Addressing climate change and achieving decarbonisation are primary objectives of contemporary energy policies worldwide. The European Union has set the goal of achieving climate neutrality by 2050, with the reduction of greenhouse gas emissions at the core of its efforts. In this context, hydrogen is emerging as a central tool for supporting the energy transition and achieving these objectives. The development of hydrogen projects, whether relating to production, storage, or use, creates new prospects but also challenges for national and European legal systems. Among the gaps and problematic issues on the agenda are, inter alia, the following questions:

  • Under which specific category of environmental permitting do hydrogen installations and their ancillary works fall?
  • What land uses can accommodate such installations, and according to which nuisance/disturbance classifications are they recorded?

This article constitutes a preliminary publication of a detailed legal study, which will examine the regulatory framework for hydrogen projects at European level, with a thorough review of the relevant legal framework in approximately 15 countries of the European continent. By placing emphasis on these legislative directions, depending on their level of maturity, and on Greece’s strategy to date for promoting hydrogen, the study seeks to crystallise the challenges faced by hydrogen projects from a legal and environmental perspective in Greece. The study concludes with policy proposals aimed at strengthening the national legislative basis, enabling the faster penetration of hydrogen into the energy market, while at the same time promoting sustainable development and the energy transition.

The role of hydrogen in the energy transition

Hydrogen is considered the fuel of the future, as it is clean, environmentally friendly, and can be used in various applications across the economy. The production of hydrogen through renewable energy sources (RES), known as “green hydrogen,” is one of the main technological solutions promoted for reducing carbon emissions. Green hydrogen is produced through electrolysis, a process in which water is split into oxygen and hydrogen using electricity generated from RES such as wind and solar power. This type of production makes green hydrogen a zero-emission product, since no greenhouse gases are released during the process. As a result, green hydrogen plays a significant role in Europe’s effort to achieve climate neutrality. The use of hydrogen extends to many sectors. In transport, hydrogen is already used in vehicles powered by fuel cells, while its prospects for heavy-duty vehicles, aircraft, and ships are considered promising. In industry, hydrogen can replace fossil fuels in processes requiring high energy input, such as steel and cement production, while its capacity for storing energy from RES adds further value to the energy system, as it can balance the intermittent generation from sources such as wind and solar, thereby enhancing energy stability.

However, despite its significant potential, hydrogen faces challenges relating to production cost and infrastructure. At present, the production of green hydrogen is more expensive than “grey” hydrogen, which is produced from natural gas. Nevertheless, technological developments and investments are expected to reduce costs, making green hydrogen more competitive in the coming years.

European hydrogen strategy and examples from across Europe

The European Union has recognised hydrogen as a key tool for achieving its climate neutrality objectives. By 2030, the EU aims to produce 10 million tonnes of green hydrogen, while by 2050 the full integration of hydrogen into the Union’s energy system is envisaged.

Various European countries have adopted ambitious strategies to promote the production and use of hydrogen, with their legal frameworks largely following rules applied by analogy from those governing natural gas and industrial activities:

