France Releases Legal Framework For Renewable And Low-carbon Hydrogen

• Published date: 06 April 2021
• Subject Matter: Energy and Natural Resources, Energy Law, Oil, Gas & Electricity, Renewables
• Law Firm: Jones Day
• Author: Ms Audrey A. Bontemps, Nicolas Brice, Sophie Chevallier and My Linh Vu-Grégoire

Under ordinance n° 2021-167, dated February 17, 2021, three different types of hydrogen are now subject to dedicated regulations: renewable, low-carbon, and carbonaceous (fossil) hydrogen.

This new regulation incentivizes renewable and low-carbon (and not fossil) hydrogen production.

Guarantees of origin are common in French energy regulations for renewable energy or biogas, but this new ordinance creates an unprecedented guarantee of traceability for low-carbon or renewable hydrogen. It will give better information to buyers and valuable input to producers in the context of EU Directive 2018/2001 of December 11, 2018, on the promotion of the use of energy from renewable sources. An independent authority will manage both guarantees of origin and traceability, which should allow consistency in the management of guarantees issued by other European countries in accordance with this EU Directive.

The ordinance also provides for a support mechanism for renewable or low-carbon hydrogen production by water electrolysis. Additional...