Commodity intelligence provider ICIS on Tuesday said it has launched what it describes as Europe's first market-linked renewable hydrogen assessments, which combine the firm’s cross-commodity energy analysis with price assessments of long-term power purchase agreements (PPAs) delivered by Pexapark.
The ICIS European renewable hydrogen assessments cover market-adopted technologies and locations and are the first market-based assessments designed to comply with EU and UK government standards for producing renewable hydrogen, ICIS said.
According to the company, the product will help participants develop a liberalised clean hydrogen market.
“ICIS views the provision of pricing for truly renewable hydrogen as a key enabler of the energy transition,” Simon Ellis, head of hydrogen analytics at ICIS, said, adding that the assessments “are the first true, independent reflection on the cost of producing renewable hydrogen and will give investors the confidence they need to bring capacity online.”
According to the announcement, ICIS European renewable hydrogen assessments have shown that Northwest European offshore wind production based on a 10-year PPA starting in 2025 has increased to EUR 6.10-8.15 per kg hydrogen in September 2022 from EUR 4-4.5 per kg hydrogen at the start of 2021. In comparison, wholesale power market electrolytic hydrogen based on power for delivery in 2025 has jumped to around EUR 15 per kg in September 2022 from around EUR 3.8 per kg at the start of 2021, moving through a peak of EUR 28.1 per kg. According to the assessments, Spain has one of the lowest renewable hydrogen production costs in Europe, with an average value of EUR 5.28 per kg for solar and EUR 4.85 per kg for onshore wind over the course of 2022.
(EUR 1.0 = USD 0.965)
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