Among market movers this week, Kelsey Harahan: *Two new reports will shed light on the future...

Petrobras transferred the business of its LNG terminal in Bahia to Excelerate Energy,...

Although climate change initiatives are developing rapidly, they are still in their early stages and the industry...

EU's natural gas market decarbonization plan to formulate hydrogen market design rules: Simson

Excelerate takes over the operation of the LNG terminal in Bahia, Brazil: Petrobras

The fuel of ideas: OPEC+ will set the tone for 2022 in response to the US oil release and COVID-19 variants

Build cross-border hydrogen energy infrastructure

Aiming at comprehensive network planning

Targeted hydrogen definition and certification

EU Energy Commissioner Kadri Simson stated on December 1 that the EU’s upcoming hydrogen and natural gas market decarbonization package on December 14 will develop hydrogen market design, pipeline access, infrastructure development and clear carbon intensity certification.

Receive daily email reminders, subscriber notes and personalize your experience.

Simson said in a speech at the European Hydrogen Week meeting that the plan will "provide the market design of hydrogen, the use of pipelines, and the conditions for hydrogen to begin to replace fossil fuels in a cost-effective manner."

"Although the package covers all gases, there are still many elements that are very important to hydrogen," she said.

Simson said that the current regulatory framework is not suitable for launching hydrogen through a dedicated network.

"There are no rules regarding tariff-based investments in hydrogen networks or the ownership, access, and operation of dedicated hydrogen networks, and there are no uniform rules regarding hydrogen quality."

"With this new proposal, we hope to solve each of these problems."

Simson said that the hydrogen market design rules will “draw inspiration from the market principles of third-party access, ownership, unbundling, and tariff setting set forth in the natural gas directives and regulations.” "But we will adapt them to the reality of a market that is still emerging and needs to be scaled up."

For example, some industrial hydrogen users today have both hydrogen networks and production facilities.

"As far as the network is restricted and not connected to the grid, it makes sense for them to obtain derogations from the split rules," she said.

Simson said that cross-border hydrogen infrastructure will help integrate renewable and low-carbon gases.

"This includes elements such as mandatory discounts for renewable and low-carbon hydrogen or import and export tariffs," she said.

The third point the package aims to address is to promote integrated network planning.

"We believe that hydrogen can truly contribute to the development of integrated energy systems and can be converted from electricity to natural gas and vice versa," Simson added.

Simson pointed out that in order to successfully develop the dehydrogenation market in Europe, hydrogen needs to be certified and clearly defined, and that the European Commission will propose an authorization bill before the end of the year to define renewable hydrogen standards, and that it will "in the near future" In the future” initiated a public consultation.

She said that the European Commission will also provide definitions and standards for the production of low-carbon hydrogen.

Simson added: "All these individual aspects will mean that we have all the pillars and can start to realize a true European and even global hydrogen energy market."

Simson said that developing hydrogen production and use in Europe will help prevent fossil fuel price fluctuations, such as those recently seen in the natural gas market.

"By helping to reduce demand and achieve large-scale storage, hydrogen can play an important role in reducing such price spikes in the future," she said.

She added that the hydrogen and natural gas decarbonization package will help reduce dependence on fossil fuel imports and increase the resilience of the European energy system.

On November 30, S&P Global Platts assessed the price of natural gas before the TTF in the Netherlands as 90.80 Euro/MWh (30.02 USD/MMBtu), which was lower than 100 Euros in early October. MWh peak, but from below 20 Euro/MWh at the beginning of the year.

To continue reading, you must log in or register with us.

It is free and easy to operate. Please use the button below and we will bring you back here when you are done.