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Cost and competitiveness of green hydrogen and the effects of the European Union regulatory framework

Author

Listed:
  • Jonathan Brandt

    (Leibniz University Hannover)

  • Thore Iversen

    (Clausthal University of Technology)

  • Christoph Eckert

    (Leibniz University Hannover)

  • Florian Peterssen

    (Institute for Solar Energy Research Hamelin)

  • Boris Bensmann

    (Leibniz University Hannover)

  • Astrid Bensmann

    (Leibniz University Hannover)

  • Michael Beer

    (Leibniz University Hannover
    University of Liverpool
    Tongji University)

  • Hartmut Weyer

    (Clausthal University of Technology)

  • Richard Hanke-Rauschenbach

    (Leibniz University Hannover)

Abstract

By passing the delegated acts supplementing the revised Renewable Energy Directive, the European Commission has recently set a regulatory benchmark for the classification of green hydrogen in the European Union. Controversial reactions to the restricted power purchase for electrolyser operation reflect the need for more clarity about the effects of the delegated acts on the cost and the renewable characteristics of green hydrogen. To resolve this controversy, we compare different power purchase scenarios, considering major uncertainty factors such as electricity prices and the availability of renewables in various European locations. We show that the permission for unrestricted electricity mix usage does not necessarily lead to an emission intensity increase, partially debilitating concerns by the European Commission, and could notably decrease green hydrogen production cost. Furthermore, our results indicate that the transitional regulations adopted to support a green hydrogen production ramp-up can result in similar cost reductions and ensure high renewable electricity usage.

Suggested Citation

  • Jonathan Brandt & Thore Iversen & Christoph Eckert & Florian Peterssen & Boris Bensmann & Astrid Bensmann & Michael Beer & Hartmut Weyer & Richard Hanke-Rauschenbach, 2024. "Cost and competitiveness of green hydrogen and the effects of the European Union regulatory framework," Nature Energy, Nature, vol. 9(6), pages 703-713, June.
    • Handle: RePEc:nat:natene:v:9:y:2024:i:6:d:10.1038_s41560-024-01511-z
    DOI: 10.1038/s41560-024-01511-z
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    References listed on IDEAS

    as
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