The EU criteria for renewable fuels of non-biological origin (RFNBOs) are intended to ensure that green hydrogen is sustainable, sources from renewable energies and does not place an additional burden on the electricity system. However, experts criticize that the requirements – especially regarding additionality, simultaneity, and spatial correlation – could hinder the market ramp-up of the hydrogen economy and impair the economic viability of individual projects.
In the study “Green Hydrogen Production under RFNBO criteria,” the Institute of Energy Economics (EWI) at the University of Cologne analyzes for the first time both the macroeconomic and microeconomic effects of the RFNBO criteria. The study is based on two EWI models: the HYEBRID energy system model is used to examine the effects of the criteria on the European energy and hydrogen system, while the SOPHIAA model maps the optimal supply of renewable electricity to an electrolyzer. The study was funded by the Hydrogen and Molecules Funding Initiative of the Society for the Promotion of the Energy Economics Institute at the University of Cologne.
The results show that applying the RFNBO criteria can increase the production costs for green hydrogen in Germany by up to 20 percent. In particular, the hourly correlation between generation and use leads to higher investment and coordination requirements. While the effects on the overall energy system remain minor, individual operators face significant additional costs and increased effort in procuring and marketing electricity from renewable energies.
