News Energy
Fair for hydrogen should help market further
A hydrogen stock market, as we also know it for electricity and gas, can act as a driver for a market for climate-neutral hydrogen. In addition, it helps with the economic growth of a hydrogen market. This is apparent from an exploratory study.
Due to a growing demand for hydrogen, there is a need for proper market functioning and transparent, efficient pricing. A hydrogen exchange can facilitate this. Gasunie and 4 Dutch port companies will investigate the practical design of a stock exchange where hydrogen can be traded freely. The reason is the study 'A Hydrogen Scholarship for the Climate'. This was presented digitally to Minister Wiebes of Economic Affairs and Climate on Wednesday 30 September.
Realize in steps
One of the conclusions is that a hydrogen exchange must be realized in steps. In this way, the stock market can grow in phases with the construction of a hydrogen market. One of the preconditions is that there is a developed market with enough different suppliers and buyers. A physical trading point or energy infrastructure is also needed where market parties can find each other for the exchange of surpluses and shortages.
When the electricity and gas exchanges were established, there was a liberalization of an existing situation. The market and infrastructure were already in place. The situation is different with hydrogen. It is expected to take 6 to 10 years to realize the required hydrogen infrastructure and to develop sufficient climate-neutral hydrogen production.
Unique starting position
The hydrogen exchange must therefore grow slowly with the market. The exploratory report provides a view on this. The hydrogen market is expected to be somewhere in between the electricity market and the gas market in terms of volatility and time dynamics. The Netherlands has a unique starting position in this regard because of its cost-efficient approach to sustainable energy, its perfect location and the role that Dutch industry plays in hydrogen.
In addition, the gas infrastructure for the transport of hydrogen can be converted. Finally, the Netherlands has a lot of experience with the development of energy exchanges. In the follow-up study that is now underway, research is being done into how a hydrogen exchange in the Netherlands could be set up in practice. This investigation will take a maximum of one year.
Demand for hydrogen is increasing
Hydrogen is seen as an important link in the energy transition. Demand will grow in the next 10 years. More and more sectors, including ports, industry and transport, are including hydrogen in their sustainability plans. Gasunie has been working on plans for a national infrastructure for some time now. Import and transit to Germany and Belgium in particular are also taken into account.
A lot still needs to be done for production scale-up and roll-out. That is why hydrogen is an important spearhead in the Climate Agreement and the policy of the Ministry of Economic Affairs and Climate. In the Hyway27 project, the government, Gasunie, TenneT and the Port of Rotterdam Authority are investigating whether and how part of the gas network can be used for the transport and distribution of hydrogen. Results are expected in the first quarter of 2021.
Jeanette Pennings
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