#CertifHy. Creating the 1st EU-wide Guarantee of Origin for Green Hydrogen

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1 CertifHy Creating the 1st EU-wide Guarantee of Origin for Green Hydrogen Project supported by the FCH JU Webinar 12 th June 09:30 11:30 Wouter Vanhoudt (CertifHy Project Leader/ Director Europe Hinicio) #CertifHy

2 Agenda Introduction to GO schemes CertifHy Phase 1: Definition of Green hydrogen GO scheme Business Models for Green H2 GO s CertifHy Phase 2 Appendix: Analysis of pathways leading to Green H2 production 2

3 Guarantee of Origin (GO) scheme for Electricity has allowed Electricity Suppliers to sell renewable electricity (RE) contracts to households and provide evidence of RE consumption to their customers. In Flanders, consumers can check via the regulator their electricity consumption to be renewable (as the electricity supplier cancelled GOs): -hoe-groen-uw-stroom-groencheck 3

4 IDENTITY PRESERVED Sustainable palm oil from a single identifiable certified source is kept separately from ordinary palm oil throughout supply chain. Different schemes exist for sustainable palm oil 4

5 SEGREGATED Sustainable palm oil from different certified sources is kept separate from ordinary palm oil throughout supply chain Different schemes exist for sustainable palm oil 5

6 MASS BALANCE Sustainable palm oil from certified sources is mixed with ordinary palm oil throughout supply chain. Different schemes exist for sustainable palm oil Source: 6

7 GREEN PALM / BOOK & CLAIM The chain is not monitored for the presence of sustainable palm oil. Retailers can buy a GreenPalm certificate from certified grower Different schemes exist for sustainable palm oil Source: 7

8 A book and claim system has been chosen for sustainable palm oil to avoid duplication of an expensive supply chain Source: 8

9 Agenda Introduction to GO schemes CertifHy Phase 1: Definition of green hydrogen GO scheme Business Models for Green H2 GO s CertifHy Phase 2 Appendix: Analysis of pathways leading to green H2 production 9

10 CertifHy aims to develop the 1 st European-wide Green and Low Carbon hydrogen GO scheme /9 2020s Phase 1 Define a widely acceptable definition of green hydrogen Determine how to design and implement a robust EU wide GO scheme Affiliated partners: Phase 2 Set-up a hydrogen GO Stakeholder platform Finalise the scheme design ensuring it can be the main route to guarantee the origin of green & low carbon hydrogen across EU Member States Run a pilot scheme to test the proposed design Identify actions which need to be undertaken after the completion of the study to achieve an EU wide deployment of the scheme 1 2 Phase 3 Prepare EU wide deployment: Implement key elements Ø Competent authority Ø Issuing Body Ø Registry operator Ø Accreditation body Finalise Regulation, Codes and Standards: ØCEN Standard Ø EU and national regulation Ø CertifHy scheme docs 10

11 The current definition of Green and Low Carbon Hydrogen and GO scheme has been the result of a 2 year consensus building process from 2014 to 2016 Consortium WP7: Project Management and Administration Project leader: Hinicio Robust + Transparent system Affiliated Partners Rationale of green H2 WP1: Generic market outlook for green hydrogen Project leader: Hinicio WP2: Definition of Green Hydrogen Project leader: TÜV SÜD Common definition with all stakeholders WP4: Definition of a new framework of guarantees of origin for "green" hydrogen Project leader: TÜV SÜD Buy in WP3: Review of existing platforms for GO Project leader: ECN Lessons learnt from other initiatives WP6: Stakeholder Engagement & Communication Project leader: Hinicio WP5: Roadmap for the implementation of an EUwide GO scheme for green hydrogen Project leader: ECN Enabling implementation 6/13/18 11

12 Over those two years: a step-by-step consensus building approach was followed with many models developed along the way Example of intermediary approaches: GHG emissions to be allocated to RE part GHG emissions to allocated to both RE and non-re part Green H2 to have zero GHG emissions See D2.4 on in publications-and-deliverables for a full report 12

13 The definition of green and Low Carbon hydrogen was one of the main outcomes of the program GHG t Low-carbon Low-carbon CertifHy Green H 2 Bio Hydro/Wind/Solar** Renewable energy CertifHy Low Carbon H 2 Nuclear electricity Fossil with CCS/CCU n renewable energy Carbon intensity* limit that will evolve over time 201X 202X 202X Feedstock * Greenhouse gas emissions (CO 2 equ.) per unit of hydrogen over whole generation pathway up to marketable product ** Zero carbon intensity since electricity from these sources is considered to have zero carbon intensity by convention 13

14 Renewable hydrogen will be as green as the energy input into the production device Biomass input 20 GJ Electricity input 10 GJ Renewable *: 20 GJ n-renewable: 7 GJ Renewable *: 3 GJ Hydrogen production n-renewable: 7 GJ Total energy input : 30 GJ 23% n-renewable H2 23% Renewable H2 77% Renewable: 23 GJ 77% * Via GO or direct feedstock 14

