Press Release
Brussels, 09 July 2025
The publication of the Low Carbon Hydrogen Delegated Act yesterday evening will provide legal certainty to hydrogen project developers and its finalisation before its expected legal deadline of 5 August is most welcome. It joins the REDIII Delegated Act on Renewable Fuels of non-Biological Origin (RFNBO) to set the framework for hydrogen producers in Europe.
While the text falls well short of what is needed for a thriving low-carbon hydrogen market, this final version introduces several improvements compared to the last draft and we welcome the efforts made by the European Commission to take into account the results of the consultation.
For upstream CO2 emissions of natural gas, the default values have been lowered from 8.4 gCO2/MJ to 4.9 gCO2/MJ.
The Commission has proposed the introduction of country or region-specific default values of upstream emissions in the 2028 impact assessment. Although not as optimal as project specific values, this is a step in the right direction.
It is now possible to use biomass or biofuels to lower the GHG intensity of low carbon fuels when they are used as fuels driving the process rather than feedstock – though it remains to be seen how easily it can be implemented when clear distinctions between fuels and feedstocks are difficult to draw.
We also welcome the improved treatment of solid carbon co-product, at least partially recognising its potential for permanent carbon storage in products.
Despite these positive steps, the Commission has not allowed for the sourcing of low-carbon electricity through a power purchase agreement (PPA) and the treatment of hydrogen from nuclear sources remains unchanged – a specific methodology will be put out for consultation in 2026, with July 2028 still being the official deadline for a revision of the law. This will negatively impact a significant number of projects that will have to report the greenhouse gas emissions intensity of their national electricity grid, even if they are sourcing their electricity from low-carbon sources.
Jorgo Chatzimarkakis, Hydrogen Europe’s CEO, stated: “The current Delegated Act imposes disproportionate reporting obligations and bureaucratic hurdles that many hydrogen pioneers will struggle to manage. Rather than creating a framework that attracts clean tech investment to Europe, it risks deterring it. True decarbonisation requires clarity and agility, not additional complexity and red tape. The hydrogen sector deserves more than recognition in speeches; it needs a regulatory environment that supports innovation, scale-up, and practical deployment.”
Parliament and the Council have two months to examine the Act, and possibly oppose it, before it enters into force. At their request, the scrutiny period can be extended by 2 months. There is no possibility for the Parliament or Council to amend the proposals.
