The German energy multinational says the rules would defeat their purpose.
RWE AG (stock symbol ETR RWE) recently spoke out against new rules proposed by the European Union, saying they would hinder the development of green hydrogen.
The rules aim to accelerate the EU’s energy transition while reducing dependence on Russian imports.
According to RWE, despite the intentions of the proposed rules to accelerate the bloc’s energy decarbonization transition and reduce reliance on Russian imports, the result would be to impede the development of green hydrogen.
The German utility company said the EU’s proposed plan for H2 production “massively thwarts these ambitious goals”.
The European Union’s proposal is that by 2026, the only electricity allowed will be that produced in unsubsidized, newly built solar and wind power plants that will power renewable H2, according to the RWE statement. The proposal would also require electrolyzers to be usable only for H2 production as long as solar and wind farms are in operation, the utility company added.
As a result, full production of green hydrogen will be delayed until at least 2030, RWE said.
According to the utility company, designing the rules in this way will mean that it will no longer be possible to produce renewable H2 in large quantities until 2030. The result will also be that the price of clean fuel will increase unnecessarily. be significantly higher.
Earlier this month, the European Commission unveiled a package of measures under the title of REPowerEU. These measures aim to improve energy efficiency, stimulate supply diversification and support renewable energies as well as targeted investments and reforms.
According to RWE, the means by which REPowerEU intends to achieve these goals will only work against what they seek to achieve.
RWE recently announced its intention to invest billions in the production of green hydrogen and the development of a fuel distribution network to ensure that it will be easily accessible to German industrial companies.
“RWE will actively work towards this in the next consultation and hopes that policymakers will rethink the current criteria proposals,” said RWE’s announcement regarding its German renewable energy strategy.