EU countries split over ammonia opt-out in landmark renewable energy law

That could allow those plants to shift to hydrogen produced from nuclear energy, instead of requiring them to swap in renewable fuels as planned. Diplomats said the carve-out was unlikely to convince all of the countries that had held up the law, many in Eastern Europe with nuclear energy interests, since some still view the overall renewables goals as too ambitious.

EU countries are split over whether to add a loophole allowing nuclear power to be used in ammonia production to a landmark law on expanding renewable energy, diplomatic sources said, after pressure from states including France. A group led by France has held up approval of the European Union's renewable energy targets, pushing for more favourable treatment of CO2-free nuclear energy and an opt-out for ammonia plants that may struggle to switch from gas.

EU countries' ambassadors discussed on Wednesday a proposal to exempt some ammonia plants from the targets, allowing them to switch instead to fuels made using nuclear energy, which is CO2-free but not renewable. Countries will meet again on Friday to decide on the proposal, diplomats said, but some had already raised concerns about altering the renewable energy law, a deal on which was agreed by EU states and the European Parliament this year.

That agreement, which took months to negotiate, was supposed to be final. Markus Pieper, the EU Parliament's lead negotiator, said lawmakers also did not want to reopen the deal - raising the possibility that the planned loophole may not pass even if countries backed it. "The European Parliament is fundamentally opposed to opening up the text," Pieper said, adding that he would favour a separate written declaration on the issue, to avoid reopening the law.

If passed, the law will commit the EU to get 42.5% of its energy from renewable sources by 2030. France has said Europe's shift to green energy will require hydrogen produced from both renewables and nuclear, and EU laws should reflect member states' right to pick their own energy mix.

Other countries, including Germany and Spain, argue mixing nuclear into the renewable energy law would undermine efforts to massively expand wind and solar. A draft of the proposed carve-out, seen by Reuters, said certain ammonia plants could be excluded so long as they plan to cut fossil fuel-based hydrogen usage. That could allow those plants to shift to hydrogen produced from nuclear energy, instead of requiring them to swap in renewable fuels as planned.

Diplomats said the carve-out was unlikely to convince all of the countries that had held up the law, many in Eastern Europe with nuclear energy interests, since some still view the overall renewables goals as too ambitious.