S&P Global to launch implied hydrogen origin certificate for Europe, US

S&P Global Commodity Insights has decided to launch daily implied hydrogen origin certificate (h-OC) assessment for Northwest Europe, California and the US Gulf Coast, effective March 25, 2022.

H-OC represents a premium for hydrogen derived from carbon-neutral production pathways and has the potential to inform investment decisions, government funding, and is a compliment to S&P Global's existing coverage of the developing hydrogen markets.

The implied h-OC value will be calculated as a premium between the cost of production of hydrogen produced via steam methane reforming without carbon capture and sequestration, and carbon neutral hydrogen produced via proton exchange membrane electrolysis.

Carbon neutral hydrogen costs will include renewable energy certificates, guarantees of origin and carbon offsets where applicable.

For Northwest Europe, h-OC will be valued for production taking place in the Netherlands. In the US Gulf Coast, h-OC will consider production pathways in Texas and Louisiana.

H-OC implied values will be reflected on a spot basis for the calendar month following the trading date.

Prices will be measured in Eur/MWh in Europe and $/MWh in the US.

One h-OC certificate will represent the premium of using 1 MWh of energy to produce hydrogen from carbon neutral sources.

Assumptions for capital expenditures will be included in costs.

The prices will be published on Platts Dimensions Pro and under the Market Data Categories HY and ETR.

The following symbols have been created:

Implied Hydrogen Origin Certificate Northwest Europe Eur/MWh HYIHA00

Implied Hydrogen Origin Certificate California $/MWh HYIHB00

Implied Hydrogen Origin Certificate USGC $/MWh HYIHC00

Implied Hydrogen Origin Certificate Northwest Europe Eur/MWh MAvg HYIHA03

Implied Hydrogen Origin Certificate California $/MWh MAvg HYIHB03

Implied Hydrogen Origin Certificate USGC $/MWh MAvg HYIHC03

Please send any questions or 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 S&P Global for public viewing.

S&P Global will consider all comments received and will make comments not marked as confidential available upon request.