S&P Global Platts (Platts), the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets, has launched the world’s first suite of Carbon Neutral Hydrogen (CNH) assessments, effective December 9, 2021.
Building on Platts first to market cost of Hydrogen production valuations, the Platts CNH assessments reflect the carbon neutral value of hydrogen as it leaves the production facility at key hubs in Northwest Europe, the Middle East, Far East Asia, Australia, California and the US Gulf Coast.
Platts CNH assessments consider carbon neutral trading activity in which emissions have been, in order of priority: avoided where possible through the use of low emissions generation, removed through the use of carbon capture and storage, and offset through the use of carbon credits or equivalent instruments.
Alan Hayes, Head of Energy Transition Pricing at S&P Global Platts, said: “Our new Carbon Neutral Hydrogen assessments will first and foremost reflect the value of the hydrogen molecule, irrespective of production pathway or color. As the energy transition gains momentum, market participants, governments, industry and investors need a trusted and independently assessed price that reflects the value of hydrogen as a commodity to make informed trading and investment decisions and manage risk.
Extensive feedback from market participants has illustrated that for a nascent global hydrogen market to grow, its price should be determined by a methodology that focuses on hydrogen as a commodity, not one that is based on a rainbow of colors or its production pathway.”
The first assessment of Platts Carbon Neutral Hydrogen (CNH) was published on December 9 with regional differentials already evident. In the Asia-Pacific Region Platts CNH was assessed at $3.45/kg on an ex-works basis Australia, and this compares to the Middle East CNH assessment of $4.05/kg.