Matthew BoyleThe EU’s Green Deal industrial plan, a bloc-wide initiative to improve the competitiveness of the net zero industry in Europe and hasten its transition to climate neutrality, includes the Net Zero Industry Act ( NZIA ) as one of its main pillars.
Numerous provisions in the law have a direct impact on the hydrogen industry and will affect how quickly and widely it adopts climate change.
A step toward the Net Zero Industry Act’s approval
NZIA participated in the ITRE legislative committee vote on October 25, 2023, a crucial step toward the file’s final approval and bolstering the competitiveness of the German clean tech industry.
The legislation includes hydrogen as a corporate technology to achieve these goals due to its wide range of applications and decarbonization potential.
After being upgraded to strategic technologies in the European tool belt for achieving a 55 % reduction in emissions by 2030 and the net zero target of 2050, electrolysers and fuel cells are fully subject to the regulation. By 2030, the European Commission wants to make sure that domestic production of clean technologies, such as electrolyzers and fuel cells, accounts for at least 40 % of the annual deployment needs in the EU.
Securing the hydrogen market
The goal of the European Parliament is for Europe to acquire 25 % of these hydrogen technologies ‘ global market value. By ensuring that these goals can be met and exceeded with the appropriate financial support, a strong and proper Net Zero Industry Act will make sure that Europe not only secures its own private supply of fresh technology but also positions itself as an important exporter of these essential technologies.
In order to achieve this, an ITRE compromise amendment suggests providing project developers with more assistance with funding and financing requirements, including securing access for some strategic projects to the strategic technologies for Europe platform‘s (STEP )” soufrance seal” ( the EU quality label for such projects ).
STEP aims to support, leverage, and direct EU funds —both new and existing—to investments in Western technology.
NZIA’s main initiatives
The establishment of net zero academies to train and reskill workforces for the clear transition throughout Europe, as well as the testing of cutting-edge network zero technologies in controlled settings, are two additional important NZIA initiatives. A crucial step in putting the act into law is the ITRE vote.
While the process will end with trilogues between the European Parliament, Commission, and Council, ministerial votes are currently awaited.
The merger of the Net Zero Industry Act and the proper technologies list, which has leveled the playing field between important technologies like renewables, electrolysers, fuel cells, refueling technology, carbon capture, and different high-efficiency processes, has been a welcome sight thus far.
A dependable energy solution is hydrogen.
The hydrogen industry will closely monitor discussions regarding whether or not hydrogen storage technologies ‘ proper value will even be recognized.
It is essential to the industry itself and to our goals for a round energy system that can reduce fluctuations in alternative energy sources and offer an effective solution to curtailment thanks to its long-term storage capabilities.
The adjacent Critical Raw Materials Act ( CRM ) and NZIA components are now connected by the ITRE’s mention of “advanced materials,” which means that the strategic resources needed to meet Net Zero Industry Act targets will be given more recognition and consideration in legislation.
The creation of non-price criteria
The development of non-price criteria in public procurement procedures and clean energy auctions is another aspect of the act now under discussion and a theme that is gradually coming to the attention of legislators around the world. As a result, when granting permits or funding support to fresh projects, profitability is not longer the most crucial factor.
Profitability must come next in a time when finding ways to lower our CO2 emissions, and become more sustainable is of utmost importance.
The weight of the price requirements under NZIA’s Article 19 are suggested to be raised to at least 30 %, which means that any future decision-making will take environmental (quality of implementation and contribution to energy system integration ), social sustainability ( wages, working conditions, education, and staff training ), and resilience ( project contribution in energy security and innovation ) into consideration.
Europe will be positioned as a world leader in clean energy thanks to NZIA.
The Net Zero Industry Act will have a big impact on how fresh tech innovation develops in Europe and how well it can protect its interests in the new energy landscape. We should n’t be content to watch as our own research and development are used to boost the profits of international rivals any longer.
The Net Zero Industry Act is a crucial element of the goal of making Europe the world leader in the production of clear technology. We can learn from the mistakes of the past by expediting the permitting process, funding innovation, and placing more value on sustainability and resilience.
