Hydrogen legal regulation in the EU

Sustainable development in the energy sector is one of Lithuania’s most important priorities. Therefore, businesses and Government have to consider future challenges and opportunities in the sector to reach this goal. Hydrogen is seen as a new opportunity to decarbonise the country’s industrial, transport, energy and building sectors.

Moreover, many experts consider Nordic countries as possible future Hydrogen exporters. Many EU countries indicate that their Hydrogen demand will exceed supply over the next 10 years. Therefore, it will be an excellent opportunity to export Hydrogen from the Baltic States, which are seen as potential Hydrogen producers due to good opportunities for expanding renewable energy.

Dovilė Greblikienė, the partner at Ellex in Lithuania, made an overview of EU Hydrogen Strategy, Hydrogen regulatory frameworks in EU jurisdictions, as well as identified opportunities and barriers in the annual Baltic Energy Forum, organized by Verslo žinios together with Ellex and other partners in Lithuania.

We welcome you to watch a record of Dovile`s speech here.

The most opportunities while developing the Hydrogen industry is for the countries that have:

• A stable electricity grid
• Affordable, green, and reliable electricity – large RES availability
• Commercially viable (without subsidies) onshore wind and large-scale solar projects
• A strong innovation environment, large industrial companies, PE-funds, pension funds that are willing to invest in Hydrogen
• An extensive gas infrastructure
• The possibility to use depleted natural gas deposits for Hydrogen storage

Barriers in various countries include:

• A lack of clear strategy and clarity over business models that underpin private investment
• The necessity of significant investments into energy infrastructure – whether by adapting existing infrastructure or building from the ground
• Costs – the main obstacle of producing “green” Hydrogen is the amount of investment that needs to be made
• Limited electricity generation capacity and power
• Regulatory barriers and insufficient regulatory framework – the process to obtain various permits is complicated and lengthy
• Technical/operational requirements related to connecting to the gas grid

Let’s hope Lithuania will not lose its target and will take all the necessary steps to take advantage of its potential.