Hydrogen costs and prices were mixed on May 16, with participants indicating low-carbon hydrogen and ammonia pricing to Platts, while European, Asia-Pacific hydrogen costs rose alongside lower wind generation and LNG pricing.
A hydrogen refueling station operator indicated a hydrogen price at the gate in the range of $6-$12/kg for use into the light duty mobility market in California. Currently hydrogen production intended for use in hydrogen refueling stations funded by the state in California must meet the 33% renewable quota.
Platts assessed conventional hydrogen at the gate, including capital expenditures, via steam methane reformation in Southern California at 73 cents/kg, reflecting a 3.47% decline on the day in feedstock natural gas at Southern California Gas city-gate.
The refueling station operator added that the price reflected hydrogen for either gaseous or liquified state, with upcoming developers preferring liquid hydrogen for its ability to be transported in larger quantities and more efficiently.
California is currently seeing an influx in hydrogen infrastructure buildout in both its light duty and heavy-duty mobility sector, with the heavy-duty sector the front runner.
In the US Gulf Coast, Platts assessed conventional SMR hydrogen at 80 cents/kg, reflecting a 3.49% increase on the day. Meanwhile, renewable derived hydrogen via alkaline technology rose 0.34% on the day to $3.09/kg.
In South America, a Brazilian operator said they saw renewable-derived ammonia -- known as green ammonia -- above $1,000/mt using the country's vast renewable on-shore wind. The quoted price from the operator was higher than a May 13 indication from a developer in Chile for green ammonia at $600-$800/mt and hydrogen at $3-$4/kg.
EU-compliant renewable power purchase agreement-derived hydrogen prices turned bullish on May 16 as wind output declined. According to the Entsoe transparency platform, French and Spanish wind generation fell 51% and 27%, respectively.
Platts assessed Spanish PPA derived alkaline hydrogen prices up 10% at Eur4.78/kg, while Platts French hydrogen prices rose 9% on the day at Eur5.41/kg.
Natural gas prices in Europe rose as market participants expected a ramp-up in maintenance on the Norwegian Continental Shelf in the upcoming days.
Platts assessed Dutch SMR derived hydrogen with carbon capture and sequestration costs 2% higher at Eur2.36/kg.
Sliding renewable output in both Tasmania and Queensland saw hydrogen produced from alkaline electrolysis assessed up 11% at $5.50/kg and up 10% at 5.72/kg, respectively.
Platts assessed Asia-Pacific steam methane reforming-based costs slightly higher on May 16 despite retreating regional LNG prices.
Platts assessed Japanese SMR without CCS and Platts Western Australian SMR with CCS costs both 1% higher at $2.06/kg and $2.14/kg, respectively.
Platts is part of S&P Global Commodity Insights.