Green electricity is mature, but the low-carbon transformation of heavy industry and transportation cannot rely solely on green electricity, but also requires hydrogen energy. The European Parliament passed a new law on the 11th, confirming that the EU natural gas market and infrastructure will gradually transform to hydrogen, and build a hydrogen energy market and hydrogen transmission network (hydrogen network) for the low-carbon transformation of industry. The bill still needs to be voted on by the EU Council before it can be formally implemented.
EU decides on hydrogen energy for industrial low-carbon transformation
The European Parliament passed the hydrogen and decarbonised gas markets package on the 11th to encourage investment in hydrogen energy and accelerate the transition to sustainable energy sources such as biomethane and low-carbon hydrogen.
"Euractiv" reported that European Parliament member Jens Geier said that this is "the legal basis for the development of the European hydrogen market and the beginning of the phase-out of natural gas." Another congressman, Jerzy Buzek, said that the future energy market will have two major sources - green electricity and green gas.
The EU's goal is to reduce net greenhouse gas emissions by at least 55% by the end of 2030 compared to 1990 levels. According to "Hydrogen Insight", the European Union has defined "low-carbon hydrogen" and its derivatives (such as synthetic methane). The production process of this type of hydrogen will emit 70% less greenhouse gases than natural gas.
The European Commission proposed a hydrogen energy draft in 2021. Gale pointed out that it is not easy to decarbonize Europe's steel and chemical industries, and these industries will become the focus of the development of the European hydrogen market.
Natural gas transmission network transformed into hydrogen transmission network
According to the EU's hydrogen energy plan, the network currently transmitting natural gas will gradually be transformed into transmitting hydrogen. "Euractiv" reported that the planning of the hydrogen network will be the responsibility of the newly established "European Network of Hydrogen Network Operators" (ENNOH). Initially, it will cooperate with the existing natural gas transmission operator network (ENTSOG) and propose a ten-year plan in 2026. After 2028, ENNOH will independently manage subsequent plans.
The plan has the advantage of using existing natural gas pipelines, but some observers believe it has the disadvantage of making it difficult for the hydrogen network to develop independently. Some of the natural gas pipelines that should be phased out will find ways to become part of the hydrogen network, complicating planning.
"Hydrogen Insight" reported that the European Union requires natural gas transmission operators to mix 5% hydrogen from October 2025, but the proposal shows that these hydrogen and renewable energy gases are mainly used for industrial decarbonization and are not intended to provide home heating.
In addition, in order to avoid a monopoly in the hydrogen energy market, the new law also specifies that hydrogen production, transportation and storage infrastructure must be separated. For example, a company is not allowed to operate hydrogen production and pipeline transmission at the same time, and natural gas transmission operators are prohibited from operating hydrogen infrastructure at the same time.
References:
*European Parliament (11 April 2024), MEPs approve reforms for a more sustainable and resilient EU gas market
*Euractiv (April 11, 2024), Shift to hydrogen networks: EU Parliament adopts laws for new gas era
*Hydrogen Insight (April 12, 2024), European Parliament approves hydrogen and low-carbon gas markets package, with focus on hard-to-abate industries
*European Union (EU), Hydrogen and decarbonised gas market package
Source:
Environmental Information Center
