisMonitorareAustria，Belgium,Denmark,France,Germany,Luxemburg,theNetheriands,Norway,SwitzerlandandtheUnitedKingdom.Marketmonitoringisaccompaniedbyregulardialogueswithkeystakeholderstofacilitatetheexchangeofinformationanddatacollection.

1Whenthetermlow-emissionshydrogen"isused,theInternationalEnergyAgencyreferstohydrogenproducedviaelectrolysiswheretheelectricityisgeneratedfromalow-emissionsource(renewablesornuclear),biomassorfossilfuelswsthcarboncaptureusageandstorage(CCUS).

ThisdoesnotnecessarilyreflecttheofficialdefinitionsofthecountriesinvolvedintheMonitoronthecarbon'intensityorsustainabilityofhydrogenproductionmethods.

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NorthwestEuropeanHydrogenMonitor202

Tableofcontents

Tableofcontents

Executivesummary5

Hydrogenpoliciesandregulation10

Subsidyschemesandsupportmechanisms28

Hydrogendemand43

Hydrogensupply53

Productioncastsandpncediscovery63

ydrogentrade69

nfrastructure78

Annex93

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Adoptingandimplementingclearhydrogenstrategies,includingmedium-andlong-termtargets,isconsideredessentialtoprovidethe

NorthwestEufopea^HydrogenMonitor2024

Executivesummary

Low-emissionshydrogencanplayasignificantroleindecarbonisingexistinggasandenergysystemsandwillbecriticaltothecountries’effortstomeettheirenergyandclimatetargets.Inadditiontoitsenvironmentalbenefits,low-emissionshydrogencanhelpreducerelianceonfossilfuelimportsinthemedium-term,bolsteringenergysecurity.

NorthwestEuropeisattheforefrontoflow-emissionshydrogendevelopment.TheregionaccountsforaroundhalfofEurope’stotalhydrogendemand.IthasvastanduntappedrenewableenergypotentialintheNorthSeaandawell-developed,interconnectedgasnetworkwhichcouldbepartiallyrepurposedtofacilitatethetransmissionanddistributionofrenewableandlow-emissionshydrogenfromproductionsitestodemandcentres.

Low-emissionshydrogenisdefinedhereashydrogenproducedviaelectrolysiswheretheelectricityisgeneratedfromalow-emjssionssource(renewablesornuclear)Tbiomass,orfossilfuelswithcarboncapture,ut川sationandstorage(CCUS).AdetailedoverviewoftheterminologyisprovidedintheAnnex.

NorthwestEuropeancountriesareraisingtheirSow-emissionshydrogentargets

inceRussia’sinvasionofUkraine,severalNorthwestEuropeancountrieshavedoubledtheirhydrogenproductiontargets,andothersareconsideringincreases.Themajorityofthecountriesintheregionadoptedproductiontargetsforelectrolytichydrogen,whileNorwayoptedforatechnology-neutralapproach.Altogether,NorthwestEuropeancountriesnowhaveambitiontodevelopasmuchas30to40gigawatts(GW)ofelectrolysercapacityby2030.Nonetheless,recentmarketdevelopments,inflationandcostincreasesmightdrivecountriestorevisetheirtargets.Ingeneral,thefocushasbeenonupscalinghydrogenproductioninmanycountries,thoughtheattentionisalsorapidlyshiftingtostimulatingdemand.

heregulatoryframeworkforlow-emissionshydrogencontinuedtoshapeupin2023

Inadditiontostrongpolicysupport,regulatorycertaintyisessentialtounlocktheinvestmentnecessarytoscaleupalow-emissionshydrogenmarketandfacilitatecross-bordertrade.

NorthwestEuropeancountriesandtheEuropeanUnioncontinuedtoadvanceregulatoryframeworksforlow-emissionshydrogenin2023.ThedelegatedactsoutliningdetailedrulesontheEUdefinitionofrenewablehydrogenwereformaHypublishedinJune2023.IntheUnitedKingdom,theEnergyAct2023receivedRoyalAssentin

necessaryimpetusandguidanceforthedevelopmentofhydrogenmarkets.

