European Commission Debates Early Recognition of Nuclear-Derived Hydrogen for Low-Carbon Label
Key Ideas
- Advocates push for early recognition of nuclear-derived hydrogen as low-carbon to meet EU climate goals and stimulate private financing for net-zero technologies.
- Delay in decision-making until 2028 raises concerns among industry players who fear it will hinder investments in low-carbon hydrogen projects.
- European industry sources suggest bringing forward the review date to 2026 to align with Europe's 2030 hydrogen production targets and avoid investment delays.
- The European Commission's draft text faces criticism for legal uncertainty around additional criteria and the potential impact on industrial growth.
Nuclear energy advocates are lobbying the European Commission to designate nuclear-derived hydrogen as 'low-carbon' at an earlier date than the proposed 2028 timeline. The draft legal text released by the Commission for consultation sparked backlash from nuclear defenders, who argue for the inclusion of nuclear power purchase agreements (PPAs) to drive private financing for sustainable technologies. Industry sources emphasize the importance of accelerating the decision-making process to meet Europe's 2030 hydrogen production targets and prevent investment delays in low-carbon projects.
Several European industry players express concerns over the postponement of the decision, highlighting potential setbacks in achieving EU climate goals. French companies like Gravithy and McPhy criticize the delay, warning of the impact on their innovative projects. Suggestions for establishing a 'regulatory sandbox' in Brussels to experiment with nuclear PPAs before the 2028 deadline are also put forward.
In addition to the nuclear-related debate, the text introduces legal uncertainties by allowing the Directorate-General for Competition to impose additional criteria on hydrogen qualification for state aid. This ambiguity is deemed detrimental to the industrial sector's growth. The EU Commission is expected to revisit the delegated act following the completion of the consultation process, with potential developments by early 2025 after the European Parliament's vote of confidence in November.
Topics
Europe
Energy Industry
Nuclear Energy
European Commission
State Aid
Hydrogen Production
EU Parliament
Low-carbon Label
Regulatory Sandbox
Latest News