ITM Power plc (LON:ITM) has welcomed a raft of new directives proposed yesterday by the European Commission to boost Power-to-Gas (P2G) energy storage and hydrogen fuel usage across Europe.
The energy storage definition will now specifically include the conversion of electricity to another energy carrier such as hydrogen.
Graham Cooley, chief executive, said the new definition will enable P2G plant and electrolyser-Hydrogen Refuelling Stations (HRS) to offer storage facilities to the electricity market, while selling hydrogen to the mobility and gas sectors.
ITM specialises in the two-way electrolyser technology that converts hydrogen into electricity for power and that can be used to store excess electricity generated by renewable sources such as wind turbines or solar power.
Storage had suffered from a lack of identity and payment structure within the electricity market, he added, but electrolysers now will be able to provide load control services and receive balancing services payments across the EU.
The directives also proposed a renewable gas guarantee of origin scheme for hydrogen to reassure customers they are low-carbon alternatives.
"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," said Cooley.
“The guarantee of origin scheme also differentiates green hydrogen as a fuel for transport."