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Custody transfer in the hydrogen industry

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Everything you need to know about custody transfer in the hydrogen industry

Custody transfer for hydrogen is now being made possible using the latest generation of measurement technologies. ABB’s Danny Knoop explains how. 

Custody transfer is a term traditionally associated with the oil and gas industry, however as hydrogen becomes ever more important in the energy mix, custody transfer of hydrogen is an increasingly common practice. Whether on-site, exchanging hands or crossing borders, hydrogen custody transfer has its own unique challenges that must be addressed in ensuring the process is safe, effective and highly accurate. As a relatively nascent industry, albeit one with huge potential, hydrogen has the opportunity to embrace new technologies that can ensure best practices are baked into custody transfer procedures from the outset. 


Hydrogen is a highly promising option for future energy needs chiefly because it can be combusted without producing any pollutants. The emergence of clean or green hydrogen, which is produced through an electrolysis process using renewable electricity, and produces little or no carbon emissions, is also an area where technology is helping to bring down renewable energy costs and reduce carbon impact. The more that renewable energy sources are brought online, the more opportunities there are to not only reduce emissions, but to also create a useful byproduct in the form of green hydrogen. This in turn can help to further accelerate efforts to decarbonise society. 

Huge cross-sector potential
The potential applications for hydrogen are varied. In industry, it can be used as a clean combustion fuel, replacing natural gas. It may also be used in primary metal production, manufacture of semiconductors and fuel cells, along with a wide range of other manufacturing processes. In transport, hydrogen is a viable fuel for road vehicles, and is increasingly being considered as an environmentally friendly alternative for shipping and even aerospace. Hydrogen can be blended with natural gas, using existing networks, for space-heating and water heating in buildings, while it can also be used as a means of storing renewable energy. 

As the rollout of hydrogen as an energy source becomes more widespread, the economy for transporting, storing and trading it as a resource will rapidly and necessarily grow. Accurate flow measurement is therefore crucial in custody transfer. Minor errors can potentially create high financial impact, but precision can be hard to maintain when operating in harsh field conditions. Even a minor misreading can accumulate into a major error over time and ultimately undermine confidence in the process. For a growing industry like hydrogen, it is crucial that this is avoided. 

The fundamental challenges of handling hydrogen
Hydrogen is usable in two physical states — gas or liquid — and is often pressurized when stored. Its low energy density compared to natural gas means that metering must be highly accurate and be able to handle high flow rates. Furthermore, hydrogen is the smallest observed molecule in the universe, which can result in a higher likelihood of leakage. This can be difficult to detect since hydrogen is odorless. For these reasons, accurate measurement of hydrogen flow is a challenge using traditional technologies. 

In order to facilitate the increased adoption of hydrogen, the regulatory landscape must be robust to ensure standardization across countries and markets. Custody transfer across borders is a particular challenge, as differing regulations and standards may apply. Collaboration between countries, regions and organizations will be fundamental in navigating the challenges of the growing hydrogen industry. In response, the American Gas Association (AGA) standard sets out the calculations required for measurement of hydrogen in normal conditions, and calculations in the field are certified against this standard. 

Click here to learn more including the complexity of custody transfer arrangements and new and emerging hydrogen measurement technologies.