Introduction

On 11 April 2024 the European Parliament adopted the Renewable and Natural Gases and Hydrogen (RNGH) Directive and the RNGH Regulation - otherwise known as the Decarbonized Gas and Hydrogen Package.

This paper seeks to understand the impact of this regulatory framework, which is aimed primarily at the development and operation of hydrogen networks, on the existing natural gas networks (200,000 km of transmission and over 2,000,000 km of distribution pipelines) and the emerging hydrogen networks (at present, total length of hydrogen pipelines is only ~2,000 km - mostly privately owned, small capacity unregulated lines). In particular, the paper seeks to determine whether the new framework provides flexibility, enabling a step-by-step development of hydrogen networks, whose topology, scale and size will depend on the supply and demand for hydrogen (which is at present highly uncertain) and on the decarbonisation pathways chosen by (mostly) industrial users (i.e. via renewable and/or low - carbon hydrogen). It also seeks to determine whether the framework provides flexibility, enabling the required evolution of natural gas networks. The paper also seeks to establish whether the new framework provides assurance that network decarbonisation - constituted by phasing out natural gas networks and phasing in hydrogen networks - will take place in a co-ordinated manner across the EU without negatively affecting the security of natural gas supply.

This paper will be part of the OGEL Special Issue on "Contractual, Legal, and Regulatory Dynamics for Hydrogen Projects and Markets". More information here www.ogel.org/news.asp?key=781