### EU Establishes Framework for Hydrogen Market Development, Aiming for 10 Million Tonnes of Green Hydrogen Production by 2030
In a landmark move, EU member states have approved the creation of a single hydrogen operator, paving the way for a unified hydrogen market within the bloc. This initiative is a cornerstone of the European Commission’s strategy to decarbonize the energy sector and promote the use of renewable and low-carbon gases.
The new regulations establish a framework for integrated and transparent network planning across the EU, with the future hydrogen market falling under the oversight of the EU Agency for the Cooperation of Energy Regulators (ACER). This collaborative approach mirrors the existing governance structure for gas network operators and ensures that the hydrogen market develops in a coordinated and efficient manner.
EU countries have a two-year deadline to incorporate the new hydrogen rules into their national legislation. They are also tasked with implementing tariff discounts and incentives to facilitate market integration, particularly for the emerging hydrogen market. Key markets such as France, Germany, Italy, the Netherlands, and Poland, which currently possess the largest hydrogen production capacities, are expected to play a pivotal role in this transition.
The EU’s hydrogen strategy sets an ambitious target of producing 10 million tonnes of green hydrogen domestically by 2030. This aligns with the bloc’s broader climate goals and its commitment to phasing out fossil fuels. However, the European Hydrogen Observatory estimates that total hydrogen demand in 2022 was approximately 8.2 million tonnes, with a significant portion coming from fossil fuel-based sources.
Daniel Fraile, chief policy and market officer at Hydrogen Europe, has welcomed the new law, stating that it provides much-needed regulatory certainty for hydrogen stakeholders. This clarity on infrastructure availability will facilitate investment and accelerate the development of the hydrogen market.
Marie Toussaint, a French lawmaker overseeing the legislative file in Parliament, expressed some reservations about the new law’s potential to fully decarbonize gas and hydrogen infrastructure systems. She regrets the absence of a clear timeline for phasing out fossil fuels and the lack of restrictions on hydrogen production from non-renewable sources.
Despite these concerns, Toussaint acknowledges the positive aspects of the new regulations, particularly the creation of an independent governance structure dedicated to hydrogen planning. This measure helps mitigate potential conflicts of interest between fossil fuel industries and hydrogen development.
The establishment of a unified hydrogen operator and the accompanying regulations mark a significant step forward in the development of a robust and sustainable hydrogen market in the EU. As the bloc strives towards its ambitious green hydrogen production target, this framework will play a pivotal role in ensuring a coordinated and efficient transition towards a cleaner and more sustainable energy future.
