LONDON, Sept. 27, 2022 /PRNewswire/ -- ICIS, a global
source of Independent Commodity Intelligence Services, has launched
the first hydrogen price assessments to reflect the market value of
renewable electricity. This product will support participants
with the intelligence needed to develop a liberalised clean
hydrogen market and optimise energy transition resources.
European policymakers have earmarked the development of a traded
hydrogen market as a key enabler to meet decarbonisation and supply
security objectives. The European Commission's REPowerEU plan has
quadrupled hydrogen supply targets by 2030 and established
criteria to ensure hydrogen production is sourced from renewable
energy.
To unlock investments of up to €500 billion outlined by the
Commission's hydrogen strategy, investors, policy makers and
hydrogen industry participants thus require accurate and trusted
pricing instruments aligned to Net Zero objectives.
Covering market-adopted technologies and locations, the ICIS
European renewable hydrogen assessments have been produced through
deep consultation with energy market participants. Critically, the
ICIS European renewable hydrogen assessments are the first
market-based assessments that are structured to be compliant with
European Union and UK government standards for producing renewable
hydrogen (Renewable Fuels of Non-Biological Origin).
These hydrogen price assessments accurately reflect the business
conditions facing renewable hydrogen projects, providing
participants with the confidence to make strategic investment
plans, conduct bilateral negotiations and navigate volatility.
"ICIS views the provision of pricing for truly renewable
hydrogen as a key enabler of the energy transition," Simon Ellis, Head of Hydrogen Analytics at ICIS
says. "These assessments are an important step in ICIS's commitment
to providing price transparency to the renewable hydrogen market.
They are the first true, independent reflection on the cost of
producing renewable hydrogen and will give investors the confidence
they need to bring capacity online".
"Building on our track record of establishing commodity
benchmarks like the ICIS TTF and ICIS NBP, as well as providing
price transparency to global ammonia markets, the assessments will
provide the clarity required to develop the European hydrogen
economy," said Stuart Wood, Head of Energy Strategy
at ICIS.
The assessments combine ICIS's cross-commodity energy analysis
with price assessments of long-term Power Purchase Agreements
(PPAs) provided by Pexapark, trusted provider of pricing data,
software and services for renewable energy. These PPAs are expected
to be the primary means of supplying renewable power for the
production of electrolytic hydrogen. PPA-based hydrogen pricing is
therefore the closest representation of fair value for renewable
hydrogen during the formative stage of market development.
Based on the ICIS European renewable hydrogen assessments:
- ICIS renewable hydrogen assessments have shown renewable
hydrogen based on PPAs has avoided equivalent power market
volatility over the past 20 months.
- Northwest European offshore wind production based on a 10-year
PPA starting in 2025 has increased from €4-4.5/kg H2 at the start
of 2021 to €6.10-8.15/kg H2 in September
2022.
- Comparatively, wholesale power market electrolytic (yellow)
hydrogen based on power for delivery in 2025 has moved from around
€3.8/kg H2 at the beginning of 2021 to around €15/kg H2 in
September 2022, peaking at €28.1/kg
H2.
- Spanish renewable hydrogen production costs are among the
lowest in Europe, averaging
€5.28/kg H2 (solar) and €4.85/kg H2 (onshore wind) over the course
of 2022.
Related Links
ICIS renewable hydrogen assessments.
About ICIS
ICIS is a trusted source of global
commodity intelligence for the energy, chemical and fertilizer
industry. We are a division of RELX, a FTSE 15 company with a
market cap of £42.3 billion and an employee base of over 30,000
experts across 40 countries.
At ICIS, we help businesses make strategic decisions, mitigate
risk, improve productivity, and capitalise on new opportunities. We
make some of the world's most important markets more trusted and
predictable by providing data services, thought leadership and
decision tools. As a result of our unmatched global presence, we
can deliver targeted connected intelligence to influence thousands
of decisions across supply chains every single day. We shape the
world by connecting markets to optimise the world's valuable
resources. With a global team of more than 600 experts, ICIS
has employees based in London,
New York, Houston, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Dubai, Sao
Paulo, Seoul, Tokyo and Perth.
About RELX
RELX is a global provider of
information and analytics for professional and business customers
across industries. The Group serves customers in more than 180
countries and has offices in about 40 countries. It employs
approximately 30,000 people of whom almost half are in North America. RELX PLC is a London listed holding company which owns 52.9%
of RELX Group. RELX NV is an Amsterdam listed holding company which owns
47.1% of RELX Group. The shares are traded on the London, Amsterdam and New York Stock Exchanges using
the following ticker symbols: London: REL; Amsterdam: REN; New
York: RELX and RENX. Total market capitalisation is
approximately £42.3bn | €47.4bn | $45.7bn.
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