August 2021 global hydrogen summary

2 Min Read

Compiled 03/09/2021

In Europe, the UK, Germany, and The Netherlands moved mostly in tandem - across the board, hydrogen costs reached new 2021 highs, gaining around 10% after a steep drop in power and gas prices mid-month. Continental Europe remains more expensive than the UK for grey and blue hydrogen. On the other hand, the UK is significantly pricier than The Netherlands for green hydrogen, which, in turn, is more expensive than Germany.

EUA prices gained slightly to pass 60 EUR per tonne. Blue hydrogen looks like the more attractive option for natural gas derived hydrogen in Europe.

The Texas green hydrogen benchmarks halted losses in August as power traded mostly flat after plunging at the end of July. Natural gas fell slightly after a four month bull run bringing the grey benchmark lower.

Californian natural gas increased slightly throughout H1 2021 lifting grey hydrogen costs. Californian green hydrogen costs fell as electricity prices saw a steady downtrend throughout August after a volatile couple of months.

In Alberta, natural gas climbed April through June, trading mostly flat on the year. In contrast, power prices plunged by a third in August bringing green hydrogen costs with them.

Globally, the continually changing price differentials between cost benchmarks emphasises the importance of keeping a close eye on hydrogen production cost movements.

Cost assessment figures have been redacted.

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Information correct at time of writing.

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