The global energy transition is accelerating, and both hydrogen and renewable natural gas (RNG) are emerging as key players in the decarbonization landscape. As industries and governments push for cleaner alternatives to fossil fuels, regulatory frameworks are evolving to define the roles of these energy sources. Companies that can navigate these changing regulations will have the opportunity to lead in the energy transition.

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Hydrogen: A Regulatory Push for Infrastructure and Market Development

Hydrogen has gained significant momentum as a future energy carrier, particularly in Europe. The EU Hydrogen and Decarbonized Gas Market Package aims to establish a regulatory framework for hydrogen infrastructure, market rules, and network operations.

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One of the key elements of this regulatory push is the introduction of network tariff discounts—allowing Member States to offer up to 100% discounts for renewable gases and 75% for low-carbon hydrogen. These incentives are designed to accelerate hydrogen adoption and reduce the cost barriers associated with infrastructure development.
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In the Netherlands, the current Gas Act does not yet cover hydrogen, prompting the government to develop new legislation. The forthcoming regulations will address key issues such as market design, grid responsibilities, and safety standards, ensuring hydrogen’s integration into the country’s energy system.

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Renewable Natural Gas (RNG): Expanding Production and Grid Access

RNG, also known as biomethane, is playing a growing role in the EU’s clean energy strategy. Under the REPowerEU plan, the EU has set an ambitious target of producing 35 billion cubic meters (bcm) of RNG annually by 2030. This goal is being supported by initiatives such as the Biomethane Industrial Partnership, which aims to boost investment and innovation in the sector.

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A crucial part of the evolving regulatory framework for RNG is the revised Renewable Energy Directive (RED). The new policies expand the fuel supply obligation to include all RNG uses, not just transport. Additionally, EU recommendations on permitting are designed to accelerate project approvals and grid connections for RNG production facilities.
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To integrate RNG more effectively into existing natural gas networks, Member States are encouraged to address regulatory challenges, such as connection fees and infrastructure costs. Simplifying these processes will ensure that RNG producers can inject their gas into the grid more efficiently and at a lower cost.

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Challenges and Industry Adaptation

Despite strong regulatory backing, both hydrogen and RNG face challenges that could impact their long-term viability.

• For hydrogen, industry leaders have raised concerns over regulatory uncertainties, infrastructure readiness, and the pace of market development. Without clear rules for hydrogen transportation and storage, its widespread adoption remains challenging.
• For RNG, the biggest challenge lies in ensuring market alignment across different EU Member States. In some cases, regulatory disputes—such as trade conflicts over domestic production requirements—have slowed down the adoption of RNG in certain regions.

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The Future of Hydrogen and RNG: What Companies Need to Know

The regulatory landscape for both hydrogen and RNG is evolving rapidly. As governments refine their energy policies, businesses in the energy sector must remain agile and informed. Companies that proactively adapt to new market incentives, compliance requirements, and emerging opportunities will gain a competitive advantage in the transition to a low-carbon future.

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With the right regulatory framework in place, both hydrogen and RNG have the potential to play pivotal roles in achieving global decarbonization goals. By staying ahead of policy changes and leveraging strategic partnerships, companies can ensure they remain at the forefront of the clean energy revolution.