Who cares about how much hydrogen costs? Part 1: Developers

3 Min Read

Altroleum publishes daily production cost assessments for hydrogen for both Europe and North America, available now. But who should really care about how much hydrogen costs?

Broadly, these stakeholders can be classified into several buckets:

This is the first in a series of articles profiling these stakeholders.

Developers

'Developers' - Steve Ballmer

Significant capital is going to be deployed in order drastically increase the volume of hydrogen that is produced. Most hydrogen produced today is grey hydrogen, but going forward most new developments will focus on blue or green hydrogen production.

Some new hydrogen development will occur at large consolidated projects. Examples include BP and Ørsted’s recently announced wind development that will support a 50 MW electrolyser that will service one of BP’s refineries. Another example is Shell’s 200 MW green hydrogen project in the Port of Rotterdam in partnership with Eneco. There is plenty of evidence that most oil and gas majors are dedicating significant resource to being competitive in the hydrogen space.

An Ørsted offshore wind turbine

Existing producers of grey hydrogen will seek to retrofit their processes with carbon capture technologies, in order to produce blue hydrogen to comply with regulatory pressures.

There will a very significant volume of hydrogen assets developed by small cap and mid cap companies. Indeed, hundreds or even thousands of small cap hydrogen producers will emerge over the next decade. These hydrogen small caps will be composed of a mix of entirely new enterprises and oil and gas small caps repurposing as a result of the energy transition.

Decentralised and distributed production of hydrogen will be a key growth driver for the hydrogen sector as a whole. Indeed, very local, small scale hydrogen production will represent an important segment in some geographies.

A small scale on-site hydrogen generator

Hydrogen developers care about how much hydrogen costs to produce because they seek to develop competitive assets that will return value to shareholders and other stakeholders.

Visibility on hydrogen production costs, segmented by geographies and production technologies, helps developers invest in class-leading assets.

These data can be used to support many workflows in hydrogen development, from high level strategic decision making at C-suite level through to modelling and validation work undertaken by analysts for individual assets.

Altroleum provides daily hydrogen production cost assessments with the highest temporal and spatial granularity on the market. Altroleum covers all of the well-established production technologies (SMR, SMR w/ CCS, AEM, PEM) and covers geographies across Europe and North America.

A hydrogen price assessment in the Altroleum platform

If you are involved in developing hydrogen assets and would like direct access to hydrogen prices, sign up here.

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