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Renewable energy

Certification Schemes for Hydrogen Emissions Credentials Globally Studied

Strategic Insights

— 1 min read

Researchers at the University of Sydney have investigated the implications of certification misalignment for hydrogen exports from Australia to the European Union. The study, published in the journal Energy Policy, examines the impact of different certification schemes on the cost-competitiveness of hydrogen production. The researchers found that certification misalignment is unlikely to affect cost-competitiveness in later years but could impact early industry development.

Key Takeaways:

  • The European Union's (EU) Renewable Energy Directive II (RED II) codified that on-grid renewable electricity used in electrolytic production can be categorized as 'renewables based.'
  • The reliance of RED II rules on electricity market features such as bidding zones may create challenges for certification alignment in overseas electricity markets.
  • The study considered two scenarios: one where only Australian off-grid electricity is recognized as renewables-based and another where Australian renewable electricity used in grid-connected electrolysis is recognized as creating renewables-based hydrogen.
  • The analytical framework linked a techno-economic cost model with a simulation model to explore the implications of misaligned hydrogen certification.
  • The researchers found that on-grid hydrogen production could be cheaper in the near-term, but off-grid production is consistently cheaper in the longer term (2030-2040).
  • Certification misalignment is unlikely to affect cost-competitiveness in later years, but could impact early industry development.

Statistics:

  • 2023: The year the European Union's delegated regulations supplementing the Renewable Energy Directive II (RED II) codified when on-grid renewable electricity used in electrolytic production can be categorized as 'renewables based.'
  • 2030-2040: The time period when off-grid hydrogen production is consistently cheaper than on-grid production.
  • 2 scenarios: The number of scenarios considered in the study, including one where only Australian off-grid electricity is recognized as renewables-based and another where Australian renewable electricity used in grid-connected electrolysis is recognized as creating renewables-based hydrogen.

Sources:

  • Implications for Cost-competitiveness of Misalignment In Hydrogen Certification: a Case Study of Exports From Australia To the Eu. Energy Policy, 2025;204. (Elsevier Sci Ltd, 125 London Wall, London, England.)
  • University of Sydney, School of Social and Political Sciences, Sydney, Australia.
  • Cooperative Research Centres (CRC) Programme.
  • NewsRx. New Renewable Energy Findings Has Been Reported by Investigators at University of Sydney (Implications for Cost-competitiveness of Misalignment In Hydrogen Certification: a Case Study of Exports From Australia To the Eu). Ecology, Environment & Conservation. September 5, 2025; p 482.

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