16 - Goal-Setting Approaches to the Regulation of Hydrogen Transport

Summary

This chapter examines whether the legal and regulatory framework in France for the transport of energy is fit for hydrogen purposes and designed to accommodate that new energy carrier. Specifically, the aim of the analysis is to determine whether the French regulator chose the rules- or goal-setting approach when setting the framework for the transport of hydrogen. From early on, France attributed a prominent role to hydrogen for achieving its energy and climate goals and the decarbonization of its energy system, particularly transport and industry. This is demonstrated by the plethora of pilot power-to-gas projects across continental France, pushing the limits and exploring different synergies between hydrogen, gas and renewable energy sources. French gas infrastructure operators have already carried out extensive work to explore possibilities for integrating a significant amount of hydrogen into the gas mix by 2050, with limited infrastructure adaptation costs, deploying coordinated use of solutions including blending, methanation and even the option of 100 per cent hydrogen. Until recently, the legal and regulatory framework was lagging behind, as essential provisions that could facilitate hydrogen in the French gas transport infrastructure were missing. This, however, changed recently with the adoption of a specific chapter in the French energy code that also includes provisions on the transport of renewable hydrogen in natural gas pipelines and autonomous transport networks. This chapter, based on the analysis of these recent developments, assesses the type of regulatory approach followed by France regarding transport of hydrogen regulation and why this approach changes based on the regulatory subject. The flexibility and adaptability that characterise France’s decision on the regulatory approach to be used each time could prove valuable in other jurisdictions and could, despite some shortcomings, serve as a key tool for the design of reasonable legal frameworks for hydrogen transportation.

16.1 Introduction

16.1.1 French Political Aspirations for Hydrogen

In France, more than 900,000 tons of hydrogen are consumed each year for refining of petrol fuels, producing chemicals and ammonia for fertilizers as well as in the steel and cement industry and heavy transport.¹ Up to 98 per cent of that hydrogen is produced by fossil fuels (brown/grey hydrogen),² which adds 11.5 tonnes of carbon dioxide (CO2) emissions in France.³ Moreover, it is important to note that a part of this hydrogen is ‘co-produced’, meaning it is a side product of industrial processes and generated during the processing of oil cuts in refineries or the gasification of coal in steel factories or steam reforming of natural gas, making these industries in part self-sufficient.⁴

France prides itself on being one of the first countries to identify the full potential of hydrogen.⁵ Already back in 2015, article 121 of the French Energy Transition Law (No. 2015-992)⁶ identified hydrogen as a solution to climate change and put the obligation on the government to submit to Parliament a plan for the development of the storage of renewable energy using decarbonized hydrogen. Moreover, the law specifically asked for the deployment of an infrastructure of hydrogen distribution stations and the adaptation of regulations to enable the deployment of these new hydrogen applications, such as the conversion of electricity into gas.⁷ This plan was finally published in June 2018, being the first official French hydrogen deployment plan.⁸ Its aim is to support the development of low-carbon hydrogen with the purpose of decarbonizing the industrial sector, the transport sector (road, rail and so on) and to develop storage capacities and stabilize the energy networks.⁹

In September 2020, France published its National Hydrogen Strategy in which it announced over €7 billion up to 2030 for low-carbon hydrogen deployment, with €3.4 billion planned for the period 2020–2023.¹⁰ In February 2022, almost €2 billion was added to the previous amount with the France 2030 Plan, bringing total government investment in hydrogen to €9 billion.¹¹ In November 2022, the revision of the French hydrogen strategy by the end of the first half of 2023 was announced, focusing on hydrogen hubs and expertise in hydrogen-related equipment, but nothing had been published by autumn 2023.¹²

The creation of France’s national strategy on hydrogen has been a long-term project. The crucial investment decisions by France were based on the knowledge and experience gathered before 2018 by the hydrogen projects created all over the country with the support of the regions and industrial players. Since 2016, ADEME¹³ has launched quite a few¹⁴ calls for tenders relating to hydrogen,¹⁵ while a new call under the ‘Hydrogen Territorial Ecosystems’ programme was launched in May 2023 with a budget of €175 million to finance the production and distribution of hydrogen and the deployment of vehicles.¹⁶

