The EU redefines the future of hydrogen: Endorses production with non-renewable sources if emissions are reduced
The European Commission has approved a regulation that expands to include hydrogen produced from non-renewable sources, as long as emission reduction thresholds are met.
What the EU considers low-carbon hydrogen
The EU states that hydrogen can be considered “low carbon” if its total emission footprint is at least 70% lower than that of an equivalent fossil fuel. This calculation includes the entire cycle: from input extraction and electrolysis process to final combustion. It places renewable hydrogen on the same regulatory level as hydrogen produced with electricity from conventional sources like a mixed power grid or even nuclear energy. This move opens the door to multiple production methods that can coexist with climate priorities.
Four methods to measure the electrical footprint
One method relies on the national electricity system’s annual emission average; another on hourly values of the anticipated energy mix. The third method links electrolyzer operating hours with those when the marginal price was set by clean energy sources. These methods must be applied for a full year, allowing operators to choose the option that best reflects their energy profile, promoting the use of low-footprint electricity even when not formally renewable.
Carbon capture and future review
The regulation also allows captured and stored emissions to be counted as valid reductions, even outside the EU, if they meet community control standards. Additionally, the EU has pledged to review the impact of this new regulation before July 2028. It will assess if nuclear electricity can be recognized as a low-emission source, adjust calculation averages, and ensure that the new rules do not harm already committed investments.
