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The Hydrogen Revolution and Natural Gas: A New Dawn in the European Union?

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Abstract

This chapter will take a look at the European Union and its approach to a new gas world that will be dominated by hydrogen. What steps need to be taken to get there? What policy plans are in place? And what does the current legal framework say about all of this? The chapter will address these questions by providing a brief overview of the role of hydrogen in the future as a substitute and/or supplement for natural gas in the European gas system. It will then proceed to discuss hydrogen policy plans in the European Union across various sectors, such as industry, transport, energy infrastructure and construction, and provide an outlook on the required investments. Afterwards, it provides an overview of applicable European legislation before concluding with some observations on the interplay between policy and law in enhancing hydrogen usage in the European Union.

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Notes

  1. 1.

    Vedder et al. (2016), para. 4.08–4.18.

  2. 2.

    Treaty on the Functioning of the European Union (hereinafter: TFEU), art. 194.

  3. 3.

    International Energy Agency (2019), pp. 37–38.

  4. 4.

    Ball and Wietschel (2009), p. 279; International Energy Agency (2007), Table 1.

  5. 5.

    International Energy Agency (2019), p. 38; because electrolysis is the focus of the hydrogen strategies discussed below, the following explanations will focus on it.

  6. 6.

    Rifkin (2002), p. 9.

  7. 7.

    Ball and Wietschel (2009), pp. 38–39.

  8. 8.

    Dein (2019).

  9. 9.

    European Commission (2020), Communication from the Commission, A hydrogen strategy for a climate-neutral Europe, COM (2020) 301 final; see, for example, pages 2 and following (hereinafter: EU Strategy).

  10. 10.

    Olczak and Piebals (2018).

  11. 11.

    Van Leeuwen and Roggenkamp (2018), pp. 155–156.

  12. 12.

    Clegg and Mancarella (2015), pp. 566–575.

  13. 13.

    Robinius et al. (2017), pp. 1–22.

  14. 14.

    Nastasi and Lo Basso (2017), pp. 23933–23951.

  15. 15.

    For example, the United Nations Framework Convention on Climate Change of 1992, which was transposed into clear targets in the Kyoto Protocol of 1997 (COP 3) and more recently the Paris Agreement of 2015 (COP 22).

  16. 16.

    Vedder et al. (2016), para. 4.10.

  17. 17.

    European Commission (2018) Communication from the Commission, A clean planet for all: A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy, COM (2018) 773 final; European Commission (2020) 2030 climate and energy framework. https://ec.europa.eu/clima/policies/strategies/2030_en. Accessed 25 January 2021.

  18. 18.

    Further specifics include a 43 per cent reduction in GHG emissions in sectors covered by the EU Emission Trading Scheme (EU ETS) and a 30 per cent cut in non-EU ETS sectors.

  19. 19.

    European Council (2020) European Council meeting (10 and 11 December 2020)—Conclusions, EUCO 22/20 COEUR 17 CONCL 8, p. 4.

  20. 20.

    European Council (2019) Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions “The European Green Deal,” COM (2019) 640 final, p. 2 (hereinafter: European Green Deal).

  21. 21.

    European Commission (2020) Clean energy—an EU hydrogen strategy. https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12407-A-EU-hydrogen-strategy. Accessed 16 June 2020.

  22. 22.

    EU Strategy.

  23. 23.

    European Green Deal, pp. 6, 8 and 18.

  24. 24.

    European Commission (2020) EU strategy on energy system integration. https://ec.europa.eu/energy/topics/energy-system-integration/eu-strategy-energy-system-integration_en. Accessed 16 June 2020.

  25. 25.

    EU Strategy, pp. 1 and 10.

  26. 26.

    EU Strategy, p. 5.

  27. 27.

    EU Strategy.

  28. 28.

    EU Strategy, pp. 1 and 10–11.

  29. 29.

    EU Strategy.

  30. 30.

    EU Strategy, p. 5.

  31. 31.

    EU Strategy, p. 7.

  32. 32.

    EU Strategy, p. 8.

  33. 33.

    EU Strategy, pp. 2–3.

  34. 34.

    EU Strategy, p. 15.

  35. 35.

    ENTSOG (2021) About ENTSOG. https://www.entsog.eu/members. Accessed 26 January 2021.

  36. 36.

    Vedder et al. (2016), para. 4.45.

  37. 37.

    EU Strategy, p. 15.

  38. 38.

    EU Strategy, p. 5.

  39. 39.

    EU Strategy.

  40. 40.

    EU Strategy.

  41. 41.

    EU Strategy, p. 6.

  42. 42.

    EU Strategy, p. 7.

  43. 43.

    EU Strategy, p. 4.

  44. 44.

    EU Strategy, p. 13.

  45. 45.

    EU Strategy, p. 14.

  46. 46.

    EU Strategy, pp. 8–9.

  47. 47.

    EU Strategy, p. 3.

  48. 48.

    Vedder et al. (2016), para. 4.55.

  49. 49.

    Case C-159/94 Commission v France (1997) ECR I-5815.

  50. 50.

    Case C-2/90 Commission v Belgium (1992) ECR I-443, para. 25–28.

  51. 51.

    Case 6/64 Flaminio Costa v ENEL (1964) ECR 585; Joined Cases C-204/12 to C-208/12 Essent Belgium ECLI:EU:C:2014:2192 para. 83–87.

  52. 52.

    Case 7-68 Commission v Italy (1968) ECLI:EU:C:1968:51 p. 428.

