Romanian industrial companies could face fines equivalent to about €120 for every megawatt-hour by which they fall short of a 42% green hydrogen target from 2030, under new legislation backed by the country’s Senate.
The bill implementing industrial mandates under the EU’s Renewable Energy Directive III (RED III) will require industrial hydrogen consumers to ensure that at least 42% of hydrogen used for energy and non-energy purposes comes from renewable fuels of non-biological origin (RFNBOs) from 2030.
Companies that fail to meet the quota would be fined 0.17 lei ($0.038) for every megajoule of shortfall – around 612 lei/MWh or €120/MWh.
The penalty would be capped at 5% of a company’s net turnover in the previous financial year. Companies without turnover in the preceding year would face a maximum fine of 10m lei ($2.2m).
The eventual 2030 penalty is also likely to be higher nominally, with the legislation requiring the per-megajoule rate and fine limits to be adjusted annually for inflation from January 2028.
However, simply paying the fine would not allow companies to wipe out their green hydrogen deficit. The legislation would add any shortfall to the company’s obligation for the following year, although the same deficit could not be fined twice for the same compliance period.
It applies to industrial uses of hydrogen such as chemicals, semiconductors, and metallurgy. Refining of transport fuels and biofuels is excluded as they are covered by RED III’s separate transport requirements.
Alongside the penalties, the bill also includes provisions for the Romanian government to introduce two-way contracts for difference or equivalent support schemes for green hydrogen production, though details remain slim.
With the quota rising to 60% from 2035, Romania is among the first EU countries to put a detailed enforcement regime behind RED III’s industrial hydrogen targets.
Consumers would be able to meet the target through domestic purchases, imports, their own production or transfers within an integrated company, provided the hydrogen is certified with valid documentation using an independently audited mass-balance system.
From 2031, industrial consumers will need to report their previous year’s consumption by 30 June, with failure to report carrying fines of 20,000 lei ($4,400) to 100,000 lei ($22,200).
The RED III industrial targets have proved the most difficult for member states to transpose amid concerns that the mandates could erode the competitiveness of key sectors.
Major hydrogen-backing countries like Spain and Germany so far have only implemented the transport targets.
