Price Assessment

Platts Hydrogen Assessments

  • What are Platts Hydrogen Assesments?
  • How do these new price assessments benefit the market?
  • How are the Platts Hydrogen price assessments distributed?
  • What is unique about Platts price assessments for hydrogen?
  • What is the methodology underpinning the Platts hydrogen price assessments?

What are Platts Hydrogen Assesments?

See Factsheet for more Hydrogen Assessment Information >

Building on the world's first-to-market hydrogen assessments launched in December 2019, Platts expanded in April 2020 on its North American and European assessments and launched its first hydrogen assessments in Asia, following by adding Australian pricing in August 2021.

Platts daily price assessments include 10 US regional set of prices, one Canadian set of prices, prices in the Netherlands, Japan and the UK.

The daily price assessments demonstrate the production cost of hydrogen for Steam Methane Reforming (SMR) production methods, including some regions Carbon Capture and Storage (CCS), along with prices for Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Auto Thermal Reforming (ATR), Coal Gasification and Lignite Gasification production pathways, depending on the production hubs.

The calculated prices reflect both the commodity production cost and the capital expenditure (CapEx) associated with building a hydrogen facility.

The assessments include a commodity price as well as a commodity plus production cost, for the following hydrogen production hubs:

Canada

— Alberta (SMR w/o CCS, Alkaline Electrolysis, PEM Electrolysis, excluding and including CapEx)

United States

(SMR w/o CCS, Alkaline Electrolysis, and PEM Electrolysis, all excluding and including CapEx)

— Appalachia

— Gulf Coast

— Midcontinent

— Northeast

— Northern California

— Northwest

— Rockies

— Southeast

— Southern California

— Upper Midwest

The Netherlands

— SMR w/o CCS

— SMR with CCS

— PEM Electrolysis

— Alkaline Electrolysis

Japan

— SMR w/o CCS

— PEM Electrolysis

— Alkaline Electrolysis

United Kingdom

(all include and exclude CapEx)

— ATR with CCS

— PEM Electrolysis

— Alkaline Electrolysis

Australia

(all are published in A$/kg, $/MMBtu, $/kg, both including and excluding CapEx)

New South Wales - Coal Gasification w/CCS, PEM Electrolysis, Alkaline Electrolysis

Queensland - Coal Gasification w/CCS, PEM Electrolysis, Alkaline Electrolysis

Victoria - Lignite Gasification w/ CCS, PEM Electrolysis, Alkaline Electrolysis

Western Australia - SMR w/ CCS, PEM Electrolysis, Alkaline Electrolysis

South Australia - PEM Electrolysis, Alkaline Electrolysis

Tasmania - PEM Electrolysis, Alkaline Electrolysis

How do these new price assessments benefit the market?

S&P Global Platts is bringing transparency to an opaque market. S&P Global Platts will publish both the commodity production cost and the commodity production cost plus capital expenditures on a daily basis. These assessments show market participants different ways to value hydrogen production in order to more accurately evaluate it as a fuel.

What is unique about Platts price assessments for hydrogen?

— We are the first independent source of daily hydrogen pricing assessments underpinned by a robust methodology and compliance to IOSCO principles

— We are very well placed to provide an external and independent view of the hydrogen markets

— We have an international reach and strong reputation based on decades of industry experience providing the market with valuable, market-tested benchmark pricing

What is the methodology underpinning the Platts hydrogen price assessments?

The hydrogen price assessments are based on feedstock costs using Platts existing natural gas and power assessments relevant to the pricing hubs and are calculated using a predetermined capacity factor and energy conversion efficiency for each production method. For example, the US Gulf Coast price is based on an average of power prices from Texas and Louisiana, as well as physical gas prices from Houston and Henry Hub (Louisiana).

The assessments using CapEx prices use the same calculations, but also include the capital expenditures associated with building and operating a hydrogen production facility. The Platts Editorial team reviews this fixed cost on a regular basis.


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