Remove CO₂ protection to make green hydrogen competitive – NGO
Free allocations in the EU ETS means grey hydrogen producers are protected from carbon costs
A switch from unabated fossil hydrogen to renewable hydrogen is nearly viable economically with prices in the EU Emissions Trading System (ETS) at their current levels, but only if free allocation in the scheme is abolished, according to an analysis by non-governmental organisation Sandbag. The financial costs of such a switch in the methanol and fertiliser sectors are very close to a market price in the ETS of more than €55/t ($65/t) and are already below this price in the refining sector thanks to a market premium expected from selling Renewable Energy Directive II (Red II)-compatible transport fuel. The EU ETS market closed last week at just under €58/CO₂. “The switch to renewable h

Also in this section
6 February 2025
US green hydrogen producer Plug Power says its new spot price programme allows buyers to purchase on-demand and without the limitations of long-term agreements
6 February 2025
This premier event is poised to address the evolving technology and investment demands of North America’s thriving chemical and pharmaceutical sectors
5 February 2025
Technology, policy and infrastructure challenges must all be addressed collaboratively to make seaborne transportation of hydrogen a reality
4 February 2025
Sector awaits clarity on tax credits and loan programmes amid mixed signals from the Trump presidency