S&P Global Platts unveiled the world’s first suite of carbon-neutral hydrogen assessments as production of clean fuel becomes popular amid efforts by governments to reduce emissions. The assessments will determine the carbon-neutral value of hydrogen as it leaves plants at key production centers in north-western Europe, the Middle East, Far East Asia, Australia, California and the US Gulf Coast, the commodities intelligence platform. One of the lightest and most abundant elements in the universe, hydrogen is being prioritized across the world as a viable alternative fuel. It comes in various forms including blue, green, and grey. Blue and grey hydrogen are produced using natural gas while green hydrogen is produced using renewable sources. In the Asia-Pacific region, carbon-neutral hydrogen was assessed at $3.45 a kilogram while in the Middle East, it was assessed at $4.05 a kilogram.
The price in the Far East was much higher, at $7.95 a kilogram. In contrast, Platts’ carbon-neutral hydrogen prices in the US were lower than for any other region at $1.70 a kilogram. S&P Global Platts also said the pipeline of new low-carbon hydrogen production projects is expected to be about 12.5 million tonnes by 2030, catering to demand from the power, industrial, chemicals and mobility sectors. The UAE and other countries around the region have formulated plans to introduce hydrogen into the energy mix and tap into the clean fuel’s potential. State entities Adnoc, Mubadala and ADQ formed an alliance this year to develop a hydrogen economy in the UAE. The UAE, which aims to reach net zero by 2050, also plans to invest $160 billion over the next three decades to hasten renewable energy development.