Platts to launch new daily carbon neutral hydrogen assessments

S&P Global Platts has decided to launch its first suite of carbon-neutral hydrogen assessments, effective Dec. 9, 2021.

Building on its industry-leading price valuations for hydrogen, Platts will launch new carbon-neutral hydrogen (CNH) price assessments by assessing the value of hydrogen as a molecule separated from its production pathway.

Platts will consider Carbon Neutral trading activity in which emissions have been, in order of priority: avoided where possible through the use of low emissions generation, removed through the use of carbon capture and storage, and offset through the use of carbon credits or equivalent instruments.

Power-purchase agreements and hydrogen offtake agreements also may be considered, but normalized for terms, periods and other factors.

In the absence of spot market activity, Platts will consider the marginal carbon neutral production costs incorporating the cost of renewables, carbon capture, guarantees of origin/renewable energy certificates and where appropriate the cost of offsetting carbon emissions generated during production.

Carbon removal costs will be accounted for using Platts CRC removals-based carbon credits, which reflect the most competitive carbon credit assessments for nature-based projects that remove GHG emissions, as well as California Carbon Allowance prices in appropriate markets.

Platts will publish daily assessments in six locations, which have the greatest potential to become hydrogen hubs as global markets emerge: California and the Texas and Louisiana in US Gulf Coast in the Americas, the Netherlands in Northwest Europe, Saudi Arabia in the Middle East, Japan and Western Australia in Asia-Pacific.

Assessments will be measured in $/kg, $/MMBtu, Eur/kg and Eur/MMBtu.

Specifications include: Minimum lot sizes-20,000 kg, 99.99% purity, at 350 Bar pressure, for prompt delivery the month following the trading date, EX Works. Other quantities and purity levels will be normalized to this basis.

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

The following symbols have been created:

EXW Australia Carbon Neutral Hydrogen $/MMBtu HYAUD00

EXW Australia Carbon Neutral Hydrogen $/MMBtu MAvg HYAUD03

EXW Australia Carbon Neutral Hydrogen $/kg HYAUC00

EXW Australia Carbon Neutral Hydrogen $/kg MAvg HYAUC03

EXW California Carbon Neutral Hydrogen $/MMBtu HYCAB00

EXW California Carbon Neutral Hydrogen $/MMBtu MAvg HYCAB03

EXW California Carbon Neutral Hydrogen $/kg HYCAA00

EXW California Carbon Neutral Hydrogen $/kg MAvg HYCAA03

EXW Far East Asia Carbon Neutral Hydrogen $/MMBtu HYFED00

EXW Far East Asia Carbon Neutral Hydrogen $/MMBtu MAvg HYFED03

EXW Far East Asia Carbon Neutral Hydrogen $/kg HYFEC00

EXW Far East Asia Carbon Neutral Hydrogen $/kg MAvg HYFEC03

EXW Middle East Carbon Neutral Hydrogen $/MMBtu HYMEB00

EXW Middle East Carbon Neutral Hydrogen $/MMBtu MAvg HYMEB03

EXW Middle East Carbon Neutral Hydrogen $/kg HYMEA00

EXW Middle East Carbon Neutral Hydrogen $/kg MAvg HYMEA03

EXW North West Europe Carbon Neutral Hydrogen Eur/MMBtu HYNWB00

EXW North West Europe Carbon Neutral Hydrogen Eur/MMBtu MAvg HYNWB03

EXW North West Europe Carbon Neutral Hydrogen Eur/kg HYNWA00

EXW North West Europe Carbon Neutral Hydrogen Eur/kg MAvg HYNWA03

EXW US Gulf Coast Carbon Neutral Hydrogen $/MMBtu HYUSB00

EXW US Gulf Coast Carbon Neutral Hydrogen $/MMBtu MAvg HYUSB03

EXW US Gulf Coast Carbon Neutral Hydrogen $/kg HYUSA00

EXW US Gulf Coast Carbon Neutral Hydrogen $/kg MAvg HYUSA03

Please send all questions and 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.