The government of Netherlands has opted for a correction factor of 1.0 for the use of renewable hydrogen in refineries (purification plants), the Dutch Natural Hydrogen Program reported. This means that this use counts just as heavily for European obligations as direct use in transport. The previous proposal was a factor of 0.4.
European rules oblige fuel suppliers to supply renewable hydrogen (RFNBO) to the mobility sector. They meet this requirement, for example, by directly using renewable hydrogen in transport, such as in trucks. And using synthetic fuels (e-fuels). But this requires a lot of money. For example, to build filling stations or to produce the e-fuels.
Another way to meet the obligations is the ‘refinery route’. Refineries then use renewable hydrogen in the production process of transport fuels, such as petrol and diesel. These factories already use hydrogen made with natural gas. So no major adjustments are needed in the factories. This makes it possible for refineries to switch to renewable hydrogen relatively easily and at low cost.
Previous proposal made refining route more expensive
Fuel suppliers demonstrate that they meet their obligation via a system of tradable rights. They can create rights themselves via one of the 3 options (direct use, e-fuels or refining route). Or they can buy rights from other fuel suppliers who have used and supplied renewable hydrogen to mobility.
Fuel suppliers receive one right for each unit of renewable hydrogen they supply. But earlier, the Ministry of Infrastructure and Water Management (IenW) proposed to give the use of renewable hydrogen in refineries a correction factor of 0.4. This means that every kilogram of renewable hydrogen that a refinery uses would not be worth one right, but 0.4 rights. Refineries would then have to use 2.5 times as much hydrogen to obtain one right. This would make the refining route more expensive and less attractive.
The Ministry of Infrastructure and Water Management and the Ministry of Climate and Green Growth (KGG) base the new correction factor of 1.0 on a study by TNO. This study shows the consequences of the previously proposed factor of 0.4 for the business model of electrolysis projects in the Netherlands. And its influence on the sustainability of the industry. Furthermore, the study examines the price difference between imported e-methanol and the refining route. TNO mainly looked at the blending of imported e-methanol in petrol as a way to meet the obligation.
Describe more in press release ( translated by Google) https://tinyurl.com/yc5ffves