Context

Energy is the main source of greenhouse gas emissions in the EU. Improving energy efficiency and producing cleaner energy will help meet the EU's climate change targets and reduce its dependence on imports. In 2022, the EU's energy mix, i.e. the range of energy sources available, was constituted mainly of five different sources: crude oil and petroleum products, natural gas, renewables, solid fossil fuels and nuclear energy.

To meet the targets set by the Paris Agreement, the EU is turning to energies that emit less carbon and are greener. Hydrogen is now recognized as a key energy vector in Europe's transition to carbon neutrality and green hydrogen produced from renewable electricity offers promising solutions for decarbonizing hard-to-electrify sectors. It also contributes to balancing electricity grids by storing excess renewable energy. In response, the European Union and several Member States have launched ambitious hydrogen strategies and committed significant investment to accelerate the deployment of infrastructure and markets. The “Hydrogen Law” of 11 July 2023 marked an important step by officially recognizing hydrogen terminals as a new category of energy infrastructure.

In this evolving regulatory context, Intysify helped an energy infrastructure manager to anticipate future regulations for the transport of hydrogen and carbon. To enable the transport of this new energy resource, a pricing model needs to be put in place while considering the requirements of the regulator. This model, adapted to the new business model, included a margin of flexibility in relation to all the uncertainties that still surround the development of this project.

Our impact.

Intysify facilitated the development of an innovative pricing model for the transmission of new gases. The aim was to anticipate the future needs of the market while considering uncertainties and technical constraints.

Our intervention took place in several stages: first, we structured and cleaned up the existing data, providing a solid foundation for the rest of the process. Our consultant then built a dynamic model capable of simulating different scenarios. The idea was to be able to easily test and compare different pricing options. This model was refined through numerous exchanges with internal and external stakeholders to ensure its robustness and relevance. Finally, we automated the simulations using an easy-to-use interactive tool that allowed us to see the impact of each scenario in just a few clicks.

This work has had several positive spin-offs. The operator now has a flexible tool that can be used in dialogue with the authorities once the regulatory framework has been clarified. It now has a clear view of the economic viability of its hydrogen infrastructure under different scenarios. What's more, thanks to automation, the time needed to carry out the analyses has been greatly reduced. Finally, it is better prepared to play a key role in the energy transition and the future European hydrogen market.

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