Clean hydrogen is crucial to the future energy system in the EU, and the time is right for develop-ment of the green industry essential to address the climate crisis.
Hydrogen in Europe's energy future
Hydrogen plays a vital role in achieving the ambitions for a sustainable energy system in Europe. With a growing interest in both green and blue hydrogen, significant opportunities arise for the industry to play a crucial role in achieving climate goals. Blue hydrogen, which involves the capture and storage of CO2, along with green hydrogen produced from renewable sources, are expected to become significant economic drivers, especially considering the EU's Emissions Trading System (ETS) and national CO2 taxes.
In the episode "Hydrogen: Funksjon og produksjon" from our podcast Energisk, we discuss the potential hydrogen has in the renewable sector and how it can optimise the energy system. You can listen to the episode in Norwegian HERE.
Opportunities and challenges
Hydrogen provides effective solutions for the green energy transition in sectors such as transport and industrial production of steel and cement. Additionally, hydrogen can be produced during periods of surplus electricity from renewable sources and be stored and later utilised in periods of low production. This positions hydrogen as an important element for energy storage, contributing to stabilise energy supply and enhancing the use of renewable resources. However, stakeholders integrating hydrogen into the energy market will encounter legal challenges that require specialised expertise.
Companies that produce or plan to start production of hydrogen face a complex regulatory framework at both a national and an international level. These regulations are continuously evolving to ensure the safe and effective implementation of hydrogen-based technologies. Key considerations for hydrogen production and distribution include regulatory compliance, securing necessary permits, exploring investment opportunities, navigating of transport and export regulations, and leveraging government support schemes such as Enova's initiative on hydrogen as fuel for vessels, alongside international support schemes like the EU's Hydrogen Bank.
Blue hydrogen also presents specific legal challenges related to CO2 capture regulation, onshore and offshore transportation, and connection to CO2 storage sites.
Having a comprehensive understanding of the legal landscape is crucial for identifying and managing risks in the establishment and operation of hydrogen facilities. This ensures adherence to current legislation and promotes a sustainable and responsible development of the growing hydrogen industry.
Hjort's expertise in Hydrogen as an energy carrier
We in Hjort have extensive experience and in-depth knowledge of the power industry, with specialised expertise in hydrogen production, financing, and marketing, and strategic legal guidance in these areas. We regularly support major projects for both green and blue hydrogen.
Naturally, we keep a close eye on the industry and regulatory developments both nationally and internationally, and look forward to assisting clients with several new and exciting projects in the future.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.