The European Commission has unveiled a key set of rules embracing carbon capture and storage within the definition of low-carbon hydrogen production. The move provides a clear regulatory framework, unlocking investment certainty and accelerating the scale-up of clean hydrogen production across Europe.

The new guidelines, announced on July 8 in a formal bulletin published by the Commission, allow hydrogen produced using natural gas with carbon capture, utilisation and storage (CCUS) to qualify as low carbon if the emissions are captured and stored. To be considered low carbon, hydrogen and related fuels will need to reach a threshold of 70% greenhouse gas emission savings compared to the use of unabated fossil fuels.

The methodology recognises the diversity of energy mixes across the Member States offering a flexible and pragmatic framework that opens pathways to accelerate decarbonisation in hard-to-electrify sectors like aviation, shipping, and heavy industry.

Says Dan Jørgensen, Commissioner for Energy and Housing, “Hydrogen will play a key role in the decarbonisation of our economy. With a pragmatic definition of low-carbon hydrogen that respects the energy mix of all EU countries, we are providing the necessary certainty to investors. In this way, we support the growth of a sector which is key for both our competitiveness and our climate objectives.”

In April this year, the European Commission invited bids for €600 million ($703 million) in funding to accelerate hydrogen and carbon capture infrastructure as part of its Connecting Europe Facility for Energy (CEF Energy).

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