New beyond-the-color-wheel measures bring
greater transparency to hydrogen markets
- New tool
kit aims to help unlock hydrogen's full potential as fuel
alternative & important driver of energy transition -
CHICAGO and NEW
YORK, March 25, 2024 /PRNewswire/ -- The Open
Hydrogen Initiative, unveils a first-of-kind open-source tool
kit aimed at furthering transparency into the environmental impact
of hydrogen production and helping unlock hydrogen's full potential
as a fuel alternative and important driver of energy transition, as
announced by its founding partners GTI Energy and S&P
Global Commodity Insights and a cohort of collaborators from a
diverse field of industry and scientist experts worldwide. This
industry-leading toolkit for measuring carbon intensity is
available on an open-source basis.
As evidenced by key international discussions at COP28, hydrogen remains one of the key pathways
to energy transition and global decarbonization goals.
The OHI has gained industry and marketplace momentum since
its launch in early 2022. In addition to its initial
Foundational Sponsors, National Grid, Capgemini, EQT, EY and Shell,
the international cohort has expanded to more than 40 organizations
spanning a wide array of sectors and geographies.
Alan Hayes, Head of Energy
Transition Pricing and Market Data at S&P Global Commodity
Insights: "Regulators, international agencies and market
participants all recognize that tools that drive deep and detailed
understanding of carbon intensity are a vital part of the
development of carbon differentiated commodity markets.
Understanding a commodities decarbonization potential via its
carbon intensity and having the tools and data to assign a dollar
value will play a central role in helping markets deliver a low
carbon economy."
The OHI tool kit has been demonstrated in 13 industry projects
spanning two continents and contains detailed analyses for more
than 60 technologies across 270 countries and regions of the world.
It is the most comprehensive open-source hydrogen life cycle
assessment (LCA) tool available to the market, setting a new
standard for quantifying trust in data.
"The OHI toolkit offers open and auditable emissions accounting
to help companies and governments understand the tradeoffs between
the cost and environmental impacts of hydrogen," said Paula Gant, Ph.D., President and CEO of GTI
Energy. "We are proud of this collaboration which brings together
technical expertise, real-world insights, and decades of experience
to help the market connect demand for low-carbon energy with
suppliers and investments that will spur the hydrogen economy."
Understanding carbon intensity across commodity and related
markets is being put at the center of regulations around the world.
Mechanisms such as the Inflation Reduction Act in the US, support
mechanisms in the EU and emerging contract for difference schemes
in parts of Asia all incorporate a
detailed understanding of the carbon intensity associated with the
each of the multitude of production pathways.
This tool kit delivers on the initial mission
of OHI to create an industry-led objective, credible, and
harmonized methodology and toolkit for measuring the carbon
intensity of hydrogen production at the facility level to lay the
foundation for a low-carbon hydrogen marketplace.
HYDROGEN SUPPLY TO GROW 170% BY 2050
Hydrogen supply is on a trajectory to grow some 170% by 2050,
according to S&P Global Commodity Insights, from 2023's 95
million metric tons (mmt) to 114 mmt in 2030 and 256 mmt in 2050.
Last year, some 98% of hydrogen supply was from fossil fuels, with
only a small fraction of associated emissions abated by carbon
capture and sequestration (CCS). The forecast is for low-carbon
technologies like CCS and water electrolysis to produce 16% of
hydrogen in 2030 and 68% in 2050, driven mostly by growth in
electrolysis.
Long term, demand growth is driven by the uptake of clean
hydrogen in new sectors, and an industry-standard emissions
measurement and verification process is key to providing the market
transparency that facilitates new supply agreements.
To lend your expertise or learn more about this the initiative,
visit gti.energy/OHI or contact OHI@gti.energy.
Media Contacts
Kathleen Tanzy (S&P Global Commodity Insights),
Kathleen.Tanzy@spglobal.com
Michelle Collins (GTI Energy),
michelle@sunpr.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of
global energy and commodity markets enables our customers to make
decisions with conviction and create long-term, sustainable
value.
We're a trusted connector that brings together thought leaders,
market participants, governments, and regulators and we create
solutions that lead to progress. Vital to navigating commodity
markets, our coverage includes oil and gas, power, chemicals,
metals, agriculture, shipping and energy transition.
Platts® products and services, including leading
benchmark price assessments in the physical commodity markets, are
offered through S&P Global Commodity Insights. S&P Global
Commodity Insights maintains clear structural and operational
separation between its price assessment activities and the other
activities carried out by S&P Global Commodity Insights and the
other business divisions of S&P Global.
S&P Global Commodity Insights is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information visit
https://www.spglobal.com/commodityinsights.
About GTI Energy
GTI Energy is a
leading research and training organization. Our
trusted team works to scale impactful solutions that shape energy
transitions by leveraging gases, liquids, infrastructure, and
efficiency. We embrace systems thinking, open learning, and
collaboration to develop, scale, and deploy the technologies needed
for low-carbon, low-cost energy systems. www.gti.energy
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SOURCE S&P Global Commodity Insights