  53. 53.

    European Commission (2019) Clean energy for all Europeans—unlocking Europe’s growth potential. http://europa.eu/rapid/press-release_IP-16-4009_en.htm. Accessed 11 Feb 2021.

  54. 54.

    European Commission (2019) Commission proposes new rules for consumer centred clean energy transition. https://ec.europa.eu/energy/en/news/commission-proposes-new-rules-consumer-centred-clean-energy-transition. Accessed 11 Feb 2021.

  55. 55.

    European Council (2019) Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU, OJ L 158/125 (hereinafter: Recast Electricity Directive).

  56. 56.

    European Council (2018) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources, OJ L 328/82 (hereinafter RED II).

  57. 57.

    European Council (2009) Directive (EC) 2009/73 of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC, OJ L 211/94 (hereinafter: 2009 Gas Directive).

  58. 58.

    European Council (2009) Directive (EC) 2009/30 of the European Parliament and of the Council of 23 April 2009 amending Directive 98/70/EC as regards the specification of petrol, diesel and gasoil and introducing a mechanism to monitor and reduce greenhouse gas emissions and amending Council Directive 1999/32/EC as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/EEC, OJ L 140/88.

  59. 59.

    European Council (2009) Directive 2009/72/EC of the Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, OJ L 211/55.

  60. 60.

    Recast Electricity Directive.

  61. 61.

    This interpretation is bolstered by the European Commission (2017) Staff working document: Energy storage—the role of electricity, SWD (2017) section 4.1; for a critical reflection on this document, see Fleming and Kreeft (2020), p. 108.

  62. 62.

    Fleming (2021), p. 51.

  63. 63.

    More details can be found at Fleming and Kreeft (2020), pp. 107–109.

  64. 64.

    This reference includes only green and not grey hydrogen; see European Parliament (2019), p. 7.

  65. 65.

    European Parliament (2019), p. 7.

  66. 66.

    RED II, above n 56, recital 59 and art 19 (1).

  67. 67.

    Vedder et al. (2016), para. 4400.

  68. 68.

    For a technical analysis of underground hydrogen storage, see Netherlands Enterprise Agency (2017).

  69. 69.

    2009 Gas Directive, art. 1 (1).

  70. 70.

    On this issue, see Gerboni (2016), pp. 283–299.

  71. 71.

    Fleming and Kreeft (2020), pp. 121–122.

  72. 72.

    Fleming and Kreeft (2020), pp. 109–114 and 118–123; Fleming (2018), pp. 5–10.

  73. 73.

    Fleming and Kreeft (2020), pp. 118–120.

  74. 74.

    Roggenkamp (2019), p. 267.

  75. 75.

    European Council (1998) Directive 98/70 (EC) of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC, Consolidated Version ELI (hereinafter: Fuel Quality Directive). http://data.europa.eu/eli/dir/1998/70/2018-12-24. Accessed 27 January 2021.

  76. 76.

    European Council (2015) Directive (EU) 2015/652 of 20 April 2015 laying down calculation methods and reporting requirements pursuant to Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels, OJ L 107/26 (hereinafter: Calculation Methods Directive).

  77. 77.

    Calculation Methods Directive, above n 75, Annex I Part 2, para. 5.

  78. 78.

    More on synthetic natural gas can be found at the Deliverables of the Horizon 2020 project “Store & Go” at www.storeandgo.info. Accessed 27 January 2021.

  79. 79.

    Fuel Quality Directive, Article 7a (1).

  80. 80.

    European Council (2019) Directive (EU) 2019/1161 of 20 June 2019 amending Directive 2009/33/EC on the promotion of clean and energy-efficient road transport vehicles, OJ L OJ L 188/116 (hereinafter: Revised Clean Vehicles Directive).

  81. 81.

    Revised Clean Vehicles Directive, art. 3.

  82. 82.

    Revised Clean Vehicles Directive, art. 5 in conjunction with Annex Tables 3 and 4.

  83. 83.

    European Council (2009) Council Directive 2009/33/EC of 23 April 2009 on the promotion of clean and energy-efficient road transport vehicles, OJL 120/5, Annex Table 1 in conjunction with preamble 28.

  84. 84.

    Revised Clean Vehicles Directive, Article 4 (5).

  85. 85.

    For details see Fleming and Kreeft (2020), pp. 118–119.

  86. 86.

    Dolci (2019), pp. 11394–11397.

  87. 87.

    European Commission (2015) Regulation (EU) 2015/703 of 20 April 2015 establishing a network code on interoperability and data exchange rules, OJ L 113/12.

  88. 88.

    European Committee for Standardization (2015).

  89. 89.

    Dubost (2018).

  90. 90.

    For the report to which Annex E refers, see Altfeld and Pinchbeck (2013), p. 3.

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Authors and Affiliations

  1. University of Groningen, Groningen, Netherlands

    Ruven Fleming

  2. Legal Project Manager Hydrogen Projects at DBI Gastechnology Institute, TU Freiberg, Germany

    Ruven Fleming

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  1. College of Law Hamad Bin Khalifa University, Doha, Qatar

    Damilola S. Olawuyi

  2. University of the West Indies, St. Augustine, Trinidad and Tobago

    Eduardo G. Pereira

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Fleming, R. (2022). The Hydrogen Revolution and Natural Gas: A New Dawn in the European Union?. In: Olawuyi, D.S., Pereira, E.G. (eds) The Palgrave Handbook of Natural Gas and Global Energy Transitions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-91566-7_5

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