15 Hydrogen GOs and the associated GHG emissions cover the whole generation pathway up to marketable product Out of scope H2 product: 99.9% & 30 bar Out of scope Production device Storage CertifHy scope Transport Dispensing 15

16 With the low carbon benchmark set at an ambitious level, yet allowing for bio-based sources to be eligible Eligible pathways 16

17 The definition of green and Low Carbon hydrogen was widely endorsed by stakeholders 17

18 The current definition of Green and Low-Carbon Hydrogen has been the result of a 2 year consensus building process; 90 % Outcome of 1st consultation: GOs should be allowed for biomass co-fired coal power plants 10 % Was adapted to hydrogen into: 10 % Overall emissions of a hydrogen production device issuing GO s should not exceed benchmark 18

19 Getting consensus on a GO Scheme was the second major outcome (1/2) 19

20 Getting consensus on a GO Scheme was the second major outcome (2/2) 20

21 Agenda Introduction to GO schemes CertifHy Phase 1: Definition of green hydrogen GO scheme Business Models for Green H2 GO s CertifHy Phase 2 Appendix: Analysis of pathways leading to green H2 production 21

22 A GO scheme allows access to green hydrogen for users that are not in the vicinity of green hydrogen sources & optimises the economics and environmental footprint of a green H2 supply chain H2 source 1 GO Scheme: Dedicated Supply Chain H2 H2 CertifHy GO Scheme: Case HRS operator ensures green hydrogen being consumed by FCEV H2 source 1 H2 H2 GO Market 2 H2 H2 H2 2 H2 H2 2 H2 H2 H2 2 n H2 source Benchmark Renewable and low carbon Residual mix Participating to CertifHy scheme CertifHy Green H2 22

23 As with RE GO s, H2 GOs will create new business models for Green Hydrogen for H2 suppliers, HRS operators, Fleet Operators & OEMs 1 H2 supplier GO account H2 H2 H2 H2 HRS operator GO account HRS operator GO account H2 GO Market 2 3 H2 H2 H2 H2 H2 Fleet operator GO account 2 On-site production H2 H2 H2 Vehicle OEM GO account 4 H2 H2 23

24 Agenda Introduction to GO schemes CertifHy Phase 1: Definition of green hydrogen GO scheme Business Models for Green H2 GO s CertifHy Phase 2: Current status Achievements Next steps Appendix: Analysis of pathways leading to green H2 production 24

25 CertifHy aims to develop the 1 st European-wide Green and Low Carbon hydrogen GO scheme /9 2020s Phase 1 Define a widely acceptable definition of green hydrogen Determine how to design and implement a robust EU wide GO scheme Affiliated partners: Phase 2 Set-up a hydrogen GO Stakeholder platform Finalise the scheme design ensuring it can be the main route to guarantee the origin of green & low carbon hydrogen across EU Member States Run a pilot scheme to test the proposed design Identify actions which need to be undertaken after the completion of the study to achieve an EU wide deployment of the scheme 1 2 Phase 3 Prepare EU wide deployment: Implement key elements Ø Competent authority Ø Issuing Body Ø Registry operator Ø Accreditation body Finalise Regulation, Codes and Standards: ØCEN Standard Ø EU and national regulation Ø CertifHy scheme docs 25

26 Who are we? The CertifHy project team CertifHy phase 1 & 2 Project leader Independent strategy consulting firm specialized in sustainable energy and transport with a European competence centre on hydrogen and fuel cells. The Energy research Centre of the Netherlands (ECN) is a leading independent European institute for applied energy technology development, energy research, and policy advice. LBST is an expert consultancy for sustainable energy and mobility founded with a European competence centre on hydrogen and fuel cells with one of the longest track-records. TÜV SÜD is one of the world s leading technical service providers of testing, inspection, certification and training solutions with the strategic business segments INDUSTRY, MOBILITY and CERTIFICATION. CertifHy phase 2 Grexel is the leading European energy certification service provider 26

27 WP1 & WP2 are finalized, WP3 is progressing well, with Pilot in final stage of preparation Platform creation Current status Oct v Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct v Dec Jan Feb Mar WP1: The creation and operation of a stakeholders platform Platform operation Platform operational Platform WG 2: GO issuing (Producers) Steering Group WG 1: GO Scheme and procedures WG 3: GO commercialisation and use (Users) WG 4: Regulatory framework WP2: Preliminary scheme finalization & Specification of pilot Preliminary scheme definition - incl. interaction with standards and regulation Pilot specification Preliminary GO scheme defined WP3: Pilot scheme development, operation and feedback Pilot preparation - Scheme procedures - ICT system - Production site audits - Monitoring plan Pilot scheme tested Pilot operation - Registry operation - GO issuing and use - Pilot monitoring and stakeholder feedback - Cost analysis and business model GO scheme finalized EU roll out plan adopted Stakeholder group Milestone Pilot online WP4: Final GO scheme design & EU-wide implementation plan Updating of GO scheme Plan for EU rollout 27

