S&P Global Platts has launched a series of UK hydrogen price assessments, ahead of the government’s publication of a Hydrogen Strategy later this year.
On 1 April, it explored three different low carbon production pathways for hydrogen: autothermal reforming (ATR) of natural gas with carbon capture and sequestration (CCS), proton exchange membrane (PEM) electrolysis and alkaline electrolysis. Its project data found 26 low carbon hydrogen projects in development, totalling a potential investment of £6.54bn over the next decade, with it highlighting growing interest from investors, policymakers and energy market participants in hydrogen as a carrier for clean energy.
Its calculated hydrogen prices reflected both the commodity production cost and capital expenditure associated with building a hydrogen facility.
It assumed a plant efficiency rate of 68% for ATR with CCS, a capacity factor of 95% and CO2 capture rate of 95%, with the per kW installed capital cost assumption equating to around £646. As for alkaline electrolysis, it assumed an electrolyser efficiency of 67% and capacity factor of 95%, with the assumed cost equating to £631, while for PEM electrolysis, the electrolyser efficiency was assumed to be 58%, capacity factor of 95% and cost equating to £1,003 per kW installed.