Project supported by the FCH JU

CertifHy 2 Final Stakeholder Conference and Plenary

Karina Veum (TNO) & Wouter Vanhoudt (Hinicio)

25 March 2019

Session 4.1Perspectives and key actions for the next

phase of CertifHy and beyond

Roadmap outline

• Part I “Setting the Scene” Ø Briefly on the project background, Ø Key developments underpinning the relevance of hydrogen Ø CertifHy vision, mission and goalØ EU legislative framework, i.e. REDII

• Part II “CertifHy progress and achievements” Ø Starting point for CertifHy 2Ø Governing the CertifHy processØ Experience gained with the CertifHy pilot scheme Ø Challenges addressed in CertifHy working groups

• Part III ‘Updated Roadmap ambitions and actions”Ø 10-point ambition & action list for the next CertifHy phase

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Updated CertifHy vision, mission and goal

CertifHy Vision “A mature market for green and low carbon hydrogen so that

the added value of these products can be made monetary.”

CertifHy Mission “Advance and facilitate the production, procurement, and use

of hydrogen fulfilling ambitious environmental criteria.”

CertifHy Goal “Contribute to and promote an environmentally, socially and

economically sustainable production of hydrogen in all usesincluding, among others, energy, mobility, chemical

conversion.”

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Roadmap Actions for the next CertifHy phase

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Roadmap Actions for the next CertifHy phase

Hydrogen will play an important role in the decarbonization of Europe, and is clearly mentioned in the RED 2: new instruments are to be created

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GO: H2 H2 (RFNBO) H2 (Biogas) H2 (non-bio)

Disclosure of renewable

origin to final customers

Art. 19

Transport• 14% goal

2030• -70%• Grid

connection etc.

Art. 25Art. 27

Transport• 14% goal

2030• -50%/-60%/-

65%• Sustainability

criteria

Heating&cooling• 1.3 pp/yr

(indicative)• No

requirements

Art. 23

H2 (Biogas)

Heating&cooling• 1.3 pp/yr

(indicative)• -70%/-80%• Sustainability

criteria

Art. 29Art. 29(Art. 26)

H2

Overall• 32% goal

2030

Art. 3Art. 7

Different products: GO vs. “certificate”; this requires harmonisation of the underlying requirements and audit criteria in order to use the synergies possible through CertifHy.

CertifHy CertifHy: new development targets…?

Production Usage

GO registry

Hydrogen(undefined)

Consumer of green hydrogen

Consumer of low-carbon hydrogen

Hydrogen“Residual mix”

Green hydrogen

Low-carbon hydrogen

Grey hydrogen

Hydrogen supply chain

Other consumers

GO cancellationstatements

GO issuing requests

Green

Low-carbon

CertifHy to comply with RED2, Art 19

Production Usage

Hydrogen(undefined)

Consumer of green hydrogen

Consumer of low-carbon hydrogen

Green hydrogen

Low-carbon hydrogen

Grey hydrogen

Hydrogen supply chain

Other consumersResidual

mix

SupplyCertificates (SC)

If particular criteria are met, e.g.: Used for transport & RED art. 25 compliant

Proof of production

[Purpose B]

Dual purpose GO/certificate system:A. Disclose product origin to end-user

(GO)B. Address a regulatory target or

requirement (Certificate)

GO/SC registry

GO cancellationstatements

Green

Low-carbon

GO issuing requests

[Purpose A]

Subject to labelse.g. “RED2 art. 25/ 19 (13)compliant”

CertifHy to comply with RED2, Art 19 + Art 3, 7, 23, 25-27, 29

Double Governance:• GO: “MS or designated competent bodies

shall supervise the issuance, transfer and cancellation of guarantees of origin.”

• SC: “The Commission may decide that voluntary national or international schemes setting standards for ...Article 27(1)”

Union DatabaseArt 84: A Union database should be put in

place to ensure transparency and traceability of renewable fuels. ...national databases should be linked to the Union database...

Proof of use for a certain application

GO cancellation requests

SC issuing requests

Next step: 1) Expand CertifHy system for handling both GOs and Certificates

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CertifHy Registry

GOs & Certificates

Certificates

EU Fuel Suppliers

CertifHy central registry will be available for Member States interested in registry sharing. It could be co-designed to interface through GO hubs with the national

registry configurations (Elec & H2, Gas & H2) under EECS and ERGAR

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CertifHy registry

GOs & Certificates

MS 1-2-3-4-…

MS x MS y MS ...