From all the above, the prospect of hydrogen for decarbonization and for achieving climate neutrality in France becomes clear. This chapter will focus on one of the important parameters needed for hydrogen deployment, namely the transport of hydrogen. Specifically, the aim is to determine whether or not the French legal system includes provisions aiming at accommodation and facilitation of the transport of hydrogen, which could help France with its ambition to achieve its energy transition goals. Transport of hydrogen plays a crucial role in the French decarbonization plan as it can support innovation, ensure that all points of demand nationally are supplied, and also offers France a potentially central role in cross-border hydrogen trade.

16.1.2 Rule- and Goal-Setting Approaches to Legislation

Furthermore, the chapter aims to determine whether or not French authorities follow a rules-based or goal-based theory regarding the adopted legislation on hydrogen and specifically energy transport. When choosing the appropriate regulatory approach, various factors are taken into consideration, such as the desired allocation of risks, the incentives and behaviour of regulatees as well as enforcement approach and style, and the capacity and expertise of the regulator.¹⁷ A rules-based approach to legislation is the classic way of establishing rules with the description of specific conduct that is desired or not.¹⁸ This theory, regardless of the advantages that it may present – for example, predictability, stability, comfort in planning¹⁹ – has been criticized as inflexible and restrictive. That led to the creation of an opposite regulatory trend, where instead of the rules, certain goals, outcomes, principles or standards are set without prescribing how regulatees need to achieve these goals and outcomes. Even though there is no common agreement on the term for this approach,²⁰ in this chapter, ‘goal-setting approach’ will be used.²¹ The goal-setting approach is perceived by many as offering flexibility, shifting the focus away from a strict rule on the desired outcomes and a box-ticking mentality to a situation where regulatees are involved in considering the best way to achieve the outcome.²² Which of the two regulatory approaches was followed when putting in place the rules for hydrogen transport in France will be considered in the following sections.

16.2 Hydrogen in France

16.2.1 The Different Types of Hydrogen in France

Internationally, a spectrum of colours (white to grey)²³ is used to provide information related to the energy sources and technical procedures used to produce hydrogen. In the French ‘Hydrogen deployment plan for the energy transition’, published in 2018, a first effort to differentiate the types of hydrogen in France can be seen. In this text, renewable hydrogen is defined as hydrogen produced via electrolysis without the use of fossil fuels, whereas decarbonized hydrogen is hydrogen produced from fossil methane with the CO2 from the production procedure captured and stored underground.²⁴

Ambiguity about what is considered to be renewable and decarbonized hydrogen under the French system vanished with the adoption of Ordinance No. 2021-167 of 17 February 2021 on hydrogen.²⁵ Article L811-1 (as amended by article 81 of Law 2023-175) of Book VIII of the French Energy Code,²⁶ originally introduced by the Ordinance, defines three types of hydrogen: renewable, low-carbon and carbon-based hydrogen. These are distinguished by greenhouse gas emissions and by the primary energy source used for production.²⁷

• Renewable hydrogen is ‘produced either by electrolysis using electricity from renewable energy sources as defined in Article L. 211-2, or by any other technology using exclusively one or more of these same renewable energy sources and not conflicting with other uses allowing their direct recovery. This electricity may be supplied as part of an individual or collective self-consumption operation as defined in Articles L. 315-1 and L. 315-2. In all cases, its production process emits, per kilogram of hydrogen produced, a quantity of carbon dioxide equivalents less than or equal to a threshold’.

• Low-carbon hydrogen is hydrogen ‘whose production process generates emissions less than or equal to the threshold for the qualification of renewable hydrogen, without being able, however, to receive this latter qualification, because it does not meet the other criteria’.

• Carbon-based hydrogen is ‘hydrogen that is neither renewable nor low-carbon’.

