Shanghai Environment and Energy Exchange: Will actively explore the integration of carbon trading with the hydrogen energy industry.

　　On May 13, a seminar titled “Carbon + Energy: Hydrogen Production Costs in the Context of Carbon Pricing,” co-organized by the Shanghai Environment and Energy Exchange (hereinafter referred to as “Shanghai EEX”), the Shanghai Yangtze River Delta Hydrogen Energy Technology Research Institute, and the China Hydrogen Energy Alliance Research Institute, was successfully held online. Bin Hui, Deputy General Manager of Shanghai EEX, attended the event and delivered a speech. This seminar is part of a series of science popularization activities on “Carbon Trading and Green Hydrogen Development” funded by the Shanghai Science and Technology Popularization Foundation. The project will carry out extensive science communication and awareness-raising efforts in the fields of carbon trading and green hydrogen through seminars, lectures, and other formats, thereby enhancing public understanding of the synergistic development of carbon and hydrogen. Nie Libin, Deputy Director of the Business Innovation Department of Shanghai EEX, served as the moderator of the seminar.

　　In his speech, Bin Hui pointed out that in recent years, the Shanghai Environment and Energy Exchange has actively engaged in hydrogen energy business from a carbon emissions perspective, successively participating in the formulation of relevant domestic standards in the hydrogen energy sector and promoting the industry’s sustainable development. In the future, it will also proactively explore the integration of carbon trading with the hydrogen energy industry, thereby fostering synergistic development between carbon and hydrogen.

　　Shang Xiaomin, Senior Manager at Air Liquide (China) Investment Co., Ltd., introduced the costs of hydrogen production from various process routes, including hydrogen co-produced during coal gasification, propane dehydrogenation, coke oven gas, chlor-alkali chemical processes, and refinery operations. She also analyzed the sources of carbon emissions under different production processes. Regarding the issue of applying for low-carbon certification for previously co-produced hydrogen, Shang Xiaomin offered recommendations from the perspective of value-added division. At the same time, she pointed out that scaling up production is a crucial pathway to reducing costs.

　　Liu Weiwei, General Manager of Shanghai Pujiang Special Gas Co., Ltd., took hydrogen for energy use in Shanghai as a starting point to introduce Shanghai’s current primary hydrogen sources and supply potential. At present, the overall listed price in Shanghai is around 60 yuan per kilogram. In the future, once various policies are fully implemented, hydrogen prices in Shanghai could drop to as low as 35 yuan per kilogram.

　　Wang Mingpei, Deputy Director of the Ordos Carbon Neutrality Research Institute, provided a detailed introduction to the development of Ordos’ hydrogen energy industry. Ordos boasts abundant wind and solar resources, creating favorable conditions for developing green hydrogen. The potential for hydrogen production from renewable energy sources is nearly 4 million tons. To date, five green hydrogen production enterprises have been approved, with an annual output of 41,300 tons. Ordos has established a presence across the entire hydrogen energy value chain—upstream, midstream, and downstream—and has initially formed a relatively complete industrial ecosystem. The “Three-Year Action Plan for the Development of Hydrogen Energy Industry in Ordos City (2022–2024)” further specifies that by 2024, Ordos will launch more than eight demonstration projects for hydrogen production using renewable energy sources. However, currently, the cost of hydrogen production from renewable energy sources remains significantly higher than that of hydrogen produced from coal, and there is still a long way to go before costs can be reduced substantially.

　　Xiao Chenjiang, Senior Manager at the China Hydrogen Energy Alliance Research Institute, provided a detailed introduction to the country’s first project certified under the “Standards and Evaluation for Low-Carbon Hydrogen, Clean Hydrogen, and Renewable Hydrogen.” The project was applied for by Yanshan Petrochemical, a subsidiary of Sinopec, and after undergoing rigorous review and acceptance testing, it has successfully contributed to supporting the Green Winter Olympics. The “Standards and Evaluation for Low-Carbon Hydrogen, Clean Hydrogen, and Renewable Hydrogen” have been incorporated by five national ministries and commissions—including the Ministry of Finance—into the hydrogen refueling incentive standards for fuel cell vehicle demonstration application clusters, with the aim of promoting green development across the hydrogen energy industry chain. This standard specifies that the carbon emission threshold for clean hydrogen is 4.90 kg of carbon dioxide.

　　Hu Meiling, a senior consultant at Carbon Trace (Beijing) Technology Co., Ltd., drew on her own work experience to provide a detailed introduction—from various perspectives including the boundaries, sources, and factors of carbon verification—to the process and key points of carbon emission verification for industrial enterprises. Her insights offer valuable guidance for hydrogen energy producers as they prepare to calculate their corporate carbon emissions in the future. Regarding the emission reductions generated by hydrogen fuel cell vehicles, she suggested incorporating these reductions into the carbon market through mechanisms such as voluntary emission reduction trading markets and carbon inclusivity programs, thereby promoting the development of the industry.

　　Hu Xinxin, Senior Manager of the Business Innovation Department at the Shanghai Environment and Energy Exchange, shared her insights on the impact of carbon pricing on hydrogen production costs. Building on the research framework jointly developed by the Shanghai Environment and Energy Exchange, Shanghai Securities Co., Ltd., and Haizheng Futures—focused on the transmission mechanism of carbon pricing to non-ferrous metal prices—she analyzed how carbon pricing affects hydrogen costs under different production processes. Drawing on the trading dynamics of low-carbon aluminum, the study suggests that, when accounting for the cost of carbon emissions, low-carbon aluminum is approximately 500 yuan per ton more expensive than conventional aluminum. Based on last year’s data, after the carbon market entered its centralized compliance period, electrolytic aluminum prices showed a noticeable upward trend; the team will continue to closely monitor subsequent changes in relevant data. In addition, she provided an overview of the Shanghai Environment and Energy Exchange’s ongoing work in the hydrogen energy sector.

　　Since 2020, the Shanghai Environment and Energy Exchange has engaged in in-depth cooperation with companies active in the hydrogen energy sector, actively promoting the quantification of carbon emissions under different production processes and conducting thorough research on mechanisms for internalizing and transmitting corporate carbon emission costs. In addition, in collaboration with institutions such as the China Hydrogen Energy Alliance Research Institute, the Exchange has organized multiple training sessions on “Carbon Asset Management and Green Hydrogen Certification” in Shanghai, Ningxia, and other regions, thereby disseminating relevant expertise and effectively fostering the synergistic development of the hydrogen energy and carbon trading markets, and supporting the green development of the hydrogen energy industry. This seminar also marks the Shanghai Environment and Energy Exchange’s inaugural event under its “Carbon + Energy” initiative. Moving forward, the Exchange will further explore the transmission relationships between carbon pricing and prices of various energy sources and commodities, better serving the real economy and contributing to the achievement of the nation’s dual-carbon goals.