Key challenges to implement the 2021 EU Hydrogen and Decarbonised Gas Package

With the announcement of the Hydrogen and Decarbonised Gas Package in December 2021, the gas sector is headed for a serious transformation. The strategy behind the package has been well-studied and many positions have been shared. Now is the time to turn those positions into concrete implementation projects.

With a new study, leveraging its experience in the European electricity market, Magnus Energy aims to shine a light on the implementation challenges. This is to prepare organisations and cooperations for successful achievement of complex cross-border implementation projects. The challenges have been identified through research on regulations and strategy papers. The outcomes have been verified through interviews with experts from gas TSOs and other organisations.

Transition in the gas market

The European gas market is quickly evolving: there is a steep increase in hydrogen and biomethane investment, increased usage of LNG and major uncertainty in imports. To understand this complex topic, Magnus Energy studied one of the fundamental pieces of legislation for the decade to come: the Hydrogen and Renewable Gas package. The key findings have been published to help gas TSOs, electricity TSOs and other interested parties prepare for the transition in the gas market. 

Our key findings

Magnus Energy believes that cooperation between organisations is key to achieving the ambitious goals set for the natural gas and hydrogen markets in the energy transition. TSOs will need to: 

  • Organise themselves on a regional level to set standards for future operational rules.
  • Work on network codes and on interconnection agreements together to minimize revenue losses.
  • Adapt to a new role in the (renewable) gas and hydrogen system and manage the transition of gas transmission assets to hydrogen transmission assets.
  • Prepare their organizations to deal with uncertainties in gas, hydrogen and biomethane markets.
  • Cooperate with many stakeholders to manage regional, cross-border repurposing projects.

As learned from the adaptation of renewable power in the electricity grid, collaboration is crucial. After studying the gas market and upcoming regulations, we conclude that this seems even more important for the gas market. To set up new hydrogen ecosystems and quickly develop new cross-border markets, organisations of all types – TSOs, market parties, (local) governments – will need to join forces in complex projects. 

Want to learn more about our study? Feel free to download the report via the button on the right. 


Experts from gas TSOs and other organisations

Industry Topics

Sector coupling


Knowledge sharing


Alexander van der Mark

Partner +31 85 7430519