Nuclear Industry Pushes for Early Recognition of Low-Carbon Hydrogen Label
Key Ideas
- Nuclear advocates are urging the European Commission to recognize nuclear-derived hydrogen as 'low-carbon' before 2028 to mobilize private financing for net zero technologies.
- Industry sources believe that bringing forward the review date to 2026 would help meet Europe's 2030 hydrogen production targets and prevent delays in industrial projects.
- There are concerns about legal certainty and the imposition of additional criteria by the EU Commission's Directorate-General for Competition, potentially impacting state aid eligibility for low-carbon hydrogen.
- The EU Commission is expected to revisit the delegated act in December 2021 after the European Parliament's vote, with industry sources not anticipating any announcements before 2025.
The nuclear energy sector is advocating for the European Commission to designate nuclear-derived hydrogen as 'low-carbon' sooner than the scheduled 2028 date. The draft legal text released for consultation proposed delaying the decision until 2028, prompting industry pushback. Industry players, including Fortum, the largest Finnish energy producer, emphasize the importance of recognizing nuclear power purchase agreements (PPAs) before 2028 to attract private financing for technologies essential to achieving EU climate goals.
Several European industry sources support advancing the review date to 2026 to align with Europe's 2030 hydrogen production targets and prevent investment delays in projects requiring low-carbon hydrogen. Concerns have been raised about legal uncertainties and the potential impact on state aid eligibility due to additional criteria that could be imposed by the EU Commission's Directorate-General for Competition.
Industry stakeholders like Gravithy in France and McPhy, a French electrolyzer producer, have expressed reservations about the delay and its implications for meeting electrolysis capacity targets by 2030. EDF's Antoine Bizet suggests the establishment of a 'regulatory sandbox' in Brussels to experiment with nuclear PPAs.
The EU Commission is set to revisit the delegated act post-consultation, likely after the European Parliament's vote in late November, with expectations for a decision in 2025. The industry awaits further developments to ensure the growth and stability of the low-carbon hydrogen sector.
Topics
Europe
Policy
Energy Sector
Climate Goals
Legislation
Nuclear Energy
European Commission
Industry Advocacy
Low-carbon Label
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