28 CertifHy2 is developing all the core elements of a hydrogen GO scheme to test through pilot implementation SCHEME DESIGN & PROCEDURES REGISTRY SYSTEM GO transfer GO expiry GO issuing Ac. holder registration GO cancellation Accreditation of certification body ISSUING CRITERIA Prod. dev. registration Registration of issuing body Merged functions in the pilot

29 4 pilot producers with different production pathways will lead to the issuance of GOs made available to the market 1 SMR with CCU - Port Jérôme (France) Electrolyser + Wind Halle (Belgium) 2 GO volume Total - Market av. TBD TBD GO volume Total - Market av. 12 t/y - 0% Chlor Alkali - Botlek (Netherlands) 3 4 Electrolyser + grid - Falkenhagen (Germany) GO volume Total - Market av. 100 t/y - 50% GO volume Total- Market av. Up to 38 t/y - 10% 29

30 The CertifHy scheme is developed collaboratively with key stakeholders across the value chain + 25 new members in 2018 with increasing international interest (US, AU) WG 1: GO Scheme and procedures WG 2: GO issuing (Producers) WG 3: GO commercialisation and use (Users) WG 4: Regulatory framework 30

31 1st design of CertifHy GO scheme is endorsed by WG1 Content 1) Introduction 2) Core principles 2.1 Uniqueness 2.2 Transparency 2.3 Immutability 2.4 Ownership of CertifHy GOs 2.5 Operational reliability 3) CertifHy Goals & Mission 4) Scope and rmative references 4.1 Geographical scope 4.2 Technologies 4.3 Applications 5) Definitions 6) Roles & responsibilities 7) GO Labels and content 7.1 GO Labels 7.2 GO Content 7.3 Cancellation statement 8) Procedures Annexes 3 meetings (WG1) Questions still being addressed - GO lifetime - GO content Next steps Updating the GO scheme based upon the results of the pilot (WP4) 31

32 A selection of procedures necessary for the pilot are currently being drafted Content 2 meetings (WG1) 1 meeting planned (WG2) 1 meeting to be set up (WG3) Questions to be addressed ne Next steps Getting feedback from WGs for finalising the procedures 32

33 tes: Must be a legal entity Several accounts per legal entity possible know your customer! P0.1 Registration of Account Holder Illustrative example of CertifHy procedures P0.1 Registration of Account Holder Call to amend/correct inputs Applicant submits request for Account Holder registration to Issuing Body Applicant submits signed Standard terms of service to Issuing Body Forms: Registration form (online) Forms: Standard terms of service Rework Issuing Body decision? Clearance te: Must/shall/nice-to-have criteria? Dismissal Account Holder dismissed to register Entry of Account Holder in the Registry Account Holder registered in the Registry 33

34 Case studies using the pilot plants on the application of CertifHy criteria were performed Content 4 case studies for different production pathways with: 1) A brief description of the pilot plant 2) The expected GO issuing and use during the pilot 3) A production process diagram, including production device boundary 4) Detailed application of the CertifHy criteria (i) on past production and (ii) on production batch (calculation of the H2 product footprint and quantity of Green/ Low Carbon H2 produced) Audits All 4 pilot plant audits have been undertaken Individual meetings with pilot producer (4) 2 meetings (WG2) 1 meeting planned (WG2) Questions being addressed 1) Consideration of CCU 2) CO2 emissions allocation in Chlor-Alkali process + others Next steps Ø WG2 meeting to address outstanding questions Ø TÜV to finalise audit report to allow GO issuing 34

35 Colruyt Group Electrolysis (Alkaline + PEM) Key characteristics H2 production capacity: 8,1 kg/h PEM (2,7 kg/h) + Alkaline (5,4 kg/h) Storage 85 kg Fuel Cell: 120 kw 35

36 Production process description Key parameters 400 bar 75 forklifts / heavy duty 900 bar min 5 passenger cars Purity min 99,998 % 36

37 Production process diagram Distribution cabinet Storage A Backup Compressor 1 Compressor 2 Backup Storage B ALK Elektrolysis PEM Elektrolysis ALK elektrolysis 5.4 kg/u O 2 Outdoor disp. H 2 Compressor kg/u Storage A 420 bar Distribution cabinet Public service station Outdoor dispenser Indoor dispenser 1?? PEM elektrolysis 2.7 kg/u H 2 Compressor kg/u Storage B 420 bar Indoor dispenser 2? Backup storage 200 bar H 2 37

38 Expected GO issuing and use during pilot (6 Months) Expected hydrogen production volume Max 190 kg/d Green Hydrogen GOs Up to 190 kg/d Low Carbon Hydrogen GOs Up to 0 kg Share available for GO market 0 % Share available for GO market 0 % 38

