Lecture 21: ADNOC Low Carbon Hydrogen Certification (SPE International Executive Symposium)

SPE International Executive Symposium: Innovation and 16–17 September 2024 1 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Low-Carbon Hydrogen Certification Presenter: Magdy Aly, Manager of front-end development...

SPE International Executive Symposium: Innovation and 16–17 September 2024 1 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Low-Carbon Hydrogen Certification Presenter: Magdy Aly, Manager of front-end development and certification. Low carbon and international gas Directorate- ADNOC.  SPE International Executive Symposium: Innovation and 16–17 September 2024 2 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE The objective of the Session ADNOC Efforts to build cost- effective LCH value chains. ADNOC initiatives related to LCH certifications. Challenges related to LCH certification definitions. Current efforts to resolve the challenges. The future of LCH certification and digitalisation.  SPE International Executive Symposium: Innovation and 16–17 September 2024 3 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE About Me (Magdy Aly) Professional Background: 20+ years of experience in hydrogen and ammonia industry Led world's first large-scale blue hydrogen-based ammonia shipment Key contributor to UAE's Low Carbon Hydrogen Strategy Expert in low carbon hydrogen value chain development and certification Manager of Front End Development and Certification Coaching & Mentoring Development: Senior Certified Professional Coach (SCPC) Creator of the CATALYST and Green CATALYST frameworks Vice Chair of SPE Low Carbon Hydrogen MENA group Mentor to 70,000+ professionals through online courses Specializes in energy transition career development Dedicated to empowering young professionals to navigate the energy transition through innovative coaching and mentoring approaches  SPE International Executive Symposium: Innovation and 16–17 September 2024 4 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Sustainability is a key priority for ADNOC. Our new H2 business is well aligned with our broader sustainability strategy and to enable UAE Net Zero 2050 Our low-carbon H2 business  SPE International Executive Symposium: Innovation and 16–17 September 2024 5 ADNOC is actively participating Collaboration across for Low Carbon the full Energy hydrogen value Abu Solutions chain Dhabi Energy Center, Abu Dhabi, UAE Hydrogen production Conversion, marketing & transport End use CCUS & CCS Mobility Integrated Marketing of clean hydrogen & derivatives Power Ammonia Ammonia / Reconversion to Captured CO2 LOHC Tanker hydrogen Transportation, storage & distribution Clean H2 and ammonia distribution Export s Low-carbon hydrogen LOHCs Marine fuel SAF Methane, SMR / Ethane ATR Liquid H2 Regasification Tanker Liquid H2 Steel prod. Chemicals Domestic + - Renewable hydrogen Gaseous H2 Solar & Pipeline Refining New uses wind Electrolysis 5 Upstream Midstream Downstream  SPE International Executive Symposium: Innovation and 16–17 September 2024 6 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Initiatives to Enhance Low Carbon Infrastructure Readiness Al Reyadah Ruwais / TA’ZIZ LCA / Certification / Blockchain World’s 1st fully commercial scale CCUS project at ADNOC and ADQ have partnered to develop Pioneering technology to certify carbon intensity Emirates Steel, in operation since 2016. TA’ZIZ Industrial Chemicals Zone, to create of a range of products world-scale park with plug n play services 0.8 MTA of CO2 is captured & transported 55 km by Currently developing Ammonia, Methanol, ADNOC for Enhanced Oil recovery applications Ethylene Dichloride projects to name a few Aim to develop reliable & transparent “MVR” system  SPE International Executive Symposium: Innovation and 16–17 September 2024 Initiatives to Demonstrate Small Scale Production, Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE 7 Transport & Utilization of Low Carbon products 2021-22: Low-carbon NH3 2023-24: CCS Pilot Green H2 & Derivatives Executed sale & shipments to partners in Japan, Demo will utilize 44.01’s Carbon Capture & ADNOC, TAQA & Mubadala formed Korea & Germany for a range of applications Mineralization (CCM) technology to eliminate renewable energy & green H2 champion CO2 from the atmosphere in 2022. Successfully completed tested movement (ship, rail & road) & usage of ammonia (power, Pilot injection of CO2 in sub surface carbonate Small scale H2 & derivatives projects fertilizer, denox, etc.) on small scale formations being undertaken by ADNOC to along supply chain by 2026+ develop CCS capability  SPE International Executive Symposium: Innovation and 16–17 September 2024 8 Initiatives to Demonstrate Collaboration Small for Low Carbon Energy Scale Production, Solutions Abu Dhabi EnergyTransport & Center, Abu Dhabi, UAE Utilization of Low Carbon products First Ever Bulk Shipment of CCS-Enabled ADNOC Opens the Region’s First High-Speed Green Certified Low-Carbon Ammonia to Japan Hydrogen Refueling Pilot Station Shipment, produced by Fertiglobe, delivered to Mitsui for use in H2GO’ supports the UAE’s National Hydrogen Strategy and the clean-power generation, underscoring ADNOC’s efforts to support its decarbonization of its transport sector customers to decarbonize Pilot station, located in Masdar City, is enabled by collaboration with local Landmark achievement builds on previous demonstration cargos and international partners to advance zero-carbon hydrogen delivered by ADNOC as it accelerates the development of global low- transportation. carbon hydrogen and ammonia value chains.  