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

The European Commission's delegated acts supplementing the revised Renewable Energy Directive set a benchmark for green hydrogen classification. Controversy surrounds these regulations, with industry claiming increased production costs and NGOs alleging insufficient emission reduction. This paper quantifies the impact of these acts on green hydrogen production costs and renewable characteristics through various power purchase scenarios, considering factors like electricity prices and renewable energy availability. Results suggest that allowing unrestricted electricity mixes doesn't necessarily increase emissions and could significantly lower costs. Transitional regulations also offer similar cost reductions and high renewable electricity usage.

Jonathan Brandt, Thore Iversen, Christoph Eckert, Florian Peterssen, Boris Bensmann, Astrid Bensmann, Michael Beer, Hartmut Weyer, Richard Hanke-Rauschenbach