  • Germany: Germany is considered a leader in hydrogen policy, with its regulatory framework focusing on integrating hydrogen into its energy network. Hydrogen installations are subject to specific permitting procedures under the Federal Emission Control Act (BImSchG), while safety and environmental protection rules are strict, contributing to the long-term sustainable development of the hydrogen industry.
  • France: Hydrogen in France is subject to a specific legal framework established in the Energy Code, with clear distinctions between “renewable” hydrogen and “low-carbon” hydrogen. In addition, hydrogen production and storage infrastructure requires environmental permitting and strict safety standards due to the flammability of hydrogen, ensuring that the development of the technology takes place under conditions of environmental safety.
  • Spain and Portugal: These countries are promoting the use of hydrogen in transport and industry, while developing infrastructure for the large-scale production and distribution of hydrogen within the energy network. In particular, Spain aims to develop renewable hydrogen, linking it to the country’s ambitions for achieving climate neutrality.
  • Netherlands: In the Netherlands, the regulatory framework for hydrogen is still under development, with local authorities applying different approaches depending on the area and type of installation. The country promotes the adoption of technical standards and the use of “safe by design” installations for the safe development of hydrogen projects, a fact that highlights the Netherlands’ leading role in innovation.
  • Denmark: Denmark has set ambitious goals for hydrogen development through Power-to-X (PtX) technology, aiming to create an electrolysis capacity of 4-6 GW by 2030. For this reason, its legal framework focuses on ensuring environmental sustainability and facilitating investment, making Denmark a model for the development of green technologies.
  • Norway: Although the regulatory framework in Norway has not yet fully matured, the country promotes the production of green hydrogen from RES, with strict regulatory frameworks ensuring safety and compliance with environmental requirements.
  • Sweden: Sweden focuses on the production of green hydrogen to reduce carbon emissions, while the legal framework for hydrogen relies on existing natural gas regulations, with provisions for environmental protection, while also focusing on infrastructure development and reducing production costs.
  • Austria: Although Austria has adopted relevant legislation providing incentives for the production of renewable gases and hydrogen, the legal framework remains a work in progress. Hydrogen installations remain central to the energy strategy, given that exemptions for such installations are maintained within the RES framework. Furthermore, the provisions support hydrogen production from RES and the creation of infrastructure, ensuring compliance with applicable legislation.
  • Slovakia: Slovakia is examining the possibility of adapting its natural gas network for the storage and distribution of hydrogen, with emphasis on studies regarding the technical suitability of pipelines and the potential effects of blending hydrogen with natural gas on corrosion. Furthermore, it is expected to proceed with the introduction of new legislation to support hydrogen projects, including provisions on safety, infrastructure, and hydrogen transport.
  • Poland: In Poland, hydrogen is classified as a hazardous substance or fuel gas under various legislative provisions. Installing a hydrogen production unit in Poland requires compliance with strict environmental rules, as well as obtaining multiple permits, which ensure that the unit’s activities meet standards of environmental protection, safety, and sustainable resource management.
  • Belgium: Belgium has adopted a strategy aimed at achieving complete decarbonisation by 2050, with hydrogen playing a central role. The country’s regulatory framework relies mainly on European directives, such as the Pressure Equipment Directive (PED) and the ATEX Directive on explosive atmospheres. Harmonisation with European regulations strengthens the development of the hydrogen market, while the government places emphasis on international cooperation for infrastructure development.
  • Finland: Finland promotes the development of the hydrogen economy as part of its goal of climate neutrality by 2035, with particular emphasis on research and innovation. However, the country faces challenges in hydrogen storage, as it lacks geological formations for low-cost storage. The legal framework is evolving, while the country focuses on participation in European initiatives and on taxation measures to support hydrogen-based mobility.
  • United Kingdom: The United Kingdom has set as a central goal the integration of hydrogen into transport and industry. Existing regulations, such as the Gas Act 1986, govern the transport and storage of hydrogen, while large-scale projects are subject to environmental assessments by Ofgem, supporting the development of the hydrogen market.
  • Luxembourg: Luxembourg’s legal framework is characterised by strict licensing procedures and environmental impact assessments, given that hydrogen is classified among hazardous substances. However, the government encourages the simplification of procedures, in order to facilitate the development of the hydrogen market and support the transition to green energy.

By comparison, Germany and France stand out for developing the most comprehensive legal frameworks, with strong state support and strategies aiming at leadership in the hydrogen sector. They are followed by countries such as the Netherlands, Sweden, and Finland, which, although they do not have a fully developed legislative framework, demonstrate significant progress in research and technology development. By contrast, countries such as Poland and Slovakia face challenges due to the absence of specialised legislation and the slow development of infrastructure. Denmark, Austria, Belgium, and Norway focus on sustainable development through the use of renewable sources, while Finland, Portugal, Spain, and the United Kingdom focus on more innovative solutions for the storage and industrial use of hydrogen.

Codification of directions for the institutional framework of hydrogen

At European level, the inclusion of green hydrogen in the RES category creates more favourable conditions for its development. The regulatory framework governing natural gas infrastructure is used as the main starting point, with adjustments that take into account the particular characteristics of hydrogen. The codification of legal directions includes, among other things, the application by analogy of the provisions relating to the licensing of natural gas or RES installations, the management of industrial waste, the monitoring of emissions, as well as compliance with European safety standards.

