10.07.2024

How important is the definition of low-carbon hydrogen?

The EU elections are over and Brussels is already looking to the future leaders of the EU. One final political hurdle, however, still sits on the desks of energy officials – the definition of low-carbon hydrogen. Energy Commissioner Kadri Simson indicated that the Commission intends to propose a definition by the end of the year.

This is written in Euractiv Jochen Bard, co-founder of the Hydrogen Science Coalition and director of the Energy Process Technology Division, Fraunhofer IEE.

Since leading global political action with its 2020 hydrogen strategy, the bloc plans to pour billions of euros into a hydrogen economy that will decarbonize industry and help Europe remain competitive.

The European definition of renewable hydrogen is hugely important on the world stage as well – likely to be replicated in the United States. In addition, vital targets have been set under the Renewable Energy Directive - the uptake of renewable hydrogen in industry must rise to 60% by 2035.

Yet the announcement of clean energy subsidies under the US Deflation Act undermined the EU's position as a global hydrogen leader. There is currently a clean hydrogen investment boom in the US.

New opportunity – and risks

The definition of low carbon has big implications – it is the key to ensuring that hydrogen in the EU helps, not hinders, the energy transition and therefore the competitiveness of European industry.

The definition, in the form of a delegated act, will propose specific conditions for calculating life-cycle emissions of low-carbon hydrogen. It will largely apply to what is widely known as blue hydrogen produced from natural gas with carbon capture and storage (CCS).

Of course, there are also real risks. Low carbon does not mean low emissions, with emissions from both methane and hydrogen itself also part of blue hydrogen's life cycle. Flowing through the blue hydrogen supply chain, both gases have a global warming potential many times that of carbon dioxide (CO2). During the first 20 years after their release into the atmosphere, hydrogen emissions are 35 times more powerful than CO2, while methane emissions are 84 times more powerful. Hydrogen produced from fossil fuels with CCS therefore has the potential to release a cocktail of emissions with warming effects up to 50% worse than traditional fossil fuels.

Clear definition

The starting point of any definition of low-carbon hydrogen must be renewable hydrogen. Produced from renewable electricity, it is the only hydrogen with almost zero emissions.

The EU standard for renewable hydrogen allows for 3,38 kg of CO2-equivalent emissions for every kilogram of hydrogen produced and distributed to end users in a full life cycle approach – defined as a 70% emission saving compared to fossil fuels. This suggests a softer production threshold than the Hydrogen Science Coalition recommends with a definition of pure hydrogen that sets a threshold of 1 kg CO2e per kilogram of hydrogen.

This represents an achievable emissions saving of more than 90% and is consistent with reaching net zero by 2050. We should aim for this as an end point for all hydrogen production.

The EU's definition of low-carbon hydrogen will set at least the same threshold of emissions savings of 70% for renewable hydrogen – making it vital to set out an accounting scheme that ensures with precision that the production and distribution of blue hydrogen meet this starting threshold.

First, all incoming energy sources must be guaranteed to be clean, with transparent third-party verification of all energy. Second, low production CO2e emissions must be ensured in addition to carbon emissions to include hydrogen and methane leakage throughout the life cycle. Third, the performance of CCS must be carefully evaluated, with low CO2 emissions from the CCS process energy and long-term storage stability guaranteed. Carbon sequestration rates and leakage rates must be closely monitored.

Finally, all of this data must be independently verified by approved auditors, ensuring that the information reported corresponds to real-world data, not averages, and that at no stage have emissions thresholds been exceeded.

A valid challenge

The above conditions will be a challenge for the blue hydrogen industry to meet – both in terms of natural gas supply and the efficiency of CCS technology.

However, meeting this standard will ensure that the EU builds a hydrogen economy with longevity, preventing future stranded assets, wasted investment of valuable public funds and continued dependence on fossil fuel energy imports.

It will also ensure a level playing field in the hydrogen industry – giving confidence that all hydrogen used in the EU meets the same purity standard, simplifying hydrogen trade and ensuring that subsidies for hydrogen production do not favor one sector over another.

The current Commission has one last chance to lay the foundations for a strong hydrogen legacy. Will he be up to the challenge?