Green electricity has matured, but the low-carbon transition of heavy industry and transportation cannot rely solely on green electricity; hydrogen is also needed. On the 11th, the European Parliament passed a new law that will gradually transition the EU's natural gas market and infrastructure to hydrogen, establishing a hydrogen market and hydrogen transmission network (hydrogen grid) for the low-carbon transition of industry. The bill still requires a vote by the European Council before it can be officially implemented.
EU to turn to hydrogen energy for low-carbon industrial transformation
The European Parliament passed the hydrogen and decarbonised gas markets package on the 11th to encourage investment in hydrogen and accelerate the transition to sustainable energy such as biomethane and low-carbon hydrogen.
Euractiv reported that MEP Jens Geier said this was "the legal basis for the development of the European hydrogen market and the beginning of the gradual phase-out of natural gas." Another MEP, Jerzy Buzek, said the future energy market will have two major sources: green electricity and green gas.
The EU aims to reduce net greenhouse gas emissions by at least 55% by the end of 2030 compared to 1990 levels. According to Hydrogen Insight, the EU defines "low-carbon hydrogen" and its derivatives (such as synthetic methane) as producing hydrogen that emits 70% fewer greenhouse gases than natural gas.
The European Commission proposed a draft hydrogen bill in 2021. Geier pointed out that decarbonization of Europe's steel and chemical industries is not easy, and these industries will become the focus of the development of the European hydrogen market.
Transformation of the natural gas transmission network into a hydrogen transmission network
According to the EU's hydrogen plan, the current natural gas transmission network will be gradually converted to hydrogen. Euractiv reports that the planning of the hydrogen network will be led by the newly established European Network of Hydrogen Network Operators (ENNOH). Initially, it will collaborate with the existing Network of Natural Gas Transmission Operators (ENTSOG) to present a ten-year plan in 2026. After 2028, ENNOH will independently manage the subsequent plan.
While this plan has the advantage of utilizing existing natural gas pipelines, some observers believe it has the disadvantage of making it difficult for a hydrogen grid to develop independently. Some natural gas pipelines that are due to be retired will be incorporated into the hydrogen grid, complicating planning.
Hydrogen Insight reported that the EU requires natural gas transmission operators to blend 5% hydrogen from October 2025, but the proposal shows that these hydrogen and renewable energy gases will be mainly used for industrial decarbonization, not to provide home heating.
Furthermore, to prevent a monopoly in the hydrogen energy market, the new law specifically stipulates that hydrogen production, transportation, and storage infrastructure must be separated. For example, a single company may not simultaneously operate hydrogen production and pipeline transmission, and natural gas transmission operators are also prohibited from simultaneously operating hydrogen infrastructure.
References：
*European Parliament (April 11, 2024), MEPs approve reforms for a more sustainable and resilient EU gas market
*Euractiv（2024年4月11日），Shift to hydrogen networks: EU Parliament adopts laws for new gas era
*Hydrogen Insight（2024年4月12日），European Parliament approves hydrogen and low-carbon gas markets package, with focus on hard-to-abate industries
*歐盟（EU），Hydrogen and decarbonised gas market package
Sources:
Environmental Information Center
