By Vera Eckert

FRANKFURT/Reuters – Deutsche Boerse, Germany’s gas and power exchange EEX, plans to create an index for price hydrogen to assist trading. The aim is to make the commodity more competitive in order to support the transition to a greener economy. One of its board members stated that the index will be available next year.

Details of this index will be made public before the end. It will publish hydrogen prices that reflect the price changes in the international market as well as bilateral trades between import and export.

This would make it the first index to trade publicly that tracks hydrogen as a commodities.

Tobias Paulun from EEX stated at the Reuters Events Hydrogen Economy Europe conference that “Europe has potential to be an essential pillar of global pricing determination.”

He stated, “Together, with our customers we see hydrogen as an opportunity long term,” and added that the index would launch in the next few months.

The European Union announces a plan to produce 40 gigawatts (or more) of hydrogen by 2030. They also aim to establish a zero-carbon fuel to power industrial applications to preserve the environment.

Paulun stated that EEX will use a variety of contributors in order to offer green hydrogen quotes in Euros and certify quality via guarantees of origin. This tool is already being used in renewable energy.

Green hydrogen is produced by using electrolysis with renewable power. It has been a hot topic among utilities, oil majors and other related service companies.

They seek to lower production costs, establish legal and financing frameworks for newbuild and repurposing infrastructure, and increase import and demand partnerships.

Paulun stated that an over-the counter and bilateral market will develop in the European import locations over the next 2 years. These markets would be supported by local clusters of industry, and would allow for the development and implementation of a common standard. This would eventually lead to tradeable on the Exchange.

The EEX would closely monitor this process.

Paulun explained that “Driving unit prices down while scaling up innovation is vital for creating long-term trade platforms”

Consultancy Horvath, Andreas Schwenzer, stated that a contract for a Bourse should be attractive to interest.

He stated that it is much more efficient to trade via standardised contracts than individual agreements for every transaction.

(The complete interview with Tobias Paulun is available during the Reuters Events Hydrogen Economy Europe on Dec. 2 and 3.