EU puts carbon capture at the heart of hydrogen’s future

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🗞️ Driving the news: The European Commission has unveiled new rules to accelerate the production of low-carbon hydrogen, positioning carbon capture and storage (CCS) as a critical component
• Hydrogen produced using natural gas can qualify as low-carbon if the associated carbon emissions are captured and stored
• The move is a strategic part of the EU's broader goal for net-zero emissions by 2050, with hydrogen expected to play a pivotal role in decarbonizing hard-to-electrify sectors.

🔭 The context: While renewable hydrogen has been regulated by the EU for some time, these new rules provide a formal definition for low-carbon hydrogen, opening the door for diverse energy sources to contribute to the decarbonization effort
• This decision also signals that CCS will be integrated into the EU's climate strategy, particularly for regions relying on natural gas and fossil fuel-based electricity
• The rules are still subject to review by the European Parliament and Council, with final decisions expected later in 2025

🌍 Why it matters for the planet: The EU's emphasis on hydrogen aligns with the region’s ambition to lead in clean energy innovation
• Integrating CCS into hydrogen production could significantly reduce emissions, making it a crucial tool for industries such as aviation, shipping, and heavy manufacturing
• However, this approach relies on scaling both hydrogen and CCS technologies, which may face challenges in implementation, particularly in regions still heavily dependent on fossil fuels

⏭️ What's next: The European Commission is set to launch a public consultation on the role of nuclear energy in hydrogen production in 2026, further shaping the energy mix for a low-carbon future
• Meanwhile, the EU is backing hydrogen and CCS projects with €600 million in funding, aiming to expedite infrastructure development and cross-border energy projects
• This funding initiative closes in September 2025, with winners announced by early 2026

💬 One quote: “Hydrogen will play a key role in the decarbonisation of our economy,” — EU Commissioner for Energy and Housing, Dan Jørgensen, emphasizing the importance of clarity for investors and the industry

📈 One stat: The EU has committed €600 million in funding to accelerate hydrogen and carbon capture projects, with applications for funding closing on September 16, 2025

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