RED III

Key considerations for the implementation of the RFNBO sub-targets in Belgium

The European clean hydrogen sector has been facing a deadlock in Europe: no producer will start producing as long as there is no offtake secured, and no offtaker will start consuming as long as production projects are not implemented to provide affordable clean hydrogen. With the revised Renewable Energy Directive (RED III), the EU has finally set national binding targets for consumption/supply of renewable fuels of non-biological origin (RFNBO) in industry and transport by 2030 and 2035, aiming to break this deadlock and to decarbonize the use of fossil based hydrogen. The translation of these targets to Belgium could lead to a demand of 66-74 kiloton of RFNBO hydrogen in industry by 2030 and 300 kiloton of RFNBO hydrogen in transport (calculations in the body of the text), if certain conditions are met.

This paper suggests an implementation framework for Belgium that would allow the protection of our industrial base that is already facing difficult economic conditions and fierce international competition, while at the same time providing the necessary kick-start for the hydrogen economy that the hydrogen producers and technology players are looking for.