EU Renewable Energy Directive: Key Impacts on Industry and Legal Considerations for Transitioning to Hydrogen
Key Ideas
- The revised EU Renewable Energy Directive (RED III) sets precise targets for the use of renewable fuels of non-biological origin, including green hydrogen, in industry.
- EU member states must convert these requirements into national law by May 2025, with significant short, medium, and long-term impacts expected on industrial parks.
- Transitioning to hydrogen requires thorough legal considerations for classification as renewable, adherence to power purchase agreements, and ensuring investment viability through battery storage systems.
- Monitoring upcoming changes to energy legislation, grid fee reductions, and optimizing heat supply and waste heat utilization are essential for industrial facilities adapting to the new directive.
The revised EU Renewable Energy Directive (RED III) introduced detailed quotas for the use of renewable fuels of non-biological origin, including green hydrogen, with precise targets for industry. By 2030, the proportion of renewable energy used for final energy consumption must increase, with at least 42% of hydrogen for final energy consumption and non-energy purposes to be from renewable sources. This quota is set to increase to 60% by 2035. The directive mandates EU member states to convert these requirements into national law by May 2025, which will have substantial impacts on industrial parks in the short, medium, and long term. Legal considerations for transitioning to hydrogen include ensuring its classification as renewable, navigating regulatory requirements, addressing power purchase agreements, and ensuring investment viability through battery storage systems. Monitoring upcoming changes to energy legislation and optimizing heat supply, waste heat utilization, and grid fee reductions are crucial for industrial facilities adapting to the new directive. International legal services such as those offered by WFW can provide tailored solutions and guidance on project planning, permitting, financing, state funding utilization, and dispute resolution in this evolving regulatory landscape.