39 Criteria to be checked for issuing CertifHy GOs (1) on past production and (2) on production batch H2 Production Grey H2 < 91 g CO2 /MJ H2? H2 with Green GO H2 with LC GO (1) Average carbon footprint since t 2-12 months of n-certifhy H2 must not exceed 91 g CO2 /MJ H2 12 months* * Or since joining the scheme if more recent than 12 months Past Production Production Batch t 2 12 mths t 1 t 2 Time (2) Average carbon footprint n-renewable of H2 covered by a CertifHy GO share < 36.4 < 36.4 must not exceed 36.4 g CO2 /MJ H2 g g CO2 /MJ H2? CO2 /MJ H2? CertifHy Low Carbon H 2 GOs Renewable share CertifHy Green H2 GOs 39

40 Renewable share of hydrogen = Share of renewable energy in the energy input into the production device Biomass input 20 GJ Electricity input 10 GJ Renewable *: 20 GJ n-renewable: 7 GJ Renewable *: 3 GJ Hydrogen production n-renewable: 7 GJ Total energy input : 30 GJ 23% n-renewable H2 23% Renewable H2 77% Renewable: 23 GJ 77% 6/13/18 * Via GO or direct feedstock 40

41 Definition of the production device - H2 from water electrolysis with purification and compression Product system Wind/PV Electr. Grid Electricity Water O 2 H 2 O + H 2 Water Electrolysis & Compression (for storage) Hydrogen The product system (ISO 14044) includes all the steps needed for generating hydrogen with a purity of at least 99.9% and a pressure of at least 30 barg (CertifHy criteria). 41

42 Calculation of H2 product carbon footprint (1) n certified H2 produced in the preceding 12 months 1 t CO2eq /t H2 = 8.33 g CO2eq /MJ H2 LHV In preceding 12 months: Zero if GOs are acquired for all grid electricity consumed Grid elec. consumed (MWh) El. GOs purchased* (MWh) te: Grid electricity is consumed when electrolyser consumption exceeds Wind/PV generation Max footprint of non-certified product: 10.9 t CO2eq /t H2 = 91 g CO2eq /MJ H2 LHV Grid. elec. emis. factor(t CO2eq /MWh) El. GOs purchased* (MWh) El. GO emis. factor (t CO2eq /MWh) * for greening grid electricity Source of calculation input data H2 emissions (t CO2eq ) Emissions of cert. product (t CO2eq ) H2 produced (t) Certified H2 produced (t) n-certified H2 footprint t CO2eq /t H2 ) Measured Constant factor In accounting Process specific factor Calculation output Calculation output for criteria application 42

43 Calculation of H2 product carbon footprint (2) H2 batch foot print 1 t CO2eq /t H2 = 8.33 g CO2eq /MJ H2 LHV Between t 1 and t 2 : Zero if GOs are acquired for all grid electricity consumed Grid elec. consumed (MWh) El. GOs purchased* (MWh) te: Grid electricity is consumed when electrolyser consumption exceeds Wind/PV generation Max footprint of H2 batch: 4.37 t CO2eq /t H2 = 36.4 g CO2eq /MJ H2 LHV Grid. elec. emis. factor(t CO2eq /MWh) El. GOs purchased* (MWh) El. GO emis. factor (t CO2eq /MWh) * for greening grid electricity H2 emissions (t CO2eq ) H2 produced (t) H2 batch footprint t CO2eq /t H2 ) Source of calculation input data Measured Constant factor In accounting Process specific factor Calculation output Calculation output for criteria application 43

44 Calculation of the share of the batch that is of renewable origin Between t 1 and t 2 : Wind/PV elec. consumed (MWh) Renew. elec. GOs purchased (MWh) H 2 batch renew. share (%) Total electricity consumed (MWh) Source of calculation input data Measured Constant factor In accounting Process specific factor Calculation output Calculation output for criteria application 44

45 Uniper WindGas Falkenhagen Electrolysis Electrolysis Key characteristics H 2 production capacity 32 kg H2 /h 360 m³ H2 /h 2 MW el Methanation H 2 utilisation 19 kg H2 /h 210 m³ H2 /h CO 2 (biogenic) utilisation 104 kg CO2 /h 52,5 m³ CO2 /h SNG 1 production capacity 41 kg SNG /h 57 m³ SNG /h Source: Google maps 1 SNG = Synthetic Natural Gas 45

46 Production process diagram Unit process 1 Unit process 2 Key parameters Electrolysis Electricity grid incl. wind farm connection (Power GOs) CO 2 Source (biogenic origin) 6 Electrolysis container 2 MW el, max. 360 Nm³/h 10 bar (g) Methanation 210 Nm³/h H 2 à 57 Nm³/h SNG 1 Measuring and control system Hydrogen Measuring and control system SNG 1 (methane) Compressor Hydrogen and/or SNG (methane) 55 bar (g) ONTRAS gas pipeline Product H 2 pressure 10 bar Product H 2 purity 5.0 Feed in either into gas grid (certified as biogas) or in future into methanation plant Prequalified for secondary control reserve 1 SNG = Synthetic Natural Gas Methanation Catalytic methanation Product SNG 1 purity G260 46