From the above, it is clear that renewable hydrogen in France is considered to be hydrogen produced by using electricity from renewable energy sources via electrolysis and other production processes like steam reforming of biogas or the thermolysis of biomass. Therefore, going back to the colour spectrum, it can be deduced that French renewable hydrogen is mainly equivalent to green hydrogen. As far as the other categories are concerned, abiding by the same CO2 threshold but also using non-renewable sources for production leads to the conclusion that yellow,²⁸ pink²⁹ and blue hydrogen are found under the low-carbon hydrogen definition in France. Lastly, hydrogen that does not conform to either of the first two categories is viewed as carbon-based (grey, brown and black), such as hydrogen produced by steam reforming of natural gas (around 11 kgCO2/kgH2), coal gasification (20 kgCO2/kgH2) or electrolysis using carbon-based electricity mixes.³⁰ It is important to note that this third category could potentially include hydrogen produced not only by fossil fuels but also by renewable sources if the emissions of their production process are above the kgCO2eq/kgH2 threshold. According to France Hydrogène,³¹ an example could be hydrogen produced from biomass or biogas, depending on the nature of the inputs used and the associated carbon footprint, or depending on the methane leaks taken into account upstream.³²

France Hydrogène drafted a table correlating the different ‘colours’ of hydrogen with the new definitions of the French legal system, which confirm those presented above.³³ Renewable is ‘green hydrogen’, low-carbon is ‘pink, yellow and blue hydrogen’ and carbon-based is ‘grey, brown and black hydrogen’. Lastly, it is interesting to note that the table includes no correlation for turquoise hydrogen. Turquoise hydrogen is usually produced via pyrolysis of natural gas using energy that was not produced by renewable sources together with solid black carbon.³⁴ Since the by-product, black carbon, can be used for purposes like enriching the soil or for the construction of other products such as tyres, its handling can be considered similar to carbon capture, utilization and storage (CCUS) of CO2 in the production of blue hydrogen and therefore turquoise hydrogen should be considered as low-carbon hydrogen. However, if the energy driving the pyrolysis is from renewable sources and/or the feedstock for the pyrolysis is biomethane and not natural gas, the production of turquoise hydrogen becomes zero-carbon and carbon-negative respectively,³⁵ making turquoise renewable hydrogen.

The threshold of the CO2 equivalent and the method of its calculation, were set via the relevant decree finally published in July 2024.³⁶ The greenhouse gas emissions threshold for qualifying hydrogen as renewable or low-carbon is set at 3.38 kg of CO2 equivalent per kg of hydrogen produced,³⁷ which corresponds to the benchmark of a 70% reduction in greenhouse gas emissions compared with a fossil equivalent³⁸ introduced by the recast Gas Directive (EU)2024/1788.³⁹

For renewable hydrogen, greenhouse gas emissions from production, input supply, processing, transport, distribution, end use and carbon capture and geological storage are counted and they are determined in accordance with the rules for calculating greenhouse gas emissions from hydrogen set out in the Annex⁴⁰ to European Delegated Regulation 2023/1185,⁴¹ whereas the methodology for low-carbon hydrogen is presented in the Annex of the French order,⁴² but includes all the life-cycle steps listed also for renewable hydrogen. Lastly, from the above, we notice that pink hydrogen is considered low-carbon hydrogen, whereas the fact that the order includes for counting only emissions from the production that are stored geologically⁴³ and not others like captured and then used in industrial process, seems to exclude blue hydrogen from this category.⁴⁴

16.2.2 Transport of Hydrogen

At a global level hydrogen can be transported mainly via three means: trucks, ships and pipelines.⁴⁵ The optimal form of transport depends on the end use and the targeted destination.⁴⁶ Usually, the use of the existing gas network, after being retrofitted (ensuring leakage prevention, for example), is the optimal choice for medium-distance transportation.⁴⁷ Away from pipeline grids, the supply of refuelling stations alongside major road arteries requires the use of alternative forms of transport, with trucks being the most popular option.

