Fortum and coalition partners warn against hydrogen status under EU Taxonomy unnecessarily restricting business options compatible with Paris-aligned strategies

The European Union adopted an ambitious Clean Hydrogen Strategy in July 2020, and Fortum stands strongly behind it – now it’s time to ensure a regulatory framework which truly supports it. Nordic countries rely on abundant CO2-free power sources, and we are concerned that the CO2 threshold currently being considered does not regard hydrogen produced with the most decarbonised grid mix as sustainable under the EU Taxonomy.

Fortum has signed a joint letter with a large range of European stakeholders (ranging from energy producers, electrolyser manufacturers to industrial customers) stating that the upcoming Delegated Act for the Sustainable Finance Taxonomy should not introduce disproportionate constraints to hydrogen production. The letter was sent to the top decision-makers in the European Commission who will soon have to decide on the revision of the EU Taxonomy delegated acts on climate change.

While hydrogen is meant to be the energy vector able to decarbonise hard-to-abate sectors to achieve a carbon neutral Europe and further integrate renewable energies, today 95% of the hydrogen is produced from fossil fuels. In this context, ambitious and swift industrial deployment trajectories are needed to increase the competitiveness of renewable and low carbon hydrogen, triggering economies of scale, cost reductions and increased EU leadership. This will in its turn allow industrial consumers and the transport sector to switch away from fossil fuels.

Hydrogen produced with low carbon electricity brings both high emission reduction and strong synergies with renewable hydrogen as technology and cost structures are similar.

Fortum together with the other signatories believe it is essential that the technical criterion related to hydrogen as laid down by the draft delegated act on climate change is brought in line with the European Commission’s Communication on hydrogen so as to support the EU leadership ambition whilst not unnecessarily limiting business options compatible with Paris-aligned business trajectories.

Read the joint letter:

Download pdf

For more information, please contact:

Anne Malorie Geron

Anne Malorie Géron

VP, EU Affairs
Tel: +32 47 865 2801
anne-malorie.geron@fortum.com