India's renewable hydrogen industry is seeking EU recognition of the country's electricity network as a single bidding zone, arguing that current renewable fuels of non-biological origin (RFNBO) rules could restrict exports of hydrogen and derivatives to Europe.
The Harit Molecules Foundation (HMF), an industry association representing companies across India's renewable energy, hydrogen and energy storage sectors, has asked the Indian consulate in Munich to support engagement with German authorities on the issue, according to a proposal seen by Argus. HMF has not yet received a response, a representative told Argus.
Under the EU's RFNBO framework, electrolysers and renewable power assets generally must be located within the same recognised bidding zone to demonstrate compliance. HMF argues that India's nationally interconnected electricity system effectively operates as a single market but has not received formal recognition under the EU framework.
The proposal comes as India seeks to develop an export-oriented hydrogen industry under the National Green Hydrogen Mission and position itself as a supplier of hydrogen derivatives to European markets.
German utility Uniper in January signed a binding agreement to purchase 500,000 t/yr of renewable ammonia from AM Green's planned 1mn t/yr facility at Kakinada from 2028, highlighting growing commercial links between Indian producers and European buyers.
Recognition of India as a single bidding zone would allow developers to source renewable electricity more efficiently across the national grid while maintaining RFNBO compliance for exports to the EU, HMF said.
Current RFNBO requirements have increased uncertainty around project development, including renewable power procurement and certification requirements, the association said. It argued that greater regulatory clarity would improve project bankability and support investment decisions.
The industry group also raised concerns over the availability of compliant CO₂ for e-methanol and e-sustainable aviation fuel (SAF) projects. Restrictions on the long-term use of industrial CO₂ under current RFNBO rules create uncertainty for developers planning export-oriented projects, HMF said.
Industry participants have previously warned that access to RFNBO-compliant biogenic CO₂ remains limited, while long-term feedstock agreements are often required to support project financing. An industry representative told Argus that limited availability of compliant CO₂ has already emerged as a constraint for proposed e-methanol projects. State-owned Solar Energy Corporation of India (SECI) recently launched an exercise to identify and map potential CO₂ sources across the country.
The European Commission is currently reviewing its definition of RFNBOs. It expects to present a revised set of the rules this autumn, later than the June release previously envisaged.
HMF also proposed India-specific procurement mechanisms for hydrogen and derivatives, including dedicated auction windows or demand aggregation programmes aimed at supporting trade flows between India and Germany.
