Definition of Green Hydrogen - European Commission

1 Project supported by the FCH JU The research leading to these results has received funding from the European Union's Seventh Framework Programme (FP7/2007-2013) for the Fuel Cells and Hydrogen Joint Technology Initiative under grant agreement n 633107 - Duration: 24 months (Nov 1st 2014 to October 30th 2016) CertifHy Developing a European Framework for the generation of guarantees of origin for Green Hydrogen Definition of Green Hydrogen Introduction Definition of Green Hydrogen Criteria for a Green H2 produced by GHG virtuous plants Renewable share: Definition and illustrations Application of the two GHG thresholds Examples Q&A Agenda 2 CertifHy will boost demand and supply of Green Hydrogen throughout Europe: by the creation of a market for Green H2 3 Objective: Define a widely acceptable Definition of Green Hydrogen ; and Determine how an EU wide robust GO scheme should be designed and implemented.

2 Consortium Affiliated Partners Other Partners: Associations, NGO s, Policy Makers,.. Step by step consultation process Supply Green H2 where is not produced, improving the business case for Green H2 WP7: Project Management and Administration Project leader: Hinicio WP1: Generic market outlook for Green Hydrogen Project leader: Hinicio WP6: Stakeholder Engagement & Communication Project leader: Hinicio WP2: Definition of Green Hydrogen Project leader: T V S D WP3: Review of existing platforms for GO Project leader: ECN WP4: Definition of a new framework of guarantees of origin for " Green " Hydrogen Project leader: T V S D WP5: Roadmap for the implementation of an EU-wide GO scheme for Green Hydrogen Project leader: ECN This presentation focusses on the achieved consensus of Definition of Green Hydrogen .

3 Rationale of Green H2 Lessons learnt from other initiatives Common Definition with all stakeholders Robust + Transparent system Buy in Enabling implementation 4 Introduction Definition of Green Hydrogen Criteria for a Green H2 produced by GHG virtuous plants Renewable share: Definition and illustrations Application of the two GHG thresholds Examples Q&A Agenda 5 High Carbon H2 Low carbon" defined as a 60% reduction compared to a BAT emission benchmark 6 * Best Available Technology = Natural gas steam methane reforming , = >95% of the provided merchant Hydrogen market ** cfr RED reduction requirement for biofuels in 2018 Renewable energy Non renewable energy Low-carbon Not Low-carbon Renewable & Not Low-Carbon H2 Renewable & Low-Carbon H2 Non- Renewable & Low-Carbon H2 Non-Renewable & Not Low-Carbon H2 - 60% Low-carbon threshold ** Benchmark: BAT* High Carbon H2 As outcome of the consultation process, CertifHy addresses both Renewables and GHG emission targets of Hydrogen users 7 Low-carbon threshold ** (= g CO2 eq/MJH2 ) Benchmark.

4 BAT* (= 91 g CO2 eq/MJH2) Renewable energy Non renewable energy Low-carbon Not Low-carbon Renewable & Not Low-Carbon H2 CertifHy Green H2 CertifHy Low Carbon H2 Non-Renewable & Not Low-Carbon H2 Non-CertifHy H2 - 60% * Best Available Technology = Natural gas steam methane reforming , = >95% of the provided merchant Hydrogen market ** cfr RED reduction requirement for biofuels in 2018 High Carbon H2 Excessively high GHG emissions may exclude a plant from participating to the CertifHy GO scheme 8 Renewable energy Non renewable energy Low-carbon Not Low-carbon Renewable & Not Low-Carbon H2 Non-Renewable & Not Low-Carbon H2 Non-CertifHy H2 - 60% Producer potentially NOT eligible for GoO scheme ** Producer eligible for GoO scheme Low-carbon threshold ** (= g CO2 eq/MJH2 ) Benchmark.

5 BAT* (= 91 g CO2 eq/MJH2) CertifHy Green H2 CertifHy Low Carbon H2 * Best Available Technology = Natural gas steam methane reforming , >95% of the provided merchant H2 market ** cfr RED reduction requirement for biofuels in 2018 ** if GHG content of Non-CertifHy H2 production over the last 12 months is >91gCO2eq/MJ The low carbon benchmark has been set at an ambitious level 9 Eligible pathways A CO2 audit will tell you what's low carbon and what's not 10 Introduction Definition of Green Hydrogen Criteria for a Green H2 produced by GHG virtuous plants Renewable share: Definition and illustrations Application of the two GHG thresholds Examples Q&A Agenda 11 Production may disqualify plant from producing CertifHy GO s High Carbon H2 Need to define the amount of Renewable Hydrogen produced by a process using multiple energy inputs 12 Renewable energy Non renewable energy Low-carbon Not Low-carbon Renewable & Not Low-Carbon H2 Renewable & Low-Carbon H2 = CertifHy Green H2 Non- Renewable & Low-Carbon H2 = CertifHy LC H2 Non-Renewable & Not Low-Carbon H2 Non-CertifHy H2 - 60% Producer potentially NOT eligible for GoO scheme Producer eligible for GoO scheme Low-carbon threshold ** (= g CO2 eq/MJH2 ) Benchmark.

