Implications for cost-competitiveness of misalignment in hydrogen certification: a case study of exports from Australia to the EU

Lee V. White, Reza Fazeli, Fiona J. Beck, Kenneth G.H. Baldwin and Chengzhe Li

Energy Policy, 2025, vol. 204, issue C

Abstract: Certification schemes are emerging globally to establish emissions credentials for hydrogen. In 2023, the European Union's (EU) delegated regulations supplementing the Renewable Energy Directive II (RED II) codified when on-grid renewable electricity used in electrolytic production can be categorised as ‘renewables based’. This determines which hydrogen is eligible towards EU climate targets, and could impact industry development. While prior analyses have focused on implications for EU producers, the EU's expected hydrogen demand means this policy will affect international exporters. The reliance of RED II rules on electricity market features such as bidding zones may create challenges for certification alignment in overseas electricity markets.

Keywords: Hydrogen; Technoeconomic modelling; Certification; Renewable electricity; Policy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:204:y:2025:i:c:s0301421525001685

DOI: 10.1016/j.enpol.2025.114661

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