Germany has urged the European Commission to relax its definition of renewable hydrogen to help the industry advance more rapidly and has called specifically for pushing back requirements for additionality and temporal correlation.
The sector is not developing fast enough to meet climate targets and it needs protection from requirements that "stifle" its growth, Germany's vice chancellor and minister for economy and climate protection, Robert Habeck, told EU energy commissioner Kadri Simson in a letter seen by Argus.
Specifically, an additionality requirement for the renewable power source should only be phased in from 2035, seven years later than the current 2028 cut-off date, Habeck said.
The EU's delegated act from last year states that hydrogen only counts as renewable if it is made with power from renewable assets that were installed not more than 36 months before the electrolysis plant started operation — a rule intended to avoid diverting renewable power away from direct electrification efforts. But the definition specifies that this would only apply to plants that enter operation in 2028 or later, with facilities starting earlier exempted for 10 years.
Habeck also said that "the phase-in period for the temporal correlation criterion should… be extended until 31 December 2030". Under the current EU rules, producers would have to demonstrate that their renewable power supply matches their hydrogen output on a monthly basis until the end of 2029 and show an hourly correlation after that. It is not clear whether Habeck is suggesting that monthly correlation should only take effect from 2031 onwards or whether there should be no temporal correlation requirement at all before then.
Habeck said Germany had been "happy to support" the EU's "compromise" on the renewable hydrogen definition last year, which tried to strike a balance between ensuring that emissions are minimised and letting the nascent industry grow. But "reality has now shown these requirements were still too high and are slowing down the ramp-up" in Germany and other member states, Habeck said.
The requirements in question would raise the cost of producing renewable hydrogen by €2.40/kg ($2.7/kg), according to Habeck.
The proposed changes to the rules "would make it easier for companies to bear the very high project costs", he said.
Industry participants such as lobby group Hydrogen Europe have previously also called for more lenient rules. But others have cautioned that changes could result in more uncertainty for the sector, while environmental groups have warned that relaxing the requirements could drive up emissions.
The EU has so far not indicated any intention to change the rules, but pressure from Germany, the bloc's largest economy and one of the most ardent advocates of renewable hydrogen, could further intensify discussions.
