A hydrogen market for decarbonising the economy
Functioning markets constitute the precondition for the successful development of a hydrogen industry: They will give consumers access to hydrogen and hydrogen derivatives, such as ammonia and methanol, which they can then trade directly with the relevant producer. Non-discriminatory trading markets create confidence in hydrogen as an increasingly important energy source. This is based on transparency in pricing, the publication of trading volumes as well as the number of trading participants and transactions.
EEX already supports the ramping-up of the hydrogen market with the following hydrogen and hydrogen derivatives initiatives today:
Our vision for the hydrogen market
Price transparency in hydrogen – HYDRIX
We are going ahead!
Since May 2023, European Energy Exchange (EEX) has been publishing the first global market-based hydrogen index every week to accelerate the hydrogen market ramp-up. As a result, EEX has created the much needed price transparency for hydrogen as a trading platform. The HYDRIX Green for Germany is established from the supply and demand prices for green hydrogen on the German market and gives market participants, regulators and political decision-makers the following advantages:
- Price signals to assess existing and new investment and trading transactions on a market basis
- Price signals which come directly from the hydrogen market rather than deriving these indirectly and exclusively via H2 substitutes (e.g. power and natural gas)
- Direct comparability of the hydrogen prices in €/MWh with the listed gas and power prices
- Transparency on current and historical hydrogen price developments
The first real hydrogen price index
The HYDRIX is based on actual price indications which were offered or concluded and come from renowned and established market participants from the industry. On this basis, EEX calculates the HYDRIX as the average of supply and demand every week. The HYDRIX is published with current and historical data on the EEX Transparency website (eex-transparency.com) at 16:00 every Wednesday.
Support for the market partners
Today, EEX already provides comprehensive and competent support to a multitude of well-established hydrogen industry companies in infrastructure and trading projects. With EEX as a partner in these projects, access to national and international funding programs for the ramp-up of the hydrogen industry and hydrogen trading is facilitated and accelerated.
Example: Support for the H2Global-Foundation
H2Global-Foundation was established as a foundation to support the market ramp-up of green hydrogen in Germany and Europe. Alongside many renowned companies, EEX also contributes its expertise in developing sustainable markets – and, in particular, a trading market for hydrogen.
Hydrogen working group – Cooperation for the market ramp-up
Since 2020, more than 100 companies along the entire value chain of the global hydrogen industry have collaborated in the EEX hydrogen working group with the aim of establishing transparent, sustainable and non-discriminatory trading markets for hydrogen as fast as possible. Participation in the EEX hydrogen working group enables the companies concerned to contribute their ideas on the ramp-up of the hydrogen trading market, discuss proposals and issue recommendations to accelerate the development and trading of hydrogen on the exchange. In addition, this hydrogen working group permits the exchange of experience and networking among companies along the entire value chain.
Which subjects does the hydrogen working group cover?
Our events in the autumn of 2020 and in March 2021 produced the following results and projects which EEX is now pursuing with the support of the working group:
- Price transparency in H2: Introduction of a market-based hydrogen index
- Standardisation of products and processes in trading of H2 and derivatives
- Trading of H2, H2 derivatives and guarantees of origin: Establishment of a trading platform
- Support for market participants in infrastructure and trading projects: Undertaking to provide market competence, experience and networks to develop trading via supporting letters, e.g. letters of intent (LOI) or letters of support (LOS)
How can I join the hydrogen working group?
Simply contact one of our experts:
We are pleased to invite you, as an advocate of a hydrogen trading market, to the hydrogen working group.
How can I support HYDRIX in Germany and Europe?
Let´s build a hydrogen-market together!
Help supporting the hydrogen revolution in Germany and give the energy transition a new impetus. As part of HYDRIX, you and your company can help shape HYDRIX. After successful registration, you can immediately submit your price estimates.
Our mission: Hydrogen and hydrogen derivatives trading
Transparent trading markets are key instruments for the successful development of the hydrogen industry: They will provide non-discriminatory access to hydrogen and its derivatives for a large number of hydrogen consumers and connect them with the producers. Moreover, markets create transparency by publishing prices and information on the traded hydrogen and hydrogen derivatives.
With the market participants’ support and depending on the regulatory design and progress, EEX will create trading opportunities for hydrogen and hydrogen derivatives.
When and where will the first volumes of hydrogen and hydrogen derivatives be freely tradable?
At present, the market participants are focusing on building the necessary supply chains from the producers to the consumers and on the relevant hydrogen infrastructure for production, transport, storage and use. As soon as the first local, regional and global supply chains (which are not exclusively based on long-term contracts between two or very few market participants) have emerged, the market can be opened to new participants and can, hence, evolve.
The state- and EU-funded PCI and IPCEI infrastructure projects or import projects (e.g. H2Global), in particular, offer good preconditions for this, as they give established, as well as new market participants, market-based and, hence, non-discriminatory access to hydrogen and hydrogen derivatives as well as its infrastructure.
Which products are most likely to become freely tradable first?