As mentioned before, France based its national hydrogen strategy on three pillars for which hydrogen is considered the solution for decarbonization: industry, the energy system and heavy transport. It becomes clear then that there will be a need to deliver massive production of renewable and low-carbon hydrogen throughout the country to the points of consumption. This is one of the main reasons why the transport of hydrogen in France must be looked into. Moreover, due to its geographical location (between the southern Europe producers/exporters and the northern importers), the existing gas infrastructure and interconnections with most of its neighbours, plus the availability (present and planned) of low-emission electricity, France can easily transition to become a hydrogen hub.⁴⁸ However, interestingly enough, regardless of the role that France can play in hydrogen transport across Europe and the cross-border hydrogen trade, French hydrogen plans have not included, at least not yet, specific measures for cross-border transport or hydrogen imports and focus mostly on internal production and industry hubs.⁴⁹ Nevertheless, transport of hydrogen is crucial for its plans for nationwide decarbonization and that is why it is examined.

Transport of Hydrogen (Road, Rail and Water Transport)

This section will present the rules applicable for the transport of hydrogen for road, rail and sea transport. In these cases, the French legal system is very clear, classifying hydrogen (regardless of means of production and end use) as a dangerous material and therefore imposing the rules that are applicable to other dangerous materials. Dangerous goods or hazardous materials are substances and articles the carriage of which is prohibited or is authorized only under specific conditions, due to health and safety reasons.⁵⁰

The rules on the national or international transport of dangerous goods by road, rail and inland waterways in France can be found in the ‘TMD Decree’ (Arrêté Transports de Marchandises Dangereuses) (Decree of 29 May 2009 as amended).⁵¹ Specifically, the TMD Decree deals with the application of the Agreement concerning the International Carriage of Dangerous Goods by Road (ADR), the Regulation for International Transport of Dangerous Goods by Railway (RID) and the European Agreement on the International Carriage of Dangerous Goods by Inland Waterways (ADN).⁵² These agreements follow a similar pattern. Each agreement contains a table that pairs the list of identified dangerous materials under their United Nations (UN) number with the requirements applied for the transport of this substance. This is a four-digit number that identifies dangerous goods, hazardous substances and articles (such as explosives, flammable liquids, toxic substances) in the framework of international transport, assigned by the United Nations Committee of Experts on the Transport of Dangerous Goods.⁵³ Specifically for road transport, the ADR contains two Annexes, with Annex A laying down the packaging and labelling requirements and Annex B containing the conditions for the construction, equipment and operation of the vehicle carrying the dangerous good. The RID, which deals with the rail transport of dangerous goods, is appended (Appendix C) to the Convention concerning international transport by train (COTIF, Convention relative aux transports internationaux ferroviaires).

In these conventions, the following are most important in relation to the transport of hydrogen: UN 1049-Hydrogen compressed, UN-1966-Hydrogen liquified/refrigerated, UN 2034-compressed hydrogen and methane admixtures, UN 3166-Vehicle, flammable gas powered or vehicle, flammable liquid powered or vehicle, fuel cell, flammable gas powered or vehicle, fuel cell, flammable liquid powered and UN 3468-Hydrogen in a metal hydride storage device.⁵⁴ The TMD Decree establishes some general obligations for the transport of all dangerous goods, regarding labelling, packaging and documentation of the dangerous goods, the obligation to have a security adviser (article 6 of the TMD) and to provide special training to employees (L 4141-1 and following of the Labour Code).⁵⁵ Under the above UN numbers, hydrogen, whether in gaseous or liquid state, is categorized under class 2, with the principal characteristic as flammable. Each agreement has its own obligations, but they are largely similar regarding weight, packaging and labelling.

Concerning the distribution of hydrogen in refuelling stations, the provisions of ADR and RID, transposed via the TMD Decree, initially did not regulate products used as energy feedstock or fuel inside vehicles. This changed with the adoption of the ministerial decree of 22 October 2018⁵⁶ establishing new headings under the Installations Classified for Environmental Protection (ICPE, Installations classées pour la protection de l’environnement) regulation (heading number 1416⁵⁷ on hydrogen distribution in refuelling stations for mobility applications).

