Our Price Explained
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What are Platts Renewable Power Purchase Agreement (PPA) Derived Hydrogen Price Assessments?
What are Platts Renewable Power Purchase Agreement (PPA) Derived Hydrogen Price Assessments?
Platts European Regulation Compliant Hydrogen Assessments reflect the market value of hydrogen that aligns with the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) definition and complies with the two EU Delegated Acts. The scope of RFNBO includes hydrogen produced via electrolysis from renewable electricity, its derivatives as well as other energy carriers.
Incorporating Power Purchase Agreements will more closely align the prices listed below with EU regulations references to power sources used in the production of low carbon hydrogen as set out in the EU Delegated Act. For a detailed discussion of the scope of the European Union’s RFNBO rules, including detailed rules for sourcing of renewable electricity that is used for the production of RFNBOs and for determining the greenhouse gas emission intensity, see our Methodology.
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How do we assess it?
How do we assess it?
S&P Global Commodity Insights assesses Hydrogen Production Cost Valuations following a thorough methodology.
In the absence of market-based information Platts uses a model-based cost of production plus a premium to reflect market value of firm hydrogen supply. When available, market information such as bids, offers, trades and indications will take precedence for assessments.
For the cost of production modelling, the renewable hydrogen producer is assumed to be buying renewable power as part of a "Pay-as-Produced" Power Purchase Agreement. The size of the alkaline electrolyzer is 100 MW, operating above a minimum load of 25%. The production mix is optimized for every country to satisfy monthly requirements before end-2029 and hourly requirements from 2030 onwards. The model allows power exchange through the grid.
For more details about our standards please refer to Global Hydrogen & Ammonia Methodology and Specifications Guide.
What are Platts Renewable Power Purchase Agreement (PPA) Derived Hydrogen Price Assessments?
Platts European Regulation Compliant Hydrogen Assessments reflect the market value of hydrogen that aligns with the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) definition and complies with the two EU Delegated Acts. The scope of RFNBO includes hydrogen produced via electrolysis from renewable electricity, its derivatives as well as other energy carriers.
Incorporating Power Purchase Agreements will more closely align the prices listed below with EU regulations references to power sources used in the production of low carbon hydrogen as set out in the EU Delegated Act. For a detailed discussion of the scope of the European Union’s RFNBO rules, including detailed rules for sourcing of renewable electricity that is used for the production of RFNBOs and for determining the greenhouse gas emission intensity, see our Methodology.
