20 Apr 2023 About Partners

REDIII: An Unprecedented Signal on the Use of Green H2 and CCU Fuels in Industry

Exciting and rapid developments are currently underway in Europe towards the deployment of renewable energy and Carbon Capture and Utilisation (CCU) technologies.

At the end of March the European Parliament, the Council of the European Union and the European Commission finalised their interinstitutional negotiation - known as “trilogue” - around the revision of the Renewable Energy Directive (REDIII). The final text includes an ambitious target of 42.5% renewable energy by 2030, which is a significant step towards the scale-up of renewable energy.

Additionally, the directive mandates a 14.5% reduction of greenhouse gas (GHG) emissions in EU transport, marking a major milestone for hard-to-abate transports such as aviation in particular.

While the final deal for CCU fuels in transport fell short of the original proposal of a 2.6% target for renewable fuels of non-biological origin (RFNBOs), the final deal sets a joint target of 5.5% combining advanced biofuels and RFNBOs, with a 1% sub-target for RFNBOs. This represents a significant advancement in the ramp-up of CCU fuels in modes of transport such as aviation, maritime, and heavy-duty vehicles.

The final deal also sends an unprecedented signal on the use of green hydrogen and CCU fuels in industry, setting a target of 42% of hydrogen to be RFNBOs by 2030 and 60% by 2035, thereby providing a clear framework for investing in defossilisation efforts.

The final text must now be formally adopted by the European Parliament and the Council of the European Union.

The steel industry is responsible for around 7-9% of global GHG emissions and the International Energy Agency (IEA) calls for CCU technologies to apply to the majority of primary steel production as one of the levers to decrease dramatically GHG emissions from the sector.

CCU options can lead to the production of bulk chemicals and even fuels. The use of novel technologies such as artificial intelligence, catalysis, and multiscale modeling can help make this happen by the end of the next decade.

The INITIATE project will advance the implementation of circular economy and industrial symbiosis by re-using residual steel gases as a resource for the cross-sectorial, more efficient and less wasteful manufacture of urea, at a significantly reduced carbon footprint.

Read about the REDIII act here.

More about the INITIATE project here.