Hydrogen and Decarbonised Gas package agreement marks milestone in European energy policy

Today (8th December), the European Commission, Council of Ministers and European Parliament reached a final agreement on the Hydrogen and Decarbonised Gas package, a regulation and directive that will shape the market for hydrogen transmission, distribution, and storage.

This agreement concretises the EU’s 2020 Hydrogen Strategy and represents a major step in the development of hydrogen infrastructure in the European Union. Hydrogen Europe welcomes the accord, and in particular the following key provisions relating to hydrogen:

• The differentiation between hydrogen transmission and distribution networks, which allows for a reasonable and efficient unbundling regime (horizontal and vertical) to be applied to new infrastructure.
• The extension of the exemption from unbundling and third-party access rules for existing hydrogen networks and the inclusion of considerations on heating and cooling plans to distribution network development plans also represent a welcomed progress, which will help building a coherent and efficient market for decarbonised gases.
• The introduction of the European Network of Network Operators of Hydrogen (ENNOH) as an independent and dedicated entity to coordinate the planning, development and operation of EU hydrogen infrastructure.

“We are delighted with the decision, as the directive provides the flexibility that will allow a progressive transition into hydrogen activities, and the creation of a dedicated body focusing only on hydrogen puts it at an equal level with electricity and gas carriers, highlighting its fundamental role in the energy transition. Hydrogen Europe stands ready to support the creation of this body as soon as feasible,” explained Daniel Fraile, Hydrogen Europe’s Chief Policy Officer.

Hydrogen Europe however regrets the decision to delay the publication of the Delegated Act defining low carbon hydrogen to 12 months, rather than six, after the entry into force of the package, because the sector urgently needs clarity in order to achieve the Fit for 55 targets.

The package will have to wait for a final deal on the Reform of the Electricity Market Design before it is finalised, then the texts will be formally endorsed by the Council and the Parliament before they are officially published and come into force. This agreement marks a milestone in the development of the sector, and Hydrogen Europe is committed to working with its members on taking it from concept to concrete.

For more information:

Council Press Release - Gas package: Council and Parliament reach deal on future hydrogen and gas market