US hydrogen costs were mixed May 1 alongside divergent feedstock gas, power prices, while European hydrogen costs fell amid higher wind generation and milder weather.
US hydrogen costs via the electrolysis pathway were mixed May 1. Platts assessed Rockies proton exchange membrane and alkaline hydrogen costs up 8% at $3.49/kg and up 10% at $2.99/kg, respectively. Regional power dailies strengthened as Mona Utah on-peak price reference increased 26% and the off-peak price rose 16% on the day.
US hydrogen cost valuations via conventional steam methane reforming without carbon capture and sequestration costs were mainly steady to slightly lower May 1. Platts assessed Northeast SMR without CCS costs down 3% at 69 cent/kg as Transco, zone 6 non-NY gas price shed 6% on the day. Northeast gas prices weakened amid lower demand and milder weather.
EU compliant renewable power purchase agreement-derived hydrogen prices dropped on May 1 amid increased wind generation. According to Entsoe transparency platform, Spanish wind generation surged 133% and Germany saw a jump of 44%.
Platts German PPA-derived alkaline hydrogen prices dropped 7% on the day to Eur7.60/kg, and Spanish hydrogen went down 8% to Eur6.60/kg.
Gas prices in Europe turned bearish due to milder weather conditions. Temperatures across Northwest Europe are set to decline over the coming days, still staying 1 degree above the five-year averages across May 2-5, according to CustomWeather.
Stabilizing Asian LNG prices offered support to Asia-Pacific hydrogen produced from natural gas Apr 30. Platts Japanese SMR without CCS costs advanced 1% to $1.92/kg while Platts Western Australian SMR with CCS costs gained 3% to $2/kg.
OpenNet data showing a climb in renewable contribution to total power generation in Southern Australia and Victoria resulted in a decline in PEM electrolytic hydrogen production costs of 33% to $4.44/kg and 18% to 5.48/kg, respectively. Platts Tasmania PEM costs climbed 5% to $4.87/kg on the back of a jump in renewable output.
On April 30, Platts received a market indication of green ammonia originating from India offered at $550/mt while South Korea hydrogen prices at the pump were reported around KRW7,000 to 8,000/kg ($5.00 to $5.82/kg).
Platts SMR with CCS costs in the UK fell 3% to GBP2.64/kg ($3.3/kg) April 30.
Singapore offices of S&P Global Commodity Insights were closed May 1 in observance of the national Labor Day holiday.
Platts assessed Northwest Europe hydrogen certificates at Eur101.35/MWh on May 1, surging 7% over the week as a cold spell in the previous week widened the gap between gas and power prices.
On the US Gulf Coast, Platts assessed hydrogen certificates at $85.80/MWh May 1, up 17%, while hydrogen certificates in California fell 6% to $85.20/MWh on the week.
Implied hydrogen-origin certificates represent the premium for hydrogen derived from carbon-neutral pathways calculated as a difference between carbon-neutral hydrogen produced through PEM and SMR without CCS.
Platts is part of S&P Global Commodity Insights.