Deutsche Boerse's EEX to launch hydrogen index in 2022

European Energy Exchange AG

24/11/2021 07:00

By Vera Eckert
    FRANKFURT, Nov 24 (Reuters) - Deutsche Boerse's  DB1Gn.DE 
power and gas exchange EEX plans to launch an index to price
hydrogen next year to aid trading of the commodity that is
expected to play a big role in the shift to a green economy, one
of the bourse's board members said.
    The index, details of which will be released before the end
of the year, aims to publish a price of hydrogen that will
reflect prices as they emerge from the over-the-counter market
and bilateral trades in import and export agreements.
    It would be the first publicly-traded index tracking
hydrogen as a commodity.
    "Europe has the potential to be an important pillar of
global price determination," EEX Chief Strategy Officer Tobias
Paulun said at the Reuters Events Hydrogen Economy Europe
conference.
    "Together with our customers, we see hydrogen as a long term
opportunity," he said, adding the index would be launched over
the next few months, without being more specific.
    The European Union has announced a strategy to achieve 40
gigawatts of hydrogen production capacity by 2030 and aims to
become a global leader in establishing a zero-carbon fuel for
industrial uses to protect the climate.
    EEX will draw on a number of contributors to provide quotes
in euros for green hydrogen and certify the quality through
guarantees of origin, a tool already used in renewable power,
Paulun said.
    Produced by electrolysis using renewable power, green
hydrogen has attracted interest from utilities and oil majors,
their customers and related services companies.
    They are striving to cut production costs, create legal and
funding frameworks for infrastructure newbuild and repurposing,
and to build demand and import partnerships.
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    Paulun said an over-the-counter and bilateral market would
evolve over the next two years in European import locations and
local industry clusters, which would help to develop a common
standard, ultimately to be tradeable on the exchange.
    The EEX would monitor the process closely.
    "Driving unit costs down whilst scaling up innovation will
be vital to creating long-term trading platforms," Paulun said.
    Andreas Schwenzer of consultancy Horvath said a bourse
contract should attract interest.
    "Trading via standardised contracts instead of individual
agreements for each transaction is far more efficient," he said.
    (The full interview with Tobias Paulun will be broadcast
during the Reuters Events Hydrogen Economy Europe online
conference on Dec. 2-3)

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 (Reporting by Vera Eckert; editing by Barbara Lewis)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))