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Energy Transition, Emissions, Hydrogen, Renewables
December 02, 2024
By Nick Edstrom
HIGHLIGHTS
Environment agency recognition a step towards hydrogen certificates market
Expected to lead to audits of German hydrogen production facilities
Certified plants will be able to issue tradable Proof of Sustainability certificates
Germany's environment agency Umweltbundesamt (UBA) has informed several certification providers that it will begin the process Dec. 2 to officially recognize their Renewable Fuels of Non-Biological Origin (RFNBO) certification schemes.
The three voluntary certification schemes mentioned are Redcert, ISCC and CertifHY. Until now, the three schemes have only been able to provide provisional certification of the origin of the energy used in the production of hydrogen, and the carbon footprint of the hydrogen produced.
Once the auditors are recognized, third-party auditors such as DNV, Bureau Veritas and TUV will be able to audit hydrogen production sites.
Certified production plants in Germany will subsequently be able to issue Proof of Sustainability certificates, CertifHY said in a social media post on Nov. 30.
This represents a step towards the beginning of a tradable market in hydrogen attribute certificates.
European hydrogen producers told S&P Global Commodity Insights that the recognition of the certification scheme would permit producers to take advantage of national RFNBO production incentives, such as Germany's THG Quota scheme.
Domestic German RFNBO producers will be able to apply for credits under the THG Quota scheme, which offers a bonus of Eur3/kg of RFNBO hydrogen. In time, higher credits may be available for the substitution of existing gray hydrogen consumption with RFNBO hydrogen in end-user markets such as refineries.
CertifHY publicly informed market participants during the EU Hydrogen Week conference in Brussels that it was one of three voluntary certification providers that had completed the process of technical assessment by the European Commission in November 2024. It expects the EU to formally complete the process of recognizing the voluntary certification schemes in early 2025.
However, the inauguration of the new European Commission under Ursula von der Leyen on Dec. 2 is likely to lead to renewed scrutiny of rules relating to RFNBO compared with low-carbon hydrogen, EC sources told Commodity Insights.