Executivesummary

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ctober2023.Itcreatesanewcomprehensivelegislativeregimefortheenergysystem,withkeyprovisionsrelatedtohydrogenbusinessmodelsandtheregulationofhydrogenpipelines,aswellascarbondioxide(CO?)transportandstorage.Andattheendof2023,theEuropeanUnionreachedaformalagreementontheHydrogenandDecarbonisedGasMarketsPackage,layingthefoundationsforthefutureEuropeanlow-emissionshydrogenmarket.

NorthwestEuropeanhydrogenproductioncouldreach7Mtby2030...

BasedontheIEAsHvdroaenProductionProjectsDatabase,NorthwestEurope’sproductionoflow-emissionshydrogen(andderivatives)couldreachjustabove7milliontonnes(Mt)peryearby2030ifallplannedprojectsbecomecommerciallyoperational(andtakingintoaccountassumptionsonefficiencyandutilisationfactors).Thiswouldequatetoapproximately2%oftheregion'stotalprimaryenergydemand.Electrolytichydrogensupplywouldcontribute55%oftotallow-emissionshydrogenproduction,whilefossilfuel-basedhydrogenprojectsequippedwithCCUSwouldaccountfor45%.Basedonannouncedprojects,theUnitedKingdom,theNetherlands,DenmarkandGermanyareexpectedtoaccountforthree-quartersofNorthwestEurope'slow-emissionshydrogenproductionby2030....however,!essthan4%oflow-emissionshydrogenprojectsareinadvancedstageofdevelopment

supplyby2030havebeencommitted,meaningtheyareeitherinoperation,havereachedafinalinvestmentdecision(FID)orareunderconstruction.Morethan95%arecurrentlyundergoingfeasibilitystudiesorareintheconceptphase.

Incontrast,inNorthAmerica,14%ofpotentiallow-emissionshydrogensupplyby2030issupportedbyprojectswhichareeitheroperational,havereachedFID，orareunderconstruction.InChina,projectswhichareeitheroperationalorareinamaturephaseofdevelopment(FIDand/orunderconstruction)accountformorethanh^fofexpectedlow-emissionshydrogensupplyby2030.

Scalingupoflow-emissionshydrogenrequiresgreaterpolicyattentionondemandcreation

Creatingdemandforlow-emissionshydrogenisakeyinstrumenttostimulateinvestmentinlow-emissionshydrogensupplyincludingviaquotas,fuelstandardsandpublicprocurementrules.DemandsecurityisessentialfortheconclusionofJong-termofftakeagreements,whichinturncanhelptode-riskinvestmentandimprovetheeconomicfeasibilityoflow-emissionshydrogenprojects.

HydrogendemandinNorthwestEuropeancurrentlystandsataround4.5Mtperyear,makingupabout55%ofOECDEurope’stotaldemandandnearly5%oftotalglobaldemandforhydrogen.Inlinewiththeoverallglobaltrend,virtuallyallhydrogenconsumptioninNorthwestEuropeisconcentratedintherefiningandchemicalssubsectors.

Executivesummary

AccordingtothelEA’sHydrogenProductionProjectsDatabase,lessthan4%oftheprojectsthatcouldprovidelow-emissionshydrogen

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Executivesummary

IntheEuropeanUnion,therevisedEURenewableEnergyDirective(REDill)setslegallybindingtargetsforrenewablehydrogenuseinindustryandtransportby2030.TheimpliedrenewablehydrogendemandinNorthwestEuropeunderREDIIIwouldbeapproximately1.6Mtby2030,risingto2.3Mtby2035,Thisiswellbelowannouncedlow-emissionshydrogenambitionsfromNorthwestEuropeancountries.Combinedwiththeabsenceofeconomicincentivestobridgethecostgapbetweenrenewableandfossilfuelhydrogen,thishelpsexplainthedifficultymanyprojectsdeveloperscurrentlyfaceinsecuringofftakecontracts.

