CEGH GreenHydrogen Index Specification
The CEGH GreenHydrogen Index is an index for the production costs of green hydrogen in Austria.
The index will serve as a price reference for green hydrogen in Austria and in Central Europe.
With this index, CEGH supports the development of a market for green hydrogen.
- On 23 October 2023, the methodology was updated and the Index renamed – the CEGH GreenHydrogen PPA 100 Index is now named to CEGH GreenHydrogen Index and is compliant with the Delegated Act, RED II.
The CEGH GreenHydrogen Index uses the potential production costs of green hydrogen in Austria and serves as a price reference for Central Europe. The Index was developed with the support of the consulting company PwC Austria.
Due to the ongoing revision of the European Renewable Energy Directive, the CEGH GreenHydrogen Index consists of four price references – depending on the different electricity procurement strategies:
Compliant with the Delegated Act, RED II.
100% of the electricity to produce green hydrogen comes from photovoltaic and wind power plants available for this purpose in the vicinity of the hydrogen production plant (PPA – Power Purchase Agreement). The basis for this is a 10-year power purchase contract.
The CEGH GreenHydrogen Index is based on 100% power purchase agreement (PPA) supply, compliant with the Delegated Act, RED II.
60% of green electricity are purchased on the electricity market, whereas 40% of the electricity to produce green hydrogen comes from photovoltaic and wind power plants available for this purpose in the vicinity of the hydrogen production plant (PPA – Power Purchase Agreement). The basis for this is also a 10-year power purchase contract.
The CEGH GreenHydrogen Indices are continuously evaluated in a CEGH Price Committee and adapted to changes on the hydrogen market. The expected reduction in investment costs for the construction of electrolysis plants is to be mapped. Once the future regulatory framework for the production and use of green hydrogen has been defined, the composition of the CEGH GreenHydrogen Indices will also be adapted accordingly.
It is planned that the CEGH GreenHydrogen Indices will gradually be linked to price signals from a hydrogen market. Once functioning green hydrogen trading is established, the CEGH GreenHydrogen Indices will be converted from a cost-based – to a market-based index.
For detailed information such as the calculation methodologies of the different CEGH GreenHydrogen Indices please download the CEGH GreenHydrogen Index specification document in a clean version, or the document with tracked changes here and the short presentation of the CEGH GreenHydrogen Index Update here