In Europe, the UK, Germany and The Netherlands moved essentially in tandem once again. Following on from November’s moderate gains, prices rose extremely sharply and with alarming rapidity mid-month, before dropping down with equal speed and suddenness to the same levels as those seen at the beginning of November, where they remained. Continental Europe is still more expensive than the UK in terms of grey and blue hydrogen, though margins continue to narrow. Meanwhile, regarding green hydrogen, the UK is still the costlier choice, while the Netherlands are notably less expensive, and Germany is cheaper still.
EUA prices exhibited a little more volatility than in previous months, rising to almost 90 EUR per tonne before experiencing a series of peaks and troughs, ending the month only a little higher than at the start. Blue hydrogen looks like the more attractive option for natural gas-derived hydrogen in Europe.
In the United States, prices failed to retain the stability which they exhibited in November. In a continuation of the slight drop evident at the end of November, prices fell sharply at the beginning of the month, reaching levels last seen in July, where they remained at the close of the month. Green hydrogen, conversely, remained relatively stable, rising and falling only very slightly during the course of the month.
There was a great deal of volatility in California, as the price of green hydrogen there rose very sharply, reaching levels last seen at the end of October, before November’s steep decline. Following this sudden rise, prices slumped almost immediately, ending the month at a level not seen since May.
In contrast with green hydrogen in California, the price of green hydrogen in Alberta remained in a state of relative stability, continuing to rise modestly before dropping slightly and gently rising once again.
Globally, the continually changing price differentials between cost benchmarks emphasises the importance of keeping a close eye on hydrogen production cost movements.
Cost assessment figures have been redacted.
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Information correct at time of writing.