Dutch Government Proposes Industrial Obligation for Renewable Hydrogen Use
Key Ideas
- The Dutch government has introduced a proposal for an industrial obligation to use renewable fuels of non-biological origin, focusing on renewable hydrogen.
- The scheme, called HWI, sets obligations for the use of renewable hydrogen for specific industrial participants, in alignment with European Commission guidance.
- Ammonia production-related hydrogen use is not covered under the obligation in the Dutch scheme.
- Participants in the HWI scheme are awarded credits for using renewable hydrogen, which can be traded with other parties to meet obligations.
The Dutch government has initiated a consultation on a proposal that aims to promote the use of renewable hydrogen in industries. The scheme, known as renewable hydrogen industry units (HWI), targets specific industrial players consuming more than 0.1kt of hydrogen annually. This move is part of European efforts to meet decarbonisation targets outlined in the renewable energy directive (RED III). While aligning with recent European Commission recommendations, the Dutch scheme excludes hydrogen usage associated with ammonia production. Under the HWI scheme, market participants adhering to RED III obligations receive credits for each unit of renewable hydrogen they use, termed as renewable fuels of non-biological origin (RFNBO). These credits, the HWI, can be utilized to demonstrate compliance with yearly obligations or traded with other obligated parties. The proposal provides a structured framework for encouraging the adoption of renewable hydrogen in industries. For more details on hydrogen-related content, interested parties can reach out to ICIS representatives mentioned in the article.