🎈 Another new publication!! This time on Low Carbon Hydrogen in the EU. Big thanks to Fanny Lagrange, Lauren Selleck, Malavika Venugopal and Gaëlle Bureau - Cauchois from our end. #lowcarbonhydrogen #climatetargets
New publication: On the way to climate neutrality, the scale-up of renewable hydrogen will be slower and costlier than previously thought. To still meet the demand, the EU will also need to tap into other sources of “low-carbon” hydrogen such as that made from fossil gas with carbon capture and storage (CCS) or with power from the grid. However, clear standards for “low-carbon” hydrogen are still missing. To address this issue, the European Commission is currently developing detailed requirements for what qualifies as “low carbon” fuels, including hydrogen. Our analysis shows the risks in draft EU rules and gives recommendations for the methodology to ensure that low-carbon hydrogen can contribute to the EU’s energy security and climate goals: 💡 To stay consistent with the EU’s climate neutrality target 2050, the maximum-emission threshold for low-carbon hydrogen should be progressively lowered over time. This will send an important signal to investors and operators to invest from the start in the best available technologies for reducing emissions and capturing carbon. 💡 Having one default value for upstream emissions risks underestimating the real emissions of hydrogen from fossil fuel and mostly prevents abatement if it is set too low. The current level could underestimate real-world emissions from fossil-based hydrogen by a factor of 2.5 for Europe by 2040. Therefore, they should be at least country-specific until site-specific and independently verified data is available. 💡 When low-carbon hydrogen is produced with grid-based electricity, hourly accounting of emissions intensity should be applied instead of average or default values. This matches requirements for renewable hydrogen and would result in 1/3 more electrolyser deployment by 2030 as it gives incentives to clean up the grid faster. 💡 Grid-based low-carbon hydrogen and renewable hydrogen should be prioritised, as the fossil gas-based route could create new fossil import dependencies that put Europe’s energy security at risk. Many preconditions such as available CCS technologies and infrastructure for transporting and storing H2 are currently not met. The publication “Low-carbon hydrogen in the EU: Towards a robust EU definition in view of costs, trade and climate protection” is based on market modelling by consultancy Deloitte, technology and emissions data were provided by consultancy Carbon Limits AS. Find the download link in the comments below. #lowcarbongases #lowcarbonhydrogen #hydrogen #climatetargets #netzer #emissions Michaela Holl Veerle Dossche Matthias BUCK Matthias Deutsch Leandro Janke Frank Peter