EU and UK regulators are laying the foundations for the regulation of hydrogen projects. The European Commission recently published two Delegated Acts (the “Acts”), which set out the rules on the EU definition of renewable hydrogen. These Acts, which will enter into force on 10 July 2023, define the conditions under which hydrogen-based fuels may be considered ‘renewable fuels of non-biological origin’ (“RFNBOs”) and outline a methodology for calculating life-cycle greenhouse gas emissions for RFNBOs, helping to provide regulatory certainty to investors.
From a UK perspective, the Department for Energy Security & Net Zero (“DESNZ”) recently published the “Market Engagement on the Second Hydrogen Allocation Round”, a call for views around the proposed design of the second Hydrogen Allocation Round (“HAR2”). The proposals include plans to allocate funding to low carbon hydrogen projects with up to 750MW of capacity in 2025, three times the amount in HAR1, the first allocation round. The deadline for responses is 30 June 2023.