by Rosalina William
The Hydrogen Paradigm: A Renewable Future for Energy and Industry
The global energy landscape is undergoing a transformation, and at the heart of this shift is renewable hydrogen. As a Renewable Fuel of Non-Biological Origin (RFNBO), hydrogen produced through electrolysis using renewable electricity presents a viable pathway to decarbonization. By splitting water into hydrogen and oxygen using sources like wind and solar, renewable hydrogen offers a clean, sustainable, and scalable energy solution.
Renewable hydrogen is poised to play a critical role in reducing greenhouse gas emissions in sectors where alternative renewable solutions may be less viable or more costly. Industries that rely heavily on fossil fuels, such as transportation and heavy manufacturing, can leverage hydrogen as a clean energy source. Hydrogen can replace fossil-based hydrogen in industrial applications like steel production and refining, as well as serve as a key ingredient in green fertilizers.
Additionally, hydrogen’s capability to act as an energy carrier allows for large-scale storage and long-term stability in electricity grids. This contributes to a more flexible and resilient energy system, integrating higher shares of renewable sources like wind and solar. By balancing supply and demand, renewable hydrogen ensures grid stability and enhances the security of the EU’s energy infrastructure.
Recognizing hydrogen’s strategic importance, the European Union has set ambitious targets for RFNBOs under the Renewable Energy Directive. By 2030, RFNBOs are expected to constitute at least 1% of the total energy supplied to the transport sector and 42% of all hydrogen used in industrial applications. This share is expected to rise to 60% by 2035, reinforcing hydrogen’s place in the energy transition.
To ensure that renewable hydrogen meets strict sustainability criteria, the European Commission introduced two delegated acts in June 2023. These regulations establish the necessary conditions for hydrogen production, ensuring that it achieves a minimum of 70% greenhouse gas emissions savings.
A core principle of renewable hydrogen production is additionality, which mandates that hydrogen production must be directly linked to new and unsupported renewable electricity generation. This prevents the diversion of existing renewable energy resources and ensures a net increase in clean energy supply.
Hydrogen must be produced at times and locations where renewable electricity is available. This requirement prevents increased hydrogen production from driving up fossil-fuel-based electricity generation, thereby maintaining the integrity of its renewable classification.
To facilitate early adoption, renewable hydrogen producers may sign long-term Power Purchase Agreements (PPAs) with existing renewable installations until January 1, 2028. A review of these regulations is scheduled for July 2028 to assess progress and make necessary adjustments.
The Delegated Act on greenhouse gas emissions savings establishes a comprehensive methodology for assessing the lifecycle emissions of RFNBOs. This approach accounts for emissions across the entire supply chain, from electricity sourcing and fuel processing to transportation and end-use. By implementing rigorous accounting standards, the EU ensures that renewable hydrogen remains a net-positive solution for climate change mitigation.
Ensuring credibility and traceability in renewable hydrogen production is crucial. The EU’s framework relies on voluntary third-party certification schemes, similar to those used for biofuels and biomass. These internationally recognized organizations will verify compliance with sustainability standards, providing transparency for producers, regulators, and consumers.
To support the smooth implementation of this certification framework, the European Commission will conduct a dedicated study in early 2025. This will assess the efficacy of the existing certification processes and provide recommendations for enhancements.
Hydrogen’s integration into the EU’s energy landscape marks a paradigm shift toward a sustainable, carbon-neutral future. As industries and governments align with stringent decarbonization targets, renewable hydrogen will be instrumental in reshaping energy systems, stabilizing grids, and enabling clean industrial production.
By fostering investment, technological advancements, and regulatory support, the transition to a hydrogen-powered economy is not just an aspiration but an inevitable reality. The hydrogen revolution has begun, and its impact will be felt across industries, economies, and the global effort to combat climate change.