Exemption from energy taxation

Excluded from the scope is the electricity used principally for the purposes of chemical reduction and in electrolytic and metallurgical processes, when electricity is used directly in or to provide a direct energy input to the process, or its consumption is connected to the process. This means that Member States are not required to tax this energy and they can exempt the use as they see fit
Energy Directive revision as part of the Fit for 55 package proposes the explicit exemption of electrolytic processes for hydrogen production. By December 2024, the revision had not been approved and additional work remains to reach agreement at the European Council

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