The EU’s latest Renewable Energy Directive, which became law in October last year, includes mandates to ensure that those sectors use increasing amounts of green hydrogen (or its derivatives).

The directive, known as RED III, includes a requirement for industries such as ammonia and chemicals production, oil refining and steel to get at least 42% of their hydrogen from renewable sources by 2030, rising to 60% by 2035.

It also requires 1% of all transport fuel to be so-called Renewable Fuel of Non-Biological Origin (RFNBO) — the EU's term for green hydrogen and its derivatives, such as ammonia or methanol — by 2030.

There were also three other EU directives signed off last year that will have significant implications for the usage of green hydrogen.

The Alternative Fuels Infrastructure Regulation (AFIR), which became EU law in September 2023, requires the 27 member states to ensure that publicly accessible H2 filling stations — capable of serving both heavy-duty and light vehicles — are set up in every “urban node” and every 200km along the core routes of the planned Trans-European Transport Network (TEN-T) by 2030.

The TEN-T core network links “urban nodes” — an EU term for 424 major cities in the bloc with ports, airports and rail terminals — across Europe.

Another directive, FuelEU, which also became law at the same time, requires all ships operating in EU waters with a gross tonnage above 5,000 tonnes to cut greenhouse gas (GHG) emissions by 2% from the start of 2025. This will rise to 6% from 2030, 14.5% from 2035, 31% from 2040, 62% from 2045, and finally 80% from 2050.

Vessels will be able to double-count their emissions savings when using RFNBOs, up to the end of 2033, in order to encourage their use.

In addition, a separate directive signed off by member states in October last year, known as ReFuelEU Aviation, stipulates that 1.2% of all aviation fuel used by planes leaving EU airports in 2030 must be made from synthetic kerosene — which is produced by combining green hydrogen with captured CO2 in the Fischer-Tropsch process — rising to 2% from 2032 to 2034, and to 35% in 2050.

These four EU directives, combined, should create a ready market for green hydrogen and its derivatives in Europe.

Review of 2024 | The key developments and trends in the global hydrogen sector (Part 2: Offtake)