What is Hydrogen Trading?

In recent times, there has been a growing interest in hydrogen trading. In fact, so many people are asking the question, will hydrogen become the most actively traded commodities in the next decade? This article takes a detailed look hydrogen trading, what the market looks like at the moment, challenges, and prospects. Read on to find out more.

Why the growing interest in hydrogen trading?

Before now, solar and wind energy dominated the renewable energy discussions and round tables. However, hydrogen trading is now emerging as a major component of the world’s renewable energy mix. This is why exchanges are already pushing for new prices, while utilities, oil producers, and trading houses are engaged in projects and building teams that discuss the market structure. 

In fact, figures from the International Energy Agency depict that global low-carbon hydrogen production increased from 0.04 million tonnes in 2010 to 0.36 million tonnes in 2019. It is even expected to reach a whopping sum of 1.45 million tonnes in 2023. 

Furthermore, figures from the US Department of Energy show a drastic fall in hydrogen power cost from $6kg-1 in 2015 to as low as $2kg-1 by 2025. Other factors that have spurred a growing interest in hydrogen trading include the following: 

  • Hydrogen complements intermittent renewable energy sources: Hydrogen provides a flexible electricity balancing system required by high shares of intermittent renewables. In addition, hydrogen has great use in energy storage, promising to be the lowest cost option for storing electricity over days, weeks, and even months. 
  • Hydrogen is versatile: The fact that hydrogen is versatile is no longer news. Today’s various technologies make it easy for hydrogen to store, produce, move, and use energy in various ways. A lot of fuels can produce hydrogen, including natural gas, coal, nuclear, renewables, and oil. Hydrogen can be transported as a gas through a pipeline or by ships while in liquid form. It can also be transformed into electricity that is used to power homes and feeds the industry. 
  • Hydrogen enables renewables to provide greater contribution: In addition. Hydrogen has the potential to help with a variable output from renewables like solar photovoltaics and winds. 
  • Hydrogen can be used widely: At the moment, hydrogen is used widely in oil refining and the production of fertilizers. Besides, it has also been adopted in so many sectors where it is completely absent at the moment. Such sectors include transport, power generation, and building. 

What are the challenges of hydrogen trading?

While hydrogen trading offers versatility that attracts a lot of interest from companies and governments, there are still so many challenges that must be dealt with if this business will reach its full potential in the future. Some of these challenges include the high costs, transportation, scaling up of production and the slow development of hydrogen infrastructures which is holding back its widespread adoption. Furthermore, hydrogen use must be expanded into other sectors that include chemicals, refining, power generation, transport, building, and many more.


Hydrogen offers so many benefits to the economy. It use helps to provide a solution to so many energy challenges. Hydrogen also offers an amazing way to decarbonize a range of sectors and lead to the total overhauling of the transport, chemical, iron, and steel sector. Furthermore, hydrogen also helps to improve air quality and strengthen energy security. Due to this and many more, hydrogen trading has become a major attraction for investors and companies looking to tap from its wide potentials. However, some regulations limit the development of the clean hydrogen industry and this is currently affecting the growth of hydrogen trading. This challenge and those listed above must be appropriately addressed. In addition, governments and industries must work together to ensure existing regulations do not become a barrier to the growth of hydrogen trading.