Changes from report parliamentary committee draft to plenary report

Added3. This Directive establishes common rules for the transport, supply and storage of hydrogen using the hydrogen system. It lays down the rules relating to the organisation and functioning of this sector, access to the market, the criteria and procedures applicable to the granting of authorisations for networks, supply and storage of hydrogen and the operation of systems.

Added4. This Directive establishes rules for the progressive establishment of a Union-wide interconnected hydrogen system contributing to the long-term flexibility of the electricity system and to the reduction of net greenhouse gas emissions of difficult to decarbonise sectors where no more energy or cost efficient alternatives are available with the highest greenhouse gas abatement potential per tonne of hydrogen used and thereby supporting to the decarbonisation of the Union energy system.

AddedFor the purposes of this Directive, the following definitions apply:

Added(1) ‘natural gas’ means gas that primarily consist of methane, including biogas, as defined in Article 2, point (28), of Directive (EU) 2018/2001 that has been upgraded to biomethane, or other types of gas, that can be technically and safely ▌ injected into, and transported through, the natural gas system;

Added(2) ‘renewable gas’ means biogas as defined in Article 2, point (28), of Directive (EU) 2018/2001, including biogas that has been upgraded to biomethane, and renewable gaseous fuels part of fuels of non-biological origins (‘RFNBO’) as defined in Article 2, point (36), of that Directive;

Added(3) ‘gas’ mean natural gas and hydrogen;

Added(4) ‘natural gas system’ means a system of infrastructures, including pipelines, LNG terminals and storage facilities, which transports gas, that primarily consist of methane and include biogas and gas from biomass, in particular biomethane, or other types of gas that can technically and safely be injected into, and transported through the natural gas pipeline system;

Added(5) ‘hydrogen system’ means a system of infrastructure, including hydrogen networks, hydrogen storage, and hydrogen terminals, which contains hydrogen of a high grade of purity;

Added(6) ‘hydrogen storage facility’ means a facility used for the stocking of hydrogen of a high grade of purity or ammonia, including:

Added(a) ▌ the part of an hydrogen terminal used for storage, excluding the portion used for production operations, and facilities reserved exclusively for hydrogen network operators in carrying out their functions;

Added(b) ▌ large, in particular underground, hydrogen storage, excluding smaller, easily replicable hydrogen storage installations;

Added(6a) ‘hydrogen storage operator’ means a natural or legal person who carries out the function of storage of hydrogen and is responsible for operating a hydrogen storage facility;

Added(7) ‘hydrogen linepack’ means the storage of hydrogen of a high grade of purity by compression in hydrogen networks, excluding facilities reserved for hydrogen network operators carrying out their functions;

Added(8) ‘hydrogen terminal’ means an installation used for the transformation of liquid hydrogen or liquid ammonia into gaseous hydrogen for injection into the hydrogen network or the liquefaction of gaseous hydrogen, including ancillary services and temporary storage necessary for the transformation process and subsequent injection into the hydrogen network, but not any part of the hydrogen terminal used for storage;

Added(8a) ‘hydrogen terminal operator’ means a natural or legal person who carries out the function of transformation of liquid hydrogen or liquid ammonia into gaseous hydrogen for injection into the hydrogen network or the liquefaction of gaseous hydrogen and is responsible for operating a hydrogen terminal;

Added(9) ‘hydrogen quality’ means hydrogen purity and contaminants in line with applicable hydrogen quality standards for the hydrogen system;

Added(10) ‘low-carbon hydrogen’ means hydrogen the energy content of which is derived from non-renewable sources and which meets a greenhouse gas emission reduction threshold of 70 % and the relevant criteria set out in Article 8;

Added(11) ‘low-carbon gas’ means the part of gaseous fuels in recycled carbon fuels as defined in Article 2, point (35), of Directive (EU) 2018/2001, low-carbon hydrogen, and synthetic gaseous fuels the energy content of which is derived from low-carbon hydrogen, which meet the greenhouse gas emission reduction threshold of 70 % and the relevant criteria set out in Article 8 of this Directive;