Greece on the path to hydrogen: the national strategy and the NECP

Greece has set ambitious goals for the development of hydrogen projects, within the framework of its decarbonisation strategy and the achievement of climate neutrality by 2050. The National Hydrogen Strategy is incorporated into the National Energy and Climate Plan (NECP) and aims at the rapid integration of green hydrogen into the country’s energy mix by 2050, in order to achieve the climate objectives. The development of hydrogen is expected to take place in three phases:

Period 2025-2030: During this period, Greece aims at the rapid penetration of RES and the development of the first green hydrogen production infrastructure. The first pilot installations are expected to begin operating, with the aim of testing and adapting the technologies on an industrial scale.

Period 2030-2040: The second phase of the strategy involves the rapid electrification of final energy consumption, with hydrogen acquiring a leading role in the production of clean energy. The infrastructure created during the first phase will be further developed, while the use of hydrogen will expand into transport and industry.

Period 2040-2050: In the final phase, hydrogen is expected to constitute a significant component of the country’s energy infrastructure, with extensive use across various sectors and the development of synthetic fuels. This strategy is based on the development of sustainable technologies and export capabilities, with the creation of an appropriate licensing framework for hydrogen production and storage installations. Greece is oriented towards adopting European standards for the full integration of this technology.

Overall, Greece’s hydrogen strategy is based on promoting innovation and exports. The development of sustainable technologies is a priority, while the country aspires to become a hub for the production and export of green hydrogen in Europe.

Legal framework for hydrogen projects in Greece

Greece’s national legal framework for hydrogen has begun to take shape in recent years, with various legislative initiatives including provisions on hydrogen, such as:

  • Law 5037/2023: Defines green hydrogen as a renewable gas, placing it on an equal footing with other forms of RES energy, thereby ensuring more favourable licensing and financing conditions.
  • Law 4864/2021: Within the framework of strategic investments, green hydrogen is defined as hydrogen produced from RES, provided that the electricity generated by the power generation plant is used exclusively for hydrogen production.
  • Law 4710/2020: Defines the use of hydrogen as an alternative fuel in transport. As a fuel contributing to decarbonisation, it has the potential to improve the environmental performance of the transport sector.
  • Law 4936/2022: Under the NECP, hydrogen is classified among the renewable gases that will gradually replace natural gas, mainly in the transport and industrial sectors. Together with biomethane, green hydrogen is considered critical for the country’s gradual move away from fossil fuels.
  • Joint Ministerial Decision 36060/1155/E.103/2013 (Official Gazette B’ 1450/14.6.2013), as in force, concerns the management of industrial waste, including waste arising from activities involving the storage of hazardous substances such as hydrogen. Article 5 provides that undertakings involved in the storage or use of hydrogen are obliged to ensure that the hazardous waste generated by these activities is managed in a safe and environmentally friendly manner.

The main objective of these legislative initiatives is to establish a regulatory framework that will facilitate investment in hydrogen projects, although this framework is still at an early stage of maturity.

Land uses, environmental permitting, and compliance: gaps in the national framework

On the one hand, hydrogen installations in Greece, under Presidential Decree 59/2018, appear primarily to fall under specific spatial planning regulations concerning industrial zones of low, medium, and high nuisance/disturbance, or, in certain cases, within the siting framework applicable to RES. The siting of hydrogen production units, as regards industrial zones, should of course provide flexibility to businesses interested in developing hydrogen infrastructure, while environmental compliance remains a central issue.

On the other hand, environmental permitting for hydrogen projects may be governed either by the general framework for the licensing of industrial installations or by the framework applicable to RES, particularly with respect to the storage of green hydrogen. The SEVESO Directive on the storage of hazardous substances imposes, in any case, strict safety specifications for installations storing more than 5 tonnes of hydrogen, which requires the adoption of special measures and the preparation of an Environmental Impact Assessment (EIA) in accordance with Law 4014/2011 for hydrogen installations, in order to ensure the safety and viability of such projects.

Conclusions and proposals for Greece

Greece is moving in the right direction towards developing a sustainable hydrogen strategy. However, the legislative framework needs to be revised so as to fully incorporate new technologies and ensure clarity in siting and licensing procedures.

Key issues that need to be addressed for the success of the national strategy include the integration of hydrogen into the national natural gas network, the adaptation of existing industrial facilities, the clarification of the framework for the application of RES-related provisions, and, in general, the updating of spatial planning and environmental legislation.

Alignment with European practices, the strengthening of international cooperation, and the promotion of green technology are also essential if Greece is to become a pioneer in hydrogen development in the wider region. At the same time, during this period all Member States are formulating and developing their institutional licensing frameworks.