The above shows that the rules on the transport of dangerous material have already been applicable to the transport of hydrogen outside pipelines for many years, without any specific adaptation or modification. The framework for the transport of dangerous goods is highly detailed and meticulous and explains to the regulatees in advance what actions are permissible, leaving almost no margin. The rules-based approach to legislation, that is clearly followed here, is a logical choice in cases such as the transport of dangerous goods legislation where safety with ex ante prohibition of certain actions is the only option.

Hydrogen Transport by Pipelines

The transport of hydrogen via grid connection is a key aspect of future hydrogen-based economies, especially for transport of large quantities.⁵⁸ The hydrogen can be integrated into the natural gas grid by injection as an admixture, by using it to produce synthetic methane to then be injected into the natural gas grid or by the creation of or conversion to 100 per cent hydrogen networks.⁵⁹ Synthetic methane is renewable synthetic gas produced by combining CO2 with hydrogen (methanation).⁶⁰ France, due to its geographical position, has a high incentive to secure proper hydrogen infrastructure that could be part of a pan-European network, since it would be able to export locally produced hydrogen to its neighbours but also import renewable hydrogen from other countries where its production is more economically advantageous (for example, Spain).⁶¹

The right of injection and transport of hydrogen in the gas grid was officially established with the adoption of Ordinance No. 2021-167/17.02.2021 and specifically part III of the newly established Book VIII of the French Energy Code, dedicated to the transport and distribution of hydrogen. Articles L831-1 and L832-1 of the Energy Code set a framework for the transport and distribution of hydrogen in autonomous transport networks, specially dedicated to hydrogen, and separate from those for natural gas. The idea behind the creation of dedicated hydrogen grids in France is that with the expected decline in demand for natural gas over the next decades, the existing, extensive natural gas grid could be used for the transport and distribution of hydrogen, after performing the necessary technical adjustments. The idea of using the existing infrastructure is financially attractive, a fact already well recognized; as Anthony Mazzenga, director for renewable hydrogen and gas of GRTgaz, recently declared: ‘a grid adapted for hydrogen will cost 2 to 3 times less than a new grid dedicated to hydrogen’.⁶² Western Europe already features a hydrogen-dedicated pipeline network of almost 2,000 km running through France, the Benelux and Germany.⁶³

The right to use natural gas pipelines to transport hydrogen was established for the first time by Ordinance No. 2021-167/17.02.2021, which created articles L831-2 and L832-2 of the Energy Code. Specifically, these articles extend the obligations of gas network operators to include hydrogen transport: in the case of injection of hydrogen into natural gas transmission and distribution networks, they ‘shall implement the necessary measures to ensure the proper functioning and balancing of the networks, the continuity of the natural gas transmission and delivery service and the safety of people and property’.⁶⁴

These newly established articles strengthen the pre-existing right to access of other gases into gas systems, which was established a few years before. Originally, article 94 of Law No. 2018-938/30.10.2018⁶⁵ modified article L. 111-97 of the French Energy Code to establish the right of injection of biogas into the natural gas transport and distribution system.

The same article was amended again by article 49 of the Law on Energy and Climate (Law No. 2019-1147/8.11.2019) so that the scope of the article now also includes hydrogen and other renewable gases. It becomes clear from the report on the discussions of the French National Assembly⁶⁶ before the adoption of the Law on Energy and Climate that the extension of the right to access the gas network is important for the producers of renewable hydrogen and will further support the deployment of renewable and low-carbon hydrogen.⁶⁷

The new wording of article L. 111-97 is:

Subject to preserving the proper functioning and security level of natural gas infrastructures, a right of access to the natural gas transmission and distribution facilities and to liquefied natural gas (LNG) installations, including facilities providing ancillary services, is guaranteed by operators who use them for customers, to the producers of renewable gases, low-carbon hydrogen⁶⁸ and recovery gas as well as suppliers and their agents, under conditions defined by contract.⁶⁹

