Global renewable-derived hydrogen costs rose on May 8 alongside higher temperatures and lower renewable output contribution to total power generation.
US hydrogen costs via the electrolysis pathway rose significantly on the day. In Northern California, Platts assessed proton exchange membrane costs up 10% at $3.01/kg.
Platts received an indicative bid value of hydrogen for heavy duty transport in California at $7/kg May 8, as well as an indication for hydrogen in California under a short-term contract transaction in a $30-$33/kg range for 500 kg/week for the maritime sector.
Platts USGC PEM prices jumped 182% to $10.11/kg and alkaline hydrogen costs jumped 222% to $9.95/kg. ERCOT day ahead on-peak prices skyrocketed to the triple digits reacting to the first wave of summery temperatures in Texas. The US National Weather Service forecast Houston and Dallas high temperatures at 90 degrees Fahrenheit, with slight chances of patches of fog and thunderstorms.
A market participant heard a Power Purchase Agreement ERCOT (West Load Zone) at $50-$60/MWh for a 15-20 year contract, considering onshore wind and including grid connection and transmission fees. Additionally, Platts heard another indicative value heard at $60-$65/MWh for an equivalent PPA.
A prospective hydrogen developer said he was offering green hydrogen at the gate in the USGC under a long-term contract for 2028-2030 at $5.60/kg -- including IRA 45V tax credit -- with a carbon intensity around 4.20 kgCO2e/kgH2 well-to-wheel. The developer said they would use a renewable solar and wind mix for producing the electrolysis-based hydrogen.
The developer added they could meet a EU RFNBO compliant hydrogen price into Europe of $5.90/kg starting in 2027-2030 under a long-term contract. Platts assessed the Spanish renewable PPA-derived alkaline hydrogen price at Eur5.98/kg ($6.43/kg) on May 8.
EU compliant renewable PPA-derived hydrogen prices continued to rise May 8 due to declining wind generation. According to the Entsoe transparency platform, German wind generation plunged 63% and decreased 25% in France.
Platts Germany renewable PPA-derived alkaline hydrogen prices surged 13% to Eur9.01/kg due to higher wholesale power prices. French hydrogen rose 29% on the day to Eur6.93/kg.
Australian renewable-derived hydrogen pathways continued to advance in most states on May 8. Platts New South Wales alkaline costs surged 287% to $131/kg, the highest recorded level as power imports increased in the state.
A dip in renewable contribution to total power generation in South Australia resulted in alkaline hydrogen climbing 20% to $6.43/kg.
On the fossil front, falling Asian LNG prices continued to drag steam methane reforming-based hydrogen lower. Easing concerns on LNG supply shortages led to a second consecutive session of losses for Asian LNG.
Platts Western Australian SMR with carbon capture and sequestration costs fell 2% at $2.05/kg, while Platts Japanese SMR without CCS costs decreased 4% to $1.97/kg.
Platts is part of S&P Global Commodity Insights.