Montel: Germany asks European Commission to relax green hydrogen rules

The shift to using green hydrogen is one of the pillars that is expected to help Europe transition to a low-emissions economy in the future. However, the rules for its production are set to be relatively strict, particularly when it comes to matching production with new renewable energy sources. Last week, Germany’s economy minister asked the European Commission to extend the deadlines for introducing the new rules, which are intended to ensure just that.

The production and use of green hydrogen have been widely debated in the European Union in recent years. In the future, only new renewable energy sources are expected to be used to produce green hydrogen, which should support their further development. In addition, green hydrogen producers should be able to demonstrate that the electricity they use comes from renewable sources, on an hourly basis.

According to German Economy Minister Robert Habeck, the current rules for producing renewable fuels of non-biological origin will make renewable hydrogen more expensive to produce. According to news website Montel, in a letter to Energy Commissioner Kadri Simson, the minister said the rules could add 2.4 euros per kilogram of hydrogen to the cost. However, according to the website, the minister did not explain how he arrived at this figure.

Habeck has asked the European Commission to delay by one year the deadline for hydrogen producers to demonstrate hourly matching with renewable electricity generation. He is now seeking a deadline of the end of 2030. He also asked for the deadline for ensuring that hydrogen is produced using new renewable energy sources to be pushed back from 2028 to 2035. In this case, new installations are defined as sources that began operating within three years before hydrogen production starts.

Strict rules are holding back the hydrogen market

According to Habeck, the current requirements are too demanding and are slowing the development of new green hydrogen production projects in Germany and elsewhere. The interest group Hydrogen Europe also commented on the German minister’s request, according to the website. The requirements, it said, address governments’ urgent needs as they move fully to renewable energy sources, as well as the high costs of operating the grid associated with this transition.

The Commission confirmed on Friday that it had received the letter and would respond in due course, according to the website. Habeck also said that the current rules had been approved by the Commission and EU member states with Germany’s support. However, representatives of a number of companies have since told him that these rules often make green hydrogen production projects in Germany unviable.