The Low-Carbon Fuels Delegated Act sets rules on how hydrogen can be classified as “low-carbon,” covering production pathways like natural gas reforming with carbon capture, non-exclusively renewable-powered electrolysers, and methane pyrolysis.

The rules require producers to demonstrate at least 70% fewer emissions than fossil fuels – equating to 28.2gCO2eq/MJ – through a methodology for full lifecycle emissions.

This includes upstream methane emissions and actual carbon capture rates.

It comes after the European Parliament voted not to object to the rules originally proposed by the European Commission, after assurances were offered by Energy Commissioner Dan Jørgensen.

They included confirmation of grandfathering provisions, meaning projects coming online early will not face stricter rules in the near term, a commitment to technology neutrality, and a new methodology to allow the use of nuclear and renewable power purchase agreements.

The rules provide project developers with legal certainty on how to develop low-carbon production after the EU’s heavy focus on green hydrogen.

Posting on LinkedIn, the European Commission’s Deputy Head of Unit, Energy Security and Safety, DG-ENER, Ruud Kempener, said the rules would allow Europe to move forward with “confidence.”

In its third European Hydrogen Bank auction – which will offer per kilogramme subsidies to producers – the EU is set to support low-carbon hydrogen for the first time.