SPE International Executive Symposium: Innovation and 16–17 September 2024 9 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Carbon intensity of the hydrogen rainbow  SPE International Executive Symposium: Innovation and 16–17 September 2024 Scope and System Boundaries for Emission Accounting Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE 10 Schemes  SPE International Executive Symposium: Innovation and 16–17 September 2024 11 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Hydrogen carbon intensity thresholds and emissions scope  SPE International Executive Symposium: Innovation and 16–17 September 2024 12 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Global Collaboration on Clean Hydrogen Certification Paving the way for a unified global hydrogen market Over 30 countries have launched an initiative to mutually recognize certification schemes covering renewable, low-carbon hydrogen and hydrogen derivatives. The U.S. uses "clean hydrogen" nationally, including renewable, nuclear, and CCS-produced hydrogen, emphasising robust lifecycle climate impact assessments. The initiative aims to enable global mutual recognition of certification schemes and focuses on reflecting the best available science in future standards, including indirect greenhouse gas impacts.  SPE International Executive Symposium: Innovation and 16–17 September 2024 13 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE The Future of Low-Carbon Hydrogen Certification: Digitalization and Blockchain Blockchain ensures Enhances data security Automates certification traceability and and integrity and processes and facilitates transparency in hydrogen integrates with IoT and AI interoperability of production and supply for real-time data certification schemes. chain. collection and analytics. Source: H2Global, 2023, “Standardizing Hydrogen Certification. Available at: H2Global-Stiftung-Policy- Brief-05_2023-EN.pdf (hydrogeneurope.eu) SPE International Executive Symposium: Innovation and 16–17 September 2024 14 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE SPE International Executive Symposium: Innovation and 16–17 September 2024 15 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE SPE International Executive Symposium: Innovation and 16–17 September 2024 16 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE SPE International Executive Symposium: Innovation and 16–17 September 2024 17 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE  SPE International Executive Symposium: Innovation and 16–17 September 2024 18 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Summary of the Session: Value Chain Integration: Leveraging existing infrastructure across production, transportation, and end-use applications. Technology Leadership: Investing in advanced carbon capture and storage (CCS) to meet stringent certification criteria. Regional Standardization: Taking a leadership role in developing Middle East certification standards aligned with global practices. International Collaboration: Actively engaging in global forums to shape universally recognized certification schemes. Digital Innovation: Exploring blockchain and AI for enhanced transparency and efficiency in certification processes. Market-Driven Approach: Working closely with off-takers to align production and certification strategies with evolving demands.  SPE International Executive Symposium: Innovation and 16–17 September 2024 19 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Low-Carbon Hydrogen Certification  SPE International Executive Symposium: Innovation and 16–17 September 2024 20 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Objective of the Session Importance of Hydrogen Certification Prominence of Blue and Green Hydrogen in MENA Overview of Certification Standards and Schemes Blue Hydrogen o DNV Driving development of first international CCUS standards o DNV’s CO2 storage certification framework Green Hydrogen o DNV pre-validating low-carbon hydrogen and ammonia attribute claims Role of DNV in the Certification Process  SPE International Executive Symposium: Innovation and 16–17 September 2024 21 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE The challenge: Most hydrogen produced today is quite emission-intensive… Total emissions for hydrogen production 30 25 kg CO2e / kg H2 20 15 Coal 10 Fuel oil Natural gas 5 0 High Low High Low High Low High Low High Low Black hydrogen (coal) Grey hydrogen (natural Blue hydrogen (natural Green hydrogen Yellow hydrogen (grid gas) gas plus CCS) (renewable electricity) electricity) Direct emissions Indirect emissions Source: DNV calculations  SPE International Executive Symposium: Innovation and 16–17 September 2024 22 DNV’s Middle East & North Africa H2 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Production Forecast Current Production Baseline Forecast (ETO) 2023 2050 0.2 