Delegated Act on RFNBOs

In recent months, we have witnessed how the EU’s regulatory momentum is reshaping the energy landscape. In previous articles, we analyzed the regulatory roadmap for hydrogen (European Plans in the Hydrogen Sector) and its implications in key sectors such as industry, maritime transport (FuelEU Maritime: Will Ships in Europe Consume RFNBOs?), and aviation (ReFuelEU Aviation: The Key to the SAF Market).

In this article, we will answer the question: When can a fuel truly be considered a Renewable Fuel of Non-Biological Origin (RFNBO)?

Is your fuel an RFNBO?

To determine when a fuel can truly be considered a Renewable Fuel of Non-Biological Origin (RFNBO), we need to take a close look at Delegated Regulation (EU) 2023/1184. This regulation plays a key role in setting the technical requirements a fuel must meet to be officially recognized as renewable.

Illustration 1. Diagram of a renewable hydrogen plant

The Delegated Act was introduced as a complement to the Renewable Energy Directive (RED II) and aims to define the conditions under which electricity used in the production of liquid and gaseous fuels of non-biological origin (RFNBOs) can be considered 100% renewable.

This regulation not only provides legal clarity, but also sets a crucial framework for the development of electrolysis projects, as it draws the line between conventional hydrogen and the officially recognized “green” hydrogen in the EU.

This distinction is critical: only hydrogen that meets these conditions can be counted toward the mandatory quotas set by regulations such as FuelEU Maritime, ReFuelEU Aviation, or RED III. Moreover, only fuels recognized as RFNBOs will be eligible for public funding or gain access to certain regulated markets.

One of the biggest regulatory challenges is ensuring that green hydrogen does not displace existing renewable electricity, but rather complements it. So, how can this be guaranteed? The answer lies in three essential pillars defined by the regulation: additionality, temporal correlation, and geographical correlation.

Requirements for counting renewable electricity

Illustration 2. Wind and solar energy generation

Additionality

One of the core principles of the RFNBO Delegated Act is additionality — a concept that ensures the electricity used to produce renewable hydrogen does not compete with existing renewable supply for other sectors. Instead, it must come from newly installed capacity specifically added for this purpose.

More precisely, the regulation requires that the renewable electricity powering an electrolyzer must meet the following conditions:

• It must come from a new renewable installation, which started operating no more than 36 months before the electrolyzer itself began operations.
• It must not have received significant public subsidies, such as investment grants — with exceptions for repayable support or funding tied to pilot and innovation projects.

This requirement aims to prevent so-called “greenwashing” — where electricity labeled as renewable simply displaces other pre-existing uses of green power on the grid. Instead, the goal is to encourage genuine expansion of renewable generation capacity alongside hydrogen development.

You might ask: why is this criterion so crucial? It ensures that the rise of hydrogen production does not negatively affect the availability of renewable electricity for other critical sectors — such as residential consumption, industrial operations, or electric mobility. Recognizing the urgency of scaling up hydrogen infrastructure, the European Commission has introduced a transitional phase: electrolyzers that begin operation before January 1, 2028, will be exempt from the additionality and subsidy rules until January 1, 2038.

This provides projects launched this decade with a 10-year adaptation window to fully align with stricter standards, lowering short-term entry barriers and helping the renewable hydrogen ecosystem in Europe mature.

Illustration 3. Photovoltaic Panels

Temporal correlation

Besides additionality, the Delegated Regulation also introduces the requirement of temporal correlation. This ensures that the renewable electricity consumed by an electrolyzer is generated close in time — or simultaneously — to when the hydrogen is produced.

This condition arises from a key concern: preventing the practice of purchasing surplus renewable energy during periods of excess while actually consuming fossil-derived electricity during times when renewable sources are unavailable.

To address this, the European Commission defines two phases:

• Phase 1: Until 2029 – Monthly correlation

Until December 31, 2029, the regulation allows for more flexible correlation: hydrogen production must match the same calendar month in which the associated renewable electricity was generated.

This formula facilitates the initial viability of projects, especially in electricity systems where precise hourly traceability does not yet exist or where hourly origin certificate markets are not yet fully developed.

• Phase 2: From 2030 – Hourly correlation

From January 1, 2030, a stricter requirement comes into effect: hydrogen production must correspond hour by hour with the generation of the contracted or purchased renewable electricity.

This means the producer must demonstrate, for example, that hydrogen generated between 14:00 and 15:00 has been produced using electricity generated during that same time slot — not before or after.

This approach aims to ensure that RFNBO is genuinely produced when renewables are available in the power system.

Additionally, the Regulation establishes an interesting exception: if during certain hours the electricity price drops below €20/MWh, it is considered that there is a surplus of renewables in the system. In these cases, the hydrogen produced during those hours can be considered renewable, even if strict hourly correlation is not met.

