The “strict definition” of green hydrogen at the EU level must be “dismantled and replaced by pragmatic criteria,” according to the German Federal Ministry for Economic Affairs and Energy (BMWE).

“We need to create clarity,” the BMWE said. “The current electrolyser expansion targets will be replaced by flexible targets that are based on concrete projects on the demand side in Germany. Infrastructure projects are started immediately as needed.”

Germany’s push to relax EU green hydrogen rules comes alongside a new government monitoring report, which sets out 10 targets to “become climate neutral and remain competitive.”

The report warns that strict renewable fuels of non-biological origin (RFNBO) criteria could slow electrolyser build-out, with Germany’s 10GW target for 2030 already “barely achievable.”

Rules on additionality, temporal and geographical correlation would drive up costs and slow the hydrogen ramp-up if applied too rigidly, according to BMWE.

Under the RFNBO ruling, green hydrogen producers must source renewable electricity from newly built sources located in the same grid zone. Until 2028, electrolyser operation must be matched with renewables generation on an hourly basis. From then on, matching must be hourly.

The strict rules are intended to ensure green hydrogen is truly green.

Others have advocated for revised RFNBO rulings. In June, the European Parliament called on the Commission to reevaluate the delegated act, suggesting the current framework will limit scale-up and keep costs high.

It urged the Commission to assess the economic impact on producers and users, the feasibility of meeting current criteria, and options to simplify or phase in the rules during the early stages of market development.

However, others have argued that relaxing RFNBO rules may affect projects reliant on the clarity that the criteria can provide.

Matt Hardwick, Partner at global law firm King & Spalding, said that projects, especially ones focused on grid-based power use, are gaining a competitive advantage and softening them could penalise plans already aligned with compliance.