- RWE says the REPower EU puts limitations on the hydrogen economy.
- Moves for revision of the proposal.
The recently released REPowerEU Plan, which was expected to accelerate the expansion of renewables and favour the growth of the hydrogen economy in the European Union, will otherwise “put the brakes on needed investment in the coming years”, according to RWE AG’s chief executive Markus Krebber.
The European Commission’s delegated act makes provision for the production of green hydrogen using only electricity from new, unsubsidised wind and solar plants by 2026. This is the primary reason RWE kicked back in criticism stating that green hydrogen would not be available in large quantities before 2030, even if there were faster approvals for new solar and wind plants.
RWE also disagrees with the proposal of producing green hydrogen when electricity is almost simultaneously generated by the new wind and solar farms, as this suggests that electrolysers would not be working during any extended calm periods. RWE further stated that the implication of this is that there will be higher hydrogen prices and a slower supply rate to the industry.
RWE is now lobbying for a change to be made to the proposals, desiring policymakers to revise the planned criteria during the upcoming consultation. RWE wants every barrier to the production and purchase of green hydrogen to be removed.
The new REPowerEU Plan states 10 million tonnes of domestic green hydrogen production in the EU and another 10 million in imports by the end of the decade.
This plan is targeted at reducing the EU’s dependency on natural gas, coal and oil in hard-to-decarbonise industries and transport sectors. This will help end Europe’s dependence on Russian gas in the shortest time frame.