Mt 0.4 Mt 0.0 Mt 1% 5.8 Mt 2% 0% 15% 2.9 Mt 8% 17.6 Mt 46% 16.1 Mt 11.9 Mt 97% 31% Total: 17 Mt H2/ yr Total: 38 Mt H2/ yr  SPE International Executive Symposium: Innovation and 16–17 September 2024 23 Building Blocks of a Hydrogen Certification Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE System Standards & Certification Design Governance Enforcement & Verification Tracking & Business Model Key Elements: Key Responsibilities: Main Activities: Operational Models: Define sustainability Manage standards and Conduct audits based on Manage chain of custody criteria (e.g., carbon certifications. established criteria. (e.g., mass balance, book footprint). Issue certificates and Grant certifications based and claim). Set accounting guidelines maintain records. on audit outcomes. Operate digital platforms (data quality, conversion Handle data and enforce Maintain quality for credit issuance and methods). compliance. infrastructure. trading. Ensure compliance with Offer consumer products environmental, social, and focused on emissions governance (ESG) reductions. standards. Supporting Factors for Adoption Policy & Regulation: Market Dynamics: Frameworks & Standards: Harmonization: Integration with industry Encourage demand and Align with corporate Align with global standards for Source: IRENA standards. establish common metrics. emissions accounting. emissions.  SPE International Executive Symposium: Innovation and 16–17 September 2024 24 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Overview of Hydrogen Certification Schemes Mandatory schemes set a benchmark that all hydrogen production in their jurisdiction must follow, while voluntary schemes are optional. Voluntary Market Mandatory Market Aichi Prefecture California Air Resources Board Low Carbon Hydrogen Certification Low Carbon Fuel Standard Australian Clean Energy Regulator* European Commission* Hydrogen Guarantee of Origin Renewable Energy Directive (RED II) UK Department for Business, Energy & CertifHy Industrial Strategy Green and Low-Carbon Hydrogen Certification Low Carbon Hydrogen Standard CEN-CENELEC* UK Department for Transport Joint Technical Committee 6 Renewable Transport Fuel Obligation China Hydrogen Alliance US Department of Energy* Standard and Assessment for Low Carbon Hydrogen, Clean Hydrogen Production Standard Clean Hydrogen, and Renewable Hydrogen Energy Green Hydrogen Organization Green Hydrogen Standard Smart Energy Council Zero Carbon Certification Scheme TUV SUD CMS 70 Mandatory Market SPE International Executive Symposium: Innovation and Collaboration for Low Carbon Energy Solutions 16–17 September 2024 Abu Dhabi Energy Center, Abu Dhabi, UAE 25 Source: IRENA Voluntary Market SPE International Executive Symposium: Innovation and Collaboration for Low Carbon Energy Solutions 16–17 September 2024 Abu Dhabi Energy Center, Abu Dhabi, UAE 26 Source: IRENA  SPE International Executive Symposium: Innovation and 16–17 September 2024 27 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Blue Hydrogen Supply Chain Energy Energy Point of Productio Point of Use n Construction H2 Distribution material Compression & Storage End Use NG Steam H2 & Purification Manufacturing extraction, methane processing & reforming CO2 transport Carbon Water Carbon Capture Storage Electricity, Steam Energy Methane leakage & Water CO2 inlet Energy Uncaptured CO2 Proposed IPHE methodology for abated fossil hydrogen (currently in the process of being established as ISO standard) Energy Flows Material Flows  SPE International Executive Symposium: Innovation and 16–17 September 2024 Driving Development of First International CCUS Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE 28 Standards CO2 RISKMAN – Guidance on CCS CO2 Safety and Environment Major Accident Hazard Risk Management CO2 PIPETRANS – Guidance on transportation component of CCS projects DNV CO2 SAFEARREST – Guidance on the efficient design of CO2 pipelines RESEARCH/JOINT CO2 QUALSTORE – Guidance for the selection and qualification of CO 2 storage sites INDUSTRY CO2 WELLS – Guidance on the risk management of existing wells at CO 2 storage sites PROJECT CO2 CAPTURE – Guidance on procedure for capture technology qualification HiPerCap – Development of novel Capture technologies ECO2 – Best environmental practice for offshore CO 2 injection DNV DNV-RP-J201 DNV-RP-F104 RECOMMENDED DNV-RP-J203 Qualification procedures for carbon Design and operation of carbon dioxide PRACTICE Geological storage of carbon dioxide dioxide capture technology pipelines ISO 27919-1 ISO 27913 ISO 27914 INTERNATIONAL Carbon dioxide capture – Performance Carbon dioxide capture, transportation Carbon dioxide capture, transportation evaluation methods for post-combustion STANDARD and geological storage – Pipeline and geological storage – Geological CO2 capture integrated with a power transportation system storage plant DNV FRAMEWORKS DNV-SE-0160 DNV-ST-F101 DNV-SE-0473: Certification of sites and projects for geological storage of CO2 FOR ASSURANCE Technology qualification management Submarine pipeline systems DNV-SE-0617: Qualification management SERVICES and verification for geological storage of CO2  SPE International Executive Symposium: Innovation and 16–17 September 2024 DNV – CO2 Storage