Geographical correlation

The third pillar established by the Delegated Act for a fuel to be considered an RFNBO is geographical correlation. This criterion aims to ensure that the renewable electricity used for hydrogen production is not only additional and generated at the right time (temporal correlation), but also sourced from a location that makes sense within the electrical system.

In other words, solar energy generated in another country — or in a region not directly connected to the electrolyzer — cannot be counted as renewable electricity for local hydrogen production. This raises a relevant question: how can geographical correlation be achieved?

The answer is clear. For electricity to be counted as 100% renewable in this context, at least one of the following conditions must be met:

1. The electrolyzer and the renewable energy plant must be located within the same bidding zone of the electricity market.
2. Both facilities must be located in interconnected bidding zones, where the average price in the electrolyzer's zone is equal to or higher than the average price in the renewable generation zone.
3. The supply must come from an offshore installation that is directly connected to the grid in which the electrolyzer operates.

Illustration 4. Offshore wind installation

The rules for accounting electricity as renewable are clear, but this raises a key question for project developers: how can renewable electricity supply be secured while meeting all these requirements?

This is where one of the most important parts of the regulation comes into play: the two possible renewable electricity supply models, allowing developers to choose the approach that best suits their project.

Let’s break them down!

Renewable electricity supply

Delegated Regulation (EU) 2023/1184 outlines two main scenarios in which electricity can be considered 100% renewable: by direct connection to a renewable energy plant, or by the use of the electricity grid, under strict compliance conditions.

Direct connection to a renewable energy plant

Illustration 5. Renewable generation plant – both solar and wind

In this model, the electrolyzer is physically connected to a renewable installation (solar, wind, etc.) via a direct line. This entails:

• The electricity consumed must exclusively come from that renewable installation.
• If the renewable plant is also connected to the grid, smart metering and hourly verification must be used to ensure that no grid electricity is consumed.
• The generation plant must comply with the criteria of additionality, temporal correlation, and geographical correlation.

This approach is particularly well-suited for off-grid projects or industrial sites where total energy flow control is desired. It also simplifies traceability, although it may require higher upfront investment in infrastructure.

Electricity withdrawn from the grid

Illustration 6. High-voltage transmission tower

The Regulation also allows electricity to be supplied from the grid. However, for this electricity to be considered 100% renewable, one of the following four conditions must be met:

A. High share of renewables in the bidding zone

If the electricity system area where the electrolyzer is located had over 90% renewable electricity generation in the previous year, then all electricity consumed there is automatically considered renewable.

B. Low emissions intensity (less than 18 gCO₂eq/MJ)

If the average carbon intensity of the grid is very low, the electricity can be counted as renewable provided all three of the following conditions are also met:

1. A Power Purchase Agreement (PPA) has been signed for renewable electricity.
2. Temporal correlation between electricity generation and hydrogen production is proven.
3. Geographical correlation is also fulfilled.

C. Avoiding renewable curtailment

In certain power systems, renewable energy may not be injected into the grid due to lack of demand or infrastructure congestion. This situation is referred to as curtailment (i.e., the forced reduction of renewable generation).

The regulation allows that if an electrolyzer operates precisely during these periods, absorbing excess renewable electricity that would otherwise be lost, its consumption can be considered 100% renewable.

This approach aims to maximize the utilization of existing renewable capacity, especially in areas with high solar or wind penetration and limited energy storage infrastructure.

D. Compliance with the three renewable electricity criteria

Finally, the most structured option is to use electricity that meets all three regulatory criteria:

1. The electricity comes from a new plant, developed without subsidies (additionality).
2. Geographical correlation exists between the generator and the electrolyzer.
3. Hourly correlation (applicable from 2030) is respected between the generation and the hydrogen production.

Conclusions

Illustration 7. PEM Electrolyzers

With the RFNBO Delegated Act, the European Commission not only clarifies how green hydrogen must be produced, but also sets an international benchmark. The proper implementation of this regulation will be crucial to meeting the EU’s climate targets and to the success of initiatives like FuelEU Maritime and FuelEU Aviation, which require an increasing share of certified renewable fuels.

Moreover, this act is not merely technical—it has direct implications for:

• Electrolyzer developers, who must demonstrate hourly compliance.
• Hydrogen traders, who need valid guarantees of origin.
• Sectors subject to regulations like FuelEU Maritime, which will only be allowed to use certified RFNBOs.

Most importantly, it represents the cornerstone of the European renewable hydrogen market: a robust, verifiable, and traceable system that prevents greenwashing and ensures that every molecule of green H₂ has a positive and measurable impact.

If you want to verify that your hydrogen is fully renewable, AtlantHy offers calculation models to ensure that all legal thresholds are met hour by hour.

Contact us!

Bibliography

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European Union. (12/02/2023). Retrieved from Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a Union methodology setting out detailed rules for the production of renewable liquid a: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2023.157.01.0011.01.ENG&toc=OJ%3AL%3A2023%3A157%3ATOC

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