ITM Power welcomes new clean energy directives from European Commission

Energy storage and clean fuel company ITM Power said that new directives announced by the European Commission were “fundamentally important” in the uptake of power-to-gas energy storage and green hydrogen fuel made by electrolysis across the continent.

On Wednesday, the European Commission released new directives - ‘Clean energy for all Europeans: Unlocking Europe's growth potential’ - included a dew definition of energy storage that includes power -to gas, a level playing field for generation, storage and demand response, and a guarantee of origin scheme for hydrogen.

Chief executive Dr. Graham Cooley said: "These new EU directives are fundamentally important for unlocking the potential of rapid response grid balancing using electrolysis and for the deployment of power-to-gas energy storage across Europe. The guarantee of origin scheme also differentiates green hydrogen as a fuel for transport."

The new energy storage definition includes the conversion of electricity to another energy carrier such as hydrogen and is not restricted to power-in/power-out storage so it encourages the adoption of power-to-gas.

The definition will enable power-to-gas plants and electrolyser-hydrogen refuelling stations to offer storage facilities to the electricity market, while selling hydrogen to the mobility and gas sectors.

By providing a level playing field for generation, storage and demand response companies can each provide flexible services to the grid operator. Electrolysers will be able to be instructed by grid operators to provide up and down response for grid services and will have balancing services payments across the EU, which they already have in the UK.

The guarantees of origin scheme for hydrogen will give customers the confidence that they are using a legitimate source of low-carbon gas. A carbon intensity threshold for hydrogen will be applied, and provided it is at, or below the threshold value, it will be classified as low-carbon with certificates awarded.

Shares in ITM Power were up 2.11% to 24.25p at 0908 GMT.