KEF, Alm.del - 2021-22 - Bilag 412: Orientering om høringssvar om delegeret retsakt om vedvarende brint, fra klima-, energi- og forsyningsministeren

Klima-, Energi- og Forsyningsudvalget 2021-22
KEF Alm.del Bilag 412
Offentligt

Response from the Danish government to the public consultation on the draft

delegated act on renewable liquid and gaseous transport fuels of non-biologi-

cal origin (RFNBO).

Center

Center for Global

Klimahandling

Team

EU-grøn omstilling

Dato

13. juni 2022

J nr.

2022-1398

The Danish government welcomes the draft delegated regulation establishing a Un-

ion methodology for documenting that electricity consumption for production of

RFNBOs is fully renewable.

The Danish government’s key priorities for the delegated act on renewable hydro-

gen are listed below:



Denmark supports the effort to establish clear rules on additionality to

guarantee integrity of renewable hydrogen.

/ MARKL

In order to deliver on the Fit for 55 package and REPowerEU plan member states

need clear, transparent and reliable EU rules for renewable hydrogen as soon as

possible. Denmark supports the European Commission’s intention to develop de-

tailed and well-founded rules that incentivize deployment of new renewable energy

installations when producing RFNBO’s and supports flexible electricity demand for

the production of renewable hydrogen.

To guarantee full integrity of renewable hydrogen, Denmark highly supports the

principle of additionality as well as requirements ensuring temporal and geograph-

ical correlation between production and consumption of renewable electricity when

supplied to a hydrogen production facility through the public electricity grid. The del-

egated act is important for investors and for ensuring full integrity of renewable hy-

drogen. The rules should make sure that no fossil fuel is used for production of re-

newable hydrogen and RFNBOs.



Denmark supports the draft delegated act with regards to allowing instal-

lations being part of an aid scheme but not receiving net support should

qualify as additional.

The Danish government supports that renewable energy installations should qualify

as “additional” when the produced electricity does not receive aid that constitute net

support. It will be important for the further advancement of offshore wind projects

that these projects can enter into an aid scheme and still have the option to supply

electricity used for renewable hydrogen in a situation where they choose to reject or

repay support. Further, it is crucial that electricity from installations located in an off-

shore bidding zone, such as an energy island, can be used for hydrogen production

in an adjacent bidding zone without unnecessary barriers. The Danish government

Side 1/3

KEF, Alm.del - 2021-22 - Bilag 412: Orientering om høringssvar om delegeret retsakt om vedvarende brint, fra klima-, energi- og forsyningsministeren

also welcomes that the European Commission has included a provision stating that

production of renewable hydrogen in a bidding zone with a share of renewable

electricity exceeding 90 % in the previous calendar year should be eligible for re-

newable hydrogen production in a maximum number of hours set in relation to the

renewable electricity proportion.



Denmark supports the draft delegated act with regards to cancelling the

guarantees of origin issued to the producer of the renewable electricity

when electricity taken from the grid is used to produce RFNBOs. Den-

mark proposes that this condition is stated explicitly. Denmark also pro-

poses that settling imbalances and counter trade should be reflected in

the delegated act.

We propose that this condition should be explicitly stated in article 4. Another im-

portant aspect included in the delegated act is that electricity taken from the grid for

the purpose of delivering downward redispatch should qualify as “additional”. We

support this principle and find that it also should be possible to use electricity for

producing renewable hydrogen in periods with countertrade. Therefore, we find that

the delivery of any remedial action in the internal market for electricity due to imbal-

ance settlements, including both downward redispatch and the need for counter-

trade should be reflected in the delegated act.



Denmark does not support the draft delegated act with regards to perma-

nent exemptions for the additionality criteria (grandfathering) for installa-

tions operating before a specific date.

We acknowledge the need for a transitional phase due to the time needed for in-

vestors and regulators to develop the measures for documenting compliance. This

is especially the case when documenting temporal correlation. However, it is prob-

lematic that installations producing hydrogen will be permanently exempted from

the additionality criteria (article 8) if they start operation before 1 January 2027.

This will have the risk of undermining the integrity of renewable hydrogen and

RFNBOs. Thus, there is a real risk of expanding the emissions of greenhouse

gases and the use of fossil fuels in the EU to meet the obligations on RFNBO and

renewable hydrogen used in transport and industry, which is part of the proposal for

a revised renewable energy directive and the REPower EU. The Danish govern-

ment strongly prefer a delegated act on RFNBO without permanent “grandfather-

ing” for hydrogen plants starting operation before 2027.



Denmark proposes instead of ‘grandfathering’ that, after 2027 all fuel pro-

ducers sourcing from the grid should be obliged to have in place a renew-

able PPA with one or more installations producing additional renewable

electricity if the share of renewables does not exceed 90 percent in the

bidding zone.

Side 2/3

KEF, Alm.del - 2021-22 - Bilag 412: Orientering om høringssvar om delegeret retsakt om vedvarende brint, fra klima-, energi- og forsyningsministeren

Instead of the proposed exemptions for installations that are in operation before

2027, all hydrogen plants sourcing from the grid should be required to have renew-

able PPA’s with new renewable energy installations, if the share of renewables

does not exceed 90 % in the bidding zone. This is due to the fact, that there is no

justification for permanent grandfathering since this damages the integrity of the ad-

ditionality criteria and thus can increase emissions of greenhouse gasses in the

EU. We believe that all fuel production of renewable hydrogen and RFNBO should

have concluded renewable power purchase agreements with economic operators

producing additional renewable electricity corresponding to the amount of con-

sumed electricity after 2027 if they source electricity from the grid and the share of

renewables does not exceed 90 % in the bidding zone.



Denmark does not support the draft delegated act with regards to the

proposal that electricity used during a period with a price lower or equal

to 20 Euro per MWh or lower than 0.36 times the price of an emission al-

lowance is automatically regarded as renewable for any source.

We find it very difficult to understand the justification for this provision and the con-

sequences hereof. There is a real risk that electricity from ‘must run’-capacity such

as nuclear or inflexible power plants using coal will be included in the electricity

supply for RFNBO. It is crucial that electricity from non-renewable sources are not

labelled as RFNBO’s as this could increase emissions and damage the integrity of

RFNBO’s.



Last but not least, Denmark highly urge the European Commission to

find a well-balanced approach forward for renewable hydrogen and

RFNBO and that the rules are as transparent, clear and easy to under-

stand as possible – both for investors, regulators and the general public.

Side 3/3