Role of public authorities in green hydrogen ecosystem constructions

Hydrogen buses are more than just a vision for tomorrow; they are a tangible solution for today's public transport needs. As cities strive to reduce their carbon footprints and move away from diesel-dependent fleets, hydrogen buses are emerging as a game-changer. But what exactly makes these buses so special, and how are they set to revolutionise public transport?  

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Understanding Hydrogen Buses

What Makes Hydrogen Buses Work?

Imagine a bus that emits nothing but water —sounds incredible, right? That’s the promise of hydrogen fuel cell buses. They use “green hydrogen” stored in tanks onboard, which is then combined with oxygen in a fuel cell to produce electricity. This electricity powers the bus’s electric motor, with the only byproducts being water and heat. It’s a clean, efficient, and sustainable way to power public transport.

How Do Hydrogen Fuel Cells Work?

The magic happens inside the fuel cell. Hydrogen enters the cell at the anode, where it is split into protons and electrons. The electrons travel through an external circuit, creating electricity, while the protons pass through a membrane to the cathode, where they combine with oxygen to form water. This process generates electricity without combustion, meaning no harmful emissions are produced.

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Benefits of Hydrogen Buses

Environmental Impact

Hydrogen buses are a boon for the environment. Traditional diesel buses emit significant amounts of CO2 and other pollutants, contributing to air pollution and climate change. Hydrogen buses, on the other hand, use hydrogen, so they only emit water , making them a clean alternative. By replacing diesel buses with hydrogen-powered ones, cities can significantly reduce their carbon footprints and improve air quality.

Efficiency and Range

One of the standout benefits of hydrogen buses over electric ones is their range and refuelling time. While electric buses need lengthy recharging periods, hydrogen buses can be refuelled in a matter of minutes, similar to diesel buses. They also offer a longer range, making them ideal for routes that require long travel distances or for use in cities where recharging infrastructure is limited.

The Future of Hydrogen Buses in Public Transport

Technological Advancements

The future looks bright for hydrogen buses as technology continues to advance. Improvements in fuel cell efficiency and hydrogen storage are making these buses more competitive with traditional diesel and electric buses.

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Conclusion

Hydrogen buses are steering public transport towards a greener future. Their environmental benefits, efficiency, and economic potential make them a vital component of sustainable urban mobility. As cities and countries continue to invest in hydrogen technology, the transition to cleaner, hydrogen-powered public transport becomes not just a possibility, but a reality!

Find out which hydrogen buses run on renewable hydrogen in the Lhyfe Heroes catalog: H₂ products (lhyfe-heroes.com)

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The European Union is currently defining the regulatory framework to create a new clean Hydrogen economy in Europe. Since 2020, the European Commission proposed many ambitious measures to support  Renewable Hydrogen. Indeed, true renewable hydrogen (produced through electrolysis only with renewable electricity)  is identified as one of the key lever to achieve European goals in terms of CO2 reduction. And the challenge is big : the EU even increased the target of renewables in our energy mix from 32% to 43%, because we need to act for climate.

On the 10^th of February 2023, the European Commission proposed new rules to define how to produce renewable hydrogen and its derivatives (as Renewable Fuels of Non-Biological Origin (soon well known RFNBO). As the text received positive feedback from the European Parliament and Council, it should be very soon adopted in its final version.

Let’s explain them as simply as possible, thanks to Alice Ruczinski, working as European Funding Manager for Lhyfe.

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How to define RFNBO?

Renewable Fuels of Non-Biological Origin (RFNBO) refers to the renewable fuels that are produced using non-biological sources. The term may designate renewable hydrogen itself but also its derivatives, i.e. advanced fuels based on renewable hydrogen. To be called this way, RFNBOs producers have to respect some rules to be sure that the final product that will be used in the transport sector or in the industry really has the lowest CO2 footprint possible.

To put it in a nutshell, RFNBO is green renewable hydrogen but also what is produced with green hydrogen such as SAF (sustainable Aviation Fuel), green ammonia, green methanol. 

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What are the main rules proposed by the EU to produce RFNBO? 

As you might know (and if not, please refer to this article) to produce RFNBO (aka renewable  hydrogen and its derivatives if you follow me) it requires a lot, but really a lot, of renewable electricity. 

This new European rule determines clearly which electricity to use and how to use it: There will be two types of possible connection between an electricity plant  and a hydrogen plant : 

• Direct connection : the hydrogen production asset will be directly connected to the electricity production asset. For example this is how the hydrogen is produced in Lhyfe’s pilot plant of Bouin
  

• Grid connection : the hydrogen production asset is connected to the grid and use electricity purchased through PPAs (Power purchase Agreement) with renewable electricity producers and that is : 

1. renewable 
2. additional. That is to say using renewable electricity production plant that were built less than 36 months before the start of the RFNBO production plant *
3. generated at the same time than the production of hydrogen. To be precise, it will have to be electricity produced the same month before 2030 and even the same hour after 2030.
4. generated in the same country than the production site of hydrogen **
    

In the meantime, what happens with other types of hydrogen?