47 WindGas Falkenhagen 47

48 Expected GO issuing and use during pilot (6 Months) Expected hydrogen production volume Up to 38 t H2 /a (max. 456 kg H2 /d) 1 Green Hydrogen GOs Up to 38 t Low Carbon Hydrogen GOs 0 t Share available for GO market Up to 10 % Share available for GO market na 1 In addition up to 192 t H2 /a (direct feed in / no methanation) 48

49 Definition of the production device - H2 from water electrolysis with purification and compression Product system Electricity O 2 H 2 O + H 2 Unit process 1 Electricity Water H2 generation & purification LowP H 2-1 Compression Hydrogen SNG The product system (ISO 14044) includes all the steps needed for generating hydrogen with a purity of at least 99.9% and a pressure of at least 30 barg (CertifHy criteria). LowP H 2-2 SNG Unit process 2 te: At a any given moment in time, LowP H2 generated will be either ALL directly compressed for injection as pure hydrogen, or ALL converted to SNG. 49

50 Calculation of H2 product carbon footprint (1) n certified H2 produced in the preceding 12 months In preceding 12 months: Grid elec. consumed (MWh) El. GOs purchased* (MWh) Unit process 1 LowP H2 fed to compressor (t) 1 t CO2eq /t H2 = 8.33 g CO2eq /MJ H2 LHV Max footprint of non-certified product: t CO2eq /t H2 = 91 g CO2eq /MJ H2 LHV Grid. elec. emis. factor(t CO2eq /MWh) El. GOs purchased* (MWh) El. GO emis. factor (t CO2eq /MWh) * for greening grid electricity LowP H 2 emissions (t CO2eq ) LowP H2 produced (t) Zero if GOs are acquired for all grid electricity consumed Grid elec. consumed (MWh) El. GOs purchased (MWh) LowP H 2 footprint (t CO2eq /t H2 ) LowP H 2-1 emissions (t CO2eq ) Unit process 2 H2 emissions (t CO2eq ) Emissions of cert. product (t CO2eq ) n-certified H2 footprint t CO2eq /t H2 ) Source of calculation input data Measured In accounting Process specific factor Constant factor Calculation output Calculation output for criteria application Grid elec. emis. factor (t CO2eq /MWh) El. GOs purchased (MWh) El. GO emis. factor (t CO2eq /MWh) Compression emissions (t CO2eq ) H2 produced (t) Certified H2 produced (t) 50

51 Calculation of H2 product carbon footprint (2) H2 batch foot print Between t 1 and t 2 : Grid elec. consumed (MWh) El. GOs purchased* (MWh) Unit process 1 1 t CO2eq /t H2 = 8.33 g CO2eq /MJ H2 LHV Max footprint of H2 batch: 4.37 t CO2eq /t H2 = 36.4 g CO2eq /MJ H2 LHV Grid. elec. emis. factor(t CO2eq /MWh) El. GOs purchased* (MWh) LowP H 2 1 emissions (t CO2eq ) El. GO emis. factor (t CO2eq /MWh) * for greening grid electricity Source of calculation input data Measured Zero if GOs are acquired for all grid electricity consumed Constant factor Grid elec. consumed (MWh) El. GOs purchased (MWh) Grid elec. emis. factor (t CO2eq /MWh) El. GOs purchased (MWh) Unit process 2 Compression emissions (t CO2eq ) H2 emissions (t CO2eq ) H2 produced (t) H2 batch footprint t CO2eq /t H2 ) In accounting Process specific factor Calculation output Calculation output for criteria application El. GO emis. factor (t CO2eq /MWh) 51

52 Calculation of the share of the batch that is of renewable origin Between t 1 and t 2 : Unit process 1 Unit process 2 Wind elec. directly consumed (MWh) Renew. elec. GOs purchased (MWh)* * for greening grid electricity Electricity consumed (MWh) Wind elec. directly consumed (MWh) Renew. elec. GOs purchased (MWh)* H 2 batch renew. share (%) Electricity consumed (MWh) Source of calculation input data Measured Constant factor In accounting Process specific factor Calculation output Calculation output for criteria application 52