Elec & H2 GO Hub

National CertifHy compliant H2 GO registries by extension of national Electricity GO registry

National CertifHy compliant H2 GO registries by extension of national Gas GO registry

MS a MS b MS …

Gas & H2 GO Hub

Addition of H2 GOs registry to existing Elec GO system

Addition of H2 GOs registry to existing Gas GO system

e.g. EECS e.g. ERGAR

H2 GO

Certificates

EU Fuel Suppliers c

H2 GO

Cross border H2 GO trade between two registries within AIB membership goes through the AIB HUB; the same applies for registries within ErGaR

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CertifHy registry

GOs & Certificates

MS 1-2-3-4-…

MS x MS y MS ...

Elec & H2 GO Hub

National CertifHy compliant H2 GO registries by extension of national Electricity GO registry

National CertifHy compliant H2 GO registries by extension of national Gas GO registry

MS a MS b MS …

Gas & H2 GO Hub

Addition of H2 GOs registry to existing Elec GO system

Addition of H2 GOs registry to existing Gas GO system

e.g. EECS e.g. ERGAR

H2 GO

Certificates

EU Fuel Suppliers c

H2 GO

Cross border H2 GO trade between two registries within ErGaR membership goes through the ErGaR HUB; the same applies for registries within AIB

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CertifHy registry

GOs & Certificates

MS 1-2-3-4-…

MS x MS y MS ...

Elec & H2 GO Hub

National CertifHy compliant H2 GO registries by extension of national Electricity GO registry

National CertifHy compliant H2 GO registries by extension of national Gas GO registry

MS a MS b MS …

Gas & H2 GO Hub

Addition of H2 GOs registry to existing Elec GO system

Addition of H2 GOs registry to existing Gas GO system

e.g. EECS e.g. ERGAR

H2 GO

Certificates

EU Fuel Suppliers c

H2 GO

The Centralised European Issuing Body (IB) and Registry of will allow Cross border trade, via the ErGar Hub, with countries expanding their biomethane GO IB/

registry to a H2 GO IB/ registry

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CertifHy registry

GOs & Certificates

MS 1-2-3-4-…

MS x MS y MS ...

Elec & H2 GO Hub

National CertifHy compliant H2 GO registries by extension of national Electricity GO registry

National CertifHy compliant H2 GO registries by extension of national Gas GO registry

MS a MS b MS …

Gas & H2 GO Hub

Addition of H2 GOs registry to existing Elec GO system

Addition of H2 GOs registry to existing Gas GO system

e.g. EECS e.g. ERGAR

H2 GO

Certificates

EU Fuel Suppliers c

H2 GO

CertifHy Hub will allow Cross border trade between AIB Hub and ErGar Hub; CertifHy Hub only has two interfaces: AIB and ErGaR

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CertifHy registry

GOs & Certificates

MS 1-2-3-4-…

MS x MS y MS ...

Elec & H2 GO Hub

National CertifHy compliant H2 GO registries by extension of national Electricity GO registry

National CertifHy compliant H2 GO registries by extension of national Gas GO registry

MS a MS b MS …

Gas & H2 GO Hub

Addition of H2 GOs registry to existing Elec GO system

Addition of H2 GOs registry to existing Gas GO system

e.g. EECS e.g. ERGAR

H2 GO

Certificates

EU Fuel Suppliers c

H2 GO

Cost impact of single EU Registry for H2 GOs vs H2 GO scheme added National Registries

Hypothesis: Number of participating plants: 20 Number of participating countries: 10

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Unit cost for yearly GO volume of 4000 GWh 1,14 €/MWh[equival. to a production capacity of 20 t/h] 0,04 €/kg

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

k€/y

Titre de l'axe

Yearly system costs (k€/y) - 10 country registries

Audits

Stakeholder platform

Accreditation body

Competent authority

Issuing body

Registry

2018-01-10

CertifHy Scheme document: 6 Roles & Responsibilities (2019-02-13)

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CERTIFICATIONBODY REGISTRYISSUING

BODY

COMPETENT AUTHORITY

ACCOUNTHOLDER

ROLES IN Scheme:

§ The CertifHy Stakeholder Platform acts as Competent Authority as long as a legal basis for hydrogen GOs is not available.