Steepcostreductionsareneededtomakerenewableelectrolytichydrogencompetitivewithunabatedgas-basedhydrogen

Initialpricediscoverysuggeststhatrenewablehydrogenpricesstoodalmostthreetimesoftheassessedlevelisedcostofhydrogen(LCOH)fromunabatedgasin2023.Thishighlightstheneedtoimprovethecost-competitivenessoflow-emissionsandrenewablehydrogen.UnderthelEA’sAnnouncedPledgesScenario(APS),whichassumescountriesimplementnationaltargetsinfullandontime,thedeclineinrenewableelectrolytichydrogenproductioncosts,togetherwithacarbonprtceofoverUSD135pertonneofCO2-equivalent,couldensurethatthelevelisedcostofhydrogenfromrenewableelectrolysisiscomparablewiththeLCOHfromunabatedgasintheregion-andincertaincases，itwou^dbelower.

upportmeasuresshouldtakeaholisticapproachandspantheentirevaluechain

herelativelylowshareofcommittedprojectshighlightstheneedforaholisticapproachtosupportthenascentlow-emissionshydrogensector.Scalingitupwillrequireaneffective：interlockingframeworkofsubsidyschemesandsupportmechanismsalongtheentirevaluechain-includingresearchanddevelopment,production,transportationand,inparticular,demandcreation.

Publicfundingprogrammesandstate-backedrisk-sharingmechanisms(suchascontractsfordifference)canhelptode-riskinvestmentandimprovetheeconomicfeasibilityoflow-emissionshydrogenprojects.Demandcreationshouldbeakeyinstrumenttostimulateinvestment,includingviaquotasandpublicprocurementrules.TheEuropeanUnionhaslaunchedtheHydrogenBank,akeyfinancialinstrumentwhichaimstode-riskinvestmentinrenewablehydrogenprojects.UndertheauctionscarriedoutthroughtheHydrogenBank,renewablehydrogenproducersbidforafixedpremiumtobridgethegapbetweentheirproductioncostsandthepriceconsumersarecurrentlywillingtopay.ThefirstauctionroundrtotallingEUR800miihon,attracted132projectbidsandaccountedfor85GWofelectrolysercapacity,thoughonlyasmallfractionofthemwerefundedinthefirstround.

TheHydrogenMonitorprovidesadetailedoverviewofthevarioussubsidyschemesandsupportmechanismsavailablebothattheleveloftheEuropeanUnionandatnationallevelinNorthwestEuropeancountries.

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NorthwestEuropeisplayingakeyroleindevelopinginternationaltradeinlow-emissionshydrogen

Basedonannouncedprojectsthataimtotradehydrogenorhydrogen-basedfuels,16Mtofhydrogenequivalent(FL-eq)couldbemovedaroundtheglobeby2030,However,three-quartersofexport-orientedprojectsareinearlystagesofdevelopment.Lessthanone-thirdintermsofvolumeby2030haveidentifiedapotentialofftaker.CountriesintheNorthwestEuropeanregionaccountforthree-quartersofglobalimportvolumeby2030forwhichafinaldestinationhasbeenidentified.

Instrumentssuchasauctionscanbeusedtocreateabiddingcompetitionforcontractsandhelpclosethegapbetweenproductioncostsandthepricesconsumersarewillingtopay.Forexample,Germany'sH2Globalauction-basedmechanismwillfacilitatetheconclusionoflong-termimportcontractsforlow-emissionshydrogenandhydrogenderivatives.Thescale-upofinternationaltradeinhydrogenandhydrogenderivativeswillalsorequirebuildinguptransportinfrastructure,includingports.NorthwestEuropehosts13ammonia-handlingfacilitiesand16facilitiesthathandlemethanol,mainlyconcentratedinGermany,FranceandtheNetherlands.

NorthwestEurope'shydrogennetworkcouldincreasetenfoldbyearly2030s,thoughfirminvestmentcommitmentsarelacking

fortransportandstorage.Basedonpipelineprojectannouncements,thelengthoftheregion'shydrogennetworkcouldincreasetenfoldtoover18000kilometres(km)byearly2030.However,themajorityofannouncedprojectslackfirminvestmentcommitments,whichalsoreflectscurrentuncertaintyindemand.Closetotwo-thirdsofthehydrogenpipelinesthatcouldbeoperationalby2030wouldberepurposednaturalgaspipelines.Repurposingexistingnaturalgaspipelinestoservehydrogencanresultinsubstantialcostsavingsandshorterleadtimeswhencomparedwithnew-buildhydrogennetworks.This,inturn,couldtranslateintolowertransmissiontariffsandimprovethecost-competitivenessoflow-emissionshydrogen.Undergroundstorageisessentialtounleashtheftdlpotentialoflow-emissionshydrogenasanenergycarrier

