/ Price Assessments

Hydrogen

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What are Platts Hydrogen Price Assessments?
The daily price assessments demonstrate the production cost of hydrogen for Steam Methane Reforming (SMR) production methods, including some regions Carbon Capture and Storage (CCS), along with prices for Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Auto Thermal Reforming (ATR), Coal Gasification and Lignite Gasification production pathways, depending on the production hubs. The calculated prices reflect both the commodity production cost and the capital expenditure (CapEx) associated with building a hydrogen facility.
Platts Hydrogen Assessment Weekly Commentary

  • Colder weather is expected in Europe
  • Renewable output rises in South Australia, Victoria
  • US Gulf Coast electrolytic hydrogen costs drop


European renewable hydrogen costs jumped April 18 on lower wind generation. US and Japanese hydrogen costs were mixed alongside feedstock gas and power pricing, while Australian hydrogen costs retreated on higher renewable output and weaker LNG pricing.

According to Entsoe transparency platform, German wind generation fell by 77% and it dropped 63% in Netherlands, translating to higher wholesale power prices.

EU compliant renewable power purchase agreement-derived hydrogen prices jumped April 18 due to plunging wind generation. Platts German and Netherlands PPA-derived alkaline prices both climbed 27% to Eur9.27/kg and Eur8.67/kg, respectively.

Near-term temperatures are expected to drop sharply in Northwest Europe, with CustomWeather forecasting the former to fall from around 4 degrees Celsius to 6 C below the five-year averages by April 23. This led to an increase in expected gas demand in the Continent.

Platts steam methane reforming without carbon capture and sequestration costs rose marginally to Eur2.45/kg.

US SMR-based hydrogen steady to higher

US hydrogen cost valuations via conventional SMR without CCS costs were mostly higher on April 18. Platts assessed Upper Midwest costs up 3% at 69 cents/kg on April 18. Regional feedstock gas pricing rose with Chicago city-gates price reference increasing 7% on the day.

US hydrogen costs via the electrolysis pathway were mixed April 18. Platts assessed USGC proton exchange membrane and alkaline hydrogen costs down 22% at $3.11/kg and down 27% at $2.59/kg, respectively. Regional power prices slid as ERCOT day-ahead on-peak price fell 70%, following strong renewable output and the expiration of the reliability council's alerts due to "reserve capacity deficiency”.

Asia-Pacific SMR-derived hydrogen tracks down LNG prices

Asia-Pacific SMR-based hydrogen costs retreated alongside Asian LNG prices undergoing seasonal weakness in the April-June period. Platts Japanese SMR without CCS costs fell 3% at $1.98/kg, while Platts Western Australian SMR with CCS costs was assessed 4% lower at $2.06/kg.

Asia-Pacific renewable-derived hydrogen costs ended down on April 18. Higher renewable contribution to power generation in South Australia and Victoria saw alkaline hydrogen costs retreating 4% to $5.45/kg and 16% to $4.84/kg, respectively.

Platts Japanese PEM hydrogen advanced 3% to $4.27/kg despite moderate weather in most of the country.

CNH

Carbon-neutral hydrogen prices extended its bullish run in Europe and Asia over the week ending April 18 as geopolitical tensions, colder weather in Europe and gas supply risk elevated gas prices globally.

Platts European CNH rose 8% as Norwegian outages and upcoming colder weather were key contributing factors, closing at Eur2.70/kg.

Platts Australia CNH price was assessed up 9% over the week ended April 18 at $2.40/kg. Platts Far East CNH rose 4% to $2.75/kg.

Platts US Gulf Coast CNH price was up 4% over the week at $1.18/kg April 18, while California CNH fell 6% to $1.30/kg.

CNH represents the most competitive hydrogen in a region based on different pathways after carbon emissions are offset.

Platts is part of S&P Global Commodity Insights.

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