Platts proposes launch of implied hydrogen origin certificate for Europe, US

S&P Global Platts is proposing to launch daily implied hydrogen origin certificate (h-OC) assessment for Northwest Europe, California and the US Gulf Coast, effective March 25, 2022.

h-OC is an electronic tracking certificate that labels electricity attributes or technology behind hydrogen production pathways. Platts h-OC would cover the origin of production as well as the carbon intensity used in the production process, where carbon has been avoided, removed or offset.

A realized premium for hydrogen derived from carbon-neutral production pathways has the potential to inform investment decisions, government funding, and ultimately aid in the path toward commoditization.

The implied h-OC value would be calculated as a premium between the cost of production of hydrogen produced via steam methane reforming without carbon capture and sequestration, and carbon neutral hydrogen produced via proton exchange membrane electrolysis.

Carbon neutral hydrogen costs would include renewable energy certificates, guarantees of origin and carbon offsets where applicable.

For Northwest Europe, h-OC would be valued for production taking place in the Netherlands. In the US Gulf Coast, h-OC would consider production pathways in Texas and Louisiana.

Platts h-OC implied values would be reflected on a spot basis for the calendar month following the trading date. Prices would be measured in Eur/MWh in Europe and $/MWh in the US. One h-CO certificate would represent the premium using 1 MWh of energy to produce hydrogen from carbon neutral sources. Assumptions for capital expenditures would be included in costs.

The prices would be published on Platts Dimensions Pro and under the Market Data Categories HY and ETR.

The following symbols would be created:

-Implied Hydrogen Origin Certificate Northwest Europe Eur/MWh

-Implied Hydrogen Origin Certificate California $/MWh

-Implied Hydrogen Origin Certificate USGC $/MWh

-Implied Hydrogen Origin Certificate Northwest Europe Eur/MWh MAvg

-Implied Hydrogen Origin Certificate California $/MWh MAvg

-Implied Hydrogen Origin Certificate USGC $/MWh MAvg

Please send any questions or comments to hydrogenassessments@spglobal.com and pricegroup@spglobal.com by Feb. 25, 2022. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.