Developingundergroundstoragecapacityforhydrogenwi"becrucialforittoreachitsfullpotentialasanenergycarrierandrespondtotheevolvingflexibilityrequirementsofamorecomplexenergysystem.Basedonthe垄EAsHydrogenInfrastructureProjectsDatabase,NorthwestEuropecoulddevelopover3terawatt-hours(TWh)ofhydrogenstoragecapacityby2030.However：just10%oftheexpectedcapacityby2030hasreachedFIDand/orisunderconstruction.Consideringtherelativelylongleadtimesofnew-buildhydrogenpipelinesandhydrogenstorageprojects,concentratedandimmediateactionbyallstakeholderswouldberequiredtomeetthetargetssetfor2030.

Executivesummary

Achievingambitioustargetsforlow-emissionshydrogendeploymentwillrequireacceleratingthedevelopmentofhydrogeninfrastructure

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Executivesummary

Lessthan4%ofprojectsunderpinningtheexpectedlow-emissionshydrogenproductionby2030havealreadyreachedafinalinvestmentdecisionorareunderconstruction

Potentiallow-emissionshydrogenproductioninNorthwestEuropein2030bystatus

Operational/demonstration

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Source:IEA(2024),FvdrogenProjectsDatabase.

IEA.CCBY4.0.

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Hydrogenpoliciesandregulation

Hydrogenpoliciesandregulation

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NorthwestEuropeanHydrogenMonitor2024

Hydrogenpoliciesandregulation

NorthwestEuropeancountriesstrengthenedtheirhydrogenpoliciesandregulationsin2023

trongpolicysupportandaclearregulatoryframeworkareessentialforthedevelopmentofhydrogenmarkets.:npolicyterms,hydrogenstrategiesarecrucialtosetouttheroleoflow-emissionshydrogeninthebroaderenergysystemandsettingmedium-andlong-termtargets.Andbesidesstrongpolicysupport,regulatorycertaintyisessentialtounlocktheinvestmentnecessarytoscaleupalow-emissionshydrogenmarketandfacilitatecross-bordertrade.

heEuropeanUnion’sHvdroaenStrategy,publishedinJuly2020,setsoutavisiontocreateaEuropeanhydrogenecosystemandscaleupproductionandinfrastructuretoaninternationaldimension.Itsetsatargetfor40GWofrenewablehydrogenelectrolysercapacityby2030.InNorthwestEurope,ofthetencountriesincludedintheMonitor,sixhavealreadyadoptedspecificproductiontargetsby2030.Altogether,NorthwestEuropeancountriesforeseeelectrolysercapacitydeploymentofbetween30GWand40GWby2030.

SinceRussia’sinvasionofUkraine，theEuropeanUnionhasraiseditstargetforhydrogenproductionfrom5.6Mtto10Mtby2030,complementedby10Mtofimports.Similarly,severalNorthwestEuropeancountrieshavedoubled,orareconsideringincreasing,theirproductiontargets.TheyincludeGermany,whichdoubleditselectrolysercapacitytargetfrom5GWtoatleast10GWby2030.TheNetherlandsisaimingfor3-4GWofinstalledelectrolysercapacityby2030,whiletheDutchparliamentrecentlycalleduponthe

governmenttosetatargetof8GWinstalledcapacityby2032.InApril2022theUnitedKingdomdoubleditsambitionforlow-carbonhydrogenproductioncapacityfrom5GWtoupto10GWby2030.InitsHydrogenProductionDeliveryRoadmap,publishedinDecember2023,theUnitedKingdomsettargetsfor6GWofelectrolyticand4GWofCCUS-enabledhydrogenby2030.

