A proposed methodology for defining low-carbon hydrogen by the European Commission could halt progress on key hydrogen projects across Europe.
IOGP Europe (International Association of Oil & Gas Producers) – argues that the draft Delegated Act would block scalable, clean and affordable hydrogen supplies vital for energy-intensive industries.
The Commission’s methodology introduces several challenges, including inflated emissions estimates for hydrogen made via methane reforming with Carbon Capture and Storage (CCS).
Under current proposals, producers must use conservative default values for CO2 emissions rather than actual verified data. It also imposes restrictive requirements on methane pyrolysis co-products, limits biomethane use and creates an uneven playing field between reforming technologies such as SMR and ATR.
“This Delegated Act is meant to encourage project developers to take Final Investment Decisions. The current draft will achieve the opposite by stopping projects in their tracks,” said François-Régis Mouton, Managing Director of IOGP Europe.
“We need a clear, pragmatic, and technology-neutral approach that allows the hydrogen economy to take off in Europe.”
IOGP Europe is calling for several changes. These include the ability to use certified supplier-specific emissions data, greater flexibility on electricity sourcing through PPAs, and grandfathering rules for projects that have already taken Final Investment Decisions.
The group also urges pragmatic treatment of hydrogen imports and the inclusion of more flexible provisions for CO2 storage in third countries.
The organisation warns that tying the Delegated Act to future regulations that are not yet finalised, such as a methane intensity methodology, creates uncertainty and risk.