Added(12) ‘low-carbon fuels’ means recycled carbon fuels as defined in Article 2, point (35), of Directive (EU) 2018/2001, low-carbon hydrogen, and synthetic gaseous and liquid fuels the energy content of which is derived from low-carbon hydrogen, which meet the greenhouse gas emission reduction threshold of 70 % and the relevant criteria set out in Article 8 of this Directive;

Added(13) ‘hydrogen undertaking’ means a natural or legal person who carries out at least one of the following functions: hydrogen production, hydrogen transport, supply, purchase or storage of hydrogen, or operating a hydrogen terminal, and which is responsible for the commercial, technical or maintenance tasks related to those functions, excluding final customers;

Added(14) ‘natural gas undertaking’ means a natural or legal person who carries out production, transmission, distribution, supply, purchase or storage of natural gas, including LNG, and which is responsible for the commercial, technical or maintenance tasks related to those functions, excluding final customers;

Added(15) ‘upstream pipeline network’ means any pipeline or network of pipelines operated and/or constructed as part of an oil or natural gas production project, or used to convey natural gas from one or more such projects to a processing plant or terminal or final coastal landing terminal;

Added(16) ‘transmission’ means the transport of natural gas through a network, which mainly contains high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, with a view to its delivery to customers, excluding supply;

Added(17) ‘transmission system operator’ means a natural or legal person who carries out the function of transmission and is responsible for operating, ensuring the maintenance of, and, if necessary, developing the transmission system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the transport of natural gas;

Added(18) ‘distribution’ means the transport of natural gas through local or regional pipeline networks with a view to its delivery to customers, excluding supply;

Added(19) ‘distribution system operator’ means a natural or legal person who carries out the function of distribution and is responsible for operating, ensuring the maintenance of, and, if necessary, developing the distribution system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the distribution of natural gas;

Added(20) ‘hydrogen network’ means a network of onshore and offshore pipelines used for the transport of hydrogen of a high grade of purity with a view to its delivery to customers, excluding supply;

Added(21) ‘hydrogen transport’ means the transmission or distribution of hydrogen through a hydrogen network with a view to its delivery to customers, excluding supply, irrespective of transmission or distribution, the geographic coverage or the connected customer group of the network;

Added(21a) ‘hydrogen transmission’ means the transport of hydrogen through a network which mainly contains high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, with a view to the delivery of hydrogen to customers, excluding supply;

Added(21b) ‘hydrogen distribution’ means the transport of hydrogen through local or regional pipeline networks with a view to its delivery to customers, excluding supply;

Added(22) ‘hydrogen network operator’ means a natural or legal person who carries out the function of hydrogen transport and is responsible for operating, ensuring the maintenance of, and, if necessary, developing the hydrogen network in a given area and, where applicable, its interconnections with other hydrogen networks, and for ensuring the long-term ability of the system to meet reasonable demands for the transport of hydrogen;

Added(22a) ‘hydrogen transmission network operator’ means a hydrogen network operator that carries the function of the transport of hydrogen through a network and that contains mainly high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of hydrogen, with a view to the delivery of hydrogen to customers, excluding supply;

Added(22b) ‘hydrogen distribution network operator’ means a hydrogen network operator that carries the function of the transport of hydrogen through local or regional pipeline networks with a view to its delivery to customers, excluding supply;

Added(23) ‘supply’ means the sale, including resale, of natural gas, including LNG, or hydrogen, including liquid hydrogen, to customers;

Added(24) ‘supply undertaking’ means a natural or legal person who carries out the function of supply;

Added(24a) ‘hydrogen supply undertaking’ means a natural or legal person who carries out the function of hydrogen supply;

