Global trade in green hydrogen derivatives: Trends in regulation, standardisation and certification

Prospective trade in hydrogen is an emerging energy transition priority, as well as a potential economic opportunity, for countries around the world. Global markets are expected to emerge as a result of competitive advantages in renewable resources, and land and water availability, that may permit the production of green hydrogen at lower cost in some regions relative to others.

Certification schemes can be used to provide the confidence – sought by consumers and regulators alike – that hydrogen being traded internationally satisfies expectations in terms of sustainability requirements. Such confidence is essential in de-risking international markets.

Analysis increasingly shows that derivative commodities produced using green hydrogen – including low emission ammonia, methanol, reduced iron, and steel – will play a significant role in global trade flows associated with hydrogen. Moving gaseous green hydrogen itself over long distances may be technically challenging, due to its low volumetric energy density, and instead the derivatives may be easier to ship intercontinentally. As a result, certification schemes may be increasingly required to guarantee the attributes of the derivatives. Regulatory frameworks may evolve to set requirements for acceptable levels of greenhouse gas emission intensity associated with the production of “green” or low-emission ammonia or methanol.

This report seeks to extend IRENA’s prior stocktake of global certification and regulation to include derivative commodities, and to provide insight on the interactions and interlinkages between the development of schemes and frameworks for hydrogen, and those developed for its derivatives.