A regulatory framework for the transport of hydrogen through pipelines is under-way in Belgium

Hydrogen is certainly one of the energy sources that has attracted particular attention from the Belgian public authorities in recent years (Belgian Federal Strategy for Hydrogen, 2022). At federal level, the government has adopted a strategy with the following objectives:

1. Position Belgium as a hub for the import and transit of renewable molecules in Europe;
2. Strengthening Belgian leadership in hydrogen technologies;
3. Establishing a robust hydrogen market;
4. Invest in cooperation, particularly within international organisations.

However, unlike the gas and electricity markets, hydrogen regulation remains highly fragmented overall in Belgium.

With this bill, the federal government aims to fill this gap by introducing a regulatory framework for the transport of hydrogen by pipeline. The bill sets out a procedure for appointing a hydro-gen transport network operator in Belgium. In particular, the operator will be responsible to:

• Provide free, non-discriminatory access to the hydrogen transport network at regulated tariffs;
• Develop and implement an effective and responsible network development plan and investment planning, and
• Guarantee the quality of the hydrogen transported by its network.

The hydrogen transmission system operator will have to comply with strict unbundling conditions:

• Vertical unbundling: it may not be active in or share any interest in the production or supply of hydrogen, natural gas, biogas, biomethane, other forms of synthetic methane or electricity in order to guarantee its independence from network users and prevent any discrimination against certain of these users;
• Horizontal unbundling: the hydrogen transport network operator may own and oper-ate hydrogen storage infrastructures and terminals, as well as infrastructures for trans-porting and storing natural gas, biogas, biomethane, other forms of synthetic methane and electricity. However, these activities will have to be carried out in legal entities that are separate from the hydrogen transport activities in order to prevent any cross-subsidisation.

A procedure for appointing the Hydrogen Transmission System Operator is planned, so that it can start work as quickly as possible.

In addition, the bill provides for transitional measures to take account existing hydrogen transport pipelines in Belgium. In concrete terms. the companies responsible for these pipe-lines will be able to continue to perform their current contracts. However, they will have to facilitate their interconnection as quickly as possible with the network of the hydrogen transmission system operator and will not hinder the development of this operator's network.

Initially, the current operators of existing hydrogen networks had the right to continue to man-age these networks until 31 December 2030 on condition that they offer the transport capacity still available on their networks on non-discriminatory terms, with priority given to the hydrogen transport network operator or to market players if the latter is not interested. The deadline of the 31st of December 2030 has been deleted by an amendment submitted by the Federal Government.

Finally, the CREG (Commission de Régulation de l'Electricité et du Gaz) is now responsible for monitoring and regulating the hydrogen market. These powers are based on the roles it currently plays for the natural gas and electricity markets. Specifically, the CREG will also have the power to adopt binding decisions (subject to the jurisdictional control of the Market Court).

The draft bill is still discussed before the Federal Parliament. It was supposed to be adopted on 8 June 2023; but this item has been referred to the competent commission. Additionally, it should be noted that the bill will still need to be supplemented by royal decrees and ministerial orders - in order to guarantee sufficient flexibility to allow this regulatory framework to evolve in line with the development of the hydrogen market.

More to follow…