Transitioning away from methane: Green Hydrogen and the European Green Deal
The European Union is nearing the adoption of crucial legislation aimed at reducing methane emissions across multiple sectors, directly linked to the European Green Deal and “A European Green Deal” presented by the European Commission on December 11, 2019. Acknowledging methane’s high global warming potential and the urgent need to address energy-related emissions, the EU has put forth a comprehensive Methane Strategy that aligns with its Fit for 55 package. This package seeks to reduce EU emissions by at least 55% by 2030 compared to 1990 levels.
On October 14, 2020, the European Commission officially introduced the Methane Strategy, which focuses on cross-sectoral actions within the EU while also considering international engagement. The Commission’s Work Programme for 2021 included the development of new legislation directly tied to the Methane Strategy, designed to achieve the emissions targets outlined in the Green Deal. The legislation focuses on improved monitoring and verification standards, better infrastructure, and reduction targets for methane emissions across energy, agriculture, and waste sectors. The public consultation process between July and August 2020 provided valuable insights into shaping the strategy.
A key feature of the strategy is the implementation of compulsory measurement, reporting, and verification (MRV) for all energy-related methane emissions. The legislation will enforce strict MRV requirements using the Oil and Gas Methane Partnership (OGMP 2.0) methodology, significantly improving data quality and emissions reporting across the sector. Additionally, mandatory leak detection and repair (LDAR) programs will become compulsory for all fossil gas infrastructure, ensuring that methane leaks are promptly identified and addressed. The European Commission will also consider extending the OGMP framework to the coal sector, focusing on closed and abandoned mining sites that continue to emit methane.
The strategy also legislates against routine venting and flaring in the energy sector, covering the entire supply chain up to the point of production. The OGMP framework will be expanded to include more companies in the oil and gas sectors and will apply to the coal sector, specifically targeting closed and abandoned mining sites. Furthermore, remedial work will be promoted under the “Coal Regions in Transition” initiative to address legacy methane emissions from these sites. The Commission also supports the acceleration of the sustainable biogas market to reduce reliance on fossil methane.
International collaboration forms a crucial part of the strategy, with the EU enhancing its participation in coalitions such as the Climate and Clean Air Coalition. Furthermore, the EU will establish an independent international methane emissions observatory within a United Nations framework, supporting data transparency and global methane reduction efforts. The observatory will be instrumental in identifying and sharing best practices for methane mitigation, particularly in energy-related sectors. The strategy encourages the development of regulatory tools to address methane emissions from fossil energy imports.
In agriculture, the strategy includes creating an expert group to analyse life-cycle methane emissions metrics and establishing an inventory of best practices and technologies by the end of 2021. This will help identify innovative mitigation strategies in the agricultural sector. The strategy emphasises integrating these innovations into EU agricultural policies to ensure effective implementation. Additionally, research into feed additives and livestock management practices will be prioritised to reduce enteric methane emissions.
Meanwhile, the strategy also addresses methane emissions from landfills and wastewater treatment facilities by focusing on improved monitoring and regulatory measures. Furthermore, the EU will promote the sustainable biogas market to reduce reliance on fossil methane and encourage cleaner energy alternatives. This includes incentivising biogas production from agricultural waste and other organic materials. Establishing clear standards for methane capture and utilisation in landfills and wastewater treatment plants will also be part of the strategy.
A promising solution to methane reliance is green hydrogen, produced via electrolysis using renewable energy sources. Green hydrogen offers a viable alternative to methane across several sectors, particularly in electricity generation, industrial processes, transportation, and building heating. The EU has set ambitious targets for green hydrogen production, aiming to install at least 6 GW of electrolyses by 2024 and 40 GW by 2030. This expansion will be crucial in reducing emissions from methane-dependent industries.
In electricity generation, replacing natural gas with green hydrogen in gas turbines or fuel cells can produce electricity with zero carbon emissions. This shift could significantly reduce methane emissions in the power sector. Hydrogen-ready gas turbines are already being developed, and several European utilities have announced plans to transition their natural gas plants to hydrogen. Germany’s Hydrogen Strategy, for instance, envisions significant hydrogen use in power generation.
In industrial processes, natural gas is used extensively as a feedstock, particularly in ammonia production for fertilisers and as a high-temperature fuel. Green hydrogen can replace natural gas in these processes, reducing methane emissions. The European chemical industry is exploring hydrogen-based ammonia production, and steelmakers are investigating hydrogen’s potential in reducing carbon emissions in steel manufacturing. The EU’s Hydrogen Strategy supports these developments with research funding and regulatory incentives.
In transportation, hydrogen fuel cell vehicles can replace compressed natural gas (CNG) vehicles, offering zero-emission mobility and aligning with the EU’s climate goals. Hydrogen-powered heavy-duty vehicles, particularly in freight and public transportation, could substantially reduce methane emissions from CNG vehicles. Several European countries, including Germany and France, are already investing in hydrogen refueling infrastructure to accelerate this transition.
For building heating, gradual blending of hydrogen into existing natural gas networks or developing pure hydrogen distribution networks can significantly reduce methane reliance for residential and commercial heating. The EU’s hydrogen blending trials aim to introduce up to 20% hydrogen in natural gas pipelines. The Netherlands, for instance, is piloting a fully hydrogen-powered residential heating network in the town of Hoogeveen.
The EU’s Methane Strategy can harness green hydrogen’s potential through several targeted measures. Supporting the transition to a hydrogen economy through the development of hydrogen infrastructure will encourage its adoption in sectors reliant on natural gas. Blending mandates for hydrogen into natural gas networks will help create demand and reduce methane use. Incentivising research in hydrogen production, storage, and distribution technologies will accelerate the shift. Market mechanisms like the EU Emissions Trading System and subsidies can further promote green hydrogen adoption by accurately pricing methane.
By directly addressing methane emissions and encouraging the use of green hydrogen, the EU’s Methane Strategy demonstrates how this cleaner energy source can play a pivotal role in achieving the ambitious 55% emissions reduction target by 2030. Integrating green hydrogen into the strategy ensures a comprehensive approach, significantly contributing to the EU’s broader climate goals. Additionally, the independent international methane emissions observatory will facilitate the sharing of best practices, while the strict MRV requirements will ensure accurate tracking of methane reductions. Together, these measures will help the EU significantly reduce methane emissions and transition to a cleaner energy future.
