Hydrogen exchange HyXchange is in the making

22.07.21

A growing demand for climate-neutral hydrogen creates the need for a well-functioning market and transparent and efficient pricing. Gasunie and the Rotterdam, Amsterdam, Groningen and North Sea Port port authorities have commissioned a study into setting up a hydrogen exchange. That study has provided insight into what is needed for hydrogen certification, an index to make prices transparent, a spot market and the necessary trading instruments to balance the hydrogen network and storage.

The parties that commissioned the study have named the hydrogen exchange HyXchange. Four important conclusions are drawn for the further setup of HyXchange.

Certification for clarity

There are various types of hydrogen. Grey hydrogen releases CO2, blue hydrogen captures the CO2 and green hydrogen has no CO2 emissions. When all of these types of hydrogen are transported via the same network, users need to be able to choose which hydrogen they want to purchase. Hydrogen certification will enable them to do just that. This is comparable to the electricity and gas system where everything runs on the same grid, but green electricity and gas are certified, thus retaining the added value for the client. In anticipation of the regulations, the initiators intend to organise a pilot for hydrogen in order to gain experience in this area.

Transparent prices for hydrogen

A second point needed to develop a hydrogen exchange is an index that provides transparency with respect to the price at which hydrogen can be traded. The study produced an index reflecting the price of the hydrogen, as well as the certificates, according to the generation method and the extent to which it manages to cut CO2 emissions.

A market for trading

Thirdly, a spot market is important in the development of a hydrogen exchange. This will be first set up as a market simulation and as soon as the infrastructure is ready in a port area and there are several suppliers and customers, it will be put into practice as a local spot market. This would be expanded as Gasunie connects the hydrogen grids in the various port and industrial areas to its national hydrogen grid. This type of spot market would therefore present an opportunity for international hydrogen trading links.

Balanced market

Finally, trading instruments are needed to balance the network and to store hydrogen. It is important to explore these mechanisms further, and they could also form part of a proposed market simulation.

As a follow-up to the study, the parties will start testing the first trading products in pilots and simulations. Market parties are involved in this.

The study was conducted by Bert den Ouden, former director of the Dutch Energy Exchange.

For more information, please contact the Port of Rotterdam Authority. A presentation of the study can also be downloaded from their website.

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