Industry News

The demand for Green Hydrogen will rise significantly following the EU’s new rules

by | Oct 13, 2023

The EU has recently laid out new plans and set new targets for industries to be required to use more green hydrogen and for a wider variety of industries to use more hydrogen. The plan states that 42% of hydrogen used by industry, 1% of transport fuel and 1.2% of all aviation fuel must be renewable by 20230.

Recently the 27 member states approved the deal around the renewable energy directive which centers around renewable hydrogen goals and the usage of its derivates such as Renewable Fuels of Non-Biological Origin (RFNBOs). The agreement also outlines that these numbers should increase to 60% in 2035. This has almost instantly created an already rising demand for an estimated 4 million tons of green hydrogen within the industry sector by the end of the decade, before considering the demand for outside the industry sector by the end of the decade.

There is a fair way for member states to reduce the contribution of RFNBOs in industry by 20 points through either their national contribution to the set overall EU target meets their expected contribution, or if the amount of fossil fuel they are using is less than 23% in 2030 and has decreased to 20% in 2035.

Another change these rules will bring about is making gaseous H2 refueling stations publicly available and able to support both heavy goods vehicles and smaller vehicles, to make the shift possible. These refueling stations will be set up in ideal locations and placed every 200 km along important routes.

In order to aid this change the EU plans to produce 10 million tons of renewable hydrogen by 2030 and have 10 million tons imported as well, by 2030. This preparation along with the new rules which will become law 20 days after being published will ensure that 42.5% of the EU’s energy consumption is green by 2030.

Spain’s acting minister for the ecological transition, Teresa Reibera, said, “This is a great achievement in the framework of the ‘Fit for 55’ package which will help reaching the EU’s climate goal of reducing EU emissions by at least 55% by 2030. It is a step forward which will contribute to reach the EU’s climate targets in a far, cost-effective and competitive way.”

The deal also sets out goals for use of renewable energy in transport, industry, heating and cooling, plus renewable projects receiving permission at a faster rate.

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