Blue Hydrogen And Ammonia: EU's Rules For Low Carbon Fuels Released For Consultation

On 27 September 2024, the European Commission ("EC") published draft rules defining "low-carbon hydrogen" and derivative "low-carbon fuels" in the EU (the "Draft Low-Carbon Hydrogen DA"). A public consultation is now open until 25 October 2024.¹

Low-carbon hydrogen includes hydrogen produced from fossil energy sources (with carbon capture and storage ("CCS")), colloquially known as "blue" hydrogen, or from nuclear generated electricity, known as "pink" hydrogen. The Draft Low-Carbon Hydrogen DA will therefore be very important for producers of blue hydrogen and blue ammonia targeting the EU market as well as proponents of hydrogen derived from nuclear electricity.

The EU's Hydrogen and Gas Market Directive (adopted earlier in 2024)² set the framework definition for low-carbon hydrogen. Like the EU's requirements for renewable hydrogen and derivative fuels and feedstocks (known as "renewable fuels of non-biological origin" or "RFNBO"), low-carbon hydrogen must