The European Commission is currently focusing on the regulations for the production of green hydrogen. According to industry sources, the reasons are geopolitical energy uncertainties and a sluggish ramp-up of the hydrogen economy. Quest One sees the causes primarily in regulatory requirements and calls for adjustments.
The company argues that Europe risks losing its economic connection, even though the technology is available. "The past years have clearly shown how vulnerable Europe's energy system is due to external dependencies. Energy policy has long since become security policy," says Michael Meister, CEO of Quest One. "A sustainable solution can only be to generate more energy within Europe itself and to keep value creation here."
Focus on Rules for Correlation and Additionality
In particular, the planned hourly correlation between renewable electricity generation and electrolysis from 2030 is a thorn in Quest One's side – something that H2international has repeatedly addressed and criticized in its recent issues (see e.g. here). Meister also criticizes that the hourly correlation leads to lower utilization of electrolysers and thus endangers profitability. The company, like other companies or associations, advocates maintaining the previously applicable monthly correlation.
The additionality criterion is also considered a massive investment barrier in the H2 industry. This stipulates that from 2028, electrolysers may only use electricity from newly built renewable energy plants. According to Quest One's assessment, this increases project costs and extends planning times. Existing plants should continue to be included to ensure flexibility and profitability.
Grid Fees and Investment Security
The company also calls for long-term relief from grid fees for electrolysers beyond 2029. Plant operators should, in the company's view, also be remunerated if they are operated in a grid-supportive manner and thus reduce system costs. Quest One also emphasizes the importance of technical standards for investment decisions. Topics such as gas purity or the design of oxygen separators must be clearly regulated to create trust.
Industrial Policy Demands
In the industrial policy context, Quest One advocates for a stronger anchoring of "Made in EU“ in funding instruments and legislation, such as in the "Net Zero Industry Act" and planned further initiatives. The goal is to reduce dependencies on international supply chains.
"Green hydrogen is more than just an energy carrier – it is a strategic instrument for more sovereignty, competitiveness, and stability," says Meister. "Those who create the right framework conditions today will secure Europe an independent and resilient energy supply in the long term."
This is evidenced by Europe's high import dependency alone: According to Eurostat, around 60 percent of energy needs are covered by imports. The costs for fossil energy imports have recently increased significantly due to geopolitical crises.
About the Company
Quest One develops and produces PEM electrolysers and electrolysis stacks. Founded in 1997 as a scientific project, the company is part of MAN Energy Solutions and Volkswagen Group. Due to its more than 25 years of activity in the industry, Quest One claims to have extensive know-how in the realization of large-scale projects in heavy industry and automotive mass production competence. Quest One is based in Germany (Hamburg, Augsburg), and Houston, USA.
Quest One
