Considerations for a Scalable Business Model for Clean Hydrogen

Renewable electricity received an initial boost from the German-designed EEG (Erneuerbare-Energien-Gesetz), which has proven to be simple, replicable, and robust. The current support systems for the market introduction of hydrogen until it is fully competitive are complex and have not yet led to a markable shift from project announcements to actual investments. A Clean Hydrogen Production Tariff system for hydrogen is proposed that will kick-start the production of hydrogen following the successful German EEG. A strategic hydrogen reserve ensures market and price stability and guarantees that hydrogen can be physically produced and absorbed. On the offtake side, an offtake tariff structure can be introduced that persuades people and organizations to switch away from fossil fuels to clean hydrogen. A book and claim system using a blockchain ledger decouples physical flows of hydrogen from their environmental quality. Clean Hydrogen Certificates will be administered, accrued, and redeemed in a hydrogen clearing pool.