Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Electric Power

Customer willingness to pay remains key unknown in hydrogen market development: panel

Energy | Electric Power | Renewables | LNG | Natural Gas | Oil | Shipping

Energy Transition

Electric Power

Platts Market Data – Electric Power

Electric Power | Renewables | LNG | Infrastructure Utilities

Caribbean Energy Conference, 21st

Electric Power | Renewables | Coronavirus

Pandemic has accelerated transition to low-carbon economy: Moody's

Customer willingness to pay remains key unknown in hydrogen market development: panel


Green premium 'elephant in the room'

CA's LCFS a good incentive for hydrogen

London — Customer willingness to pay for green or renewable hydrogen remains the unknown factor shaping both government policy and investment in the nascent industry, panelists said at an S&P Global Platts virtual hydrogen conference Oct. 1.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

During a Q&A session, key hydrogen leaders were asked whether they envisioned their customers would be willing to pay a premium for green hydrogen produced from renewables over time.

"This is the elephant in the room," said Pierre-Etienne Franc, vice president of Air Liquide's hydrogen energy world business line, said at the first annual Platts Hydrogen Markets Europe conference.

"We can pay the price of moving into a low carbon system, but in the end, if we can't price at the right level, it won't make a difference," he said.

Customer willingness to pay could depend on the size of the company and their need to capture future market share as the world turns to hydrogen, said Michele Azalbert, CEO of Engie's hydrogenbusiness unit.

"Engie's experience for the big players engaged in the decarbonization pathway is that hydrogen is the only viable solution in the long run," Azalbert said. "Paying the full premium -- it's a big challenge, but paying a portion of it is achievable."

Regulation is key to push up the value of green hydrogen over gray hydrogen, Franc said.

"It needs to go from the producer to the consumer -- in the end, if the policymaker does not put forward the regulation ... we can't price at the right level."

LCFS an effective incentive

Using carbon pricing to achieve price between fossil-based hydrogen and renewable green hydrogen could help, but it is unlikely to be the final answer, said Roman Kramarchuk, head of energy scenarios at S&P Global Platts Analytics.

"The issue isn't as much about carbon efficiency, or what kind of carbon price you would need to equalize gray hydrogen with green because it's a large number," Kramarchuk said. "It's way above what we are seeing in the EU ETS [Emissions Trading System] right now."

Kramarchuk pointed to California's Low Carbon Fuel Standard, which he said has been very effective in incentivizing low carbon sources.

"The LCFS shows us how hydrogen can penetrate and displace diesel in long-haul trucking," he said. "Incentives like the LCFS actually were getting us close by the time we get to 2030, in our estimates."