Latest Trends in Hydrogen Pricing
In the quest to attain a more sustainable world and achieve a significant reduction in the number of carbon emissions, hydrogen has become a very vital element. The establishment of a healthy economy through the use of hydrogen as a safer energy source has been something in the works for quite a time there is no doubt that the hydrogen economy has faced a lot of setbacks due to a dearth of investment infrastructure and technology. This has caused there to be several fluctuations in hydrogen pricing across different regions in the world.
The good news is with the advancement of several novelties and technology, there is significant progress that will help Accelerate the hydrogen economy and bring more stability in pricing as the world tries to cut down on the use of fossil fuels by humans and also help boost operations. We take a look at the top trends of hydrogen pricing in this piece.
Hydrogen pricing trends across major regions
Over the third quarter of 2021, the price of hydrogen across the European region experienced an escalation which could be attributed to an increase in the demand for green hydrogen from the electricity market. And as the gas prices were on a regular increase right before the winter set in, there was a whole lot of pressure on the economy, and various energy companies suffered some financial troubles.
In North America, the opposite could be said for the hydrogen pricing as it experienced a drop in price during the second quarter of 2021. Although the efforts to reduce carbon footprint indeed led to an increase in hydrogen demand globally, the decrease in the price of hydrogen during this quarter can be traced to its abundance in availability and also the competition of the North American Market with Saudi Arabia was to get hydrogen and even export at cheaper rates than the United States. This compelled the manufacturers to bring down the prices.
In Asia, there was just an increased demand for natural gas which led to an increase in the price of hydrogen. In a place like India, there was a strong desire for upstream natural gas, especially from the downstream agrochemical Industries due to its scarcity. This caused a major hike in the hydrogen gas price in the third quarter of 2021.
The North American hydrogen market seems to have experienced a variation in sentiments as there were several alterations in the prices due to the influence of the domestic market on demand for this gas. While the prices of green hydrogen continued on a stable note, the prices of gray and brown hydrogen were on the increase.
Undoubtedly the use of hydrogen is enjoying and witnessing great support and is a great chance for the world to make an impact by utilizing three hydrogens to secure a cleaner and more efficient energy system. Hydrogen makes an excellent choice on account of its lightweight and negligible production of greenhouse gasses or all other forms of pollutants. For a significant and successful energy transition, there is a need for various major sectors such as buildings and transport to adopt the clean energy provided by hydrogen. The dynamics affecting the demand and supply of hydrogen gas would be a major contributor to the pricing and the direction of the hydrogen economy market. It is with the hope that as newer technology is employed to make hydrogen gas more available, the years to come will see the affordability of hydrogen gas across various regions, which would further aid the course of attaining sustainability.