EEX, the European energy bourse, is set to introduce a new green hydrogen index called HYDRIX, as announced by its CEO, Peter Reitz, during the annual E-World trade fair. The index aims to enhance price discovery in future markets for renewable energy by providing information on actual traded prices for green hydrogen produced using electricity from renewable sources. The availability of clear price signals is crucial for stimulating market growth and encouraging further investments in the hydrogen economy.
The move comes as Germany and other European Union (EU) countries strive to increase the production and importation of hydrogen as part of their broader efforts to transition to a lower-carbon economy. Unlike “grey hydrogen” derived from fossil fuels, green hydrogen produced from renewables can serve as a storage medium and complement future green power generation. Germany, in particular, aims to supply 80% of its electricity from renewable sources by 2030.
EEX, a subsidiary of Deutsche Boerse, is the leading exchange for electricity and natural gas trading in continental Europe. Through its platforms and clearing functions, EEX brings together major producers and consumers, offering maturities of up to 10 years in the power sector. The exchange also facilitates trading in emission allowances, freight, agricultural products, and more.
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The HYDRIX index will be publicly available on the EEX transparency platform on a weekly basis, denoted in euros per megawatt hour (MWh). The index's development involved collaboration with over 100 companies comprising a working group that contributed to the design of EEX's hydrogen product. EEX aims to expand its pool of contributors over time, leveraging the success and expertise of industry stakeholders.
Reitz emphasized that the index has robust security measures in place to prevent manipulation. By utilizing the MWh metric, which is consistent with other EEX products, the index aims to establish a connection to EEX's guarantee-of-origin products. These guarantee-of-origin products certify the renewable qualities of power and hydrogen, fostering transparency and accountability in the renewable energy sector.
The introduction of the HYDRIX index by EEX marks a significant step towards scaling up the market for green hydrogen and supporting the growth of renewable energy. With transparent pricing information readily available, market participants can make informed decisions and drive the expansion of the hydrogen economy, contributing to the EU's ambitious sustainability goals.
