On October 9, the European Council adopted the Renewables Energy Directive (Revised) and the ReFuelEU Aviation Regulation. The Revised Renewable Energy Directive proposes that 42% of hydrogen for industrial use should come from non-biogenic renewable fuels (RFNBOs) by 2030, increasing the proportion to 60% by 2035; The ReFuelEU aviation regulations state that by 2030, 1.2% of all aviation fuel will be synthetic fuels derived from green hydrogen.
In July 2021, the European Union proposed the "Fit for 55" plan, which proposes a new package of new legislation with the goal of reducing greenhouse gas emissions by at least 55% by the end of 2030 compared to 1990 levels, with the Renewable Energy Directive and the ReFuelEU aviation regulations being important parts of the series of acts.
Under the Revised Renewable Energy Directive, the EU will increase the share of renewable energy in the EU's overall energy consumption from 40% to 45% by 2030 to accelerate climate goals. As hydrogen energy is an important way to promote renewable energy and carbon emission reduction, the bill sets binding targets for it.
In the industrial sector, 42% of hydrogen for industrial use should come from non-biotic renewable fuels (RFNBOs) by 2030 (the EU refers to renewable hydrogen and its derivatives as non-biotic renewable fuels), increasing this proportion to 60% by 2035.
In the transport sector, advanced biofuels (derived from non-food feedstocks) and non-biogenic renewable fuels (RFNBOs) should account for 5.5% of the share of renewable energy supply in the transport sector. Under this target, non-biogenic renewable fuels (RFNBOs) will account for at least 1% of the transport sector's supply by 2030.
It is worth noting that the EU has a strict definition of renewable hydrogen or green hydrogen. In February 2023, the European Union passed the relevant authorization of the Renewable Energy Directive, and the European Commission proposed three criteria to determine renewable hydrogen, one is hydrogen produced by electrolyzers directly connected to off-grid renewable energy power generation facilities; The second is to use hydrogen produced by grid power supply in areas with more than 90% renewable energy; The third is to use grid-powered hydrogen produced after signing renewable energy power purchase agreements in areas with low CO2 emission restrictions.
At present, the EU consumes about 9.7 million tons of gray hydrogen per year (hydrogen produced directly from fossil energy such as natural gas, without carbon dioxide recovery devices), mainly used in fertilizer, chemical production and oil refining processes. Through the new directive setting hydrogen development targets, the EU expects to create about 4 million tons of green hydrogen demand in the industrial sector by the end of 2030.
The adoption of the ReFuelEU Aviation Regulation aims to reduce air traffic emissions by increasing the use of sustainable aviation fuel (SAF) and synthetic aviation fuel in aviation. Sustainable aviation fuel is an alternative fuel that is sustainably produced from waste animal and vegetable fats, oilseeds, used cooking oils, municipal solid waste and agricultural and forestry waste. Sustainable aviation fuel can produce up to 85% less carbon emissions from raw material collection to end-use than traditional fossil fuels. Synthetic aviation fuels include fuels such as synthetic kerosene (synthesized from captured carbon dioxide and hydrogen).
The ReFuelEU aviation regulations call for 2% sustainable aviation fuel (SAF) use in aviation by 2025, 6% by 2030 and 70% by 2050. The share of synthetic aviation fuel (synthesized from carbon dioxide and green hydrogen) should reach 1.2% from 2030, and increase by 35% by 2050.
In addition, the regulation proposes that in order to ensure a level playing field in the aviation internal market and comply with EU climate targets, effective, proportionate and exhorting penalties will be imposed on aviation fuel suppliers and aircraft operators who do not comply. The scale of the economic penalty will be determined on the basis of a subsequent report prepared by the European Commission, which is expected to be submitted to Member States by January 1, 2027 (every four years thereafter).
The EU estimates that the demand for jet fuel in the EU aviation industry is expected to reach about 46 million tons by 2030, of which 1.2% of synthetic aviation fuel needs are calculated to be 552,000 tons, so it is expected to create more than 90,000 tons of green hydrogen demand.
Source: China Hydrogen Energy Alliance Ji Network and other public channels