A mention of hydrogen in the final COP28 agreement from the UAE will help instil long-term confidence and encourage investment in the sector, according to panellists on a webinar organised by trade association Hydrogen Europe.

The text of the agreement calls for the acceleration of low-carbon hydrogen production—the first time hydrogen has been mentioned in a COP decision text.

This will help the sector accelerate into the next phase of its development, according to Sopna Sury, chief operating officer for hydrogen at Germany’s RWE Generation.

“It does help give a bit more momentum, and I think we will now see an acceleration of partnerships and announcements,” she said.

COP28 also saw other developments that will help facilitate the hydrogen sector. A declaration of intent on the mutual recognition of certification schemes for hydrogen and its derivatives was endorsed by 38 countries. And an ISO methodology for a greenhouse gas emissions assessment of hydrogen was launched.

The ISO still needs to be translated into national standards. It is vital that all countries that might be involved in the hydrogen trade recognise and enforce the methodology in their respective jurisdictions, according to Erwin Penfornis, vice-president of hydrogen at French industrial gases firm Air Liquide.

“We need consistency between regulatory and hydrogen policies in all parts of the world,” he said.

Enabling the Global South

Bodies such as the Green Hydrogen Organisation have noted it is essential that differing definitions of low-carbon hydrogen and lax approaches to measuring emissions are not allowed to undermine the development of the sector.

This is particularly important in the Global South, which is likely to be a major producer of hydrogen, shipping to regions such as Europe.

“We will now see an acceleration of partnerships and announcements,” Sury, RWE

The EU aims to import 10mt/yr of hydrogen by 2030. As the major source of future international demand, it is important for the bloc to ensure that exporting countries have the capacity to deliver the quality of hydrogen required by its standards, according to MEP Eleni Stavrou.

“It is necessary for the EU to support developing countries through policy regulatory and administrative support as well as supporting good governance in any energy transition projects,” she said.

This will involve dialogue between project developers and potential offtakers, as well as between regulators in different regions. In addition to standards for hydrogen itself, safety standards need to be developed for the associated transport and infrastructure for the fuel—including water management.

The UN Industrial Development Organization (UNIDO) is organising a Hydrogen Trade Forum to facilitate a dialogue between hydrogen producers and consumers, with the aim of recommending necessary regulatory actions for both. It will publish a paper in May on the findings of the forum.

Restrictive measures

One major issue highlighted by all panel members was the geographic and temporal restrictions put on green hydrogen production by the EU delegated acts. The US has not yet decided on its rules for hydrogen but is also discussing some form of temporal correlation, with a final decision expected next year.

Such restrictions will increase the complexity of projects not just domestically, but also in exporting countries, and will consequently raise costs, according to Juan Pablo Davila, industrial development officer at UNIDO.

“We need to develop the capacities of developing countries to match regulation. If it is too restrictive it will be hard to reap the benefits for these countries and to satisfy demand in Europe,” he said.

Such countries may be tempted to look for export deals with regions with less strict criteria—potentially South Korea and Japan. Although markets for different grades of hydrogen are expected to develop, these countries might attract offtake deals from early project developers because costs will be lower, making it harder for the EU to hit its import targets.

“We could be hindering Europe becoming a destination for imports,” said Sury.

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Author: Tom Young