Hydrogen and Decarbonised Gas Market Package: Boosting the EU H2 economy with the right regulatory framework

May 17, 2022

Brussels, 17 May 2022

To deliver the European Green Deal, the European Commission explained that the EU energy system must become more integrated. It should build on renewable electricity and renewable and low-carbon gases, including hydrogen. To make that possible, the “Hydrogen and Decarbonised Gas Market Package” was designed. Its aim: improve the existing gas market framework while enabling the decarbonisation of the gas system. Applauding this initiative, the European gas infrastructure operators publish a document presenting several measures to make the Hydrogen and Decarbonised Gas Market Package even more effective.

→ Download the GIE Paper
→ Download this Press Release

GIE shares the European Commission’s objectives to improve the gas market framework and decarbonise the gas system. To support the efficient implementation of the “Hydrogen and Decarbonised Gas Market Package”, GIE publishes a document presenting the policy levers needed.

Paper’s highlights
→  Legislation should foster market uptake and allow for flexible developments
→  Exploit synergies between natural gas and hydrogen infrastructure
→  Enhance sector integration and integrated planning
→  Certification scheme for renewable and low-carbon gases

5 dimensions:

1. Towards an integrated energy system
Proposes improvements to the energy framework across sectors, including horizontal and vertical unbundling rules and effective synergies between hydrogen network operators and gas infrastructure operators, in order to achieve a more efficient energy system in the long term.

2. Improving the existing gas market framework
Focuses on the existing framework for natural gas, especially on gas quality management.

3. Fostering renewable/low-carbon gases and hydrogen in infrastructure and markets
Analyses the critical issue of the certification of renewable/low-carbon gases and hydrogen and proposes solutions for more rapid uptake of domestic production.

4. Delivering hydrogen infrastructure and markets
Deals with the key objective of deploying hydrogen as a decarbonised energy sector in the EU: market organisation, open-access infrastructure, tariff principles, and evolution of the regulatory framework toward a pan-European hydrogen market.

5. Improving the security of gas supply and gas storage
Shortly analyses the proposals in the light of the recent war on Ukraine that caused the EC’s proposal to amend the Security of Gas Supply Regulation of 23 March 2022. More details are provided in GIE’s response to the REPowerEU communication.

Torben Brabo, GIE President said: “We share the ambitious objectives of the European Commission. To make this work, it is essential to improve the gas market framework as well as to support our decarbonisation efforts. We remain fully committed to reducing our emissions, strengthening the security of supply, and contributing to the development of the EU hydrogen economy. In fact, we intend to keep working in collaboration with all stakeholders involved in the Hydrogen and Gas Market Decarbonisation Package to better fulfil the European Union’s objectives. As gas infrastructure operators, we have a crucial role to play in the development of the hydrogen economy: our extensive infrastructure and consequent knowledge of the gas market are valuable assets now and in the future .”

Boyana Achovski, GIE Secretary General stated: “Together, we can establish the most effective transition with a secure and diversified energy system. The current gas infrastructure represents a tremendous opportunity for Europe to accelerate the uptake of hydrogen: as hydrogen markets develop from industrial clusters, natural gas infrastructure could be built or repurposed progressively to transport, store and import hydrogen, converging toward a pan-European hydrogen infrastructure. Our paper proposes improvements to the proposed long-term hydrogen and decarbonised gases framework. It takes into account the need to deliver hydrogen markets faster and cheaper and presents among others the benefit from using the synergies between natural gas and hydrogen.”

Note to editors

Who is GIE?

Gas Infrastructure Europe (GIE) is the association representing the interests of European gas infrastructure operators active in gas transmission, gas storage and Liquefied Natural Gas (LNG) regasification. GIE is a trusted partner of European institutions, regulatory bodies and industry stakeholders. It is based in Brussels, the heart of European policymaking. GIE currently represents 70 member companies from 26 countries. GIE’s vision is that by 2050, the gas infrastructure will be the backbone of the new innovative energy system, allowing European citizens to benefit from a secure, efficient and sustainable energy supply.