Hydrogen Pricing Report

Hydrogen Prices December 2023

The price of hydrogen in the USA increased in the fourth quarter of 2023. The increasing cost of natural gas and the continued investment activity had a considerable impact on the prices. Some local winners also received financing from the US Department of Energy to develop a clean-hydrogen economy. This action broadened the toolkit and influenced hydrogen prices positively. Generally, there were no notable shifts in the price trend during the first and second half of the quarter.

During Q4 of 2023, the price of hydrogen in the Netherlands saw an increase. Growing cooperation and funding in the hydrogen industry had a positive impact on this upward trajectory. The nation has also inked an agreement with Germany and started a number of initiatives to improve hydrogen imports and infrastructure. This action guaranteed a positive market mood and an upward price trend in the fourth quarter.

Hydrogen Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Hydrogen Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, offers an in-depth analysis of hydrogen pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing hydrogen price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Hydrogen Market Analysis

The global hydrogen market size reached US$ 182.8 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 286.9 Billion, at a projected CAGR of 5.10% during 2023-2032.

• The market for hydrogen is impacted by persistent concerns about climate change, which are pushing nations and organizations to concentrate on renewable energy sources in an effort to stop global warming. According to recent research published in the Annual Climate Report 2023 by the National Oceanic and Atmospheric Administration (NOAA), since 1982, the rate of warming has increased three times, to 0.20°C every decade.
• Additionally, government initiatives are helping to expand the hydrogen market. For instance, India in January 2023 approve National Green Hydrogen Mission with an aim to become a leading manufacturer of electrolysers and produce 5 Mt of renewable hydrogen by 2030. Moreover, the European Union (EU) has implemented a hydrogen strategy with an aim to produce 10 million tonnes and import 10 million tonnes of renewable hydrogen in the EU by 2030.
• Technological innovations, such as electrolysis technologies, are presenting new opportunities to commercialize hydrogen production. According to the International Energy Agency’s Global Hydrogen Review 2022, the electrolyzer capacity worldwide will exceed its current value of 35 GW in the mid-2020s and reach 134 GW by 2030 based on current project pipelines.
• The market share is also widening due to heightened product demand in the transportation sector. For instance, First Hydrogen has launched a zero emission vehicle that uses hydrogen and fuel cell technology to provide a range of 600 Km to 1000 Km. Also, this modular electric vehicle (EV) takes less than 10 minutes to refuel.
• Increasing demand for low-emission hydrogen production is expected to drive the market further. The International Energy Agency (IEA) has predicted that if all the announced projects are realized successfully, then the annual production of low-emission hydrogen could reach 38 Mt by 2030.

Hydrogen News

The report covers the latest developments, updates, and trends impacting the global hydrogen market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in hydrogen production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the hydrogen industry:

• In March 2024, Sterling & Wilson partnered with Tecnicas Reunidas to jointly develop a 1 megawatt electric electrolyser in India to produce green hydrogen.
• In April 2023, Linde Plc. and Evonik signed an agreement to establish a 9 megawatt alkaline electrolyzer facility in Singapore to produce green hydrogen.

Product Description

Hydrogen (H2) refers to the simplest, lightest, and most abundant chemical element found in the universe. It is colorless, tasteless, and odorless and exists in gaseous form at standard temperature and pressure conditions. It is also highly reactive and easily forms compounds with numerous elements on the periodic table.

Hydrogen is commercially produced through the steam methane reforming (SMR) process, which involves a reaction between steam and natural gas at high temperatures. Beyond this, it can also be synthesized through electrolysis, coal gasification, partial oxidation, and biomass gasification processes.

It is used in a number of applications, such as fuel cells, energy storage, power generation, chemical synthesis, transportation, heating, pharmaceuticals, and space exploration. Hydrogen is a clean, versatile, and energy-dense product that facilitates economic growth and reduces dependence on fossil fuels.

Regional Coverage

The report provides a detailed analysis of the hydrogen market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Hydrogen Price

The report offers a holistic view of the global hydrogen pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Hydrogen Price

The European hydrogen market witnessed various developments that affected the price of hydrogen. Production and natural gas prices increased in the region, which led to an overall rise in costs and hydrogen prices. Furthermore, the slow pace at which local authorities developed regulatory frameworks contributed to participant negative sentiment and the expectation of a price decline.

This analysis can be extended to include detailed hydrogen price information for a comprehensive list of countries.

North America Hydrogen Price

In Q4 of 2023, the hydrogen market dynamics and price in North America was impacted by the increase in price of natural gas. It led to a spike in the price of hydrogen as well as in overall expenses and product costs. In addition, the region's hydrogen stockpile decreased, which drove up prices even more. Beyond this, the market's sentiment was negatively impacted by the regulatory framework's delayed implementation and rising costs.

Specific data on hydrogen prices within the United States and Canada can also be provided.

Middle East and Africa Hydrogen Price

The analysis of hydrogen prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

In addition to region-wise data, information on hydrogen prices for countries can also be provided.

Asia Pacific Hydrogen Price

Asia Pacific witnessed a fragmented and complex landscape for hydrogen pricing in Q4 of FY23. Various forms of hydrogen have experienced different trends. For example, grey hydrogen price was primarily influenced by gas prices and import dependencies of regional countries. Overall, the region saw an upward trend in hydrogen pricing due to limited green hydrogen production capacity, fluctuating natural gas prices, and high demand from different sectors.

This analysis can be further extended to include detailed hydrogen prices for a comprehensive list of countries within the region.

Latin America Hydrogen Price

The analysis of hydrogen prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of hydrogen pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting hydrogen price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the hydrogen industry.