November 2021 global hydrogen summary

2 Min Read

Compiled 01/12/2021

In Europe, the UK, Germany and The Netherlands moved once again mostly in tandem. Fluctuations in price this month were profound and erratic – immediately following October’s losses, prices rose sharply from the beginning of November, exhibiting some volatility as they did so. Continental Europe remains costlier than the UK in terms of grey and blue hydrogen, though margins narrowed considerably. In terms of green hydrogen, meanwhile, the UK is still the more expensive choice – Germany is now considerably cheaper, and the Netherlands cheaper still.

EUA prices rose steadily throughout November, reaching 75 EUR per tonne. Blue hydrogen looks like the more attractive option for natural-gas-derived hydrogen in Europe.

In contrast with the extreme volatility exhibited by Continental European markets, prices in the United States remained relatively stable, with some limited movement. Despite considerable fluctuation during the course of the month, the end of November saw the price of grey hydrogen in Texas little changed, though the beginnings of a drop were evident in the month’s closing days. Regarding green hydrogen, there was a similar pattern of a little fluctuation with only a very slight downward movement, although there was no evidence of the beginnings of the steeper drop seen with grey hydrogen.

In California, the price of green hydrogen experienced a noticeable fall as the month progressed, showing a very limited recovery mid-month before dropping off once again towards the end.

In Alberta, prices dropped very slightly initially before exhibiting a modest but steady rise, ending the month at roughly the same level at which they began.

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.

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