"Low carbon" hydrogen - a problem for nuclear power

The delegated act put out for public consultation by the European Commission on Friday, September 27, regarding the proposal of calculation methods for "low-carbon" hydrogen is harshly criticized by supporters of nuclear energy and those in the hydrogen industry, according to an article published by Euractiv.fr website. The central stake is defining the criteria that determine whether hydrogen can be considered "low-carbon" and how these criteria can influence the competitiveness and future of the energy transition in Europe.

The delegated act proposed by the European Commission provides for three methods of calculating carbon intensity for low-emission hydrogen. A key element is the emissions threshold: any hydrogen that emits only 30% of the emissions of the fuel it replaces can be considered "low-carbon". One of the proposed calculation methods is based on the carbon intensity of the electricity grid of the producing country. According to this method, hydrogen is considered "clean" if it is produced in an electricity grid with a carbon intensity of no more than 18 grams CO2 eq/MJ (64.8 grams CO2 eq/kWh).

Currently, only Sweden and France meet this criterion due to their electricity production, especially in the case of France through its extensive nuclear fleet. However, this proposal is not to the liking of the defenders of the French nuclear sector.

One of the main points of contention is that the current proposal does not automatically recognize hydrogen produced exclusively with nuclear power as "low carbon". The European Commission suggests postponing a decision on this recognition until 2028, through an impact assessment of the use of nuclear energy. This delay is considered unacceptable by the hydrogen industry in France, which argues that the lack of a quick decision could hinder investment and the development of the industry.

Simon Pujau, representative of France Hydrogène, harshly criticized the Commission's proposal for the quoted source, considering it disconnected from the needs of the industry. He pointed out that, in the context in which leaders such as Mario Draghi recommend urgent regulations to support European industry, delaying an essential decision on nuclear energy undermines the sector's competitiveness.

This delay risks affecting the achievement of the ambitious goals set by the European Union for the development of green hydrogen. By 2030, the EU wants to install a total of 40 gigawatts of electrolyser capacity, essential for carbon-free hydrogen production. However, this target is considered unrealistic by the European Court of Auditors, and industry representatives believe that delaying the recognition of nuclear energy as a source of clean hydrogen will make it difficult to achieve these goals.

The cited source also shows that Marion Labatut, director of European affairs at EDF, expressed concern that this situation could delay the final investment decisions, significantly affecting the pace of development of the hydrogen industry in Europe.

In addition to the method based on average network intensity, the Commission's delegated act provides for two other calculation methods. The first involves timing hydrogen production with times when renewables or nuclear power set the price of electricity. The second method involves using the exact carbon intensity of the regional electricity networks, depending on the availability of data provided by the network operators.

The critical views on the proposal made by the European Commission are not shared by Jens Geier, German MEP from the Socialists and Democrats group, who appreciated the flexibility of the text and the fact that it provides a clear legal framework for producers and users. Geert de Cock, Head of Electricity and Energy at the Transport&Environment think tank, also welcomed the fact that the proposal avoids the exclusive use of nuclear PPAs, arguing that using nuclear power to reduce emissions from electricity production would be more effective than using it for hydrogen production.

The public consultation launched by the European Commission is only the first step in a complex process of defining the criteria for "low-carbon" hydrogen. However, the current proposals have already generated tensions between the various energy sectors in Europe, particularly from the French nuclear industry. In the coming months, the Commission will have to balance the interests of Member States and different industrial sectors to finalize a proposal that supports the transition to a low-carbon economy without jeopardizing Europe's competitiveness.