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5
April 2023
Ammonia Energy Newsletter
ByOscar Pearce
Current certification gaps hindering
development of a global market: new IRENA report
IRENA and the Rocky Mountain Institute have released a new
report that assesses the state of play in hydrogen certification,
and proposes a suite of priority actions to unlock a global market for
zero- and low-carbon hydrogen.
A patchwork landscape
The report analyses 13 current hydrogen certification schemes, eight
voluntary and five mandatory, covering both public and private
initiatives. These schemes were assessed against a set of criteria
that will be familiar to those following developments in this field.
These included chain
of custody measures & ESG
compliance, amongst others.
With those design criteria in mind – as well as the demands of
international trade – the report concludes that the current landscape
falls short.
None of the existing hydrogen certification systems are suitable for
cross-border trade. In addition, there are gaps in standards and in
ecolabelling and certification design, resulting in insufficient
information in certificates to allow fair comparison across borders.
From Creating
a global hydrogen market: Certification to enable trade,
IRENA (Jan 2023)
The
report highlights several clashes in the schemes that make them
“incompatible”. Labelling thresholds for “green” or “low-carbon”
hydrogen range from less than 1.0 kgCO2eq/kgH2 (Green Hydrogen
Standard) through to 14.5 kgCO2eq/kgH2 (China Hydrogen Alliance).
Meanwhile boundaries vary significantly, with some schemes opting to
include upstream methane emissions or post-production transportation.
Even the recognised production pathways diverge. There is limited
recognition of fossil SMR/ATR with carbon capture as a viable pathway
to low carbon hydrogen.
Ultimately, the report warns that “if not filled, [these gaps] will
hinder the development of hydrogen trade”.
Path forward
IRENA calls on all stakeholders to rapidly harmonise hydrogen
certification standards. The report argues that if certification
continues to develop in a “patchwork” manner, an efficient global
market for hydrogen is unachievable: “there may be a formation of
markets equal to the number of certification rules in place”.
Avoiding that outcome will require a coordinated effort from
policymakers and industry stakeholders alike, the report concludes.
Labelling thresholds, accounting methodologies and system boundaries
must all converge to maximise interoperability. Aligned standards
alone are insufficient, however, they must also be supported by
institutional frameworks capable of operating robust verification
systems, chain of custody measures, and double counting prevention.
The report also emphasises the importance of developing certification
schemes for hydrogen derivatives such as ammonia, and notes that the
AEA is seeking to do just that.
Harmonisation of standards and rules can lead to
increased visibility over the future of renewable hydrogen.
Potential exporters will know the characteristics of hydrogen
production to focus on and will have a clear and granular investment
signal for the efficient deployment of renewable hydrogen
infrastructure
From Creating
a global hydrogen market: Certification to enable trade,
IRENA (Jan 2023)
You can find the full
report here.
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