US, Asia-Pacific hydrogen costs were mixed on May 6 amid divergent feedstock gas, power pricing and shifting renewable contribution to total power generation.
Hydrogen costs derived using steam methane reforming without carbon capture and sequestration in the US were higher across the board on May 6. Platts assessed US Gulf Coast SMR without CCS costs at 74 cent/kg, up 4% on the day. The Gulf Coast Houston Ship Channel gas price reference rose 19% on the day, while Henry Hub price increased 11%.
Platts received on May 6, a market indication of hydrogen derived from natural gas via SMR (grey), offered at $0.80-$1.20/kg, going into the refining sector in the USGC and considering a long-term contract.
Hydrogen costs via the electrolysis pathway in the US were mixed May 6. Platts assessed Midcontinent proton exchange membrane and alkaline hydrogen costs down 18% at $2.76/kg and down 23% at $2.23/kg, respectively. SPP South Hub on-peak power prices decreased 39% on the day.
Looking at a hydrogen derivative, Platts receive on May 6 a market indication of renewable-derived "green ammonia" CFR indicative offer heard at $600-$650/mt (EU RFNBO compliant), for a 20-year contract, considering a solar/wind mix and a facility expected to be operational in 2030, with the USGC as origin and with destination into Europe/Asia.
Asian spot LNG prices accumulated consecutive gains on May 6 amid another outage, propelling Asia-Pacific SMR costs higher. Platts Japanese SMR without CCS and Western Australian SMR with CCS costs were assessed up 4% at $2.04/kg and up 5% at $2.21/kg, respectively.
In Australia, renewable-derived hydrogen costs declined as renewable contribution to total power generation rose in most states. Platts New South Wales and Victoria alkaline-based hydrogen slumped as renewable output and renewable contribution to total power generation jumped in both states. Platts New South Wales and Victoria alkaline costs were assessed down 51% at $4.79/kg and down 45% at $4/kg, respectively.
Platts Japanese PEM costs surged 38% to $4.75/kg amid wet weather in Northern and Southern Japan.
EU compliant renewable power purchase agreement-derived hydrogen prices largely rose on May 3 despite increased wind and solar generation, except in France, where prices declined. According to Entsoe transparency platform, French wind generation surged threefold, wind generation in Germany was 31% higher, while solar generation in Spain rose 50%.
Platts German PPA-derived alkaline hydrogen prices surged 19% on May 3 to Eur6.11/kg and in Spain prices increased 2%, closing at Eur4.69/kg due to higher wholesale power prices. Platts French renewable PPA-derived prices weakened 26% on the day to Eur5.08/kg.
London offices of S&P Global Commodity Insights were closed May 6 due to the May Day Bank Holiday.
Platts is part of S&P Global Commodity Insights.