NorthwestEuropeancountrtesandtheEuropeanUnioncontmuedtoadvancetheregulatoryframeworkforlow-emissionshydrogenin2023.ThedelegatedactsoutliningdetailedrulesontheEUdefinitionofrenewablehydrogenwereformallypublishedintheEUOfficialJournalinJune2023.BelgiumadopteditsHydrogenActinJuly2023,establishingaregulatoryframeworkforthetransportofhydrogenviapipeline.Attheendof2023theEuropeanUnionreachedaformalagreementontheHydrogenandDecarbonisedGasMarketsPackage,whichlaysthefoundationsforthefutureEuropeanlow-emissionshydrogenmarket.IntheUnitedKingdom,theEnergyAct2023createsanewcomprehensivelegislativeregtmefortheenergysystem,withkeyprovisionsrelatedtohydrogenbusinessmodelsandtheregulationofhydrogenpipelines,aswellasCO2transportandstorage.

Thefollowingsectionprovidesanoverviewofthekeyhydrogenpolxies,productiontargetsandregulationsadoptedbytheEuropeanUnionandNorthwestEuropeancountriescoveredinthisMonitor.

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Hydrogenpoliciesandregulation

Europe’sregulatoryframeworkforlow-emissionshydrogenisshapingup

KeyhydrogenpoliciesandregulationsenactedintheEuropeanUnionandNorthwestEuropesinceNovember2022

October2023EUrevised

RenewableEnergyDirective

>

November2022

HydrogenRoadmapfortheMethedandspublished

June2023

BelgiumadopteditsHydrogenAct

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July2023

erman/sNational

ydrogen

StrategyUpdate

—

A

December2023

UKHydrogenProductionDeliveryRoadmapandHydrogentransportandstoragenetworkspathway> ♦—x

J

June2023EUdelegatedactsdenningrenewablehydrogen

July2023

Denmarklaunchesguaranteeoforiginsforhydrogen

J

October2023JKEnergyActreceivedRoyalAssent

(

December2023EUHydrogenandDecarbonisedGas

MarketPackage

< )

December2023

FrancelaunchesconsultationonnewHydrogenStrategy y

IEA.CCBY4.0.

Sources:IEAanalysisbasedonvariouspolicydocuments(hydrogenstrategies,roadmapsandpapers).

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Ellregulationpavesthewayforanopenandcompetitivelow-emissionshydrogenmarket

TheEuropeanUnionhascontinuedtoadvancetheregulatoryframeworknecessaryforthescale-upofalow-emissionshydrogenmarket.Thisincludedthepublicationofdetailedrulesonthedefinitionofrenewablehydrogenandestablishingaregulatoryframeworkunderpinningtheoperationoffuturehydrogennetworks.Delegatedactsonthedefinitionofrenewablehydrogen

AsforeseenunderArticles27(3)and28(5)oftheRenewableEnefqyDirective，inJune2023theEuropeanCommissionformallypublishedtwodelegatedactsoutliningdetailedrulesontheEUdefinitionofrenewablehydrogen:

Thefirstactdefinestheconditionsunde『whichhydrogen,hydrogen-basedfuelsandotherenergycarrierscanbeconsideredasrenewablefuelsofnon-biologicalorigin(RFNBOs).

Thesecondactprovidesamethodologyforcalculatinglife¬cyclegreenhousegas(GHG)emissionsforRFNBOstoensurea70%reductioninCCh-equivalentcomparedtothenearestcomparablefuel.

Thedelegatedactsprovideregulatorycertaintybothtosuppliersandconsumersonthedefinitionofrenewablehydrogen,whichisexpectedtohelpchannelEUfundstowardsrenewablehydrogenprojectsaswellasguidetheapprovalofnationalstateaidschemes.

Certainindustrialplayershaveraisedconcernsonthecomplexityofthedelegatedacts，claimingthatitcouldputatriskcertainprojectsunderdevelopment.Thenewrulesapplytobothdomesiichydrogenproducersandimports.

Threemaincriteriadefinewhatcanbeconsideredasrenewablehydrogen:

Additionality:Startingfrom1January2028,renewablehydrogenproducerswillberequiredtoensurethatelectricityfedintotheirelectrolysersissourcedfromrenewableenergyinstallationsnoo^derthanthreeyears.Projectdevelopersareexemptedfromadditionalityuntil2038iftheirhydrogeninstallationiscommissionedbefore2028.