Therefore, owners and/or operators of hydrogen production installations – since the term producers, which is used, does not distinguish between the two – gained the right to access the natural gas systems, which entails their right to use, in line with the ruling of the ECJ in the Sabatauskas case.⁷⁰ However, it is important to note that this right to use depends on the technical safety criteria imposed, determining the gas quality.⁷¹ The connection will depend on the fulfilment of the technical standards needed for the injection and the capacity of the network, since no obligation to prioritize the hydrogen injection projects has been established (first come, first served system). Therefore, it can be deduced that the rules regarding the injection of hydrogen into the natural gas grid establish a general guideline for preserving the proper functioning and safety of the grid without setting down a more detailed framework – following a goal-based regulatory approach, where the goal is the safe injection of hydrogen within the natural gas grid, but leaving the relevant actors to determine how exactly this will be succeeded.

Technical Conditions for Injecting Hydrogen into Natural Gas Networks

In accordance with articles L-433-13, L-453-4 and R-433-14 of the French Energy Code,⁷² transmission system operators (TSOs) and gas distribution system operators (DSOs) issue and make public the guidelines concerning the technical conditions for safe injection that apply to pipelines and connections for gas transmission, distribution and storage facilities, which must be respected by actors in the gas market in order to ensure the safety of the grid.⁷³ GRTgaz and Teréga at the transmission level and GrDF at the distribution level issued their own codes where their rights and obligations are defined as well as the technical prescriptions applicable to their grids.⁷⁴ All three documents include articles on the technical rules that gases other than natural gas have to comply with (articles 7.1.2 and 5.1.2 respectively).⁷⁵ There are provisions on the level of impurities of the gas (concerning Hg, Cl, F, NH3 and so on). The level of H2 in the gas grid is set at 6 per cent (molar) admixture at most.⁷⁶ Moreover, the other gases must comply with the general technical conditions that are also imposed on natural gas – that is, Wobbe index, total sulphur content, density and others.⁷⁷ Interestingly, hydrogen injected into the gas grid was initially considered to be an impurity in the gas system,⁷⁸ which has changed recently.

The report produced by gas infrastructure operators to determine the technical and economic conditions for injecting hydrogen into the networks, based on measure 7 of the French hydrogen plan, shows that hydrogen blended at a rate of 6 per cent (volume) can be achieved in most networks, excluding cases where sensitive structures or installations are present at the customers’ end.⁷⁹ However, to achieve a share of 10 per cent or even 20 per cent of hydrogen in the networks, significant investment is needed.⁸⁰ Moreover, the percentage of blended hydrogen cannot be the same nationally.⁸¹ The volume of injectable hydrogen and the issues that this injection may cause depend, for example, on the specific characteristics of an area (sub-zone of the grid), the nature of pipelines, the presence or not of aquifer storage tanks, the gas quality and the possibility for proper metering, network equipment, network capacity and types of customers connected.⁸²

The proportion of up to 6 per cent of pure hydrogen that may be injected into the grid provides an answer to the question whether or not it is allowed to admix gases in the grid which at the entry point do not fully comply with the technical gas specifications, but they become compliant at the exit point due to the mixing with the pre-existing gases in the gas grid. The GRHYD pilot project⁸³ was able to demonstrate that the injection of a gas mixture composed of up to 20 per cent hydrogen (by volume) into new natural gas distribution networks is technically possible, and Jupiter 1000⁸⁴ safely injected up to 1 per cent hydrogen (by volume) and could reach a theoretical limit of 6 per cent in the transport system.

Guarantees of Origin

Lastly, since France aims to use hydrogen to decarbonize many of its energy systems and processes, it is important to mention the provisions on traceability and guarantee mechanisms established by Ordinance No. 2021-167.⁸⁵ According to article 821-3 of the French Energy Code, a guarantee of origin is issued to attest the origin of the renewable or low-carbon hydrogen produced, if it is likely to be mixed with another type of hydrogen or gas between stages or if the guarantee issued during its production is likely to be sold independently of the hydrogen produced.⁸⁶ The system of guarantees of origin for hydrogen is modelled upon the existing system for biogas (article L. 445-3 and following the French Energy Code) and can play an important role in development and deployment of renewable and low-carbon hydrogen, even if mixed with other gases. However, the guarantee of traceability of article L-821-2 is issued for renewable or low-carbon hydrogen produced and not mixed with another type of hydrogen or gas and that has been physically delivered to the buyer or final consumer.