Added(25) ‘storage facility’ means a facility used for the stocking of natural gas and owned and/or operated by a natural gas undertaking, including the part of LNG facilities used for storage but excluding the portion used for production operations, and excluding facilities reserved exclusively for transmission system operators in carrying out their functions;

Added(26) ‘storage system operator’ means a natural or legal person who carries out the function of storage of natural gas and is responsible for operating a storage facility;

Added(27) ‘LNG facility’ means a terminal which is used for the liquefaction of natural gas or the importation, offloading, and re-gasification of LNG, including ancillary services and temporary storage necessary for the re-gasification process and subsequent delivery to the transmission system, excluding any part of LNG terminals used for storage;

Added(28) ‘LNG system operator’ means a natural or legal person who carries out the function of liquefaction of natural gas, or the importation, offloading, and re-gasification of LNG and is responsible for operating a LNG facility;

Added(29) ‘system’ means any transmission networks, distribution networks, LNG facilities or storage facilities owned or operated by a natural gas undertaking, including linepack and its facilities supplying ancillary services and those of related undertakings necessary for providing access to transmission, distribution and LNG;

Added(30) ‘ancillary services’ means all services necessary for access to and the operation of transmission networks, distribution networks, LNG facilities, or storage facilities, including load balancing, blending and injection of inert gas, excluding facilities reserved exclusively for transmission system operators carrying out their functions;

Added(31) ‘ natural gas linepack’ means the storage of natural gas by compression in gas transmission and distribution systems, excluding facilities reserved for transmission system operators carrying out their functions;

Added(32) ‘interconnected system’ means a number of systems which are linked with each other;

Added(33) ‘interconnector’ means a transmission line which crosses or spans a border between Member States for the purpose of connecting the national transmission system of those Member States or a transmission line between a Member State and a third country up to the territory of the Member States or the territorial sea of that Member State;

Added(34) ‘hydrogen interconnector’ means a hydrogen network which crosses or spans a border between Member States, or between a Member State and a third country up to the territory of the Member States or the territorial sea of that Member State;

Added(35) ‘direct line’ means a natural gas pipeline complementary to the interconnected system;

Added(36) ‘integrated natural gas undertaking’ means a vertically or horizontally integrated undertaking;

Added(37) ‘vertically integrated undertaking’ means a natural gas undertaking or a group of natural gas undertakings or a hydrogen undertaking or group of hydrogen undertakings where the same person or the same persons are entitled, directly or indirectly, to exercise control, and where the undertaking or group of undertakings perform at least one of the functions of transmission, distribution, hydrogen transport, hydrogen terminal operation, LNG or natural gas or hydrogen storage, and at least one of the functions of production or supply of natural gas or of hydrogen;

Added(38) ‘horizontally integrated undertaking’ means an undertaking performing at least one of the functions of production, transmission, distribution, supply or storage of natural gas, and a non-natural gas activity;

Added(39) ‘related undertaking’ means an affiliated undertaking as defined in point (12), of Article 2 of Directive 2013/34/EU of the European Parliament and of the Council, or an undertaking which belongs to the same shareholders;

Added(40) ‘system user’ means a natural or legal person who supplies to ▌or is supplied by the system;

Added(41) ‘customer’ means a wholesale customer or a final customer ▌or a natural gas or hydrogen undertaking which purchases gas;

Added(42) ‘household customer’ means a customer who purchases gas for ▌own household consumption;

Added(43) ‘non-household customer’ means a customer who purchases gas which is not for ▌ own household use;

Added(44) ‘final customer’ means a customer who purchases gas for ▌own use;

Added(45) ‘wholesale customer’ means a natural or legal person other than a transmission system operator or a distribution system operator, who purchases gas for the purpose of resale inside or outside the system where that person is established;

Added(46) ‘microenterprise’ means an enterprise which employs fewer than 10 persons and whose annual turnover or annual balance sheet total does not exceed EUR 2 million;

Added(47) ‘small enterprise’ means an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million;

Added(48) ‘security’ means both security of supply of natural gas and technical safety;