Temporalcorrelation:Hydrogenproductionhastobematchedtorenewableelectricityproductiononamonthlybasisupuntilthestartof2030,whenitwillhavetobematchedwithinthesameone-hourperiod.

«Geographicalcorrelation:Therenewableenergyassetsthatfeedtheelectrolysersproducinghydrogenhavetobelocatedeither:(1)inthesamebiddingzoneastheelectrolyser;(2)inaninterconnectedbiddingzone,providedthatelectricitypricesintherelevanttimeperiodontheday-aheadmarketinsuchinterconnectedbiddingzoneareequaltoorhigherthaninthebiddingzonewherethehydrogenis

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Hydrogenpoliciesandregulation

produced;or(3)inanoffshorebiddingzoneinterconnectedwiththeelectrolyser'sbiddingzone.

Whenelectricityissourcedfromthegrid,hydrogenproducersmaycountelectricitytakenfromthegridasfullyrenewableinthefollowingcases:

IftheirinstaTlationsarelocatedinabiddingzonewheretheaverageproportionofrenewabieelectricityexceeded90%inthepreviouscalendaryearandtheproductionofRFNBOsdoesnotexceedamaximumnumberofhourssetinrelationtotheproportionofrenewableelectricityinthebiddingzone.

Iftheinstallationproducingtherenewableliquidandgaseoustransportfuelofnon-biologicaloriginislocatedinabiddingzonewheretheemissionsintensityoftheelectricityislowerthan18gCO2-eq/MJandthefollowingcriteriaaremet:(1)powerpurchaseagreementswithrenewableelectricityproducersareconcludedforanamountthatisatleastequivalenttotheamountofelectricitythatisclaimedasfullyrenewable;(2)theconditionsofgeographicalandtemporalcorrelationaremet.

Iftheelectricityusedtoproducerenewablehydrogenisconsumedduringanimbalancesettlementperiodduringwhichthehydrogenproducercandemonstrate,that:(1)power-generatinginstallationsusingrenewableenergysourceswereredispatcheddownwards;and(2)theelectricityconsumedfortheproductionofhydrogenreducedtheneedforredispatchingbyacorrespondingamount.

•Iftheelectricityissourcedbymeetingtheconditionsonadditionality、temporalcorrelationandgeographiccorrelation.TheRenewableEnergyDirectiveIIIsetshydrogenusetargets

TherevisedEURenewableEnergyDirective(publishedinOctober2023)setslegallybindingtargetsforrenewablehydrogenuseinindustryandtransportby2030.AdetailedoverviewofthedirectiveisprovidedundertheDemandsectionoftheMonitor.

ydrogenandDecarbonisedGasMarketPackage

nDecember2021theEuropeanCommissionproposedahydrogenanddecarbonisedqasmarketpackagetoestablishcommonmarketrulesforrenewableandnaturalgasesaswellashydrogen.ThisincludesthereviewandrevisionofGasDirective2009/73/ECandGasRegulation(EC)No.715/2009.TheCouncilandtheEuropeanParliamentreachedaprovisionalagreementontheproposalinDecember2023,whichisexpectedtobeformallyadoptedin2024.TheGasDirectivedefines“low-carbonhydrogen"ashydrogenderivedfromnon-renewablesources,whichmeetstheGHGemissionreductionthresholdof70%comparedtothefossilfuelcomparatorforRFNBOs.TheCommissionistoadoptdelegatedactstospecifythemethodologyforassessingGHGemissionssavingsfromlow-carbonhydrogen".

InlinewiththecurrentEUnaturalgasregulation,thenewregulatoryframeworksetsguidelinesforthegradualimplementationofnon-discriminatorythird-partyaccesstofuturehydrogennetworks,

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blendinglimits,unbundling,tariffs,networkcodesandoperationaltransparency.Thekeyprovisionsrelatedtohydrogeninclude:

Unbundling:Theoperationofhydrogennetworksshouldbeseparatedfromactivitiesofenergyproductionandsupplyinordertoavoidtheriskofconflictsof时erestonbehalfofthenetworkoperators.Hydrogentransmissionnetworkoperatorsshouldbeunbundledtwoyearsaftertheentryintoforceofthedirective.Besidesownershipunbundling,theindependenttransmissionsystemoperator(ITO)model,whi