The exchange is to be named HyXchange.
The project is on the basis of research conducted by Bert den Ouden, former director of the Netherlands Energy Exchange. It has set out the instruments to be used to create a full-fledged exchange. These include:
- Hydrogen certification allowing users to choose between green hydrogen (produced by electrolysis of water using renewable energy sources), blue hydrogen (produced by steam methane reforming, together with technologies for CO2 capture) or yellow hydrogen (using nuclear-generated electricity).
- A price index to reflect not only the price of hydrogen but also its source and the carbon-volume involved in its production.
- A spot market which would at first be set up as a market simulation, but would become more liquid over time thanks to the appearance of new consumers and the creation of a national system of hydrogen transport.
- Trade instruments needed to balance the network and store hydrogen. Use of the instruments could also be initially a simulation.
Certification of hydrogen and the creation of a price index are to be completed this year, according to the research, and the creation of a spot market in 2026.
A fully functioning exchange should be in operation in 2027, when derivative financial instruments are to become available to participants.
The fact that such an exchange is planned for the Netherlands should in no way be viewed as a coincidence. As a leading hub for trade in raw materials, the Netherlands, along with six other countries (Belgium, Denmark, France, Germany, Great Britain and Norway) amount to a locomotive for the nascent hydrogen market.
According to the International Energy Agency, in 2020, these seven countries accounted for 57 % of European demand for hydrogen, 82 % of the capacity for water electrolysis and 88 % of fuel cell electric vehicles.