6 BAT* (= 91 g CO2 eq/MJH2) * Best Available Technology = Natural gas steam methane reforming , = >95% of the provided merchant Hydrogen market ** cfr RED reduction requirement for biofuels in 2018 Renewable Hydrogen will be as Green as the energy used for its production Hydrogen production Electricity input 10 GJ Biomass input 20 GJ 13 Total energy input : 30 GJ Renewable *: 20 GJ Non-renewable: 7 GJ Renewable *: 3 GJ Renewable: 23 GJ Non-renewable: 7 GJ 23% 77% Renewable H2 77% Non-renewable H2 23% * Via GO or direct feedstaock Electrolysis Direct Connection with Renewable Energy Electrolysis Grid Connected: EU mix + RE Input Output 100% Renewable Wind, PV, .. 100% Renewable H2 Input Output 60% Renewable (Wind, PV, Green elec ) 60% Renewable H2 40% EU Mix Renewable Hydrogen will be as Green as the energy used for its production example Electrolysis 14 Bio-methane from biowaste and Natural Gas Input Output 81% biowaste 81% renewable H2 19% non renewable heat Input Output 60% bio-methane from bio-waste 60% renewable H2 40% natural gas On-Site SMR Renewable Hydrogen will be as Green as the energy used for its production example steam Methane reforming Central SMR Biogas from bio-waste with non-renewable heat Bio-waste to biogas Bio-methane from bio waste Natural gas 15 Introduction Definition of Green Hydrogen Criteria for a Green H2 produced by GHG virtuous plants Renewable share.

7 Definition and illustrations Application of the two GHG thresholds Examples Annexes Agenda 16 Application of Benchmark threshold on Past Production of the Hydrogen Plant Time t2 t2 12 months H2 Production 12 months t1 Average GHG intensity since t2-12 months of Non-CertifHy H2 must not exceed 91 gCO2/MJH2 Past Production H2 with Green GO H2 with LC GO Non CertifHy H2 < 91 gCO2/MJH2 ? 17 At the batch level, Hydrogen needs to be Low Carbon for producing CertifHy Green or Low-Carbon GOs Time t2 t2 12 mths H2 Production 12 months t1 Production Batch Non-renewable share Renewable share CertifHy Low Carbon H2 GOs CertifHy Green H2 GOs Average GHG intensity since t2-12 months of Non-CertifHy H2 must not exceed 91 gCO2/MJH2 Past Production H2 with Green GO H2 with LC GO Non CertifHy H2 < 91 gCO2/MJH2 ? Average GHG intensity of H2 covered by a CertifHy GO must not exceed gCO2/MJH2 < gCO2/MJH2 ?

8 < gCO2/MJH2 ? 19 Decision tree presenting the criteria for producing Low-Carbon and CertifHy Green H2 Average emissions of Non-CertifHy H2 <91gCO2 eq/MJ (benchmark)? Batch emissions < 36,4gCO2 eq/MJ (40% of benchm.)? 100% Non- renew. batch X% renew. and (1 -X%) non-renew. shares No CertifHy Green or low carbon GO Ye s No Ye s No Renewable energy input into batch? 100% Non-CertifHy H2 Ye s No 100% Low-carbon H2 Renewable share emissions < 36,4gCO2 eq/MJ ? Ye s No X% Non-CertifHy H2 X% Green H2 Non-renewable share emissions < 36,4gCO2 eq/MJ ? 1-X% Non-CertifHy H2 1-X% Low-carbon H2 Ye s No 19 Introduction Definition of Green Hydrogen Criteria for a Green H2 produced by GHG virtuous plants Renewable share: Definition and illustrations Application of the two GHG thresholds Examples Benefits expected of Green H2 GoO Q&A Agenda 20 Electrolysis with different energy mixes as energy input (1/5) Average emissions of past Non-CertifHy H2 <91gCO2 eq/MJ (benchmark)?

9 Batch emissions < 36,4gCO2 eq/MJ (40% of benchm.)? 100% Non- renew. batch 60% renewable and 40% non-renew. shares No CertifHy Green or low carbon GoO Yes No Ye s No Renewable energy input into batch? No 100% Low-carbon H2 Renewable share emissions < 36,4gCO2 eq/MJ ? No 60% Green H2 Non-renewable share emissions < 36,4gCO2 eq/MJ ? 1-X% Low-carbon H2 Ye s No Yes Yes 21 Electrolyser 60% 40% EU electricity mix * 100% Non-CertifHy H2 60% Non-CertifHy H2 40% Non-CertifHy H2 * GHG content as disclosed by electricity supplier s mix Electrolysis with different energy mixes as energy input (2/5) Average emissions of past Non-CertifHy H2 <91gCO2 eq/MJ (benchmark)? Batch emissions < 36,4gCO2 eq/MJ (40% of benchm.)? 100% Non- renew. batch 60% renewable and 40% non-renew. shares No CertifHy Green or low carbon GoO Yes No Ye s No Renewable energy input into batch?

10 100% Non-CertifHy H2 No 100% Low-carbon H2 Renewable share emissions < 36,4gCO2 eq/MJ ? No 60% Green H2 Non-renewable share emissions < 36,4gCO2 eq/MJ ? 1-X% Low-carbon H2 Ye s No Yes Yes 22 Electrolyser 50% 50% EU electricity mix * 40% Non-CertifHy H2 60% Non-CertifHy H2 * GHG content as disclosed by electricity supplier s mix 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 Note: PV and Wind are assumed to have zero GHG intensity 23 0%10%..50%60%70%80%EU Mi x217,1217,1195, ,686,865,143,4 Coal423,7423,7381, ,9169,5127,184,7 Natural gas191,5191,5172, ,876,657,538,3 Nuclear7,57,56, ,83,02,31,5 Specific mix50,050,045, ,020,015,010,0 Red : facility is NOT allowed to produce H2 with a CertifHy GoOCarbon intensity (gCO2/MJH2) of "Non-CertifHy H2" in function of the electricity mix used With inclusion of a renewable shareWithout inclusion of a renewable shareNot Elegible to produce Low Carbon or CertifHy Green H2 Minimum renewable share required in Non-CertifHy H2 for maintaining eligibility to produce CertifHy H2EU Mi x217,158,1%Coal423,778,5%Natural gas191,552,5%Nuclear7,50,0%Specific mix50,00,0%Min.