Cost and competitiveness of green hydrogen and the effects of the European Union regulatory framework

authored by
Jonathan Brandt, Thore Iversen, Christoph Eckert, Florian Peterssen, Boris Bensmann, Astrid Bensmann, Michael Beer, Hartmut Weyer, Richard Hanke-Rauschenbach
Abstract

By passing the delegated acts supplementing the revised Renewable Energy Directive, the European Commission has recently set a regulatory benchmark for the classification of green hydrogen in the European Union. Controversial reactions to the restricted power purchase for electrolyser operation reflect the need for more clarity about the effects of the delegated acts on the cost and the renewable characteristics of green hydrogen. To resolve this controversy, we compare different power purchase scenarios, considering major uncertainty factors such as electricity prices and the availability of renewables in various European locations. We show that the permission for unrestricted electricity mix usage does not necessarily lead to an emission intensity increase, partially debilitating concerns by the European Commission, and could notably decrease green hydrogen production cost. Furthermore, our results indicate that the transitional regulations adopted to support a green hydrogen production ramp-up can result in similar cost reductions and ensure high renewable electricity usage.

Organisation(s)
Section Electrical Energy Storage Systems
Institute for Risk and Reliability
Institute of Electric Power Systems
External Organisation(s)
Clausthal University of Technology
Institute for Solar Energy Research (ISFH)
University of Liverpool
Tongji University
Type
Article
Journal
Nature energy
Volume
9
Pages
703–713
No. of pages
11
ISSN
2058-7546
Publication date
10.2024
Publication status
Published
Peer reviewed
Yes
ASJC Scopus subject areas
Electronic, Optical and Magnetic Materials, Renewable Energy, Sustainability and the Environment, Fuel Technology, Energy Engineering and Power Technology
Sustainable Development Goals
SDG 7 - Affordable and Clean Energy
Electronic version(s)
https://doi.org/10.1038/s41560-024-01511-z (Access: Open)