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 fifth in a series of articles profiling these stakeholders.
Traders are looking for complex arbitrage opportunities in markets, particularly in physical commodities. In order to do that, somewhat liquid markets must exist. Markets for hydrogen are fast emerging, driven by decentralisation of both demand and supply of hydrogen. A twenty-fold explosion in demand for hydrogen is excepted over the next decade.
Many consider the state of play in hydrogen today to resemble LNG markets before the explosion in volume and commoditisation that was observed in the mid-2000s.
Given the rate of investment in hydrogen technology, the eagerness of commodity traders to trade this new asset class, and the uptake of hydrogen technology in various decentralised applications, it is likely that there will be functioning markets, first on a local scale, and then globally, for hydrogen within 1-5 years.
In order to operate efficiently in these markets, it is incumbent on hydrogen producers, off takers and traders to have access to the most detailed and granular information possible regarding the cost of hydrogen production in order to benchmark their activity, and identify arbitrage opportunities.
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.
If you are involved in developing hydrogen assets and would like direct access to hydrogen prices, sign up here.
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