From the French Energy and Climate Law as well the National Hydrogen Strategy, there is a clear need to increase the deployment of renewable and low-carbon hydrogen for the decarbonization of the energy system and heavy transport. However, since there is no certainty on the exact technical conditions that need to be fulfilled, the French legislators opted to set the general goal of injecting hydrogen into the grid and leaving market players responsible for fulfilment, while keeping the network’s security. Moreover, when setting the traceability and guarantee of origin system, the legislator is pretty precise regarding the system and how it should function, and even established a specific authority to handle and supervise the system (Chapter V of Book VIII of the French Energy code). The goal-setting approach that is followed in view of the right of injection of hydrogen is a good way to achieve the purpose of hydrogen integration into gas systems while ensuring system safety, for which there are still many uncertainties. The goal-setting approach is arguably the best choice in facing technological change and can facilitate technological innovation by allowing regulatees the freedom to experiment,⁸⁷ as happened in the case of France with the development of numerous pilot projects.

16.3 Conclusion

The goal of this chapter was to examine how the existing French legal system accommodates the transport of hydrogen and to scrutinize the regulatory approach followed.

France finally took the first important step towards the establishment of a specific framework related to hydrogen with the adoption of Ordinance No. 2021-167/17.02.2021. Hydrogen (low-carbon and renewable) and the related technologies, such as power-to-gas have been at a central position in the future energy plan for France and have been viewed as important solutions for decarbonization by stakeholders in both the private and public sector. Even though there were some pre-existing elements concerning the regulation of hydrogen transport, they were largely confined to the general rules for transport of dangerous materials. For the hydrogen sector to blossom and to play the role that was envisioned for the French energy transition, some specific elements are needed for hydrogen (specific rules on the types of hydrogen, transport, sale and so on), which has been noted by the private sector over the years.

Besides the existing modes of transporting hydrogen (road, rail, water), France takes great interest in the injection of hydrogen – and especially of green hydrogen – into grids to transport the gas from the hubs of production. For the use of the existing gas network for hydrogen transport, it was concluded that a right to access for hydrogen and renewable gas to the gas grid was adopted a few years ago, opening the way for hydrogen and synthetic natural gas (SNG) injection. The adoption of Ordinance 2021-167 creates the legal leeway for both: a hydrogen-only transport and distribution system as well as the obligation for TSOs and DSOs to take the appropriate measures to ensure the proper functioning and balancing of the gas systems when hydrogen is injected. In terms of numbers, testing for injection of hydrogen admixed with natural gas up to 20 per cent yielded positive results. There now is the clear need to follow up on this quickly by changing the safety regulations and including this technical possibility into law by raising the amount of admissible hydrogen to the natural gas grid from 6 to 20 per cent.

From a regulatory techniques perspective, the approach followed in the case of hydrogen legislation in France is currently moving away from the prescriptive technical rules, such as the rules on the transport of dangerous goods, and towards the setting of important targets – that is, hydrogen injection with respect to the proper function and security of the grid. This latter approach leaves it to the market participants to determine, based on the individual characteristics, how safety in the grid can be achieved.

All in all, the analysis indicates that the decision on regulatory approaches is not a one-time decision: each time for every part of the system, which approach is most suited to reach a given regulatory objective must be considered. In case of hydrogen injection, the adoption of the goal-setting approach is considered a success for the French legislator as it provided leeway to each network operator to experiment based on their particularities. Even though there are still some important legal gaps in existing legislation and ambivalences that need to be resolved, France can be viewed as a positive example for how using a suitable regulatory approach can have a real effect on the quality and speed of adaptation of the legal system to a new energy carrier.