Legal Alert | Hydrogen reality

EU hydrogen economy in three phases

The EU hydrogen economy is structured in three phases, as outlined in the Hydrogen Strategy. However, given the national realities of developing and operating hydrogen infrastructure, the timeframes for the above phases will be postponed.

Phase I (2020-2024):

• Installation of at least 6 GW of RES-powered electrolysers;
• Primarily local production of hydrogen;
• Mixing hydrogen with natural gas.

Phase II (2025-2030):

• implementation of hydrogen into an integrated energy system;
• achievement of 40 GW of RES-powered electrolysers;
• definition of demand for an EU logistical infrastructure;
• establishment of a network of hydrogen charging stations;
• partial conversion of gas networks for hydrogen transmission.

Phase III (2031-2050):

• achievement of maturity of renewable hydrogen technology.
  
  

Polish Hydrogen Strategy

The Polish Hydrogen Strategy until 2030, with an outlook to 2040, envisages Poland will achieve six goals with a particular focus on the use of low-carbon and renewable hydrogen. These are:

1. implementation of hydrogen technologies in the energy sector;
2. use of hydrogen as an alternative fuel in transport;
3. support for the decarbonisation of industry;
4. production of hydrogen in new installations;
5. efficient and safe distribution of hydrogen;
6. creation of a stable regulatory environment.

The strategy sets out the assumptions for creating space for the development of hydrogen in economic sectors such as energy, heating, transport and industry. In addition, solutions are envisaged to promote hydrogen production in new installations, as well as mechanisms to ensure efficient and safe hydrogen transmission, distribution and storage. Because of the above, it is necessary to create appropriate regulations - in practice, this means the need to introduce new regulations.

 

New definitions in the Energy Law

The proposed regulations introduce modifications to existing provisions and several new definitions, including:

• a change in the existing definition of fuels, adding hydrogen as a fourth separate fuel type (alongside solid, liquid and gaseous fuels);
• renewable hydrogen - hydrogen produced from renewable energy sources in RES installations;
• low-carbon hydrogen - hydrogen from non-renewable sources, produced in a way that does not cause serious damage to the environment and fulfils the requirement of a 73.4% reduction in emissions;
• renewable hydrogen of non-biological origin - hydrogen from RES, produced by the methodologies specified for renewable liquid and gaseous transport fuels of non-biological origin;
• amendments to include hydrogen in the definitions of transmission, distribution, storage, production and sale of hydrogen, supply of heat, electricity, gaseous fuels, vertically integrated undertaking, and system congestion management;introduction of definitions of operators: hydrogen transmission system operator, hydrogen distribution system operator, hydrogen storage system operator, combined system operator, combined hydrogen system operator, combined gas-hydrogen system operator;

The legislation also introduces responsibilities for the operators identified above. 

• introduction of definitions of the following networks: hydrogen transmission network, hydrogen distribution network, geographically confined hydrogen network, hydrogen system, hydrogen system user, hydrogen transmission, hydrogen distribution, hydrogen storage, local hydrogen storage, hydrogen storage facility and small hydrogen storage facility.
  
  

Extension of the competencies and responsibilities of the President of the Energy Regulatory Office

The effect of the introduced regulations will be to extend the competencies and responsibilities of the President of the ERO to include monitoring the functioning of the hydrogen system in terms of:

• conditions for connecting entities to the hydrogen network and network repairs;
• fulfilment of the obligation of hydrogen system operators to publish information on interconnections, use of the hydrogen network and transmission capacity;
• conditions for the performance of hydrogen storage services by energy companies;
• the security of hydrogen supply;
• fulfilment of duties by operators;
• fulfilment of obligations by the energy company.
  
  

Date of entry into force

The regulations came into force on 20 January 2025.