The state-funded research project "Blockchain-Based Hydrogen Market – BBH2" also known as HydrogenChain, supports the development of an european hydrogen market through the use of blockchain technology.
HydrogenChain is a research project that promotes the development of a European hydrogen market through the targeted use of blockchain technology. The focus is on digital certificates of origin for green hydrogen and the mapping of key market and logistics processes along the H₂ value chain.
Since August 2022, we have been working in a consortium consisting of Exxeta, Blockchain Competence Center Mittweida and Ökotec-Anlagenbau GmbH, funded by the BMWK. We are supported by numerous companies and institutions that act as technical sparring partners and pilot users for our minimum viable product (MVP).
The project is scheduled to run until July 2025 and will create a technological and regulatory basis for a trustworthy, scalable market for green hydrogen.
The overall goal of the project is to develop a functional Blockchain Minimum Viable Product (B-MVP), which includes a suitable blockchain as the underlying technology for decentralized data storage in a shared database and platform (along with the implementation of automated smart contracts). On this platform, all actors involved in the process chain (such as renewable energy producers, hydrogen producers utilizing surplus energy, hydrogen transport and distribution network operators, and hydrogen consumers) can map their trading and transaction processes (such as settlement, invoicing, reporting, and proof processes, as well as market mechanisms) according to their roles and processes in the market. The main focus of the blockchain application is the proof of origin for green hydrogen and the traceability of the value chain of renewable energy from the producer to the end consumer. Thus, the entire supply chain of green hydrogen is represented securely and transparently.
The project goals include:
The technological objectives of the project include:
Blockchain is suitable for the hydrogen market because it creates a shared, tamper-proof data basis for many stakeholders who have limited trust in each other and need to collaborate across national borders.
Blockchain is a technology for distributed storage of data in a chain of cryptographically secured blocks. Once confirmed, entries cannot be changed retrospectively, which ensures a high level of integrity and traceability of the stored information. This immutability is a key advantage, particularly for proofs of origin and trading transactions.
At the same time, security, decentralisation and scalability must be balanced appropriately in each application (blockchain trilemma). A completely open, anonymously accessible infrastructure is unsuitable for regulated energy markets with sensitive company-related data – controlled access, clear roles and defined responsibilities are required here.
In the project, we are therefore relying on a permissioned blockchain architecture in which only legitimate market participants can participate and sign transactions. This allows data protection, compliance requirements and governance to be combined with the strengths of blockchain – transparency, traceability and tamper-proof histories. On this basis, digital certificates of origin and product passports for green hydrogen can be managed as tokens in the blockchain, including a complete value chain from production to consumption.
The technology makes it possible to build a digital twin of the hydrogen market that is designed for the European single market from the outset and does not enforce a national island logic. Standardized data models and interfaces also facilitate the subsequent integration of additional systems and the use of data-driven approaches, for example for automated testing rules or AI-supported analyses.
Our project timeline began in August 2022 with the official launch of BBH2. After an intensive requirements phase and close cooperation with our stakeholders, the first MVP 1.0 was completed as a proof of concept in April 2023.
In the summer and autumn of 2023, new European regulatory requirements led to an in-depth technical and functional reassessment. In several working groups (including regulation, supply chain & processes, blockchain), the requirements were refined and translated into a viable concept, which was presented at the BBH2 Forum in November 2023.
From 2024 onwards, the focus was on further developing and testing the minimum viable product in practice: the blockchain infrastructure was set up, a functional MVP with digital product passports and smart contracts was implemented and tested in a demo environment. At the same time, field tests were designed with selected pilot partners to map real process chains.
The project was completed on schedule in July 2025. At the end of the project, a proven, expandable MVP is available that maps the essential market and proof of origin processes for green hydrogen and can serve as a basis for further piloting and a possible market launch.