53 Calculation of H2 product carbon footprint (1) n certified H2 produced in 12 months - Example Production time frame: Jul 2015 Jun Grid elec. consumed (MWh) El. GOs purchased* (MWh) Grid. elec. emis. factor(t CO2eq /MWh) El. GOs purchased* (MWh) El. GO emis. factor (t CO2eq /MWh) * for greening grid electricity Measured In accounting Process specific factor Unit process Zero if GOs are acquired for all grid electricity consumed Source of calculation input data Constant factor Calculation output Calculation output for criteria application LowP H 2 emissions (t CO2eq ) LowP H2 produced (t) Grid elec. consumed (MWh) El. GOs purchased (MWh) LowP H2 fed to compressor (t) LowP H 2 footprint (t CO2eq /t H2 ) Grid elec. emis. factor (t CO2eq /MWh) El. GOs purchased (MWh) El. GO emis. factor (t CO2eq /MWh) LowP H 2-1 emissions (t CO2eq ) Unit process 2 0 Compression emissions (t CO2eq ) 0 0 H2 emissions (t CO2eq ) Emissions of cert. product (t CO2eq ) H2 produced (t) Certified H2 produced (t) 1 t CO2eq /t H2 = 8.33 g CO2eq /MJ H2 LHV Max footprint of non-certified product: t CO2eq /t H2 = 91 g CO2eq /MJ H2 LHV n-certified H2 footprint t CO2eq /t H2 ) 53 0

54 Between Jul 2015 and Jul 2016: Grid elec. consumed (MWh) El. GOs purchased* (MWh) 6184 Grid. elec. emis. factor(t CO2eq /MWh) El. GOs purchased* (MWh) Unit process 1 0 LowP H 2 1 emissions (t CO2eq ) 0 Calculation of H2 product carbon footprint (2) H2 batch foot print - Example 1 t CO2eq /t H2 = 8.33 g CO2eq /MJ H2 LHV Max footprint of H2 batch: 4.37 t CO2eq /t H2 = 36.4 g CO2eq /MJ H2 LHV 0 El. GO emis. factor (t CO2eq /MWh) * for greening grid electricity Zero if GOs are acquired for all grid electricity consumed Source of calculation input data Measured Constant factor Grid elec. consumed (MWh) El. GOs purchased (MWh) 225 Grid elec. emis. factor (t CO2eq /MWh) El. GOs purchased (MWh) Unit process Compression emissions (t CO2eq ) H2 emissions (t CO2eq ) H2 produced (t) H2 batch footprint t CO2eq /t H2 ) 0 In accounting Process specific factor Calculation output Calculation output for criteria application 0 El. GO emis. factor (t CO2eq /MWh) 54

55 Calculation of the share of the batch that is of renewable origin Example Between Jul 2015 and Jul 2016: Unit process 1 Unit process Wind elec. directly consumed (MWh) Renew. elec. GOs purchased (MWh)* * for greening grid electricity 0 Wind elec. directly consumed (MWh) 6184 Electricity consumed (MWh) 225 Renew. elec. GOs purchased (MWh)* H 2 batch renew. share (%) 100% 225 Electricity consumed (MWh) Source of calculation input data Measured Constant factor In accounting Process specific factor Calculation output Calculation output for criteria application 55

56 The ICT registry system is operational and we are in the process of creating accounts for the pilot plants and users Content 3 demonstrations of the tool (WG2-1 & WG3-2) Further demonstrations possible Key issues Identifying a diversity of pilot users Next steps Start issuing and trading GOs. Register at the following address: /Article/View/26/9/how-to-open-acertifhy-account-in-cmogrexel 56

57 CertifHy is following up on key EU regulatory evolutions to identify barriers, issues and opportunities Questions which are being raised wrt RED II 1) Definition of green hydrogen not mentioned in RED II; 2) The purpose of GOs - in RED II, it is limited to proving or showing a final customer that a given share or quantity of energy is produced from renewable energy; 3) CertifHy scope of applications is larger than RED II, more applications & includes low carbon hydrogen 4) MS could implement non-unified GO rules as provisions for GOs are not explicit and/or mandatory; 5) Biofuels, biomass fuels and bioliquids must use a mass balance approach. This raises issues of compatibility with CertifHy sbookand-claim approach for bio-based hydrogen for transport; 6) Possibly no GOs issued to RES-E producers receiving financial support (e.g. FIT/FIP) 7) Conditions for counting electricity from the grid as fully renewable (implementing act to be adopted by December 2021). 3 meetings (WG4) Next steps Ø Continue monitoring RED II evolutions Ø Examine links between CertifHy GO and other GO schemes Ø Review other upcoming legislation (Gas Directive, State Aid, Implementing Act ) 57

58 The standardisation framework will be developped to support the CertifHy hydrogen GO scheme Content 1) Existing standardization efforts The main standardization efforts relevant to CertifHy is the work undertaken by CEN-CENELEC TC6 Hydrogen in Energy Systems WG2 on Guarantees of origin. The Commission is finalizing a standardization request (mandate) which is expected to cover GOs. 2) Ensuring coherence between the CertifHy scheme and standardization efforts It was agreed that CertifHy should be the source of the needed content for a standard 2 WG1 meetings 1 meeting with CEN TC6 WG2 Questions to be addressed Next steps Ø WG1 to suggest what should be in the standard and what shouldn t. Ø Recommendations to CEN for the standard. te The CertifHy project position is that the definition of green hydrogen should not be included in the standard, and that there 58 should not be a harmonized standard.

