Energy prices in North America saw extreme volatility in February with massive power shortages in Texas. In Europe, gas and power prices generally declined from January's peaks. This made for an interesting landscape for hydrogen production, where production costs in some locations soared overnight.
EUA futures gained in early February before flattening off. This caused the gap between grey and blue hydrogen to widen further making blue hydrogen a clear winner as its higher capex requirements are offset.
Power and gas prices in the UK continued their downward trend after a spike at the beginning of the month. This marks a significant decline in costs for all production methods since mid-January.
German energy prices trended lower through February. All colours of hydrogen ended the month at their lowest point this year with Green hydrogen produced by alkaline electrolysis dipping below three Euros.
Dutch blue and grey hydrogen undercuts Germany as Dutch TTF futures fell by more than German NCG futures. Power remains at a premium.
Spot power in Texas exploded around the middle of February as temperatures plummeted and much generation was taken offline. This was reflected in a spike in futures contracts with significant changes in green hydrogen production costs. However, electricity prices have mostly retreated back to average levels in the futures market.
Henry Hub prices remained more stable but still saw a significant peak in the middle of the month.
The Grey hydrogen benchmark continued to climb in California to end November at its highest point so far in 2020.
Power prices were affected by volatility in Texas as they peaked mid-month, before dropping back off.
The grey hydrogen benchmark flattened off through November with little change.
Green hydrogen benchmarks continued a sustained and dramatic increase into February, nearly doubling in just two weeks to reach highs of more than c$10/kg. This was followed by a levelling off and a dip at the end of the month.
Cost assessment figures have been redacted.
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Information correct at time of writing.