Grey hydrogen, which still represents today the majority of the hydrogen available will have to go low-carbon and find certificates to do so. Different types of certificates will exist per country and depending on the scope of the methodology used to calculate CO2 emission. 

For RFNBOs, the major part of the lifecycle of the final product will be taken into account. It will be possible to trade those certificates, in a similar way as the carbon quotas today.

Remember that for now, it is just a proposal and final adoption will come soon, we will keep you posted !

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Reference : In the revised Directive on Renewable Energy (RED) proposal in 2021, 6^th IPCC Report on the state of knowledge of climate change, its widespread impacts and risks, and climate change mitigation and adaptation

* this rules doesn’t apply in countries where the electricity from the grid has a carbon content lower than 18g CO2e/ MJ) 

**except for Sweden which is divided in 4 zones

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The TIRUERT, or “Taxe Incitative Relative à l'Utilisation d'Énergie Renouvelable dans les Transports” (Incentive tax on the use of renewable energy in transport) aims to promote the use of renewable energy in transport by enabling developers of electric vehicle charging stations and renewable hydrogen refuelling stations to issue renewable energy certificates. These certificates can then be sold to oil operators, enabling them to meet their renewable energy obligations and avoid paying additional tax.  

This is not a new mechanism, as it has existed for some twenty years (under the name TIRIB, then TGAP).  

The French Finance Act of 2022 made developers of electric vehicle charging stations and hydrogen mobility players eligible for the scheme.  

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Key mechanism of the TIRUERT  

How does the TIRUERT work?  

Today, all fuel distributors in mainland France are subject to the TIRUERT. If they achieve a biofuel incorporation rate of 9.9% for petrol and 9.2% for diesel, then the incentive tax becomes zero.  

The legislation allows these distributors to purchase electricity or hydrogen certificates used in the transport sector. This economic alternative enables them to avoid paying the incentive tax. It can also replace the obligation to physically incorporate biofuels into fuels, depending on market conditions.  

Renewable energy certificates are issued by developers of charging stations or hydrogen refuelling stations open to the public, thus improving the economic competitiveness of their projects: they receive income from the sale of these certificates. This income is proportional to the electricity or hydrogen consumed at the charging points or hydrogen refuelling stations.  

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Eligibility and conditions  

• For a network of electric charging stations (IRVE) to be eligible for the TIRUERT scheme, it must meet several conditions:  
  

1. Regulatory compliance: The IRVE must comply with the general provisions on quality of service and interoperability, as well as the requirements for submitting data on the transport.data.gouv platform.  

2. Registration : Charge points must be registered on the Carbure platform managed by the Direction Générale de l'Energie et du Climat (DGEC).  

3. Audit and control: The administration may require an audit by a COFRAC-accredited body to verify the existence and compliance of chargepoints.  

AZOR ENERGY offers support at every stage of the project, from registration on the Carbure platform to the sale of certificates to oil operators.  

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• For a hydrogen fuelling infrastructure network to be eligible for the TIRUERT scheme, it must also meet a number of conditions:  

1. Regulatory compliance: Hydrogen refuelling stations must comply with current safety and quality standards. Hydrogen must be produced by electrolysis and used in mobility.  

2. Registration: Stations must be registered with the Direction Générale de l'Énergie et du Climat (DGEC) in the Carbure platform.  

3. Certification of consumption: Hydrogen consumption must be certified by approved meters and read regularly.  

AZOR ENERGY offers support at every stage of the project.  

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Impact and benefits  

The TIRUERT system is an incentive system that provides additional income to support the deployment of public electric charging and hydrogen distribution networks in France. By facilitating a win-win scenario between fuel distributors and recharging infrastructure operators, it encourages investment in renewable energy projects and supports the national decarbonisation strategy.  

Certification and reporting  

IRVE operators must declare the amount of renewable electricity consumed each quarter per charge point. The amount of energy supplied is based on certified meter readings, and the renewable share of electricity used is calculated on the average of the French energy mix over the last two years. In 2023, this rate was 26.02%, and it is not yet known for 2024.  

For hydrogen filling station operators, the implementing decrees are in the process of being published.  

Future prospects  

TIRUERT's market potential is significant, with an estimated 80 to 120 GWh of renewable electricity expected to be marketed in 2024 (representing volumes from 2022 to 2024). This market is helping local authorities and investors to reduce their selling prices in a context of rising energy costs, thus contributing to the wider adoption of renewable energy solutions in the transport sector.  

For hydrogen, although the volumes involved are not yet known, the Tiruert principle is expected by station operators already committed to renewable hydrogen, to accelerate the adoption of this new fuel by rewarding the customer in the pump price.  

Conclusion  

The TIRUERT scheme is an essential tool in France's renewable energy strategy, promoting the growth of a greener transport sector. As the market evolves, the role of the TIRUERT tends to expand, supporting the wider adoption of renewable electricity and renewable hydrogen in transport.  

(For more detailed information and assistance on how to participate in the TIRUERT mechanism, you can contact AZOR ENERGY).  

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