New costs for hydrogen production from coal, additional “green” hydrogen costs and decarbonisation spreads

London, 4 October 2022

Global energy and commodity price reporting agency Argus has launched a suite of new hydrogen cost indicators which shed light on the economics of hydrogen production in the context of carbon capture. The new indicators mean that Argus now publishes over 400 hydrogen costs and prices for key locations around the world.

Hydrogen produced from coal with carbon capture and storage (CCS) can be classified in the “blue” spectrum of the hydrogen colour chart – since it is produced from fossil fuels but with CO2 capture. Argus assigns a carbon intensity to all production routes in its models, including for coal gasification. A classification based on the amount of CO2 generated in producing hydrogen is extremely helpful to companies examining different hydrogen extraction options. As major coal exporters like Indonesia embrace CCS technology, such data become a vital piece of the puzzle.
A key policy priority is to decarbonise existing “grey” hydrogen facilities which make hydrogen from natural gas. These plants constitute the overwhelming majority of current facilities, and are a significant source of CO2 emissions. To reflect the costs involved in reducing emissions from these facilities, Argus has now launched marginal costs for hydrogen production from steam methane reforming facilities where a CCS system has been retrofitted.
Understanding the cost of producing hydrogen by various routes is important to any industry considering a switch to decarbonised hydrogen. Argus has therefore also introduced hydrogen decarbonisation spreads showing the differences in cost between production methods with varying degrees of carbon intensity and at different locations.
Argus has also begun publishing additional “green” hydrogen costs for hydrogen extracted in dedicated renewables facilities and connected electrolysers. It has added Brazil, China, India, Qatar, South Africa, Saudi Arabia and the UAE to the list of locations captured in its reports. 

“As momentum for the hydrogen industry continues to build, we are committed to providing new insights and transparency to help industries’ transition to net zero,” Argus Media chairman and chief executive Adrian Binks said.

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Argus is the leading independent provider of market intelligence to the global energy and commodity markets. We offer essential price assessments, news, analytics, consulting services, data science tools and industry conferences to illuminate complex and opaque commodity markets.

Headquartered in London with 1,300 staff, Argus is an independent media organisation with 29 offices in the world’s principal commodity trading hubs.

Companies, trading firms and governments in 160 countries around the world trust Argus data to make decisions, analyse situations, manage risk, facilitate trading and long-term planning. Argus prices are used as trusted benchmarks around the world for pricing transportation, commodities and energy.

Founded in 1970, Argus remains a privately held UK-registered company owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.

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