Australia starts trials for hydrogen Guarantee of Origin certificates

The Australian government said Dec. 10 it has commenced trials for a Guarantee of Origin scheme for the hydrogen sector, which will pave the way to certifying the green credentials of the country's hydrogen exports for future customers.

A GO certificate is designed to certify that a product has been made from sustainable sources, and in the case of green hydrogen it will certify that electricity used was from renewable energy sources.

Under the system, hydrogen players will be able certify locally produced hydrogen and its derivatives by measuring and tracking emissions from hydrogen production, as well as the type of technology used to manufacture the hydrogen.

"This will allow future customers to make informed choices about the source and emissions associated with the hydrogen they buy," the government said.

The government had opened consultations for the GO scheme for the hydrogen sector in June, and the trial process will test some of the key issues identified through the consultations before the scheme is finalized, it said.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the system will help Australia's emerging hydrogen industry scale up and compete with rivals, and that it must be supported by international trading partners.

The pilot projects will include testing of the methodologies for carbon emissions over an 18-month period, and cover production methods like renewable electricity, biomethane, and coal and gas with substantial carbon capture and storage, and the Department of Industry, Science, Energy and Resources and the Clean Energy Regulator will lead the voluntary trials.

Meanwhile, S&P Global Platts launched the world's first suite of carbon neutral hydrogen price assessments on Dec. 9 that reflects prices at the point of production at key hubs in Northwest Europe, the Middle East, Far East Asia, Australia, California and the US Gulf Coast.

The Platts CNH assessments consider carbon neutral trading activity in which emissions have been avoided where possible through the use of low emissions generation, removed through the use of carbon capture and storage, and offset through the use of carbon credits or equivalent instruments.

In the Asia-Pacific Region Platts CNH was assessed at $3.45/kg on an ex-works basis Australia, and this compares to the Middle East CNH assessment of $4.05/kg. However, the Far East CNH price was much higher, with a carbon neutral hydrogen price of $7.95/kg and the assessment for CNH NW Europe was Eur7.35/kg ($8.30/kg). In contrast, Platts CNH Prices in the US were lower than any other region, with Platts USGC CNH priced at $1.70/kg.