16 Feb 2022 | 11:46 UTC

Platts proposes to update capex figures used in its hydrogen cost calculations

S&P Global Platts proposes to make several updates to its capital expenditure figures used in its calculations of cost of production for most of its global hydrogen assessments, as part of its yearly review of its hydrogen methodology.

The capital costs ($/KW) for the production pathways of proton exchange membrane (PEM) electrolysis, alkaline electrolysis, and steam methane reforming (SMR) with carbon capture and sequestration (CCS), would be decreased.

With this update, Plats reflects a trend in falling prices for capital expenses for these hydrogen production pathways over time based on industry sources, including publications from the International Energy Agency and Australia's Commonwealth Scientific and Industrial Research Organization (CSIRO).

These updates would directly affect the following set of Platts hydrogen assessments as follows:

Capital Costs

Current

Proposed

Hydrogen SMR w CCS Capital Cost ($/KW)

1680

1644

Western Australia Hydrogen SMR w CCS Capital Cost ($/KW)

1680

1644

Saudi Arabia Hydrogen SMR w CCS Capital Cost ($/KW)

1680

1644

Qatar Hydrogen SMR w CCS Capital Cost ($/KW)

1680

1644

UAE Hydrogen SMR w CCS Capital Cost ($/KW)

1680

1644

Oman Hydrogen SMR w CCS Capital Cost ($/KW)

1680

1644

Hydrogen PEM Electrolysis Capital Cost

1382

1348

Alberta Hydrogen PEM Electrolysis Capital Cost ($/KW)

1589

1550

Appalachia Hydrogen PEM Electrolysis Capital Cost ($/KW)

1460

1424

Midcontinent Hydrogen PEM Electrolysis Capital Cost ($/KW)

1417

1382

Northeast Hydrogen PEM Electrolysis Capital Cost ($/KW)

1502

1465

N. California Hydrogen PEM Electrolysis Capital Cost ($/KW)

1637

1597

Northwest Hydrogen PEM Electrolysis Capital Cost ($/KW)

1488

1451

Rockies Hydrogen PEM Electrolysis Capital Cost ($/KW)

1439

1403

Southeast Hydrogen PEM Electrolysis Capital Cost ($/KW)

1419

1384

S. California Hydrogen PEM Electrolysis Capital Cost ($/KW)

1603

1564

Upper Midwest Hydrogen PEM Electrolysis Capital Cost ($/KW)

1505

1467

Japan Hydrogen PEM Electrolysis Capital Cost ($/KW)

2073

2022

New South Wales Hydrogen PEM Electrolysis Capital Cost (A$/KW)

2413

2051

Queensland Hydrogen PEM Electrolysis Capital Cost (A$/KW)

2413

2051

South Australia Hydrogen PEM Electrolysis Capital Cost (A$/KW)

2413

2051

Tasmania Hydrogen PEM Electrolysis Capital Cost (A$/KW)

2413

2051

Victoria Hydrogen PEM Electrolysis Capital Cost (A$/KW)

2413

2051

Western Australia Hydrogen PEM Electrolysis Capital Cost (A$/KW)

2413

2051

Saudi Arabia Hydrogen PEM Electrolysis Capital Cost ($/KW)

1382

1348

Qatar Hydrogen PEM Electrolysis Capital Cost ($/KW)

1382

1348

UAE Hydrogen PEM Electrolysis Capital Cost ($/KW)

1382

1348

Oman Hydrogen PEM Electrolysis Capital Cost ($/KW)

1382

1348

Hydrogen Alkaline Electrolysis Capital Cost

891

861

Alberta Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

1025

991

Appalachia Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

941

910

Midcontinent Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

914

884

Northeast Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

968

936

N. California Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

1056

1021

Northwest Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

959

927

Rockies Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

928

897

Southeast Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

915

884

S. California Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

1034

1000

Upper Midwest Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

970

938

Japan Hydrogen Alkaline Electrolysis Capital Cost ($/KW)

1336

1292

New South Wales Hydrogen Alkaline Electrolysis Capital Cost (A$/KW)

1203

1156

Queensland Hydrogen Alkaline Electrolysis Capital Cost (A$/KW)

1203

1156

South Australia Hydrogen Alkaline Electrolysis Capital Cost (A$/KW)

1203

1156

Tasmania Hydrogen Alkaline Electrolysis Capital Cost (A$/KW)

1203

1156

Victoria Hydrogen Alkaline Electrolysis Capital Cost (A$/KW)

1203

1156

Western Australia Hydrogen Alkaline Electrolysis Capital Cost (A$/KW)

1203

1156

Saudi Arabia Hydrogen Alkali Electrolysis Capital Cost ($/KW)

891

861

Qatar Hydrogen Alkali Electrolysis Capital Cost ($/KW)

891

861

UAE Hydrogen Alkali Electrolysis Capital Cost ($/KW)

891

861

Oman Hydrogen Alkali Electrolysis Capital Cost ($/KW)

891

861

The updates would take effect on April 1, 2022. Capex for SMR without CCS would remain unchanged.

Please send any comments to hydrogenassessments@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.