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

Author

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

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.

Suggested Citation

  • White, Lee V. & Fazeli, Reza & Beck, Fiona J. & Baldwin, Kenneth G.H. & Li, Chengzhe, 2025. "Implications for cost-competitiveness of misalignment in hydrogen certification: a case study of exports from Australia to the EU," Energy Policy, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:enepol:v:204:y:2025:i:c:s0301421525001685
    DOI: 10.1016/j.enpol.2025.114661
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    References listed on IDEAS

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