The Role of Energy Attribute Certificates in Green Hydrogen Production
Green hydrogen is emerging as a cornerstone in the global transition to a clean energy economy. It is produced by splitting water into hydrogen and oxygen through electrolysis, using renewable electricity generated during peak conditions. Green hydrogen offers a reliable way to store and transport energy compared to intermittent renewables such as wind and solar power. The hydrogen produced can be stored long-term, transported via pipelines or tanks, or even converted into fuels like ammonia, ensuring renewable energy is available whenever and wherever it’s needed.
Hydrogen Production Methods
Unlike fossil fuels, which emit greenhouse gases and contribute to climate change, green hydrogen offers a solution for decarbonizing industries such as steel, chemicals, and heavy transport. Moreover, when compared to other hydrogen types such as grey hydrogen (produced from natural gas without carbon capture), pink hydrogen (derived from electrolysis powered by nuclear energy), or blue hydrogen (which incorporates carbon capture technology), green hydrogen stands out as completely carbon-free because it relies solely on renewable energy sources.
Recognizing its transformative potential, the European Union has established clear criteria to ensure that hydrogen production is sustainable. These EU regulations, which will be discussed in more detail in the following section, require companies to verify that the electricity used in hydrogen production comes exclusively from renewable sources, thus upholding stringent environmental standards and preventing greenwashing.
EU Regulations and Certification of Green Hydrogen
The Delegated Acts under the EU's renewable energy directive, define when hydrogen can be classified as a Renewable Fuel of Non-Biological Origin (RFNBO) and establish standardized methods for calculating lifecycle greenhouse gas emissions.
These regulations ensure genuine contributions to emissions reduction by focusing on three key relationships between hydrogen production and renewable electricity:
- Additionality: The period that the hydrogen is produced to comply with RFNBO and 45V, the renewable installation should be no older than 36 months before the electrolyzer. However, the transitional phase allows flexibility until 2038 for installations operating before 2028.
- Temporal Matching: Until 31 December 2029, hydrogen must be produced within the same calendar month as the renewable electricity generated under the Power Purchase Agreement PPA or from a new storage asset directly connected to either the renewable electricity generator or the electrolyser, provided it was charged within the same month. From 1 January 2030, hydrogen production must occur within the same one-hour period as the renewable electricity or come from a co-located new storage asset charged during that same one-hour window. Member States may implement this rule as early as 1 July 2027, subject to prior notification to the Commission.
- Geographical Correlation: Hydrogen producers must ensure that additional renewable energy sources are situated near the production site. To comply, the renewable electricity generator must meet at least one of the following criteria: it must be located in the same bidding zone as the electrolyser, in an interconnected bidding zone where day-ahead electricity prices are equal to or higher than those in the hydrogen production zone, or in an offshore zone that is directly interconnected with the electrolyser’s bidding zone.
These regulations aim to prevent greenwashing and ensure that hydrogen production genuinely contributes to renewable energy growth rather than merely shifting existing clean energy resources from other uses.
The Role of Energy Attribute Certificates (EACs)
As regulations increasingly demand precise tracking of renewable energy usage, sophisticated energy traceability platforms become essential for verifying sustainability and providing accurate energy attribute certificates.
Traditional Energy Attribute Certificates (EACs) have operated on monthly or annual timeframes. However, the EU's hydrogen regulations now mandate that electricity generation and consumption be matched on an hourly basis. Under the current annual matching system, a producer could purchase EACs from a solar farm in the summer and claim ‘100% renewable’ energy even if those certificates are used during winter nights, an approach that does not accurately reflect the physical reality of the grid. The grid experiences periods of renewable overproduction and relies on fossil-fueled backup generation at other times, leading to distrust in these claims.
Moreover, the present system fails to provide a proper price signal. Ideally, clean energy should be inexpensive when in oversupply and more costly during periods of undersupply.
By incorporating timestamps into certificates, consumers would be able to verify the origin of their energy on an hourly basis. This enhanced transparency not only aligns energy claims with physical reality but also incentivizes investments in renewable energy infrastructure. This regulatory gap necessitates advanced traceability solutions with AI-powered matching capabilities that deliver the granular tracking required for compliance.
Advanced energy traceability solutions such as Spritju enable hydrogen producers to track and verify renewable energy use hourly, aligning with the EU's strict temporal and geographical matching requirements. By increasing granularity and enabling hourly matching, Spritju’s services and marketplace app help reduce compliance risks, provide real-time transparency while helping companies access green hydrogen incentives and maintain stakeholders’ trust.
As green hydrogen scales to meet global decarbonization targets, robust certification and traceability mechanisms are critical for ensuring credibility. With EU regulations setting stringent criteria for renewable hydrogen, the role of EACs and advanced energy tracking solutions has never been more important for guaranteeing that green hydrogen truly delivers on its environmental promises.
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Text Credits:
https://energy.ec.europa.eu/topics/eus-energy-system/hydrogen/renewable-hydrogen_en
https://www.fortum.com/media/2024/10/what-makes-renewable-hydrogen-renewable
https://www.weforum.org/stories/2021/12/what-is-green-hydrogen-expert-explains-benefits/
https://h2lac.org/wp-content/uploads/2024/07/7046_1-240331H2Uppp-Green-Hydrogen-Certification-Schemes-extended-report-1.pdf
https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/747085/EPRS_BRI(2023)747085_EN.pdf
https://www.youtube.com/watch?v=aYBGSfzaa4c
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