59 GO framework for electricity today 59

60 GO for H2 (under development) 60

61 We are focusing on addressing 2 key issues in the short term Key issues Next steps 1) Addressing the identified questions to allow TÜV SÜD to issue an audit report on the basis of which GOs can be issues 1) Going to be discussed as part of WG2 on 15/05 2) Will be reviewed by consortium as needed 3) Expected GO issuing by 2) Identify GO users to purchase and trade GOs 1) Define key potential targets 2) Continue communication efforts 61

62 Where we stand/current status Platform creation Current status Oct v Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct v Dec Jan Feb Mar WP1: The creation and operation of a stakeholders platform Platform operation Platform operational Platform WG 2: GO issuing (Producers) Steering Group WG 1: GO Scheme and procedures WG 3: GO commercialisation and use (Users) WG 4: Regulatory framework WP2: Preliminary scheme finalization & Specification of pilot Preliminary scheme definition - incl. interaction with standards and regulation Pilot specification Preliminary GO scheme defined WP3: Pilot scheme development, operation and feedback Pilot preparation - Scheme procedures - ICT system - Production site audits - Monitoring plan Pilot scheme tested Pilot operation - Registry operation - GO issuing and use - Pilot monitoring and stakeholder feedback - Cost analysis and business model GO scheme finalized EU roll out plan adopted Stakeholder group Milestone Pilot online WP4: Final GO scheme design & EU-wide implementation plan Updating of GO scheme Plan for EU rollout 62

63 Next steps beyond CertifHy phase 2 (1/2) Phase /9 2020s Phase 3: Preparing EU-wide roll-out of a financially sustainable hydrogen GO scheme Appoint or select all of the actors for a GO scheme to become operational: ØCompetent authority; ØAccreditation body; ØCertification bodies; ØIssuing body; ØRegistry operator. The Stakeholder Platform will act as the competent authority as long as a legal basis for hydrogen GOs is not available. Elaborate the procedures (e.g for certification bodies) being developed in the current pilot into standard contractual documents to ensure multiple certification bodies can offer their services to green hydrogen producers. ØDevelop legal/contractual documents (e.g. standard terms of use) ØBring in line procedure with European standards under development 3 Build/expand and safely operate an ICT registry with the right level of service support to its users, tailored to the needs of green hydrogen GO users. 63

64 Next steps beyond CertifHy phase 2 (2/2) Phase /9 2020s.. Phase 3: Preparing EU-wide roll-out of a financially sustainable hydrogen GO scheme 4 Create social awareness of the existence of the hydrogen GO platform and potentially trade green hydrogen GOs commercially launching Hydrogen GOs in the market incl. ØInitial market identification and targeting, communications, etc., ØStart the trade of CertifHy GOs and refinement of tradeable products based on trader and user feedback. 5 Develop the stakeholder platform so it becomes a forum for stakeholders to provide convergent input and influence on RCS (e.g. RED II recast and its implementing acts, the upcoming Gas Directive, contributing to work carried out by CEN-Cenelec/ TC6/WG2 ) 6 Ensure all scheme documents and procedures are compliant with the anticipated future Regulation, Code and Standards (RCS) environment. 64

65 Agenda Introduction to GO schemes CertifHy Phase 1: Definition of green hydrogen GO scheme Business Models for Green H2 GO s CertifHy Phase 2 Appendix: Analysis of pathways leading to green H2 production 65

66 Application of Benchmark threshold on Past Production of the Hydrogen Plant Grey H2 < 91 g CO2 /MJ H2? H2 with Green GO H2 with LC GO Average GHG intensity since t 2-12 months of n-certifhy H2 must not exceed 91 g CO2 /MJ H2 H2 Production 12 months Past Production t 2 12 months t 1 t 2 Time 6/13/18 66

67 At the batch level, hydrogen needs to be Low Carbon for producing CertifHy Green or Low-Carbon GOs H2 Production Grey H2 < 91 g CO2 /MJ H2? H2 with Green GO H2 with LC GO Average GHG intensity since t 2-12 months of n-certifhy H2 must not exceed 91 g CO2 /MJ H2 12 months Past Production Production Batch t 2 12 mths t 1 t 2 Time Average GHG intensity of H2 covered by a CertifHy GO must not exceed 36.4 g CO2 /MJ H2 n-renewable share < 36.5 g CO2 /MJ H2? < 36.5 g CO2 /MJ H2? Renewable share CertifHy Low Carbon H 2 GOs CertifHy Green H2 GOs 6/13/18 19

