EEX bourse exploring options for hydrogen contract trading

European Energy Exchange AG

11/12/2020 12:45

FRANKFURT, Dec 11 (Reuters) - The European Energy Exchange
(EEX) is exploring the development of hydrogen contracts to tap
into the nascent economy for the  zero-carbon fuel, a note from
the bourse's governing council said on Friday.
    The European Commission and national governments including
Germany want to rapidly scale up production factories for
"green" hydrogen, derived from renewable power via electrolysis
technology, in order to clean up polluting industries and hit
climate targets. 
    EEX, a Deutsche Boerse subsidiary  DB1Gn.DE  which is active
in energy, carbon and freight markets at home and overseas,
launched a working group that engages 120 energy operators last
month.
    "While the market itself does not yet exist, regulatory
conditions and market design for hydrogen are now being
established," it said. 
    The discussions focused on a potential hydrogen market
design "with the long-term goal to develop trading products, be
it as a physical commodity or guarantee of origin," it added.
    EU countries use roughly 8 million tonnes a year of "grey"
hydrogen, made from natural gas in a process that produces
planet-warming emissions.
    Green hydrogen could be especially helpful in
hard-to-decarbonise sectors such as steel or refineries, as it
can be stored in, and transported through, existing natural gas
infrastructure.
    Consultancy Horvath & Partners said in an interview in June
that euro-denominated wholesale markets for hydrogen were very
much on the horizon, especially with view to a possible import
sector in the long-term future. urn:newsml:reuters.com:*:nL8N2DW4O6
    The region will lack land and offshore resources to produce
sufficient green hydrogen, should a large-scale switch be made.
    The 20-year-old EEX is Europe's leading electricity and
natural gas exchange. It has acquired rivals and offered
clearing services across all time zones, notably stretching to
the emerging Japanese power market this year.

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