Decrease in Electricity and Gas Prices Impact Hydrogen Costs
Key Ideas
- Wind power production increase led to lower electricity prices, impacting green hydrogen costs positively.
- Low demand on gas markets during a heatwave resulted in decreased gas prices and conventional hydrogen costs.
- Green hydrogen was more competitive than conventional hydrogen, highlighting the importance of cost efficiency.
- The Hydex hydrogen index provides insights into short-term production costs for different hydrogen production technologies.
Last week in Bonn, electricity spot prices dropped by two per cent due to higher wind power production, resulting in lower costs for green hydrogen production. The marginal costs of green hydrogen, specifically Hydex Green, decreased slightly to 163 €/MWh. Despite the hot weather, gas market demand was low, causing gas prices to decline by two per cent and impacting conventional hydrogen costs. The Hydex Grey and Hydex Blue prices also fell to 83 €/MWh and 95 €/MWh, respectively. Green hydrogen demonstrated greater cost competitiveness than conventional hydrogen, with the Hyspread 'Green-Grey' averaging 79 €/MWh. The Hydex hydrogen index, developed by E-Bridge Consulting, offers insights into the production costs of different hydrogen technologies, providing valuable data for the industry.