Platts updates hydrogen cost calculations capex and WACC figures

Platts has made several updates to its capital expenditure and weighted-average cost of capital figures, used in it the calculations of cost of production for many of its global hydrogen assessments as part of a yearly review of the Platts hydrogen methodology, effective March 31, 2025. Specifically, these figures are used in the calculated cost of production hydrogen assessments.

The capital expenditure figures used in the ammonia cost of production calculations have remained unchanged since March 1, 2024.

With this update, Platts, part of S&P Global Commodity Insights, reflects the positive learning rate of alkaline and PEM electrolyzer technologies for capital expenditure costs. The effect of inflation underpins increases in the cost of SMR and ATR technologies. These updated capital expenditure and financing costs are based on industry input and feedback.

In addition, the Sustainable Aviation Fuel (SAF) and Renewable Diesel cost of production calculations reflect the cost of the renewable distillates based on the yields of a biorefinery, produced via the HEFA, or Hydrotreated Esters and Fatty Acid pathway.

Updates to hydrogen price input therefore may have an impact on these calculated prices. The hydrogen prices used in the SAF and renewable diesel cost of production calculations are: Hydrogen California SMR w/o CCS (incl CAPEX), Hydrogen Netherlands SMR and Japan Hydrogen SMR w/o CCS Inc. Capex.

The updates are given below:

Platts has also updated its weighted average cost of capital (WACC) figures used in the calculation of cost of production for its global hydrogen and ammonia assessments, as part of a yearly review of its hydrogen methodology, effective March 31, 2025. The downward revision in WACC values reflects the impact of moderating interest rates and inflationary pressures.

The updates are given below:

The updated capital costs will impact the hydrogen assessments as given in an example below. The SMR costs will decline in the Netherlands, due to a decrease in the SMR capital costs, while electrolyzer-based PEM and alkaline costs will also fall.

All values for NW Europe (Netherlands), with CAPEX, without EU ETS costs are as follows:

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