Hydrogen exchange initiative HyXchange presents HYCLICX variable-price indicator for Hydrogen. 

Today, HyXchange published its first issue of the HYCLICX variable-price indicator for hydrogen based on lowest-priced electricity hours, and a large share of renewable power production (see HYCLICX). The indicator is an instrument to estimate variable production cost for renewable hydrogen from electrolysis in the Netherlands. The method of HYCLICX (Hydrogen CLImate Certificate IndeX) can also be applied for other countries.  

The HYCLICX indicator was inspired by the HyXchange simulation project of the future spot market for hydrogen. A total of 25 market parties participated in these simulation meetings. HyXchange aims to develop hydrogen trading, including, international trade and hydrogen imports. HyXchange also intends to develop a price index for imported hydrogen carriers.

The renewable HYCLICX price indicator is linking the variable price component of hydrogen to the hourly electricity spot market, reflecting the electrolysis as a source for green hydrogen. By selecting the lowest set of variable hourly power prices, mostly occurring in two blocks per day in the Netherlands, hydrogen can be produced in the cheapest way. These hours are largely coinciding with a high share of renewable electricity production from wind and solar, also providing alignment with certificate rules and the Delegated Act on hydrogen by the European Commission.
As an indicator, the HYCLICX publishes the variable cost price for the lowest-priced 50% of hours of electricity each month, and the variable cost price for standard 2×6-hour low-priced blocks for each day of the past month. Both imply operational time of 4380 hours per year, reflecting good price selectivity, time availability of renewable power production, and 2022’s subsidy criteria for electrolysis in the Netherlands. Any market party can apply a different operational time and pattern in its own individual way by using the hourly HYCLICX data, available on demand.
A variable cost price of low-carbon hydrogen is also provided based on gas reforming with CCS.

Wilco van der Lans, Port of Rotterdam and member of HyXchange Steering Committee, panelist at the Brussels event: “The HYCLICX price indicator is a very welcome contribution to the price discovery in this new hydrogen market. I am looking forward to the next steps in this pathway”. The HYCLICX methodology, now calculated for the Netherlands, can also be applied/adapted to other countries with a transparent hourly electricity price. Interested countries are invited to join. Changes and extensions to the calculation method may be possible over time.  HyXchange also intends to develop a price indicator for imported hydrogen carriers.