Because there is still a lack of border-crossing infrastructure for gaseous hydrogen (European hydrogen backbone) and this is not expected to be remedied until, at least, 2026, green hydrogen derivatives, such as ammonia, methanol and kerosene, which are transportable using existing infrastructures (ship, train and lorries) will become freely tradable first.
In future, EEX will have separate offers for trading of hydrogen as a gaseous standard product, trading of guarantees of origin of hydrogen and a combination of hydrogen and the green characteristic - provided the corresponding regulatory framework conditions are clearly defined and the infrastructural preconditions (e.g. transport and storage) have been created.
How will the market participants be granted access to trading in the products via EEX?
EEX will enable trading in hydrogen products and its derivatives via a browser-based trading system in line with the demands of the market. The trading participants registered for hydrogen and hydrogen derivatives at EEX will be cleared for trading in these clusters or market areas in line with the respective applicable cluster- and market area-specific requirements.
Guarantees of origin and certificates for hydrogen
Supporting the industry in the standardisation as well as the creation and negotiation of guarantees of origin and other hydrogen-related certificates.
Guarantees of origin (GO) and other hydrogen certificates enable the tracking of quality-specific hydrogen. Together with Grexel, an EEX Group company and expert in the operation of registries for traceability certificates, we enable the industry to ensure reliable documentation from production until consumption.
What are guarantees of origin and for what are they used?
A guarantee of origin is an electronic document, which guarantees full transparency and traceability of the energy consumed by end consumers.
GOs primarily exist for network-based energy sources such as renewable power, natural gas or hydrogen. They are traded through a book & claim system where the sustainability claim of the energy is separate from thephysical flow. This allows renewable or decarbonized hydrogen to be tracked when fed into a network or blended with other types of gas.
The system allows for trading in hydrogen or hydrogen derivatives as standardised products, independent of the origin and transport route, in particular, on cross-border grid hydrogen markets.
Why are mass balance systems for hydrogen necessary?
Trading in low-emission or emission-free hydrogen can be connected with a mass balance system. In this case, the emission reduction certificate is traded together with the hydrogen or hydrogen derivative along the transport route, from production to consumption.
Until the “European Hydrogen Backbone” grid hydrogen transport infrastructure is established, the hydrogen molecule or derivatives can be traced from production to alternative transport on sea, rail, road to the consumer. In principle, this is still possible via mass balance.
Will EEX offer trading solutions for guarantees of origin in hydrogen?
EEX Group is already an important stakeholder in guarantees of origin today. Grexel and EEX already offer registries for power, biogas and hydrogen in 15 European countries.
Grexel is member of the CertifHy consortium, the first European registry for hydrogen certificates, and provides services to the Finnish biogas & hydrogen GO registry and the Latvian biogas & hydrogen registry. EEX also organises primary auctions of guarantees of origin on behalf of the French state, while EPEX Spot operates the first European multilateral power GO spot auction.
Grexel and EEX will support market participants at the market-based implementation of the delegated act on the RED II directive.
Support from associations, societies, regulators and the political sector
The European and global hydrogen ramp-up is a community task. With our network and expertise, we actively approach different interest groups and, together, are trying to find solutions for the different challenges early on.
What are the main topics EEX is currently discussing with its partners?
- Building a hydrogen and hydrogen derivatives import structure and corresponding supply chains
- Developing regional, national and European trading markets as well as the infrastructure
- Standardisation of the purity of gaseous hydrogen for transport via pipelines
- Standardisation of contractual access to the hydrogen infrastructure
- Designing and providing system services for hydrogen and hydrogen derivatives, transportation and storage
- Definition of low-emission and emission-free hydrogen
- Creditability of low-emission and emission-free hydrogen and hydrogen derivatives
- Transparency regarding hydrogen prices and infrastructure
|2023-10-20||Summary of the #EEXpert-Talk in Berlin||Documents||pdf (270 KB)|
|2023-08-01||EEX Opinion & Expert Report - The Market Ramp-Up of Renewable Hydrogen and its Derivatives - the Role of H2Global||Documents||pdf (630 KB)|
|2023-06-26||EEX Press Release - EEX develops trading platform for hydrogen markets and signs Letter of Intent with first customer Hintco, a subsidiary of the H2Global Foundation||News||pdf (162 KB)|
|2023-05-22||EEX Press Release - Transparency for Hydrogen Market with HYDRIX: EEX publishes first market-based hydrogen index||Documents||pdf (91 KB)|
|2022-08-29||EEX Opinion & Expert Report - H2Global Consultation tender||News||pdf (98 KB)|
|2022-07-05||EEX Press Release - EEX to develop Hydrogen market transparency together with TYCHO Solutions||News||pdf (139 KB)|
|2022-03-31||EEX Press Release - Towards a green hydrogen market: EEX becomes foundation member of H2Global||News||pdf (141 KB)|
|2022-02-09||EEX Group Press Release - Grexel to offer new Hydrogen and Biogas registry services in Finland||News||pdf (134 KB)|
|2020-06-23||EEX Consultation Response: EU climate ambition for 2030 and the design of certain climate and energy policies of the Green Deal||News||pdf (150 KB)|
We would be happy to answer your questions and exchange ideas with you about hydrogen and hydrogen derivatives. Contact us!