The Independent Commodity Intelligence Services (ICIS) provides intelligence to develop a liberalized hydrogen market. Thus, ICIS is launching the first assessments of a renewable hydrogen market in Europe. This decision comes as the European Commission quadruples its targets under the REPowerEU plan.
Hydrogen in Europe
ICIS received the support of the Hydrogen Industry Association in 2021, which welcomed the entry into the “golden age” of hydrogen. Indeed, the commission presented a package of measures of which hydrogen was a pillar. The objective is to reduce carbon dioxide emissions.
The Commission’s strategy foresees investments of up to €500 billion. To unlock these investments, ICIS launched the first evaluations of a hydrogen market. Investors, policy makers and hydrogen industry players need accurate and reliable pricing tools.
Market Assessments
The assessments, made through extensive consultation with energy market players, are highly accurate. Indeed, they reflect the commercial conditions faced by renewable hydrogen projects. As such, they provide participants with the confidence to make strategic investment plans.
The assessments combine CIHI’s energy analysis with long-term power purchase agreement (PPA) price assessments. These power purchase agreements are expected to be the primary means of sourcing renewable energy for hydrogen production. Spanish renewable hydrogen production costs are among the lowest in Europe, at €4.85/kg for wind power.
