A group of 170 companies linked to the European energy sector he asked the European Commission to maintain the binding targets ofRFNBO hydrogenfor transport and industry beyond 2030.
The request seeks to preserve the goals and mandates established in the Renewable Energy Directive (RED III) for renewable fuels of non-biological origin, known as RFNBO.
The letter was addressed to the President of the European Commission, Ursula von der Leyen, the Executive Vice-President Teresa Ribera, and Commissioner Dan Jørgensen.
According to the signatory companies, modifying this framework could generate uncertainty about investment decisions that have already been made to develop renewable hydrogen projects in Europe.
RFNBO’s hydrogen targets mobilize investments
Europe currently has more than 15.000 million euros committedin end-user applications of hydrogen, according to data released by the organizations that support the petition.
Furthermore, European investment in this market increased by 35% during the last year while there are already more than 4 GW of electrolysis capacity under construction.
The companies attribute part of this progress to the incorporation of the transport objectives foreseen in RED III. For this reason, they believe that maintaining a stable regulatory signal will be fundamental for projects that require several years of development and high capital investments.
They also estimate that achieving the current RED III targets by 2030 could mobilize between 50.000 and 60.000 million euros in additional investments.
This is in addition to a potential emissions saving of around 30 million tons of CO₂ per year, according to estimates presented by the industry.
The industry proposes improving RED III without eliminating its mandates
Companies acknowledge that the European regulatory framework still presents obstacles to accelerating the deployment of renewable hydrogen.
Therefore, they propose maintaining dialogue between the European Commission, Member States and companies in the sector to facilitate compliance with industrial goals and promote the creation of a market capable of absorbing future RFNBO hydrogen production.
However, the signatory organizations distinguish these improvements from a possible elimination of the current objectives. In their view, withdrawing the mandates could affect final investment decisions made under existing regulatory conditions and create uncertainty among companies already allocating capital to the development of new projects.
Regulatory predictability thus plays a central role in the request, as both electrolysis plants and industrial facilities that will use hydrogen require investment horizons that can extend over several years.
Renewable hydrogen is gaining importance in the European energy strategy
Beyond the financial impact, the organizations highlight the role that hydrogen and its derivatives can play in the energy security and decarbonization of Europe.
Renewable hydrogen can complement direct electrification in sectors where this alternative is more difficult to implement.
You can also use surpluses of renewable generation it facilitates energy storage for extended periods and provides greater flexibility to the electrical system. Furthermore, it can serve as a raw material or fuel in industrial activities seeking to reduce their emissions.
For this reason, the debate on the post-2030 hydrogen RFNBO targets is not limited solely to production volume. It also influences the potential future demand for projects currently under development and the conditions under which companies will decide to make new investments.
Hydrogen Europe calls for stability for projects
Jorgo Chatzimarkakis, executive director of Hydrogen Europe, linked the continuity of the objectives with the stability and credibility of European energy policy.
According to the executive, numerous European and international companies have already made investments and adapted their projects to comply with the requirements applicable to RFNBO.
Changing these conditions could disrupt the plans of companies currently working on renewable hydrogen technologies and the transformation of industrial facilities.
François Paquet, CEO of the Renewable Hydrogen Coalition, also emphasized the importance of providing regulatory certainty to mobilize new investments. From his perspective, current obstacles should be addressed through better implementation of regulations, support mechanisms, and more effective application of the existing framework.
For her part, Ivana Jemelkova, executive director of the Hydrogen Council, stressed the importance of international investors being able to anticipate the direction that European energy policy will take in the long term.
The request now focuses on the design of the post-2030 regulatory framework, for the 170 signatory companies, maintaining the binding targets of RFNBO hydrogen, it represents a necessary demand signal to ensure the continuity of investments that are beginning to be deployed in Europe.
Source: Hydrogen Council
Photo: Shutterstock
