In a significant milestone for the European Union's hydrogen policy, EU legislators announced a political agreement on the final element of a proposed "hydrogen and decarbonized gas" package. This deal establishes a grid planning body for hydrogen, which will gradually gain independence from existing gas network operators. The package, initiated by the European Commission in December 2021, aims to promote low-carbon and renewable gases as key contributors to meeting the bloc's 2030 climate goals.

Lead speaker on the file for the European Parliament, Jerzy Buzek, highlighted the historic nature of creating a legal framework for hydrogen on the EU energy market. The compromise deal, set to be formally ratified by the Parliament and Council, solidifies the structure of a supervisory body for hydrogen network operators (ENNOH), emphasizing the EU's commitment to advancing clean energy solutions.

The final text resulted from negotiations that saw several demands, including the introduction of biomethane targets and aggregated demand for hydrogen purchases, dropped from consideration. The compromise introduces a supervisory structure for ENNOH, mirroring existing bodies overseeing gas and electricity networks.

To address concerns about potential market distortions, the compromise ensures the independence of ENNOH from existing gas network operators. In 2026, ENNOH will collaborate on a ten-year hydrogen development plan with established gas and electricity network operators. In 2027, gas companies will integrate some pipelines into ENNOH, retrofitting them for hydrogen transport. By 2028, ENNOH is expected to operate fully independently.

Critics expressed skepticism about the phased-in independence, with concerns that gas grid operators might delay the hydrogen infrastructure rollout by holding onto assets. Hydrogen analyst Gniewomir Flis cautioned against asset stranding, while Greenpeace suggested the agreement avoided addressing potential conflicts of interest in the new hydrogen grid.

Industry group Hydrogen Europe welcomed the creation of ENNOH, emphasizing its equal standing with electricity and gas carriers in advancing the energy transition. Despite earlier proposals, the binding biomethane target was relegated to a recital in the text, and the establishment of a joint buyers cartel for hydrogen was affirmed as fully voluntary.

Additionally, the agreement includes provisions allowing member states to impose restrictions on the supply of natural gas, including liquefied natural gas (LNG), from Russia or Belarus. A solidarity clause among EU countries in the event of gas supply shortages outlines default provisions in the absence of bilateral agreements.

The agreement marks a crucial step in aligning EU policies with the transition to cleaner energy, emphasizing hydrogen's pivotal role in achieving ambitious climate targets.