The North American Energy Standards Board (NAESB) revealed plans on May 29, 2024, to develop standardized contracts for the expanding hydrogen market in the United States. This move is expected to revolutionize the energy sector by streamlining hydrogen transactions, fostering market growth, and enhancing transparency. NAESB, known for its role in enhancing market efficiency and reliability in the energy industry, will leverage its expertise in natural gas and electricity markets to spearhead this transformative initiative. The decision to standardize hydrogen contracts comes in the wake of federal initiatives, such as the Department of Energy's (DOE) Hydrogen Hub program, aimed at promoting hydrogen as a sustainable energy source. By creating standardized contracts, NAESB aims to drive down transaction costs, increase market transparency, and stimulate liquidity in the hydrogen market. The process of developing these contracts is set to begin in collaboration with industry stakeholders this summer, with completion expected within nine months to a year. NAESB's efforts to standardize hydrogen contracts are part of a broader strategy to facilitate the energy transition. These initiatives include standardizing contracts for distributed energy resources and renewable and certified natural gas. The move is predicted to lower barriers to entry into the hydrogen market, attract investments by providing certainty and consistency, and require participants to stay updated with regulatory standards. Market participants are advised to engage in the collaborative process of refining and adopting standardized contracts, evaluate strategic positioning, and ensure compliance with regulatory standards. NAESB's initiative signifies a crucial step in the energy transition landscape, necessitating proactive and informed actions by current and potential market participants to navigate evolving legal and regulatory frameworks effectively.