Hydrogen Certification and Guarantees of Origin: Ensuring Transparency

Hydrogen Certification and Guarantees of Origin: Ensuring Transparency

As Europe accelerates its shift towards a clean energy future, the role of hydrogen has become increasingly pivotal. ​Renewable and low-carbon hydrogen are poised to play a crucial part in decarbonizing hard-to-abate sectors, providing energy storage, and supporting the integration of variable renewable electricity. However, for this potential to be fully realized, robust certification systems and clear guarantees of origin (GOs) are essential to ensure transparency and build trust in the emerging hydrogen economy.

Hydrogen Production Pathways

Hydrogen can be produced through a variety of pathways, each with its own environmental implications. Renewable hydrogen, derived from the electrolysis of water using renewable electricity, offers a zero-emission solution that aligns with Europe’s climate goals. In contrast, fossil-fuel derived hydrogen, produced from natural gas or coal, can have a significant carbon footprint unless coupled with carbon capture and storage technologies. A third pathway, nuclear hydrogen, utilizes the heat generated by nuclear power plants to produce hydrogen through high-temperature electrolysis or thermochemical processes.

The diversity of hydrogen production methods underscores the need for comprehensive certification schemes to clearly differentiate the environmental attributes of each source. Consumers, both in the industrial and transportation sectors, are increasingly demanding transparency in the origin and sustainability of the hydrogen they purchase.

Hydrogen Certification Schemes

In response to this growing demand, several certification initiatives have emerged across Europe and globally. The most prominent among these is the European Union’s Guarantees of Origin (GO) scheme, which aims to create a harmonized system for tracking the origin and carbon intensity of hydrogen and other renewable gases. The GO system provides a trusted and verifiable mechanism for hydrogen producers to demonstrate the renewable or low-carbon nature of their product, enabling consumers to make informed choices.

Alongside the EU’s efforts, various international renewable energy certificate (REC) programs, such as those operated by the International REC Standard (I-REC) and the Renewable Energy Tracking Association (RETA), are also gaining traction in the hydrogen sector. These schemes allow for the cross-border trade of hydrogen’s environmental attributes, further enhancing transparency and market integration.

Hydrogen End-Use Applications

The importance of hydrogen certification and GOs extends across a wide range of end-use applications. In the mobility sector, hydrogen-powered fuel cell vehicles can leverage certified renewable or low-carbon hydrogen to reduce their carbon footprint and contribute to the decarbonization of transportation. Similarly, in industrial processes, manufacturers can utilize certified hydrogen to power their operations, lowering their overall emissions and demonstrating their commitment to sustainability.

The power generation industry is also embracing the role of certified hydrogen, as it can be used as a clean fuel for combined heat and power (CHP) plants or blended with natural gas in existing infrastructure to reduce the carbon intensity of electricity production.

Transparency in Hydrogen Markets

Effective hydrogen certification and GOs are pivotal in ensuring transparency throughout the entire value chain, from production to consumption.

Hydrogen Traceability

Robust traceability mechanisms are essential to accurately track the origin and production details of hydrogen. This involves comprehensive monitoring and verification processes to ensure the integrity of the certification system. Blockchain-enabled digital ledgers and smart contract technologies are emerging as powerful tools to enhance traceability and prevent double-counting of certificates.

Carbon Accounting for Hydrogen

Alongside traceability, the accurate accounting of greenhouse gas (GHG) emissions associated with hydrogen production is crucial. Certification schemes incorporate life cycle assessment (LCA) methodologies to quantify the carbon footprint of each hydrogen source, enabling consumers to make informed decisions and contribute to the overall decarbonization of the energy system.

Harmonization of Hydrogen Standards

As the global hydrogen market evolves, the harmonization of certification standards and GOs is crucial to facilitate cross-border trade and ensure the interoperability of different national and regional schemes.

Global Hydrogen Trade

The ability to seamlessly trade hydrogen and its associated environmental attributes across borders is essential for the development of a thriving international market. Harmonized certification frameworks, underpinned by common definitions, methodologies, and data exchange protocols, can enable the frictionless flow of hydrogen and its derivatives, such as ammonia and synthetic fuels, between countries and regions.

National Hydrogen Strategies

Governments across Europe are actively shaping their national hydrogen strategies, which often include provisions for certification and GOs. Policymakers are tasked with crafting robust regulatory frameworks that ensure the credibility and transparency of these systems, while also aligning them with broader decarbonization goals and international best practices.

Challenges in Hydrogen Certification

Despite the progress made in hydrogen certification and GOs, several challenges remain that require ongoing attention and collaboration among stakeholders.

Data Availability

Accurate data on hydrogen production, particularly from emerging and distributed sources, is not always readily available. Gaps in monitoring and potential confidentiality concerns can hinder the comprehensive tracking of hydrogen’s origins and attributes. Addressing these data gaps is essential for maintaining the integrity of certification schemes.

Additionality and Double Counting

The principle of additionality, ensuring that certified hydrogen is produced from additional renewable energy sources, is a complex and often contentious issue. Determining the appropriate allocation of renewable energy certificates and avoiding the risk of double counting require robust accounting methodologies and ongoing coordination among certification bodies, regulators, and market participants.

As the European hydrogen economy continues to evolve, the harmonization of certification schemes and the establishment of transparent GOs will be crucial in building trust, fostering market development, and accelerating the transition towards a sustainable energy future. By providing consumers with clear and reliable information about the origin and environmental attributes of hydrogen, certification can empower informed decision-making and drive the widespread adoption of this versatile energy carrier.

To learn more about the European Future Energy Forum and its role in shaping the continent’s clean energy landscape, visit their website today.

Facebook
Twitter
LinkedIn