EU Agrees on Hydrogen Legislation, Establishing New Governance for Independent Grid Planning Body

The European Union has finalized an agreement on legislation concerning hydrogen, marking the end of negotiations and paving the way for a new era in grid planning. Initially, a partial agreement was reached in November, but unresolved issues regarding biogas targets and EU hydrogen procurement lingered. The recent compromise includes provisions to boost the use of biomethane and low-carbon or green h2 in line with the EU’s decarbonization goals. This legislative development is part of the broader ‘Fit for 55’ package aimed at reducing emissions by at least 55% by 2030. The agreement introduces a joint gas purchasing system and establishes a voluntary system to support hydrogen market development, with a focus on a five-year pilot project. The legislation also mandates enhanced cooperation among hydrogen transmission network operators at the EU level through the European Network of Network Operators for Hydrogen. This new governance structure aims to facilitate dedicated hydrogen infrastructure, cross-border coordination, and the construction of interconnector networks.

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