Classification of hydrogen
The standard conditions for the use of biomethane and hydrogen guarantees of origin set out the terms and procedures under which a market participant can perform operations with guarantees of origin in the electronic database of guarantees of origin (hereinafter, the register). The standard conditions are established pursuant to § 3210, subsection 12 of the Energy Industry Act.
The register issues the following three types of hydrogen guarantees of origin:
- Guarantees of origin for hydrogen that does not meet the criteria for renewable fuel of non-biological origin (RFNBO);
- Guarantees of origin for other renewable hydrogen;
- Guarantees of origin for fossil hydrogen.
For hydrogen meeting the RFNBO criteria, this concerns renewable hydrogen whose compliance with the RFNBO criteria is certified with the relevant certificate. Compliance with the RFNBO criteria is verified through voluntary schemes recognized by the European Commission (https://energy.ec.europa.eu/topics/renewable-energy/bioenergy/voluntary-schemes_en).
Other renewable hydrogen refers to hydrogen of renewable origin that does not meet the RFNBO criteria.
Fossil hydrogen guarantees of origin are issued to the hydrogen producer for hydrogen produced from fossil sources.
To issue guarantees of origin, the hydrogen producer submits at the beginning of the calendar month following the production period (calendar month) the following in the register: the amount of electricity used for hydrogen production meeting RFNBO criteria, the amount of other renewable electricity, the amount of grid electricity, the amount of fossil electricity, and the total amount of hydrogen produced. Based on the submitted data, the register calculates the number and distribution of guarantees of origin to be issued by hydrogen type.
For hydrogen produced from grid electricity, the portion of electricity considered to meet the RFNBO criteria is calculated based on the share of renewable electricity produced in Estonia relative to electricity consumed in Estonia, using data from the year before last. The remaining electricity is considered fossil.
Electricity delivered directly from an electricity generation installation to a hydrogen production installation via a direct connection is considered to meet RFNBO criteria if, among other conditions, the requirements set out in Article 3 of Commission Delegated Regulation (EU) No 2023/1184 are fulfilled.
Article 4 of Commission Delegated Regulation (EU) No 2023/1184 sets out the requirements that must be met, among other conditions, for electricity consumed from the grid to be fully considered compliant with RFNBO criteria.