Grey hydrogen costs have risen
Low-carbon hydrogen prices close to parity with grey
ICIS price assessments show high carbon prices caused blue hydrogen premiums over grey to narrow in 2021
The price of low-carbon hydrogen for delivery in 2024 is close to parity with grey hydrogen in Europe due to the recent spike in carbon prices, according to analysis by price reporting agency ICIS. Over the course of 2021, front-month prices for Dutch hydrogen produced using unabated steam methane reforming (SMR); SMR with carbon capture and storage (CCS); and authothermal reforming (ATR) of natural gas with CCS all rose to five times their previous value. Hydrogen produced using SMR with CCS rose to the highest level—hitting €8.93/kg ($10.1/kg) on 17 December. Front-month prices were much lower in 2020, partly due to lower gas and carbon prices and partly due a Covid-induced demand slump. T
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