October 2020 global hydrogen summary

3 Min Read

Throughout October, UK and US hydrogen prices have generally continued to trend upwards along with feedstock prices for all major production methods. Texas electrolysis benchmarks have also gained ground with recovering power prices after a Q3 slump.

UK

SMR w/o CCS £1.312
SMR w CCS £1.309
AEM £3.533
PEM £3.613

Despite downward pressure on EUA futures throughout October, an investment in carbon capture continues to pay off as blue hydrogen undercuts grey. Natural gas extends its winning streak since the end of July, recovering some of the ground it lost earlier in the year, lifting SMR benchmarks throughout October.

Green hydrogen remains an expensive option as power contracts gain with greater CAPEX costs making PEM the most costly.

Texas

SMR w/o CCS $0.911
AEM $1.656
PEM $1.784

Texas grey hydrogen remains the cheapest benchmark despite consolidating gains from late September as Henry Hub natural gas rose.

Green hydrogen has turned a corner after hitting lows at the end of September but remains cheaper in the US than in Europe thanks to lower power prices.

California

SMR w/o CCS (July) $0.996
AEM $2.938
PEM $3.082

Grey hydrogen remains more expensive in California than Texas with the gap expected to widen as data from Q3 emerges.

Green hydrogen gained more than 10% in October as power prices leapt due to shortages. This follows on from a more modest uptick in late September.


All benchmarks are per kg H2 and include CAPEX. Benchmarks are correct at time of writing.

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