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Certification system for renewable and non-renewable hydrogen & derivatives to trigger international trade: Wouter Vanhoudt, HinicioCertifHy

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Certification system for renewable and non-renewable hydrogen & derivatives to trigger international trade: Wouter Vanhoudt, HinicioCertifHy

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OECD-CEFIM Certification for facilitating international trade of green hydrogen webinar, 31 January 2023, OECD headquarters, Paris

OECD-CEFIM Certification for facilitating international trade of green hydrogen webinar, 31 January 2023, OECD headquarters, Paris

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Certification system for renewable and non-renewable hydrogen & derivatives to trigger international trade: Wouter Vanhoudt, HinicioCertifHy

  1. 1. An initiative funded by the FCH 2 JU Certification system for renewable and non-renewable hydrogen & derivatives to trigger international trade OECD January 13th, 2023
  2. 2. Master in Commercial Engineering Business Informatics & Master of Finance Vlerick Management School. Project Coordinator for European Commission supported Standard on Green H2 Certification. Chair and Board of AIB Gas Scheme Group 2020-2022 Prince Albert Funds Alumnus, Professional career: 17 year, of which 1 year in China and 3 years in Middle East. Belgian native. Trilingual: Dutch-English-French. Based in Brussels Introducing myself 2 0 1 7 2 0 1 8 2 0 1 9 CEN CENELEC – JTC 6 liaison Coordinator since 2014 Chair Gas Scheme Group & Board Member 2020-2022 2 0 2 0 2
  3. 3. Act as a buffer to increase system resilience Distribute energy across sectors and regions Enable large-scale renewables integration and power generation Enable the renewable energy system Decarbonize end uses 4 7 5 6 2 3 1 Decarbonize transportation Help decarbonize building heat and power Decarbonize industrial energy use Serve as feedstock, using captured carbon Source: Hydrogen Council, 2017 7 Hydrogen GO a prerequisite for Hydrogen as an enabler of the Energy Transition
  4. 4. Act as a buffer to increase system resilience Distribute energy across sectors and regions Enable large-scale renewables integration and power generation Enable the renewable energy system Decarbonize end uses 4 7 5 6 2 3 1 Decarbonize transportation Help decarbonize building heat and power Decarbonize industrial energy use Serve as feedstock, using captured carbon Source: Hydrogen Council 2017 7 Hydrogen GO - propagating environmental attributes along industrial chains g CO2/ km g CO2/ kWh g CO2/ kWh g CO2/ kg
  5. 5. Markets attribute premium value to clean hydrogen as it allows companies to meet their voluntary or regulatory targets 6 Hydrogen What is the economic value of H2? Cost driven No premium value 1 The molecule H Sustainability driven (CSR) Premium value Driven by supply/demand balance of ”clean” hydrogen 2 Clean H2 to comply with voluntary targets Compliance driven Premium value Driven by financial incentives (tax, penalties…) 3 Clean H2 to comply with mandatory EU targets
  6. 6. Certification scheme design fundamentals: more than just a GHG methodology 7 Product Attributes Chain of Custody Certification Book & Claim system vs. Mass balancing Validation/verification incl. auditing Issuance of certificates Requirements Carbon Footprint Socio-Economic sust. … Renewability Labels Supervision Governance Other Environmental Sustainability Fundamental principles
  7. 7. Phase 2 Phase 1 Define a widely acceptable definition of green hydrogen CertifHy aims to develop the 1st European-wide Green and Low Carbon hydrogen GO scheme Determine how to design and implement a robust EU wide GO scheme 2 Set-up a hydrogen GO Stakeholder platform 2014 2016 2017 2018/9 2020s.. Finalise the scheme design ensuring it can be the main route to guarantee the origin of green & low carbon hydrogen across EU Member States Run a pilot scheme to test the proposed design 1 2 3 Identify actions which need to be undertaken after the completion of the study to achieve an EU wide deployment of the scheme 4 1 Phase 3 Prepare EU wide deployment: Implement Scheme: ➢Gas Scheme Group of AIB ➢Voluntary Issuing Body ➢Expand Stakeholder Forum with WG on Issuing Bodies 8 Expand from GOs to RFNBO certification 1 2 Affiliated partners:
  8. 8. CertifHy developed Factual data fields on GO Scheme … 9 Next to a robust tracing and tracking system for hydrogen production, CertifHy developed two labels: “CertifHy Green” and “CertifHy Low Carbon” together with Policy makers, Civil Society, and Industry. A robust tracking system for objective characteristics of hydrogen production: production technology, place of production, energy sources used, financial support received, GHG allocation methods, etc. … and two labels Subjective appreciation
  9. 9. 11 The first commercial transactions already took place, i.e. issuance and use (‘Cancellation’) of first green H2 GOs: H2 Mobility Deutschland & Transport for London Issued: 28.000 GOs Transfer: 16.000 GOs 1 GO = 1 MWh http://www.airproducts.co.uk/Company/news- center/2019/02/0207-air-products-launches-european- project-to-certify-renewable-hydrogen-uk.aspx
  10. 10. 12 CertifHy 3 phase 2: Moving from RED2 Art 19 GOs towards RED2 Art 25-30: RFNBO – compliant H2 allows transport fuel suppliers to reach 14% renewable energy Transport Storage + mass balance RFNBO scope RFNBO scope: Sustainability criteria for elec: Additionality & “in-sync” with RE Production device GO scope Out of scope
  11. 11. Certification Systems constantly (need to) evolve because of the new policy target. CertifHy Team is working with FertilizersEurope building NH3 certification Scheme and partner with RSB 13
  12. 12. An initiative funded by the FCH 2 JU For questions, please contact certifhy@hinicio.com

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