S&P Global to add per kg conversions for implied hydrogen origin certificate assessments

Based on customer feedback, S&P Global Commodity Insights has decided to launch daily implied hydrogen origin certificate (h-OC) assessments on a per kilogram basis for Northwest Europe, California and the US Gulf Coast, effective April 26, 2022.

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

S&P Global launched h-OC assessments for Europe and North America on a per megawatt hour basis on March 25, 2022.

Based on customer feedback, converting these assessments to a per kilogram basis will provide additional value for understanding the premium between conventional and carbon neutral pathways.

The implied h-OC value is 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 include renewable energy certificates, guarantees of origin and carbon offsets where applicable.

For Northwest Europe, h-OC is valued for production taking place in the Netherlands.

In the US Gulf Coast, h-OC considers production pathways in Texas and Louisiana.

Implied values for h-OC are reflected on a spot basis for the calendar month following the trading date.

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

Assumptions for capital expenditures are 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/kg HYIMA00

Implied Hydrogen Origin Certificate California $/kg HYIMB00

Implied Hydrogen Origin Certificate USGC $/kg HYIMC00

Implied Hydrogen Origin Certificate Northwest Europe Eur/kg MAvg HYIMA03

Implied Hydrogen Origin Certificate California $/kg MAvg HYIMB03

Implied Hydrogen Origin Certificate USGC $/kg MAvg HYIMC03

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.