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Creation of ‘HyXchange’ hydrogen exchange a step closer

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The research into the realistic establishment of a hydrogen exchange in the Netherlands has highlighted the items and conditions necessary to facilitate hydrogen trading.

They include hydrogen certification, the establishment of a price index, the establishment of a spot market, and the development of trading instruments for the purpose of balancing the physical hydrogen network and storing the gas. Bert den Ouden conducted research on behalf of Gasunie and the port authorities of Rotterdam, Amsterdam, Groningen, and North Sea Port, in consultation with market participants and governments.

The growing demand for climate-neutral hydrogen necessitates a functioning market and transparent, effective pricing. Both can be accomplished through a hydrogen exchange. HyXchange will be the name of the new hydrogen exchange. HyXchange intends to test the first trade goods in pilots and simulations that will further involve the market in a subsequent initiative.

The port authorities of Rotterdam, Amsterdam, Groningen, and the North Sea Port (Vlissingen, Terneuzen, and Ghent) are all developing hydrogen infrastructure plans for their respective businesses and launching new initiatives in their respective fields. For some time, Gasunie has been developing plans for a national infrastructure that would connect all of these locations, as well as hydrogen storage, and would specifically facilitate hydrogen import and transit to Germany and Belgium, while also increasing hydrogen accessibility to a broader range of parties.

A hydrogen exchange, similar to the electricity and gas markets, could serve as a catalyst for the development of a market for climate-neutral hydrogen. Additionally, it could aid in the economic development of a hydrogen market.

The subsequent endeavor entailed a considerably more in-depth investigation and examination of the options. Additionally, a sizable number of market participants was informed and then consulted via product groups. This resulted in several quite useful suggestions. The result is as follows:

Green, low-carbon, and imported hydrogen certification is required to pipe a greater volume of hydrogen from a variety of sources through a single grid while still allowing users to choose the sort of hydrogen they desire to purchase. This is analogous to an electricity and gas system in which the same grid is used regardless of the source, but green electricity and gas are certified, bringing value to the client. In preparation of the restrictions, the hydrogen exchange initiative plans to launch a pilot program to gain experience in this area.

A second requirement for establishing a hydrogen exchange is the establishment of an index that gives transparency on the price at which hydrogen can be traded. The study developed an index that reflects the price of hydrogen, as well as the certifications, according to the method of generation and the degree to which carbon emissions are reduced.

Thirdly, the creation of a hydrogen exchange requires the establishment of a spot market. This will initially be a market simulation, but once the infrastructure in one of the ports is complete and there are sufficient providers and clients, a true local spot market will be created. This will grow as Gasunie joins hydrogen grids in various port and industrial locations to its national hydrogen grid (HyWay27 project). This form of spot market would allow for the establishment of multinational hydrogen trade networks.

Finally, trade instruments are required to maintain network balance and hydrogen storage. These mechanisms must be investigated in greater detail and may potentially be included in a proposed market simulation.

Nedim Husomanovic

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