Identifying success factors for low-carbon hydrogen market development and building enabling conditions: Joseph Cordonnier, OECD
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IDENTIFYING SUCCESS FACTORS FOR
LOW-CARBON HYDROGEN MARKET
DEVELOPMENT
AND BUILDING ENABLING CONDITIONS
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31 January 2023
Joseph Cordonnier
Industry
Programme Analyst
OECD webinar
“Certification for facilitating international trade of
green hydrogen”
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• Framework for industry’s net-zero transition
released in September 2022
• 5-step approach to:
Improve enabling market conditions
Propose financing solutions
• Framework implementation:
Country-level,
Focus Area: sector, or cross-cutting technology.
Business cases and list of projects aligned with a net-
zero emission pathway
• Green hydrogen can help decarbonising end-use
sectors
• Currently industry main consumer of hydrogen, but
with a large potential to transform conventional
processes across several hard-to-abate industry sectors
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Hydrogen is a key solution for a net-zero transition of the
industry
Framework for industry’s net-zero transition
Green Hydrogen
• Value Chain approach
• Country national strategies
• Case studies
• Clean Energy Finance and
Investment review / roadmap
• Implementation support
activities
• Investor dialogues
• Regional peer learning
• Country implementation for
a sector or a low-carbon
technology
• Pipeline of projects
• Enabling market conditions
and financing solutions
2022-2024
implementation
in Indonesia and
Thailand
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0%
5%
10%
15%
20%
25%
0
20
40
60
80
100
120 Share of TFC
EJ Scenarios of global hydrogen demand in 2050
Hydrogen in TFC (EJ) % of TFC
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Hydrogen’s contribution to the global energy mix
to achieve net-zero emissions by 2050
TFC: Total Final Energy Consumption
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Addressing the value chain of green hydrogen is crucial
in developing national strategies
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Many governments envisage partnerships to establish
cross-border hydrogen trade.
European Commission’s REPowerEU released in May 2022
Target of 10 Mt renewable hydrogen imports by 2030
(2% of the region’s total final energy consumption &
10% of the current hydrogen consumption worldwide)
Several emerging and developing economies to become
exporters to supply countries that cannot meet their
transition goals with domestic production.
25% of hydrogen supply could be traded internationally
in 2050.
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Utilising hydrogen’s full potential relies on developing
international trade
Examples of partnerships and agreements for
international green hydrogen trade
Adapted from IRENA
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Example of case study
HIF Global – e-fuels – Chile
Demonstration plant (FID 2021)
• 3.4 MW onshore wind
• 1.2 MW electrolyser
• 143 tonnes of green hydrogen annually
• Direct Air Capture of CO2
• 130 000 litres of e-gasoline annually
HIF Cabo Negro (construction from 2023)
• 325 MW onshore wind turbine
• 240 MW electrolyser
• 66 million litres of e-gasoline annually
Business rationale
• Green electricity below USD 2 cents/kWh
• Synthetic fuels can be sold at a premium
Financing
• The demonstration project HIF Haru Oni has
raised over USD 60 million in total
• USD 260 million capital increase in April 2022
FID: Final Investment Decision
Source: HIF Global, 2022
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Lessons learnt from case studies
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Possible measures for policy makers to facilitate
market creation and market growth
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Understand the considerations and challenges around certification for
international hydrogen trade, including its impact on end-uses.
Provide inputs on priority areas to hydrogen stakeholders for
harmonising certification mechanisms and in turn facilitate international
hydrogen trade.
Discuss the roles individual governments, private sector and international
organisations can play in developing hydrogen certification.
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Key objectives of today’s webinar
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GREEN HYDROGEN
OPPORTUNITIES
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31 January 2023
Joseph Cordonnier
Industry
Programme Analyst
Identifying success factors for market development and building
enabling conditions
11. OECD / OCDE: Restricted Use - À usage restreint
Session 1: Challenges and considerations for hydrogen certification
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Certification for facilitating international trade of green
hydrogen
Guiding questions
• What are the current challenges around developing certification systems for hydrogen?
• What are best practices and main limitations in the currently available hydrogen certification systems?
• What are the main considerations that should be considered in developing certification schemes for hydrogen?
• How would green hydrogen certification impact the certification of its derivatives, such as e-fuels, green steel or green
ammonia?
Sam Bartlett
Director of the Green
Hydrogen Standard
Green Hydrogen
Organisation
Wouter Vanhoudt
Global Head of Business
Development
Hinicio/CertifHy
Thomas Koch Blank
Senior Principal
Rocky Mountain
Institute (RMI)
Yuran Kim
Deputy Director
Air Quality Future
Strategy Division
(Republic of Korea)
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Session 2: International harmonisation and interoperability
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Certification for facilitating international trade of green
hydrogen
Guiding questions
• What strategies should be followed for international harmonisation of certification systems?
• What are the minimum and “nice-to-have” criteria that should be included in hydrogen certificates? Can divergences
on these criteria impact international harmonisation?
• What are suggestions and solutions to enhance and expand current certification systems?
José Miguel Bermúdez
Energy Technology
Analyst
International Energy
Agency (IEA)
Daria Nochevnik
Director for Policy and
Partnerships
Hydrogen Council
Prerna Bhargava
Assistant Manager
Hydrogen Strategy
Team
DCCEEW (Australia)
Jared Braslawsky
Managing Director
The International REC
Standard Foundation
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Session 3: Stakeholder roles
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Certification for facilitating international trade of green
hydrogen
Guiding questions
• Who are the key stakeholders in developing hydrogen certification systems, both at national and international levels?
• What are their specific roles for the development, enforcement, monitoring, reporting and verification of certificates?
• How can the governance and institutional capacity around hydrogen certification be developed and strengthened?
Laurent Antoni
Executive Director Elect
International Partnership for
Hydrogen and Fuel Cells in the
Economy (IPHE)
Axel Dombrowski
Director of Innovation and
Digitalisation
DNV
Tudor Florea
Policy Advisor on Hydrogen
Green Technologies and Energy
Storage (France)