LONDON, Dec. 18, 2019 /PRNewswire/ -- S&P Global
Platts ("Platts"), the leading independent provider of information
and benchmark prices for the commodities and energy markets, today
announced it has published a first-to-market suite of hydrogen
price assessments.
Hydrogen is the most abundant element in the known universe and
is already used in industrial processes across the world, largely
for oil refining and ammonia production. However, hydrogen is
increasingly attracting interest from investors, policymakers and
energy market participants as a potential new clean fuel for
transportation and a lower-carbon substitute for natural gas in
industrial processes, materials production, power generation, as
well as for commercial and residential use.
Current global demand for hydrogen is roughly 70 million metric
tons per year, according to the International Energy Agency (IEA).
Moreover, S&P Global Platts Analytics estimates that achieving
a 10% blend in natural gas pipelines would add demand for 60
million metric tons per year and a 20%-penetration of the
commercial trucking fleet (utilizing fuel cells) could bring
another 60 million metric tons per year of demand.
Simon Thorne, global director
of generating fuels of S&P Global Platts, said: "The
current market for hydrogen is relatively opaque but full of
potential. We recognize the importance that hydrogen will play in a
clean energy future, and the transformative role the fuel will play
in global energy markets. In the interest of providing the
transparency that is so critical to market development, the new
S&P Global Platts hydrogen price assessments will provide an
independent, impartial evaluation of hydrogen as a fuel."
The new suite of S&P Global Platts hydrogen price
assessments reflect the value of hydrogen produced at hubs in the
US and Europe that are significant
regions of consumption: US Gulf Coast, California and the
Netherlands. Given the importance of hydrogen within the
fast-paced world of energy transition, S&P Global Platts is
already considering additional price assessments in other
geographies, including Asia.
The daily price assessments, published in US dollars and Euros
per kilogram ($/kg and euro/kg), respectively, reflect the
production cost of hydrogen based on two different production
pathways – the predominant Steam Methane Reforming (SMR) approach,
as well as the growing Proton Exchange Membrane (PEM) Electrolysis
production. Each hub will show the value of hydrogen as produced
with the respective variable feedstock costs of electricity and
natural gas, using existing S&P Global Platts electricity and
natural gas price assessments. Platts is also publishing a second
hydrogen price assessment at each hub that will add a
fixed-assumption for capital expenditures. The California and Netherlands price assessments will also
include costs to reflect the cost of the resulting emissions from
the process – reflecting respective carbon
allowances.
Roman Kramarchuk, head of
energy scenarios, policy and technology, S&P Global Platts
Analytics said: "De-carbonization is a key element of the
energy transition. Addressing emissions from the industrial sector,
long haul trucking, shipping, residential and commercial uses,
along with the need for storage to achieve clean power goals, will
prove particularly challenging – but is critical to meet global
carbon-reduction targets. We estimate that a shift to
zero-carbon hydrogen in existing applications, along with modest
penetration in gas pipelines and trucks, can reduce global energy
combustion CO2 emissions by more than 7%."
Media Contact:
Americas: Kathleen Tanzy + 1 917-331-4607,
Kathleen.tanzy@spglobal.com
About S&P Global Platts
At S&P Global
Platts, we provide the insights; you make better-informed trading
and business decisions with confidence. We're the leading
independent provider of information and benchmark prices for the
commodities and energy markets. Customers in over 150 countries
look to our expertise in news, pricing and analytics to deliver
greater transparency and efficiency to markets. S&P Global
Platts coverage includes oil and gas, power, petrochemicals,
metals, agriculture and shipping.
S&P Global Platts is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies and governments to make decisions with confidence. For
more information, visit www.platts.com.
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SOURCE S&P Global Platts