Legal framework: permissions and restrictions (and Ownership constraints (unbundling))

This LAP concerns the legal framework status covering authorised bodies overseeing and involved with the injection of hydrogen and varying hydrogen concentration levels in the TSO high pressure gas transmission system, along with potential changes to the regulatory framework to support enhanced hydrogen injection and utilisation

Glossary:

Legal framework: permissions and restrictions (and Ownership constraints (unbundling)) represent the existing national legal framework for the TSO to carry out hydrogen activities, which is normally restricted to natural gas. Ownership constraints refer to the constraints related to ownership associated with the process of injecting
Is it a barrier?
Yes
Type of Barrier
Structural barriers, Operational barriers, Economic barriers, Regulatory gap
Assessment Severity
3

Questions:

Question 1 Which is the responsible authority/legal entity for the permission of the connection/injection of hydrogen in the gas grid?
It is up to the TSO to decide whether hydrogen can be injected in the gas grid, since the TSO is responsible for a safe, cost efficient and reliable operation of the transmission system. When it comes to concrete construction works (connection to the grid), the TSO has to follow the provisions of the Trade, Commercial and Industry Regulation Act or the Environmental impact assessment law UVP–G 2000 - depending on the intended capacity of the facility.
Question 2 What is permitted or restricted according to national legislation under your responsibility as TSO regarding the transport of pure hydrogen and mixtures of hydrogen and natural gas.
In Austria max. 4% Mol–Percent can be injected into natural gas grids; see standard:/guideline ÖVGW 31
Question 3 Is there a maximum concentration defined that you are allowed to transport as a TSO? (e.g. are you allowed to transport 100% hydrogen)
In Austria max. 4% (Mol–basis) can be injected into natural gas grids; see standard:/guideline ÖVGW 31
Question 4 What is the maximum allowed concentration in your country for injection in the gas grid on transmission level?
Basically one can inject 100% – so pure hydrogen into the gas grids but in the mixture with natural gas the amount of4% (Mol–basis) shall not be exceeded. Therefore there is a need to feed hydrogen in the gas grids on a fluctuating basis in order not to exceed or to fall short of the determined mixture. Having said this there might be a need to store hydrogen or the hydrogen generating device is able to follow the fluctuating hydrogen demand – which seems to be more difficult)
Question 5 In case the maximum hydrogen concentration in your transmission grid (system) is less than 100%, is it allowed to inject pure hydrogen- 100%? into gas grid on transmission level (up to the allowed concentration)? If no, who is responsible for the blending with natural gas? Is there an obligation for the TSO to provide the necessary natural gas for blending the hydrogen (with several EU Directives transposed into national legislations the functions of gas grid operator and natural gas supplier are separated)
Basically one can inject 100% – so pure hydrogen into the gas grids but in the mixture with natural gas the amount of4% (Mol–basis) shall not be exceeded. Therefore there is a need to feed hydrogen in the gas grids on a fluctuating basis in order not to exceed or to fall short of the determined mixture. Having said this there might be a need to store hydrogen or the hydrogen generating device is able to follow the fluctuating hydrogen demand – which seems to be more difficult. The blending of gas is not determined yet in Austria since the gas quality doesn’t fluctuate – at least not up to now. It is up to the TSO to decide whether to allow injection of gas which doesn’t match the specifications or not since it is the TSO who is responsible for a safe, cost efficient and reliable operation of the transmission system. In case of cross border transmission the relevant provisions of the "down stream" network have to be taken into consideration as well.
Question 6 Are there specific requirements for increasing or decreasing the admissible threshold of hydrogen concentration (upstream and downstream networks, infrastructure elements and appliances with lower tolerance)? If yes: please describe.
The maximum amount is determined because of technical restrictions (brittleness of the pipeline material and technical equipment material like for example valves), thus it is not a question whether hydrogen is injected into a transmission or distribution grid)
Question 7 Are there specific restrictions/permissions for the transport of hydrogen other than “concentration” and “quality”, if yes which ones?
Since hydrogen changes the gross calorific value, the gas quality requirements have to be adapted. In the worst case scenario, the hydrogen– gas mixture is not everywhere in the gas grid the same, then one can face very serious bill of discharge problems because it is the gross calorific value the customer pays for and not for the consumed volume. 4% of hydrogen would lower the gross calorific value by roughly 2.6%. In case the gross calorific value is change by more than 2%, there is a need to change the value required for billing purposes. Imagine that you are a steel producing company and you buy 500 million Nm3 per year (which is not that much). A 2% change can amount to a lot of money
Question 8 If it can be guaranteed that the gas is on the required quality specification (on spec) at the next customer, is it allowed to feed in off-spec gas (read: a higher concentration of Hydrogen)?
Since hydrogen changes the gross calorific value, the gas quality requirements have to be adapted in order to have the proper basis for the billing of energy sold. So even if the changed gross calorific value is adapted, on has to take care that the gas quality in the relevant grid(s) is everywhere the same otherwise one can face very serious bill of discharge problems because it is the gross calorific value the customer pays for and not for the consumed volume
Question 9 Which part of the connection facility (the injection installation is part of the connection facility) is owned by or under the responsibility of the TSO?
Basically the TSO is obliged to accept gas at the specified quality only – if the transportation capacity is available. So it is up to the hydrogen producer to transport the hydrogen – at the required quality – to the grid and take care of the proper mixture. The mentioned requirement is difficult to be fulfilled since some kind of “mixture device has to be installed in the grid. The point is, that hydrogen – on the contrary to biomethane – does change the quality of the natural gas
Question 10 As TSO, do you see legal and administrative restrictions with regard to the ownership of your part of the connection facility (the injection installation is part of the connection facility) of hydrogen into the grid?
Definitely yes, since the obligation of the TSO is to take over gas at the required quality but in case of hydrogen injection, the mixture has to be created in a mixture device – like a diffusor or mixture drum. So far these issues have not been finally clarified.
Question 11 Is there a difference in legal and administrative restrictions between connections for hydrogen injection into TSO and DSO-networks? If so could you please specify the differences?
No, but the question might pop up where the mixture (hydrogen and natural gas) will be used. In case of injection in a transmission system, it is very likely that this mixture will cross the borders of neighbouring countries, thus might have to fulfil the obligations of the infrastructure of the neighbouring countries regarding gas quality to be transported..
Question 12 Are there specific national (add-on) restrictions for the connection/injection of hydrogen in TSO networks compared to the connection/injection of natural gas? If yes: please name them. Are there other requirements for the injection of H2NG-blends compared to pure Hydrogen?
There are huge differences because of the fact that the injection of natural gas or even bio–methane doesn’t change the quality of the transported medium. For example bio–methane has to be upgraded to the quality, regarding gross calorific value and purity, of natural gas whereas the injection of hydrogen changes the quality of the transported medium – at least regarding gross calorific value and the thereto related Wobbe–Index . No known yet
Question 13 Is it foreseen to review the current regulation to consider hydrogen injection into natural gas network and if yes on which term?
Not yet.

