Hydrogen Prices may soar on the back of rising demand
- 17-May-2022 5:54 PM
- Journalist: Bob Duffler
Green Hydrogen has been gaining popularity in countries trying to transit towards a greener form of energy because of its ability to decarbonize sectors like transportation, aviation, shipping, and manufacturing. The impact of the Russia-Ukraine war has been massive on the global economy, which forced various countries to decide on a newer, cleaner energy source. The energy crisis faced by the European countries owing to the limited supply of Russian oil and gas on account of the conflict in the East European region also reminded all countries of the need to find an alternative fuel. Even Middle Eastern countries with suitable and sufficient inventories of conventional energy sources (crude oil) have started to invest in green and clean Hydrogen. According to the CEO of H2 industries,” The demand for clean and green Hydrogen from the middle east was strong, but the war has made the demand skyrocket in recent months.”
Hydrogen prices in Europe majorly increased on the back of high gas and power prices; due to the tight supply of oil and gas in Europe, the grey Hydrogen prices almost reached par with low-carbon Hydrogen and no-carbon Hydrogen. British oil and gas company stated that Hydrogen production is a massive market opportunity for them and discussed their plans to improve various production methods to bring production prices down. They have already established several electrolysis plants around their refineries in the UK to improve the production of green Hydrogen to meet the growing demand.
Currently, the demand for green Hydrogen in the global market is high, and in places where the resource for storing Hydrogen is scarce, alternate fuels (fossil fuels) are cheaper than green Hydrogen. According to ChemAnalyst, Hydrogen prices in Europe are expected to continue to increase owing to the energy crisis, and lack of facilities for Hydrogen storage and the rising demand for an alternative greener fuel also drive up the Green Hydrogen prices.