EU Council Adopts Regulations to Boost Hydrogen Market and Transition to Renewable Energy
Key Ideas
  • EU Council's new regulations aim to develop renewable and low-carbon gases, with a focus on hydrogen integration.
  • The legislation promotes transparency in network planning, encourages energy efficiency, and discourages new long-term natural gas contracts after 2049.
  • Measures like tariff discounts and incentives will facilitate the market entry for hydrogen, along with protections for vulnerable customers and remote areas.
The European Union Council has recently adopted new regulations to reform the bloc's gas market and drive the development of renewable and low-carbon gases, particularly hydrogen. The package establishes a framework for a future hydrogen market, emphasizing integrated network planning and setting rules for the transport, supply, and storage of natural gas and hydrogen. The legislation aims to support the transition away from fossil fuels by discouraging new long-term natural gas contracts after 2049 and promoting renewable and low-carbon gases, with specific support for hydrogen integration in coal and carbon-intensive regions. Measures like tariff discounts and incentives are included to facilitate the entry of hydrogen into the market. Additionally, the regulations strengthen protections for vulnerable customers and remote areas, ensuring continued energy access. The package, part of the EU's Fit for 55 legislative drive to achieve climate goals, is set to enter into force six months after publication and requires member states to adapt their national legislation within two years.
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