The EU's definition of renewable fuels of non-biological origin (RFNBO) dominated discussions at this week's European Hydrogen Week in Brussels, exposing deep divisions across the hydrogen industry.
Set in 2023, the RFNBO definition remains contentious. A review clause for 2028 has left developers uncertain whether the current framework will hold, stalling investment and project momentum. The issue was omnipresent at the event, as producers and policymakers seek faster progress in renewable hydrogen uptake.
Many market participants urged the European Commission to revise the definition immediately, calling for more flexibility on additionality, and temporal and geographical correlation. Project developers, technology suppliers, infrastructure firms and prospective offtakers argued that the rules, while well-intentioned, are holding back bankable renewable hydrogen projects.
Hourly matching of renewable power and hydrogen output "will kill electrolysers due to degradation", said Shell's executive vice-president for low-carbon solutions Anna Mascolo. Repsol's hydrogen director Tomas Malango said hourly correlation could add around one-third to hydrogen costs. Similar concerns were raised by Polish refiner Orlen and Norwegian ammonia producer Yara.
Coinciding with the event, eight European electrolyser manufacturers — including Thyssenkrupp Nucera, ITM Power and Siemens Energy — sent a joint letter to European Commission president Ursula von der Leyen urging more flexible time matching and recognition of subsidised renewables as additional. The firms said the strict rules are stalling projects and leaving electrolyser factories idle.
But others warned against changing the rules. Industry body the Green Hydrogen Organisation said in a letter to the commission that "changing the rules now would destabilise the market" and "freeze investment". The group is backed by major renewable energy firms with hydrogen ambitions, including India's Adani, Acme and AM Green, Australia's Fortescue, and China's Longi and Hygreen.
Oman's energy and minerals minister Salim Al Aufi said developers are "seriously struggling with the changing standards" and urged the EU to agree on a final RFNBO definition and "hold it for a few years" to enable final investment decisions. Oman is "getting close to the $3/kg aspiration" for renewable hydrogen, he said.
India's renewable energy secretary Santosh Sarangi echoed calls for clarity and a "globally understood" standard. But Solar Energy Corporation of India (SECI) director Sanjay Sharma urged changes to the EU rules, warning that hourly matching would prevent efficient battery use at renewable hydrogen and ammonia plants. Sharma said most Indian projects plan to use dedicated renewables, but geographical correlation rules create uncertainty over whether India's grid would be recognised as a single bidding zone.
EU officials expressed openness to revisiting the RFNBO rules but gave no firm timeline. The commission earlier this year commissioned a study to assess whether changes would be beneficial.
Beyond the RFNBO definition, delegates also called for faster national implementation of renewable hydrogen demand targets under the EU's revised Renewable Energy Directive (RED III). Shell's hydrogen president Andrew Beard said delayed transposition, combined with RFNBO uncertainty, are making project development harder.
Oman's Al Aufi also called for a hydrogen "demand aggregator" to help producers secure offtake agreements. Hydrogen Europe's chief executive Jorgo Chatzimarkakis and steelmaker SaarStahl's chief transformation officer Jonathan Weber urged faster rollout of the EU's lead markets approach to stimulate demand in sectors such as steel.