à Stakeholder Platform

2019-01-17

CertifHy Scheme: Key Roles in the Future (2019-02-13)

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CERTIFICATIONBODIES

GO REGISTRY

ISSUINGBODY

NATIONAL COMPETENT AUTHORITIES

ACCOUNTHOLDERS

Designate Competent Body for renewable H2 GOs

EUROPEAN COMMISSION

Voluntary Scheme Decisionfor renewable H2 for transport

CertifHy Scheme

UNION DATABASE

STAKEHOLDER PLATFORM

LEGAL ENTITY

Database

Roadmap Actions for the next CertifHy phase

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ACTION: Continuation of the Stakeholder Platform

Proposed way forward:

Ø Stakeholder Platform and its Bodies should take the role of the Competent Authority until the time a ‘legal’ Competent Authority/Authorities is/are defined (like for CertifHy 2).

Ø This includes the Stakeholder Platform and its Bodies to:• appoint or approve certain bodies necessary for the operation of the Scheme such as Issuing

Body(ies), registry operator(s), Certification Bodies.• endorse the CertifHy Scheme document and its subsidiary documents (in case the Scheme

documents would need to be further adapted in CertifHy 3)

• Use Platform to continue improving the system by e.g. exchange of info, visions and views & discussions

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Roadmap Actions for the next CertifHy phase

ACTION: Expand the pilot scheme

Proposed way forward:

Ø Continue operation & issuance of GOs until the CertifHy Certification System is formally implemented

Ø Explore additional use cases to further test the Scheme under different circumstances

Ø Extension of pilot to include new plants with different H2 production pathways

Ø Expand to operate as a voluntary scheme for demonstrating compliance with RED II targets and subsequent requirements

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Roadmap Actions for the next CertifHy phase

ACTION: Further alignment with regulatory framework

Proposed way forward: Ø Allow for adjustments/amendments of CertifHy Scheme documents in light of national

transposition of RED II & relevant delegated acts under RED II due in 2021. Follow the delegated acts process closely and provide relevant input.

Ø Concerning the forthcoming delegated acts, the following can be highlighted:– Art. 27(3): Additionality framework; Methodology/requirements grid connected RES-E input– Art. 28(5): Methodology for assessing GHG savings from RFNBO and from recycled carbon fuels. – Art. 25(2): Appropriate min. thresholds for GHG emissions savings of recycled carbon fuels– Art. 30(5): Voluntary schemes provide accurate data on compliance with transport target.

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Roadmap Actions for the next CertifHy phase

ACTION: Further alignment of CertifHY with standardisation environment

Proposed way forward:

Ø Alignment with EU standardisation, notably EN 16325 (referenced in RED II art. 19(6))

Ø Also, CertifHy stakeholders have discussed need for recasting this standard to address further needs in the RED II framework, as well as need for coherent standardization of GOs for all types of energies.

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Roadmap Actions for the next CertifHy phase

ACTION: Solve the residual mix issue

Proposed way forward:

Ø GO pilot operators to define a manageable perimeter (see previous slide) without high intensity sources

Ø Issuing of a CertifHy pilot specific document specifying the GOs system’s perimeter. The account holders will be responsible for ascertaining that the hydrogen for which GOs are cancelled belong to this perimeter.

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Roadmap Actions for the next CertifHy phase

ACTION: Reach agreement on GHG emission allocation methods

Proposed way forward:

Ø Apply value based allocation in the short term, with perspective of switching to energy based allocation with ODC process as benchmark once more data is available.

Ø The decision on how to handle CCU considering all the dimensions of the question will need to be taken by the EC.

Ø In the mean time, cancellation of already issued CertifHy GOs for hydrogen from fossil sources may only be made without any reference to the CertifHy Low Carbon label.

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Roadmap Actions for the next CertifHy phase

ACTION: Foster greater uptake of hydrogen GOs in the market

Proposed way forward:

Ø GO for green hydrogen are new on the market. There is a need for concrete efforts to ensure a greater update of green hydrogen GOs.

Ø Concrete actions can include information campaigns to make the benefits of hydrogen GOs more transparent.

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Roadmap Actions for the next CertifHy phase

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Roadmap Actions & milestones for the next CertifHy phase