Green hydrogen remains an expensive resource, and the infrastructure needs to be built through major investments, which is why it is understandable why Romania has decided to cut the mandatory target of 5.5% for green hydrogen in transport to a minimum of 1%, experts in the field told us. However, this could drive away most investors, other sources say.
Investments committed to clean hydrogen have now exceeded $110 billion, making this sector the fastest growing clean energy technology of all time.
“It is difficult for me to foresee further investments in the hydrogen sector that have not already been committed in Romania if the objectives of the hydrogen law are reduced to the level at which they were put out for public consultation, the political signals being simply insufficient to demonstrate the existence of a sizeable and stable market for green hydrogen, which would justify significant additional investments in the country”, claims one of the specialists contacted by Energynomics.
“In my opinion, the biggest danger for Romania is policy instability. I have observed with great concern that the obligations set out in the 2023 Hydrogen Law have been called into question by a proposal by the Ministry of Energy to amend the law, with a much lower target for hydrogen supply in Romania. As an investor, policy instability represents a major risk that is being treated with great care. A downward adjustment of the obligations, just 2 years after adoption, would seriously damage the momentum that is currently being built in Romania. Beyond these, there is of course much to be done, especially in terms of ensuring correct certification processes, building the hydrogen supply certificate trading system, technical rules and regulations, but these are secondary and I am confident that they will eventually develop if the market is created, through the Hydrogen Law or through a transposition of the Renewable Energy Directive that respects the existing legislation in Romania,” says the quoted source.
“Romania should comply with the law adopted in 2023 and create the system of certification, compliance and verification and, of course, of marketing the certifications. This will allow the industry to build its hydrogen generation capacity and demonstrate that the objectives are met,” adds the quoted source.
Through the RED III Directive, member states, including Romania, are required to introduce clean hydrogen in industry and transport. By 2030, almost half of industrial hydrogen must be green. Heavy transport also has targets: at least 5.5% of final energy consumption to come from hydrogen or synthetic fuels, now lowered to a minimum of 1%.
“The stakes for Romania are huge: decarbonization, storage of wind and solar energy that is now being lost, billions of euros and a place on the European energy map… Romania already produces 200,000 tons of hydrogen per year, but almost all of it is “gray”, obtained from gas. Cheap but polluting hydrogen, used almost exclusively in the chemical industry. The official plan aims for a change of direction,” claim officials from the Smart Energy Association (AEI).
“The problem is the infrastructure: there are no pipelines, filling stations or dedicated support schemes. Law 237/2023 only provides a general framework. Without clear rules and financial incentives, projects risk getting stuck,” says AEI.
The transition to green hydrogen has begun, but timidly. Romania has only a few notable projects: the Ro-HydroHub in Râmnicu Vâlcea (140 million euros from the PNRR), the 20 MW OMV Petrom facility in Petrobrazi and a 2.5 MW urban unit in Cluj. In parallel, Delgaz Grid is testing the mixture of hydrogen with natural gas in distribution networks, to verify the safety of use in power plants and household appliances.
Not all projects have gone well. The hydrogen trains, a 360 million euro project, were canceled after three failed tenders. The funds were redirected to road infrastructure, an AEI analysis also shows.
