From S&P Global Platts, February 21:
As the London International Energy Week kicks off with the S&P Global Platts London Energy Forum, our editors share how carbon intensity has become a significant barometer in oil markets as well as offer a glimpse into a selection of our hydrogen assessments in different regions. US LNG exports, European refined products and electric vehicle sales forecast are also in focus.
....2. Global hydrogen price wall reveals future likely trade flows
What's happening? The UK remained the highest priced region globally for low-carbon hydrogen production despite sharp drops in January, S&P Global Platts Hydrogen Price Wall interactive infographic shows. UK electrolysis production prices averaged around $20/kg in January, more than seven times the cheapest locations in Western Australia and the US Gulf Coast. UK prices were over 25% above the next highest priced region, the Netherlands, and more than 50% higher than in Japan, another potential importer. Low production costs in Australia, meanwhile, highlighted the country's credentials to supply Japan and South Korea.
What's next? Understanding how differences in regional power markets impact hydrogen production costs around the world will be an increasingly important factor in determining future trade flows, Platts Head of Energy Transition Pricing Alan Hayes said, adding that regional differences will also be important for decision makers who want to compare options to achieve the most cost-effective routes to decarbonization. The data on the wall also show the comparative cost advantage CCS-based low carbon hydrogen pathways have in Europe versus electrolysis. While the UK is a high-priced hydrogen market today, Platts Analytics anticipates it will be in a position to export around 25% of its hydrogen production by 2050, with exports to continental Europe starting as early as 2033 – assuming low-cost power and gas feedstocks can be secured.....
....MUCH MORE
