VDMA P2X4A

Power-to-X for Applications - your P2X network

A balanced approach to accounting renewable energy electricity for hydrogen production

21Sep. 2021

In a joint open letter, 7 associations - CECOF, CO2 Value Europe, eFuel alliance, Methanol Institute, UPEI, Power to X alliance and the VDMA Power-to-X for Applications - have now addressed the EU Commission. The addressees of the open letter are Director General Ditte Juul Jørgensen (DG Energy), Director General Mauro Petriccione (DG Clima), Director General Henrik Hololei (DG Move) and Director General Kerstin Jorna (DG Grow).

The associations stress that in order to achieve the ambitious climate targets, a massive increase in hydrogen production is necessary. For a successful hydrogen market with an EU target of 40 GW of electrolyser capacity by 2030, the industry needs a supportive regulatory framework. The forthcoming delegated act on the principle of additionality for hydrogen and hydrogen derivatives production in the transport sector (Art. 27, RED II) is key.

The requirements to prove "additionality", which are the sole responsibility of hydrogen producers, are the main regulatory barrier hindering the deployment of renewable hydrogen in Europe. In addition, the criteria imposed by RED II lead to significant distortions of competition and discrimination, affecting not only hydrogen production but also renewable energy producers.

The associations have formulated policy principles for a targeted delegated act that provides legal certainty and creates incentives for the production of renewable hydrogen and hydrogen derivatives.

You can download the letter here.

Picture: Shutterstock

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