National legislation:

EU Legislation:

  • Directive 2009/73/EC concerning common rules for the internal market in natural gas
    Directive 2009/73/EC establishes common rules for the transmission, distribution, supply and storage of natural gas.

    Its provisions and obligations apply to Hydrogen Gas by virtue of Article 1 (2), which states that the rules established by this Directive for natural gas, including LNG, shall also apply in a non–discriminatory way to biogas and gas from biomass or other types of gas in so far as such gases can technically and safely be injected into, and transported through, the natural gas system.

    Article 25 establishes the “Tasks of the distribution system operator” which include: ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas […];shall provide any other distribution, transmission, LNG, and/or storage system operator with sufficient information […] as well as to ensure that the system operator does not discriminate between system users or classes of system including, including e.g. when setting rules for the charging of system users, etc

    Article 32 sets the rules on “Third party access”: access to the transmission and distribution system, and LNG facilities shall be based on published tariffs, applicable to all eligible customers, including supply undertakings, and applied objectively and without discrimination between system users.
  • Regulation 715/2009 on conditions for access to the natural gas transmission networks
    Regulation 715/2009 sets non-discriminatory rules for access conditions to (a) natural gas transmission systems; (b) LNG facilities and storage facilities taking into account the special characteristics of national and regional markets

    To achieve this, it sets harmonised principles for tariffs, or the methodologies underlying their calculation, for access to the network, but not to storage facilities, the establishment of third-party access services and harmonised principles for capacity-allocation and congestion-management, the determination of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.
  • Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators
    Article 1 Project matter and scope
    This regulation aims at:
    (a) setting non–discriminatory rules for access conditions to natural gas transmission systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gas;

    Article 8 “Tasks as regards terms and conditions for access to and operational security of cross border infrastructure
  • Commission Regulation (EU) 2015/703 of 30 April 2015 establishing a network code on interoperability and data exchange rules
    The network code on interoperability aligns the complex technical procedures used by network operators within the EU, and possibly with network operators in the Energy Community and other countries neighbouring the EU.Article 7, Measurement principles for gas quantity and quality. In addition to interconnection points, Article 17 shall apply to other points on transmission network where the gas quality is measured. Article 18 shall apply to transmission systems. This Regulation may also apply at entry points from and exit points to third countries, subject to the decision of the national authorities.