Nuclear energy wins OK as power source under EU green hydrogen rules

Bloomberg News

The European Union is set to grant nuclear energy an exemption under its rules for producing renewable hydrogen, ending months of speculation and lobbying from countries including France.

Hydrogen fuel producers will be able to count electricity taken from the grid as “fully renewable” if they are located in an area where the emission intensity of power is lower than 18 grams per megajoule, according to a statement from the European Commission.

That threshold eases the way for countries where nuclear energy forms a large part of the energy mix. The hydrogen producers will also have to secure power purchase agreements with renewables providers, equivalent to the amount taken.

The move is significant as the EU seeks to bolster its energy security and spur a nascent hydrogen market against a backdrop of growing green competition globally. Nuclear — though controversial for safety reasons — is virtually emissions-free, and it provides the bedrock of power production in France, which historically has been an energy exporter though it has recently experienced prolonged outages.

“Decarbonizing the power sector in Europe is a critical priority, and doing so will require all the tools in the decarbonization toolbox, including nuclear and carbon capture and storage,” said Magnolia Tovar, global director of zero-carbon fuels at the nonprofit Clean Air Task Force.

The rules adopted by the commission on Monday have been delayed for months. France and eight other EU member states called for renewable hydrogen made by so-called “low carbon” in the bloc’s Renewable Energy Directive. Negotiations with Parliament on the law were postponed last week due to a lack of clarity.

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Northern Sweden and France currently meet the definition of a “low carbon” bidding zones, according to an EU official familiar with the matter.

One of the main dilemmas for the bloc has been how to ensure that hydrogen is produced by renewable electricity that hasn’t been taken away from other uses, like decarbonizing transport. To address that concern, the commission will propose rules to make sure the fuel is produced using “additional” power.

The EU is targeting 10 million tons of clean hydrogen production a year — and the same amount in imports — by 2030. Hydrogen installations will be able to have some flexibility from the rules until 2038 should they start operation before the start of 2028.

Member states and Parliament have a maximum of four months to object to the rules, or the measures will otherwise enter into force. France and Germany said they welcomed the commission’s proposals.

Bloomberg.com