2.2.5 First cross-border trade of GoOs

Of the grey hydrogen production in Europe, only a small share (15%) is (bilaterally) traded (merchant). Most hydrogen production is integrated with industrial processes, either as captive production (64%) or as a by-product of a process (21%). The largest players in the EU merchant hydrogen market are Linde, Air Liquide, and Air Products, producing predominantly grey hydrogen and covering 88% of the market.

Only 15% of the 339 TWhLHV of EU hydrogen production is traded (i.e. merchant hydrogen) (Figure 2.25).98 Three producers are responsible for 88 % of the EU market for merchant hydrogen (Figure 2.31).98 The remaining part of the market consists of smaller companies.

Several large players are developing electrolyser projects in the EU that are more than 10MWel, for example, Shell, ENGIE, Gasunie, and Air Liquide.

The market for green hydrogen is still developing, and multiple companies are involved in new pilots and projects. The IEA hydrogen database shows 33 projects with a concrete announced start date and with electrolyser capacity exceeding 10 MWel.100 With a few exceptions, these announced projects all involve multiple partner companies, ranging from 2 to 30, with the majority having 2-3 partners. Many of these are companies are already active in the gas, energy, and chemical sectors. Some companies are involved in multiple projects— for example,ENGIE,Gasunie,AirLiquide,Nouryon,and Shell.100 However, almost none of these projects indicate that the final investment decision has already been taken.

CertifHy launched the first pilot GoO for green and low-carbon hydrogen in 2018. To date, more than 77,000 CertifHy GoOs have been issued, of which 75,000 were for blue hydrogen and 2,900 for green hydrogen. Hydrogen certificate trading is expected to increase following national and EU developments.

CertifHy was launched in 2018 based on a request from the European Commission. The project is financed by FCH JU and was developed in cooperation with stakeholders in the sector. The CertifHy project aims to develop and implement a common European-wide voluntary green and low- carbon hydrogen GoO scheme.108 The CertifHy pilot project also consists of setting up a registry and issuing body to manage the issuance, transfer, and cancellation of GoOs.

CertifHy issued the first GoO in late 2018.109 By early 2019, the scheme attracted several companies that registered as account holders. More than 77,000 CertifHy GoOs, equivalent to 2.3 ktonnes of hydrogen, have been issued. Of these, 2,900 GoOs (86 tonnes) were issued for hydrogen from renewable energy and 75,000 (2,2 ktonnes) for fossil-based hydrogen.110 GoOs issued under this scheme are expected to continue to grow as the CertifHy scheme consolidates more stakeholders and the market is further established.