68 Decision tree presenting the criteria for producing Low- Carbon and CertifHy Green H 2 Average emissions of n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? Production unit NOT ELIGIBLE Renewable energy input into batch? 100% n- renew. batch X% renewable and and (1-X%) nonrenewable. share Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% Grey H 2 100% Low-carbon H 2 X% Grey H 2 X% Green H 2 1-X% Grey H 2 1-X% Low-carbon H2 6/13/18 68

69 Electrolysis with different energy mixes as energy input (1/5) 60% Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? Production unit NOT ELIGIBLE 100% n- renew. batch Renewable energy input into batch? 40% EU electricity mix * 60% renewable and 40% non-renew. shares Electrolyser Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% 60% 60% 40% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 69

70 Electrolysis with different energy mixes as energy input (2/5) 50% Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? Production unit NOT ELIGIBLE 100% n- renew. batch Renewable energy input into batch? 50% EU electricity mix * 60% renewable and 40% non-renew. shares Electrolyser Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% 60% 60% 40% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 70

71 Depending on the non-renewable energy source used, a minimum amount of Renewable Energy may be needed to keep GHG intensity of non-certifhy H2 of the plant below benchmark Carbon intensity (gco2/mjh2) of "n-certifhy H2" in function of the electricity mix used Without inclusion of a With inclusion of a renewable share renewable share 0% 10%... 50% 60% 70% 80% EU Mix 217,1 217,1 195, ,6 86,8 65,1 43,4 t Elegible to produce Low Coal 423,7 423,7 381, ,9 169,5 127,1 84,7 Carbon or CertifHy Green H2 Natural gas 191,5 191,5 172, ,8 76,6 57,5 38,3 Nuclear 7,5 7,5 6,8... 3,8 3,0 2,3 1,5 Specific mix 50,0 50,0 45, ,0 20,0 15,0 10,0 Red : facility is NOT allowed to produce H2 with a CertifHy GoO Minimum renewable share required in n-certifhy H2 for maintaining eligibility to produce CertifHy H2 n-renew. origin emissions (g CO2 /MJ H2 ) Min. renewable share required EU Mix 217,1 58,1% Coal 423,7 78,5% Natural gas 191,5 52,5% Nuclear 7,5 0,0% Specific mix 50,0 0,0% 6/13/18 te: PV and Wind are assumed to have zero GHG intensity 71

72 Electrolysis with different energy mixes as energy input (4/5) 100% French electricity mix * 11% 6% 7% hydraulic Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? 76% nuclear fossil fuels other renewables Electrolyser Production unit NOT ELIGIBLE Renewable energy input into batch? 100% n- renew. batch X% renewable and 1-X % non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% X% X% 50% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 72

73 Electrolysis with different energy mixes as energy input (5/5) 70% French electricity mix * 11% 6% 7% hydraulic nuclear fossil fuels other renewables Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? 76% 30% Renewable Electricity from waste wood Electrolyser Production unit NOT ELIGIBLE Renewable energy input into batch? 100% n- renew. batch 30% renewable and 70 % non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% 30% X% 50% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 70% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 73

74 Central Steam Methane Reforming (1/3) 25% biomethane from bio-waste Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? 75% natural gas Central SMR Production unit NOT ELIGIBLE Renewable energy input into batch? 100% n- renew. batch 25% renewable and 75 % non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% X% 25% 75% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 74

75 Central Steam Methane Reforming (2/3) 25% biomethane from corn Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? 75% natural gas Central SMR Production unit NOT ELIGIBLE Renewable energy input into batch? 100% n- renew. batch 25% renewable and 75 % non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% 25% X% 75% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 75

76 Central Steam Methane Reforming (3/3) with CCS Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? Production unit NOT ELIGIBLE Renewable energy input into batch? Central SMR 100% natural gas CCS 100% n- renew. batch X% renewable and 1-X% non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% X% Grey H 2 Low-carbon H 2 Grey H 2 X% Green H 2 1-X% Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 76

77 On-site SMR (1/2) with bio-gas from bio-waste and non-renewable heat 81% Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? 19% On-site SMR Production unit NOT ELIGIBLE Renewable energy input into batch? n-renewable heat 100% n- renew. batch 81% renewable and 19% non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% X% 81% 19% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 77

78 On-site SMR (2/2) with bio-gas from corn and nonrenewable heat 80% Average emissions of past n-certifhy H 2 <91gCO 2 eq /MJ (benchmark)? 20% On-site SMR Production unit NOT ELIGIBLE Renewable energy input into batch? n-renewable heat 100% n- renew. batch 81% renewable and 19% non-renew. shares Batch emissions < 36,4gCO 2 eq /MJ (40% of benchm.)? Renewable share emissions < 36,4gCO 2 eq /MJ? n-renewable share emissions < 36,4gCO 2 eq /MJ? 100% 100% 80% 81% 20% Grey H 2 Low-carbon H 2 Grey H 2 Green H 2 Grey H 2 1-X% Low-carbon H 2 6/13/18 * GHG content as disclosed by electricity supplier s mix 78

79 Q&A Project supported by the FCH JU 6/13/18 79