GH2 Pulse: don’t diminish demand for renewable electrofuels for industries which can’t be fully electrified

The GH2 Weekly Wrap has become the GH2 Pulse! We want to get key insights to you when they matter most rather than waiting until the end of the week.  

It is shaping up to be a busy couple of months for GH2. Our board recently approved a new mission statement and strategy to ensure we are laser-focused on sectors which cannot be fully electrified and where electrofuels made from renewable green hydrogen are indispensable for climate impact and energy security. 

Mission Statement: GH2 exists to take renewables to industries that cannot be fully electrified.

Demand quotas, financial support schemes and policies which stimulate uptake for electrofuels remain critical for iron and steel; fertilisers and chemicals; as well as shipping. Some of those quotas and policies hang in the balance such as the International Maritime Organization’s emissions reduction measures and the EU’s binding targets for RFNBOs. Today’s GH2 Pulse provides an update on these issues and a round up of GH2’s recent efforts to move the needle on uptake for electrofuels made from green hydrogen. 

There have definitely been moments over the last couple of years when many had a sense that the sector was flatlining. That heartbeat, that pulse, is now back. 


Joe Williams,

CEO, GH2

Renewable Energy Directive (RED IV) Leaks 

Various outlets (including Argus) are reporting that the European Commission is considering abandoning the binding renewable green hydrogen (RFNBO) national targets in the next iteration of the Renewable Energy Directive (RED IV). RED aims to enhance the EU's renewable energy targets and policies. It sets a binding target of at least 42.5% renewable energy in the EU’s energy mix by 2030. A leaked draft commission impact assessment includes a proposal to remove the existing binding RFNBO targets in transport and industry, replacing them with an “indicative target” of 8 Mt of renewable hydrogen for industry and refineries. The target would be backed up by “financing support and incentives at EU and national level”. It also proposes admitting low-carbon electrolytic hydrogen as compliant while excluding derivatives like ammonia and methanol. Of course, the leaked draft is just a draft. But the proposal adds to the growing uncertainty regarding the regulatory framework, undermining the demand certainty that most import-oriented projects have been underwriting offtake against. This highlights the importance of greater collaboration between countries and companies planning to supply the EU market. GH2 and partners are launching the GH2 EU Market Access Platform later this month to engage on this and other critical issues such as the review of the RFNBO rules. The platform will ensure domestic and imported production remain complementary to address Europe’s energy security and climate ambition. Please reach out if you would like more information. 

Everything remains in play at the IMO 

Last Friday, IMO Member States concluded a key working group meeting. 
 
Support remained strong for the main elements of the Net Zero Framework (NZF), including a global GHG price, an IMO Fund to support a just and equitable transition, and rewards for zero and near-zero emission fuels. According to UCL Shipping and Oceans, around two thirds of delegations that took the floor supported a centralised system for collecting and distributing revenues. However, the United States, Saudi Arabia and a number of their allies still need convincing and it is too early to tell where things will land.  

Every month that goes by without an effective IMO GHG reduction measure for global shipping makes a more inefficient patchwork of national regional and voluntary initiatives more likely (who can blame them for wanting to make progress?!). However, the right elements are still in the mix at the IMO (a positive from last week’s sessions) but the meetings at the end of the year will demonstrate whether the IMO is actually capable of taking action. GH2 and our partners are all in with that effort. 

Today, the Getting to Zero Coalition launched a statement calling on Member States to secure an ambitious and investable Net Zero Framework. The statement comes in addition to the industry Call to Action coordinated by GH2 and backed by more than 100 companies and organisations, urging Member States to adopt the NZF in 2026.  
 

Eagle eyes on Yara International’s Sluiskil blue ammonia project in the Netherlands 

While emissions reduction at an existing facility using unabated fossil gas is clearly welcome, major questions remain regarding the company’s blue ammonia project inaugurated this week in the Netherlands. The source of the natural gas used is unknown, as are the exact volumes of blue ammonia to be produced. The company has also “yet to decide how to calculate the emissions reductions across all the volumes produced at the plant” (Hydrogen Insight). GH2 remains vigilant and continues to closely monitor the development of blue hydrogen projects worldwide, with an upcoming brief that will dive into the costs and greenwashing risks of blue hydrogen. 

Green fertilisers and African cooperation in action 

GH2 recently launched a new brief, Green fertilisers in the Middle East and North Africa: Decarbonising food systems while strengthening industrial value chains. The brief highlights how countries including Egypt and Morocco can use their renewable resources and existing fertiliser assets to reduce emissions, strengthen food and energy security, and build competitive green industrial value chains. It also takes stock of the financing, demand, and policy measures needed to move projects towards investment. 

These opportunities were brought to life this week during a visit by Kenya’s Special Envoy for Climate Change, H.E. Ambassador Ali Mohamed, and his delegation to Egypt’s Suez Canal Economic Zone. Facilitated by GH2 as part of the Africa Green Hydrogen Alliance (AGHA), the delegation visited the Sokhna industrial area, including a fertiliser facility and the port, to learn from Egypt’s experience and explore stronger Kenya–Egypt cooperation on green manufacturing, renewable energy and green fuels. 

SCZONE highlighted its work to develop local value chains for solar and wind technologies and accelerate green fuel production. This includes green hydrogen/ammonia projects in the economic zone, with one project securing a green ammonia supply agreement through the H2Global auction mechanism, backed by approximately €397 million in financing. 

As members of the Africa Green Hydrogen Alliance, Egypt and Kenya are demonstrating how cooperation between African countries can turn renewable energy potential into stronger industries, more resilient value chains and sustainable economic development. 

Developments in Indonesia and GH2’s APAC Green Hydrogen Alliance Meeting 

Our new member HDF Energy has signed an agreement with Pertamina NRE to develop hydrogen-based renewable energy projects in selected districts of Indonesia. GH2 welcomes another encouraging step for green hydrogen in the region. 
 
The announcement also comes at a good time, as we prepare for GH2’s APAC Green Hydrogen Alliance Meeting on 14 September. The session will look at regional progress in green iron and steel, green hydrogen and shipping value chains across Asia Pacific, and what is needed to move projects forward. We will hear from GH2 CEO Joe Williams, Andrew Fang of Meranti Green Steel, Dr Yan Zhang from the University of Cambridge and Matthew Garland from Fortescue.

Join us online on Monday for what should be a timely discussion! 

Read more information and register for the event.