One might be forgiven for thinking that the clash of the energy titans would be between those who favour “dirty” fossil fuels and those rooting for “clean” renewables. Not so in Europe. Sparks have flown over what kind of hydrogen — exactly — should count as green, and gain access to any envisaged subsidies for the fuel. The European Commission’s relatively strict stance is a blow to the nascent industry.
At first take, the proposed new rules — expected to kick in towards the end of the decade — make sense. Hydrogen does not emit Co2, but the way in which the former is produced might. If electricity generated with fossil fuels is used to split water the process may prove counterproductive.
That is why the EU does not want hydrogen made by hooking electrolysers up to the power grid to count as green. However, electrolysers fed by new solar and wind generators, running in the same place and at the same time as the electrolyser, would qualify. The EU would waive the new strictures if the grid were to be largely renewable, or nuclear.