Certification Framework Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE 29 DNV-SE-0473 guides verification of conformity with ISO 27914 at generic milestones in project life-cycle Requirements in ISO 27914 mapped to align with project milestone Initiate Select Select Storage permit Initiate Initiate CO2 Terminate Project Prospective sites Storage site application Construction injection injection Close site 1 2 3 4 FID 6 7 8 Pre-inject Drillin Inject g Post-Inject Post-closure Screening E Appraisal Permitting S Design Construct I Operate Close C Identify Assess Select Define Execute Operate Phase I Phase II Phase III Phase IV Carbon SAFE terminology Certificate of Certificate of Certificate of Certificate of Certificate of Certificate of conformity- Site conformity- Site conformity- Site conformity- Site conformity- Site conformity- Site Development Feasibility Endorsement Storage Operations Closure 4.1, 4.3, and 4.6 4.1- 4.2 and 4.5- 4.7 6.3 and 6.9.1 5.1, 5.4-5.5 and 6 6.6 and 6.10 7.2 - 7.5 7.5 - 7.8 5.2-5.3 10 Decision gate 7.3, 7.5-6 and 7.8 7.1 and 7.5 8.4 - 8.5 8.4 - 8.6 8.2 and 9.2-9.4 8.2 - 8.5. 9.2 and 10 9.2.3 Clauses in ISO 27914 for each DNV certification of conformity project stage  SPE International Executive Symposium: Innovation and 16–17 September 2024 30 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Green Hydrogen Supply Chain Point of Productio Point of Use n H2 storage & O2 distribution Solar PV Elec. H2 H2 Electrolysis H2 Grid End Use plant compression Wind Demin. water Water treatment BESS Water plant inlet Energy Flows Proposed IPHE methodology for renewable hydrogen (currently in the process of being established as ISO standard) Material Flows  SPE International Executive Symposium: Innovation and 16–17 September 2024 31 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Certifying Green Hydrogen Five possible scenarios for renewable electricity  SPE International Executive Symposium: Innovation and 16–17 September 2024 32 DNV’s Validation of Attribute Claims for Low- Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Carbon and Renewable Hydrogen and Ammonia  SPE International Executive Symposium: Innovation and 16–17 September 2024 33 Typical hydrogen and hydrogen-derivatives Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE certification interactions  SPE International Executive Symposium: Innovation and 16–17 September 2024 34 The TRANSITION Framework provides a roadmap Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE for skill development in energy transition: Technical Expertise Renewable Energy Integration Analytical Thinking Networking and Collaboration Sustainability Mindset Innovation Technology Adaptation Interdisciplinary Knowledge Operational Excellence Numerical Analysis  SPE International Executive Symposium: Innovation and 16–17 September 2024 35 Carbon Management & Certification Collaboration for Low CarbonRoles Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Task Entry Level Intermediate (3-5 Advanced (5+ Years) Years) Calculate basic carbon Implement accounting Develop certification Carbon Accounting intensity systems methodologies Understand ISO Implement ISO Lead ISO certification ISO Standards requirements frameworks processes Life Cycle Perform basic LCA Conduct detailed LCA Develop LCA Assessment calculations studies methodologies Verification Understand verification Implement verification Design verification Methods protocols systems frameworks Basic knowledge of Manage trade Develop trade Trade Requirements trade rules compliance strategies Understand ESG Implement ESG Lead ESG strategy ESG Integration principles frameworks development  SPE International Executive Symposium: Innovation and 16–17 September 2024 36 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Summary of the Session Definition and Importance: Certification of low-carbon hydrogen ensures the hydrogen produced and traded globally meets specific environmental and sustainability standards, and significant market impact. Certification Schemes: Different regions and organizations are developing certification schemes to verify the carbon intensity of hydrogen, with criteria based on production methods, lifecycle emissions, and additional environmental impacts. International Coordination: There's a growing need for international coordination and mutual recognition of certification schemes to facilitate global trade and avoid market fragmentation. Challenges: Key challenges include establishing common standards, ensuring transparency and traceability in the certification process, and integrating certification into existing regulatory frameworks. Policy Support: Strong policy support and clear regulatory frameworks are crucial for the adoption and implementation of hydrogen certification schemes globally. Involvement of the Private Sector: DNV and the private sector are essential for providing expertise, building trust, driving global standardization, supporting market development, shaping policies, and ensuring transparency in the low -carbon hydrogen certification landscape.  SPE International Executive Symposium: Innovation and 16–17 September 2024 37 Collaboration for Low Carbon Energy Solutions Abu Dhabi Energy Center, Abu Dhabi, UAE Thanks You