Sixteen German state energy ministers have urged the European Commission to relax renewable hydrogen rules, saying the current regulations are slowing investment and putting Europe’s clean energy goals at risk. The request comes as the European Union prepares to review its hydrogen framework ahead of planned reforms in 2026.
In a joint letter sent to European Commissioner for Energy and Housing Dan Jørgensen, the ministers called for changes to the rules that determine when hydrogen produced through electrolysis can be certified as renewable. They argued that the existing requirements are making it harder for developers to move forward with large hydrogen projects, even when public funding has already been approved.
The ministers focused their concerns on the European Union’s Delegated Regulation 2023/1184. Under the current framework, grid-connected electrolyzers must meet strict conditions covering additional renewable electricity, the timing of electricity use, and the location of power generation before renewable hydrogen can receive certification.
According to the German states, these rules have delayed investment decisions and, in some cases, caused major projects to be postponed or cancelled. They warned that faster action is needed to support the expansion of Europe’s hydrogen industry and meet clean energy targets.
The request comes as the European Commission prepares to examine the regulations through its AccelerateEU initiative. German officials want the review process to move quickly and provide greater certainty for investors planning long-term hydrogen projects.
Industry groups have also backed calls for reform. The eFuel Alliance, which represents more than 160 companies involved in synthetic fuels, said the current regulations are reducing the competitiveness of renewable hydrogen projects across Europe.
The organization argues that one of the biggest challenges is the requirement linking renewable electricity generation with the operation of electrolyzers. Studies cited by the alliance suggest the rule could increase renewable hydrogen production costs by as much as 25 percent.
The group also estimates that the current framework could add up to €2.68 billion in annual costs to Europe’s energy system. In addition, it warns that installed electrolysis capacity across the European Union could be 33 percent lower by 2035 than it would be under more flexible regulations.
Several changes have been proposed to encourage investment. One recommendation is to revise the current “90 percent clause,” which gives certain countries with highly renewable electricity systems more flexible treatment under the certification rules.
Industry representatives propose lowering that threshold to 69 percent by 2030 and 80 percent by 2035. They say the change would better match the European Union’s RePowerEU energy targets and allow more countries to benefit from the simplified system.
Markets including Spain, Portugal, Ireland, Greece, and the Baltic states could gain earlier access to the more flexible certification rules if the proposal is approved.
The eFuel Alliance is also calling for the additionality requirement to remain in place until 2035 while keeping the existing monthly matching system between renewable electricity generation and hydrogen production instead of introducing hourly matching.
Other proposals include allowing renewable electricity supported by public funding to qualify for certification and protecting projects that have already reached their final investment decision from future regulatory changes.
Industry groups are also seeking clearer rules on the use of carbon dioxide in the production of synthetic fuels, especially for projects outside the European Union where emissions trading systems may differ from European standards.
The debate highlights the challenge facing European policymakers as they seek to balance strict environmental standards with the need to attract billions of euros in private investment. The outcome of the upcoming review is expected to play a major role in determining how quickly renewable hydrogen production and electrolysis projects expand across Europe during the rest of the decade.
