Shell is urging the European Union to weaken proposed green hydrogen rules, arguing that stricter standards scheduled for 2030 will drive up costs and stunt industry growth. The energy giant wants the bloc to delay "hourly matching" requirements that would force hydrogen producers to align electrolyser consumption with renewable generation in real time, rather than over a monthly average.

Under current EU rules, producers can certify hydrogen as "green" by purchasing enough renewable electricity over a month to match their electrolyser's consumption. The 2027 rules would require hourly synchronization. Shell estimates the change would add approximately €2 per kilogramme to production costs, pushing prices even higher above the current industry average of €8 per kg.

The debate comes as Shell prepares to open its Holland Hydrogen I plant in Rotterdam this year, a 200-megawatt facility that will supply 5-10% of hydrogen demand at its nearby Pernis refinery. The EU signaled last month it would review production criteria amid concerns about the slow pace of hydrogen development. Proponents of hourly matching argue that without stricter standards, "green" electricity is only green in theory, not practice.