RWE says EU rule proposals would slow green hydrogen transition
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The German multinational energy company says the rules would work against their intended purpose.
RWE AG (ETR stock symbol RWE) recently spoke out against the European Union’s proposed new rules, saying that they would stand in the way of green hydrogen development.
The rules are meant to accelerate the EU’s energy transition while decreasing reliance on Russian imports.
According to RWE, despite the intentions of the proposed rules for accelerating the bloc’s energy decarbonization transition and reduction of Russian import reliance, the outcome would be to stand in the way of green hydrogen development.
The German utility company said that the proposed EU plan for H2 production “massively counteracts these ambitious goals.”
The European Union’s proposal is that by 2026, the only electricity permitted will be that generated in unsubsidized, newly built solar and wind plants that will power renewable H2, said the RWE statement. The proposal would also require that electrolyzers will be usable only for the production of H2 as long as the solar and wind farms are in operation, added the utility company.
As a result, the full production of green hydrogen will be held back until at least 2030, said RWE.
According to the utility company, by designing the rules this way, it will mean that it won’t be possible to produce renewable H2 in large volumes at any point until 2030. The result will also be that the price of the clean fuel will unnecessarily be notably higher.
Earlier this month, the European Commission unveiled a package of measured under the title of REPowerEU. Those measures are intended to enhance energy efficiency, boost supply diversification, and support renewable energy and targeted investments and reforms.
According to RWE, the means by which REPowerEU intends to achieve those goals will only work against what they seek to achieve.
RWE recently announced its intentions to invest billions into green hydrogen production and the development of a distribution grid for the fuel to ensure it will be within easy reach of German industrial companies.
“RWE will actively work towards this in the upcoming consultation and hopes that political decision-makers rethink the current criteria proposals,” said the announcement from RWE about its Germany renewable energy strategy.